Crazy. 2.2 Million Percent. Back in 84 the Zimbabwe currency was worth more than 1 U.S. dollar. I guess wheelbarrows of cash just won’t cut it anymore. http://afp.google.com/article/ALeqM5iwO8ulLEw44J2r8nVOVWI1H-iz9A
So, anyone want to guess how this story will end? Presumably, people will stop using cash and revert to bartering (if they have not done so already). What next? What does the German hyperinflationary period in the 1920s tell us will happen? I would have liked to study this (but never did).
Etienne Wrote: ------------------------------------------------------- > So, anyone want to guess how this story will end? > Presumably, people will stop using cash and revert > to bartering (if they have not done so already). > What next? > > What does the German hyperinflationary period in > the 1920s tell us will happen? I would have liked > to study this (but never did). You should look at the hungarian hyperinflationary period…higher than the german one! The rate of inflation was 4.19 quintillion (4.19 x 1018) percent Check on wiki… http://en.wikipedia.org/wiki/Hyperinflation
if all or most of your networth is in fiat money, you are certainly taking on an inordinate amount of risk. Imagine going to 7-11 to by a bag of white bread and a can of soup, only to be told the cost is $12500 (or more)! You go for a big mac and it costs $10,000!! Your salary is the same, what do you do? Trade your couch for a big mac? Good, but then what do you trade?
How will this one end. With the current political turmoil and strained fractioning of the power sharing agreement currently in place, coupled with a seasoned dictator who has suggested that he will not leave. I think if the MDC can gain the support of the mobilized military vets, the police or the military then I see civil war. As much I hope that it can be avoided, I don’t see any other viable option at the moment (save for the death of Mugabe). As for the Zimbabwe dollar, once the above has been sorted out they will just release another currency like they have done three times in the last couple of years. It can be the new, new Zimbabwe dollar.
Bring back farley013!!!
Etienne Wrote: ------------------------------------------------------- > So, anyone want to guess how this story will end? > Presumably, people will stop using cash and revert > to bartering (if they have not done so already). > What next? > > What does the German hyperinflationary period in > the 1920s tell us will happen? I would have liked > to study this (but never did). gold doesnt work in such super hyperinflation. here’s a great read on this topic http://www.amazon.com/Dying-Money-Lessons-American-Inflations/dp/0914688014 whiskey and cigarettes were better stores of value and accepted media of exchange during this period.
They should create a 700,000,000,000.00 Zimbabwe dollar with Paulson’s face on it.
many people have resorted to using the US$ and the rand. They have recently licenced shops and gas stations to sell stuff in hard currency to improve availabilty.
is there a way to get one of these bills in the U.S.? I would like to have a Z$100B note framed.
It would be pretty hard to get a hold of one - with the current rate of inflation there holding Z$ is worse than holding CDOs. Only way I can think is from somebody who has traveled there lately - if you were a currency changer would you hold the currency.
This is probably a stupid question, but if someone could have forseen all this happening, what could they have done to profit from it? (i.e. shorting the currency?)
strangedays Wrote: ------------------------------------------------------- > Etienne Wrote: > -------------------------------------------------- > ----- > > So, anyone want to guess how this story will > end? > > Presumably, people will stop using cash and > revert > > to bartering (if they have not done so already). > > > What next? > > > > What does the German hyperinflationary period > in > > the 1920s tell us will happen? I would have > liked > > to study this (but never did). > > > You should look at the hungarian hyperinflationary > period…higher than the german one! > The rate of inflation was 4.19 quintillion (4.19 x > 1018) percent > > Check on wiki… > http://en.wikipedia.org/wiki/Hyperinflation Pretty incredible! That’s a big number.
What can you buy in 100 Billion Zim $?
ElJefe Find a Zimbabwean discussion board online, hop on and offer to mail US$20 to someone who will send you Z$100 billion. Or get it on eBay http://cgi.ebay.com/ZIMBABWE-100-billion-dollar-UNC-NEW-rare_W0QQitemZ270283465480QQcmdZViewItem?hash=item270283465480&_trkparms=72%3A1156|39%3A1|66%3A2|65%3A12|240%3A1308&_trksid=p3286.c0.m14
You cant buy much with the Z$100 Billion dollar note. The official inflation rate currently stands at 12 Million %. The actual inflation rate is estimated to be way above that. And wait for it the exchange rate to the US$ is 1: 7 Quadrillion (old currency).
Not sure if Giesecke & Devrient is a publicly listed company in Germany,but I guess it would be a great buy. Its supplies currency notes to the Zimbabwean central bank. Buying a stake in KBA-Giori/De la Rue Giori would be fantastic as well. They own 90% of the world’s currency printing business.wonderful monopoly to have.