When Inflation Wipes out a Country's Currency...
- Thread starter zghorner
- Start date
Inflation isn't something that "just happens" to a currency.
Inflation is orchestrated destruction by government.
those are rubbish.
inflation causes rubbish to be build up and
authority is not putting resources to dispose of it.
My friend has a photo album of notes from Zimbabwe in his years there before he moved to the UK. Ends up in the billions. Said people would walk around with wheelbarrows full.
"It is impossible to know in advance which group will be favored by a definite inflationary or deflationary measure and to what extent. These effects depend on the whole complex of the market data involved. They also depend largely on the speed of the inflationary or deflationary movements and may be completely reversed with the progress of these movements. 3. At any rate, a monetary expansion results in misinvestment of capital and overconsumption. It leaves the nation as a whole poorer, not richer. These problems are dealt with in Chapter 20. 4. Continued inflation must finally end in the crack-up boom, the complete breakdown of the currency system. 5. Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous." Ludwig Von Mises
I have a framed $100 trillion and $50 trillion Zimbabwe note over my desk. Reminds me daily what can happen.