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Twitter Founder Warns ‘Hyperinflation’ Will Strike In America Soon

by : Poppy Bilderbeck on : 25 Oct 2021 17:40
Twitter Founder Warns 'Hyperinflation' Will Strike In America SoonAlamy

Twitter CEO Jack Dorsey has taken to the social media platform to warn followers that ‘hyperinflation’ is set to hit the United States soon.

On Saturday, October 23, Dorsey, who also runs mobile payment company Square, tweeted that hyperinflation ‘is going to change everything’ and is ‘happening’.

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Dorsey’s prediction that everyday goods will rise in price excessively during a small period of time follows news of the US economy having been badly impacted by a crisis in its supply chain.

The 44-year-old, who has 5.8 million followers on Twitter, sparked a series of questions from concerned followers, to which he predicted that hyperinflation would not just ‘happen in the US soon’, but also the rest of the world.

Jack Dorsey Predicts Hyperinflation in the US - Alamy Alamy

All across the US, businesses have been struggling as a result of ports having experienced a backlog for shipping, the Daily Mail reports.

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The backlog has caused customers to spend more money and panic-buy products, however the increased demand has been impossible for businesses to keep up with.

The Port of Los Angeles has been one of the worst-hit ports, and has seen colossal numbers of shipping containers unable to be offloaded due to trucks not arriving in time, and causing subsequent jams. The port is also the main site for more than half of shipping containers that arrive in the US.

Since 2011, the rate of inflation has averaged at around 2% each year, whereas in the past 12 months the percentage has increased to 5.4%. In comparison, hyperinflation tends to see a monthly rise of 50%.

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Inflation measures the monthly price rise of items, compared to hyperinflation, which calculates the daily increase.

Dorsey’s warning via Twitter subsequently comes off the back of inflation occurring in the US, rather than hyperinflation.

Despite Dorsey’s anticipation of hyperinflation occurring, it is reportedly unusual for it to happen unless a supply shock, war or uprising takes place.

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However, the rate of inflation has risen contrary to experts’ predictions – by 0.4% rather than 0.3% – which has left a seemingly irreparable impact on the future, according to Bob Doll, chief investment officer at Crossmark Global Investments.

Products such as beef, lettuce and milk have all inflated in price from September 2020 to September 2021, with gasoline, hotels and used cars having risen the most dramatically.

Doll stated:

Food and energy are more variable, but that’s where the problem is. Hopefully, we start solving our supply shortage problem. But when the dust settles, the inflation is not going back to zero to 2 [percent] where it was for the last decade.

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Jack Dorsey Predicts US Hyperinflation - Alamy Alamy

Contrary to Dorsey’s prediction, Secretary of the Treasury Janet Yellen believes that the US aren’t ‘about the lose control of inflation’.

She told CNN that while she agrees the US is ‘going through a period of inflation that’s higher than Americans have seen in a long time’, that it hasn’t ‘lost control’.

Conflicting with Doll’s interpretation, Yellen thinks that by the ‘middle to end of next year – second half of next year’ a ‘normal’ rate of about 2% inflation will be possible for the US to achieve.

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Topics: News, Economy, finance, Jack Dorsey, Now, Twitter

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Daily Mail
  1. Daily Mail

    Twitter founder Jack Dorsey warns 'hyperinflation' will strike in America soon to 'change everything' as rates are set to remain high into next year