What will we use for transactions?
The specter of inflation has been on the horizon for many years. The current recession is creating temporary deflation, as buying power is eroded. However, some signs that inflation might be starting are beginning to show.
If the overwhelming US debt and other factors result in hyperinflation, what will Americans use for transactions? Will there be a replacement currency? Will people barter? A Connecticut newspaper examines examples of commercial mechanisms in historical scenarios where currency was not the standard means of transactions.
The economic decline in Australia is already resulting in increased barter transactions, with 30,000 Australian small to medium-sized businesses expecting to put through at least $700 million in cashless trading this year.
