In countries that are experiencing hyperinflation, what happens to credit card limits?
I don’t know, but did anyone catch Jim Puplava and company’s forecast of hypeinflation state side by 2010?? Time to max the VISA on Thai hookers and Jagermeisters before the s*** hits the fan?
What’s the relevance of credit card limits in the face of hyperinflation?
That’s a pretty funny question. In hyperinflation, there is usually no debt available thus no credit cards. In Weimar, people were paid sometimes hourly and purchased food and other essentials immediately.
Hezagenius, Next time you go to Zimbabwe, let me know. I think that country has a few more important things to worry about than making sure your credit limit is linked to inflation.
What is the best protection from hyperinflation! obvious answers: (1) owe money (2) buy non-cyclical, staple companies that owe lots of money (3) gold, oil, commodities
moving!
I wasn’t trying to make light of the situation in that country. For those taking this too seriously, it was a joke. Sort of. I am curious as to what happens to the credit limits when the economy stabilizes itself. Do people still have a $100 billion limit on their cards? Here’s another joke. What is the difference between a US dollar and a Zimbabwe dollar? A US dollar.
virginCFAhooker Wrote: ------------------------------------------------------- > What is the best protection from hyperinflation! > > obvious answers: > > (1) owe money > (2) buy non-cyclical, staple companies that owe > lots of money > (3) gold, oil, commodities
Most of the time, countries with extended hyperinflation don’t have credit cards, and whatever cards actually are used are denominated in a more stable currency. That used to be the dollar, but then Giselle Bunda-Tchan refused to be paid in dollars and so we’re all stiffed now. 
Trvia, anyone know the highest rate of hyperinflation?>
1920s Germany ?
Mexico or Argentina come to mind as recent examples?
I know in Brazil and Argentina, it got so bad that prices changed *hourly*. I think I saw figures like 2500% per month in the late 1980s. When I lived there it was more like 50% per month, which was definitely considered “moderate” by their standards, though the establishment still got a lot of flack for it. The real frustration was stagnant growth plus hyperinflation (admittedly, these often go together). I’m not sure how bad it got in Weimar Germany.
dont know in Germany, i just remember from high school social studies it was pretty bad
Hungarian Pengo after WWII http://en.wikipedia.org/wiki/Hungarian_pengo The Hungarian economy could only be stabilized by the introduction of a new currency, and so, on 1 August 1946, the forint was introduced at a rate of 400 000 000 000 000 000 000 000 000 000 or 4×1029 (short scale: four hundred octillion; long scale: four hundred quadrilliard) pengõ. The adópengõ was replaced at a rate of two hundred million to the forint (hence the 2×1021 ratio, mentioned above). The exchange rate for the US dollar was set at 11.74 forints.
lop lop lop lop off the zeros
Actually, I remember that some of the currency notes I used actually came with some of the zeros substantially smaller than the others. That way when they did a currency revision that essentially lopped of the zeros, you didn’t have to change the notes, you just ignored the smaller zeros. The other interesting thing was that the currency notes changed so frequently to accommodate hyperinflation, that people would actually design the notes in a kind of thematic series, and you’d learn about some of the history and culture of different aspects of the country. Sort of like the quarters in the US that commemorate a state on the back, except that every new state would be “the expensive note” that you hoped you wouldn’t have in your pocket when you’re mugged, and then, a month or two later, it would be the one you’re paying the bus fare with, and some new state, animal, or theme would be “the expensive one.”
bchadwick Wrote: ------------------------------------------------------- > Actually, I remember that some of the currency > notes I used actually came with some of the zeros > substantially smaller than the others. That way > when they did a currency revision that essentially > lopped of the zeros, you didn’t have to change the > notes, you just ignored the smaller zeros. > > The other interesting thing was that the currency > notes changed so frequently to accommodate > hyperinflation, that people would actually design > the notes in a kind of thematic series, and you’d > learn about some of the history and culture of > different aspects of the country. Sort of like > the quarters in the US that commemorate a state on > the back, except that every new state would be > “the expensive note” that you hoped you wouldn’t > have in your pocket when you’re mugged, and then, > a month or two later, it would be the one you’re > paying the bus fare with, and some new state, > animal, or theme would be “the expensive one.” so can we expect Ralph Nader on the 2012 $1,000,000,000 and Lyndon LaRoche on the 2013 $1,000,000,000,000 notes? {Insert Smiley Face}
Nader would certainly kick ass as fed chairman!