Posted on 06/12/2015 9:00:55 AM PDT by Citizen Zed
From next Monday Zimbabweans with have their mental arithmetic simplified for them with the news some zeros are coming off the currency.
Quite a lot of zeros. No less than 16, as the federal reserve attempts to end funny money by offering one new Zimbabwe dollar in exchange for 35 quadrillion old ones.
However the real hyperinflation rate is in fact worse. The money being replaced was only issued in 2008, when the exchange rate was one for 10 billion. The real hyperinflation rate has 25 zeroes attached.
This is now hyperinflation an elderly German would recognise, with all its attendant risks.
Since 2009 the dollar and other foreign currencies have been vital for Zimbabwe to remain afloat as confidence in the local currency and government’s economic policy of continually printing money has collapsed.
From being a nation of multi-billionaires Zimbabweans will be much poorer from next week; but then most people knew that already.
Coming sooner or later to a former English speaking former super power near you.
Lol
DemocRats look longingly at Zimbabwe where everyone is a trillionaire.
i wonder which Presidents picture will be on that bill??
Zimbabwe exchanges 250,000,000,000,000 local dollars for US$1
Already happening. From 1800 to 1913 the inflation rate was -20%. From 1913 to present is is over 2700%. The difference is the US is so huge and much of the world uses its currency as a reserve.
Gee, there was no starvation when the white Europeans ran the farms. What happened? /sarcasm
This probably should have been posted in News rather than Chat
The sad thing is the Zimbabwe government will still just print more money and inflate it too.
offering one new Zimbabwe dollar in exchange for 35 quadrillion old ones///
they must have awfully big wallets there.
actually, we could quote our debt as a percentage of a quadrillion. that is heartbreaking.
News / Chat. What difference does it make really?
Their paper money is worth more on eBay.
But why quibble about such technicalities when the head of state is the right color and has an advanced degree from a prestigious big name university?
Eheh,mincrease minimum wage... What a joke, everything costs 1 trillion more. Time to buy a little piece of crop land.
They already are earing their own. Now Zimbabwe and a host of African nations complain their illegals are getting beat in South Africa by ANC blacks. They call it Xenophobia... cuz it cannot be racism if it is black. What a joke.
http://www.issafrica.org/events/xenophobia-in-south-africa-myths-and-realities
I suppose this is how we could solve our debt problem.... What is 18 trillion of debt when I earn 18 trillion an hour...
Hate to be picayune, but there are 15 zeros in a quadrillion, not 16. But who’s counting! Besides at 18 trillion and counting, what difference at this point does it make! :-)
I’ve been concerned about how ‘quantitative easing’ would affect US inflation. So maybe this is a good point of comparison?
Zimbabwe inflation “quantitative easing”
[A way to bypass the ‘buy gold’ crowd as well as the ‘bullish on Obama-nomics’ creeps]
Printing money the way Weimar/Zimbabwe did would be an obvious bubble — economic suicide.
But ...
I suspect that ‘quantitative easing’ has currency traders baffled, at least for now. So far there is no perception of any humungous US money supply that will cause any ‘massive bubble bursts’ in the near future.
It’s all smoke and mirrors of course. Self-forgiveness of debt? Ludicrous, but apparently ‘slick’ enough to confuse investors for a while since they WANT to be snake-charmed into optimism.
But if the currency traders were to abruptly feel doubts about the US money supply, then who knows what might happen?
Boy... Obama would love to do that...but I think Monopoly money would be more valuable than the Zimbabwean dollar...
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