IPFS News Link • European Union
Greece Enters Its Crack-Up Boom Phase - When Fridges Become Money
• http://www.zerohedge.com, Submitted by John RubinoConsumers respond by front-running the government, spending their paychecks immediately in order to convert their soon-to-be-less-valuable money into real things. Merchants, not happy about the sudden influx of suspect currency (and sensing the panic of their customers) hold out for ever-higher prices, causing inflation to spike. But it's a special kind of inflation, driven not by a sudden increase in the money supply but by collapsing confidence among holders of the currency.
In a very short time, so goes the theory, the supply of stuff available for purchase dries up, prices hyperinflate, and the economy collapses.