we were informed a few weeks ago that UBS was laying off 10,000 employees...I think we now understand why.
It’s possible to live day to day in the midst of hyperinflation with constantly escalating prices that change even on the hour. This occurred during the Weimar Republic, even before the advent of computers and internet.
But it still severely restricts the scope of economic complexity.
REV 6:6 Then I heard what sounded like a voice among the four living creatures, saying, “A quart of wheat for a day’s wages, and three quarts of barley for a day’s wages, and do not damage the oil and the wine!”
True, but what is the purpose of inflation if everyone gets prior notice? The entire purpose of inflation is for government to be able to use it as a stealth tax, usually to fund wars or massive welfare state. If not for that, there is no other reason to debase the currency.
Inflation isn’t the worst thing about inflation. Historically, wages catch up pretty quick to rising prices. The problem is interest rates. The rate of interest needs to be higher than the rate of inflation or nobody will loan money, purchase bonds, or buy U.S. treasuries. 20 percent inflation means 22 or 23 percent interest rates - which would wipe out the bond market, batter stocks, kill what’s left of the real estate market, and make current U.S. treasury notes worthless. It will be a huge catastrophe.
Glad I dumped these bozos
Who or what is UBS?