Jack Dorsey, the CEO of Square and Twitter, has cautioned that hyperinflation is on the cards for the United States and the rest of the world. “Hyperinflation is going to change everything. It’s happening, ” he claimed. Many individuals did not agree with him. Jack issued his statement concerning hyperinflation in the US last Friday.
His tweet was swamped with responses. It has received more than seven thousand comments, retweeted 22.9K times, and liked 70.1K times at the time of writing this article. Dorsey added in a follow-up post that it will happen soon in the US and therefore, around the rest of the world. It’s one thing to advocate for higher inflation, but it may come as a surprise to some that Jack used the term “hyperinflation,” a state in which prices rise at a breakneck pace, destroying currencies and bringing entire economies down.
Paul Tudor Jones, a billionaire businessman, and many others have advocated for a time of increasing inflation. Jones said earlier this week on CNBC that he owns bitcoin and considers it a solid inflation hedge.
The Twitter CEO’s statement came as the retail price inflation rate in the United States approached a high in 30 years, raising fears that the crisis could be much worse than officials anticipated. Jerome Powell, the Chairman of the Federal Reserve, admitted on Friday that inflationary pressures are probable to endure longer than originally anticipated, may be well into next year.
However, many individuals did not agree with the Twitter CEO’s prediction that hyperinflation will occur in the United States. “In the United States, hyperinflation is not happening”, said Patrick Horan, program manager for Monetary Policy at George Mason University.
“What’s happening is higher inflation, not hyperinflation (except in Venezuela). It’s too bad that Twitter doesn’t allow Jack to edit his tweet”, said Lawrence White, an economics professor at the same university.
Daniel Drezner, a lecturer at Tufts University’s Fletcher School, claimed to have lived through intense hyperinflation in the 1990s in Ukraine and that this is not the same situation.
There have been sixty two confirmed hyperinflations in global history, according to analyst Steve Hanke, a bitcoin critic who professes himself to be an expert on hyperinflation & inflation. He also claimed that no country is currently facing hyperinflation.
The Consumer Price Index, a widely used measure of inflation in the United States, increased 0.4 percent last month, according to the Bureau of Labor Statistics. Bloomberg polled economists, and the median expectation was for a 0.3 percent increase. Supply constraints have harmed the US economy, causing concern among firms and consumers. Americans have resumed purchasing more things after a period of restraint during the Delta variant boom. They are, in fact, spending more than they have in the past. Large order backlogs and shipping crescendos at key ports, on the other hand, have prevented corporations from matching supply with increasing consumer need and all of this could be the reason for Dorsey’s tweet.