There is no limit to the value of the paper money that the Bureau of Engraving and Printing prints, as it will just add more 0's to each piece of paper to make up whatever total value is needed.
And of course we now have computerized accounts, which Weimar did not. It's easy to add 0's to a computerized account. Like the Y2000 worry about using 2digit years instead of 4 digit years, the banks will need some time to allow for account levels in the billions and trillions on their reports, but it won't be an insurmountable problem.
When paper becomes insufficient to the need, credit cards will still work, and still make change for $500.
The limit is no longer in the physical banknote, be it Euros or Dollars.
Okay, a few things.
To start off with, the causes of inflation and hyperinflation are different. Hyperinflation only comes about with shortage and unchecked commodities speculation.
But the US has abundant, even overabundant commodities, even in times that we call shortage. Surpluses kill hyperinflation by killing speculation. When currency becomes unstable, abundance in most anything can become an alternative currency. Then Gresham’s law comes into effect.
I suggested why printing larger denominations won’t work as because nobody could make change, but it is also dependent on quantities of physical, not virtual currency, which technically, right now is 95% *deflated*, whereas virtual money is “even”.
And as you said, virtual money just exists on computers. But there are a whole bunch of bad things that could shut those computers down, or disconnect them from the people who theoretically have money in virtual accounts.
For example, while credit card companies are profitable, there is no way they can underwrite the hundreds of billions of dollars of users credit. So they have to issue bonds, regarded as the next safest to government bonds.
However, the credit card companies are thrown into a panic when one of these bond issues fails, as happened a year or two ago. They had to cancel hundreds of thousands of underused cards to reduce their exposure. It is estimated that if five of these bond issues fail in a row, the cc companies are bust.
No credit or debit cards for anyone. The millions of people who “live a month ahead” on credit are instantly unable to pay rent or buy groceries. Just one example.
A second is both that the law has been changed so that banks, on their own, can declare a bank holiday for up to two weeks, even for demand accounts. During the depression, some government ordered bank holidays lasted from 3 to 300 days. You could have a million dollars in the bank and you couldn’t get to it, withdraw it, or use bank checks.
Add to this in the last few weeks a shocking federal court decision that if a financial institution used your money for collateral to get themselves a loan, then lost that loan money, the first call on *your* money (or its FDIC replacement) is the other bank that gave them that loan. And you have no recourse, because you just became another of your bank’s creditors. In line behind that other bank.
But the simplest way virtual money becomes worthless is that retailers just decide to refuse to accept it. No checks, credit or debit, only cash. Because only physical money is legal tender. They *must* take it in exchange for debts, so they can insist on it. Virtual money is not legal tender, and that’s all the difference in the world.
The bottom line is that the only money you can trust, you own physically, where no one else can get their grubby hands on it. It is also very fungible, so you can use it quickly if inflation does happen.
The home safe business is booming right now.