🔥How a Currency Dies

Earliest cause at the top

1. 1

   Prices rise as the new money chases the same goods

   The first round looks like ordinary inflation
2. 2

   The government cannot fund itself by tax or borrowing

   Lenders refuse, and the tax base is too small or too damaged
3. 3

   Real tax revenue collapses, widening the original gap

   Taxes are assessed today and paid in money worth less tomorrow
4. 4

   People spend it the moment they receive it

   Holding cash for a week is now a guaranteed loss
5. 5

   It finances the gap by issuing currency

   The central bank buys the debt nobody else will
6. 6

   Faster spending drives prices up further

   The same stock of money now does far more work — velocity is the accelerant