Over the last ten years hyperinflation has wiped out the Venezuelan currency, reducing it to 1/40 billionth of what it once was, and for years now I've been wondering, aren't we in danger of heading in the same direction? Isn't it just a matter of math that if our governments keep printing more money, that money will be worth less – if they double it, shouldn't each bill end up being worth half as much?
And if that's so, what with Western governments' stimulus handouts, quantitative easing, and COVID emergency spending, why haven't we become Venezuela already?
That's the lead question that Pastor Douglas asks financial manager David Bahnsen in Mis-inflation. It's a series of back-and-forth emails, with Wilson the interviewer, and Bahnsen (son of Reformed presuppositional apologist Greg Bahnsen), giving his best replies. The short answer is, that we probably don't need to worry about Venezuelan-type hyperinflation (and, consequently, don't need to start buying gold), but stagnating like Japan is a real danger.
More important still was a connection made between economic worries and the Parable of the Talents. The unfaithful servant fearfully buried his talent, but we are called, even in economic downturns, to take what God has given us and seek a return on it to His glory.
Now, if economics is not your interest, this will be a tough read - it took me about three chapters to begin to understand what Bahnsen was explaining (though Wilson's questions did help unpack Bahnsen's answers). However, if you are interested, this has some helpful answers that don't seem readily available anywhere else, which makes it worth the effort!