Wednesday, July 23, 2008


Pic courtesy of the BBC news story below.

So you've probably heard about Zimbabwe printing Z$100B, Z$250B, and Z$500B notes... and that Z$100B will only buy you about two loaves of bread, right? (After only starting to publish the Z$10M note in January... inflation is that bad)

Well, if you haven't, here's the fun story about how high they are worried about going, stating that they are not talking about their daily money consumption in the trillions of dollars.

They've even started discussing the concern over using larger denominations -- quadrillions, septillions, etc. etc.

Of course, these are the historical examples they use to show that other people have been through this before:

In Yugoslavia, for example, the rate of inflation was five quadrillion per cent between October 1993 and January 1994. The government was forced to issue a 500 billion dinar note in 1993.

In Germany after World War I, prices were doubling about every two days and workers were paid daily or more often with bundles of cash. The highest value banknote issued by the Reichsbank had a face value of 100 trillion marks.

These are not, perhaps, the best examples to use.

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