Not only CAN it happen here ..... it already is !
"When officials of the Federal Reserve System speak in vague and lofty terms about “quantitative easing,” what they are talking about is creating more money out of thin air, as the Federal Reserve is authorized to do — and has been doing in recent years, to the tune of tens of billions of dollars a month. [$85 BILLION each and every month !]
When the federal government spends far beyond the tax revenues it has, it gets the extra money by selling bonds. The Federal Reserve has become the biggest buyer of these bonds, since it costs them nothing to create more money.
This new money buys just as much as the money you sacrificed to save for years. More money in circulation, without a corresponding increase in output, means rising prices. Although the numbers in your bank book may remain the same, part of the purchasing power of your money is transferred to the government. Is that really different from what Cyprus has done?" [Thomas Sowell]
The money you have stashed away, or receive as a pension remains a fixed amount, a fixed portion of an ever increasing pool of dollars. Because there is no increase in the volume of output already being produced (goods and services) the printing of more money simply means their are more dollars chasing the same amount of goods and services. This is called INFLATION. It has been going on forever, but under THIS ADMINISTRATION has reached disastrous levels. [clipper]