What Is Hyperinflation? Twitter CEO Jack Dorsey Says ‘It’ll Happen In The US Soon’

Twitter CEO Jack Dorsey has warned that hyperinflation will change “everything” and it will be experienced in the United States soon, and across the world. His warning comes following Federal Reserve Chairman Jerome Powell’s admission that inflation pressures may last longer than initially expected by economists.

Hyperinflation is an economics term wherein high and rapid increases in prices last for a period of time. While faster inflation has been mentioned by some economists over the years, hyperinflation is not always used as it speaks of a more serious increase in prices that could affect currencies.

In a tweet, Dorsey, who is also the CEO and co-founder of debit and credit card processing platform Square, said “hyperinflation is going to change everything. It’s happening.” Dorsey further responded to user comments on his tweet, noting that hyperinflation “will happen in the U.S. soon, and so the world.”

Dorsey’s comments come after Powell admitted that inflation pressures in the country “are likely to last longer than previously expected,” CNBC reported.

Powell further noted that inflation-related issues could last “well into next year.” Furthermore, consumer prices increased more than expected in September, as driven by surging food and furniture costs, as well as rent.

Recent warnings on inflation have also put bitcoin conversations in the spotlight. Dorsey, who is a bitcoin advocate, has said that Square is mulling the possibility of mining bitcoins. The financial services startup owns some of the cryptocurrency and has been facilitating bitcoin trade.

However, economics editor of Bloomberg Businessweek, Peter L. Coy, wrote earlier this year that fears of hyperinflation were “meme economics” despite warnings from economists and politicians. “Fear of inflation – if not outright hyperinflation – helps explain the meteoric rise of Bitcoin,” the article explained, adding that such fears are “behind distrust of the Fed. And it feeds congressional opposition to President Biden’s $1.9 trillion pandemic relief plan.”

Meanwhile, Gita Gopinath, the Chief Economist of the International Monetary Fund (IMF), said the group projects that inflation pressures “will remain until sometime in the middle of next year.”

Speaking with CBS’s “Face of the Nation” host Margaret Brennan, Gopinath further explained that due to supply chain issues fueled by pandemic woes, the U.S. may see “more normal levels of inflation towards the end of next year.” Gopinath acknowledged that it will take time before inflation levels become normal.

In July, President Joe Biden said it was “highly unlikely” that the country will experience long-term inflation. His dismissive comment came as companies such as Harley-Davidson, General Mills, Unilever, and Whirlpool announced price increases on certain products due to inflation pressures.

The Consumer Price Index increased by 5.4% last month from a year earlier, the New York Times reported. The figure also represents an acceleration from a CPI increase of 5.3% in August.