Zimbabwe is at 2.2 million percent inflation and knocking zeros off

[hotbrownsauce]

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/30/AR2008073003007.html

ZIMBABWE

Bank Devalues Currency

Zimbabwe will drop 10 zeros from its hyperinflated currency -- turning 10 billion dollars into one -- the country's reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses attempt to profiteer from the country's economic and political unraveling.

Central bank governor Gideon Gono said new money would be launched Friday with 500-dollar bills and with coins, which have been obsolete for years.

Inflation in Zimbabwe is officially at 2.2 million percent, but independent economists say it's closer to 12.5 million percent.

[Conza88]

Ok... what the ---k.. lol

I get it.. but I don't know what the exact consequences will be...

Well I do.. same shit is going to keep happening.. but; wth making 10billion - $1? :confused:

Fark it..

[FindLiberty]

Gee, I used to think that there was a limit to the rate of inflation due to the maximum processing speed of computers required to add all those trailing zeros, even if scientific notation is used to indicate the huge ever expanding numbers involved. Paper fiat money will soon be out of the question due to its short life span, weight and the volume required for everyday cash transactions. Any linkage back to gold will eventually need to be measured in atoms.

I still predict that we will soon see a new pastel pink $500 or $1,000,000 denomination USD or Amero fiat note featuring an oversize portrait of King Obama and a holographic rainbow.

All this makes the existence of our new "low copper" penny seem kind of silly in an attempt to reduce the perception of "inflation".

[Truth Warrior]

"Those that do not learn from history are condemned to repeat it." ;)

[Flash]

I should buy one of those 100 billion dollar bills while they're still around.

[Kludge]

Keynesian economics calls for a creeping inflation, no more then 5% to best redistribute wealth while encouraging gov't growth. Fed manipulation and terrible monetary policy by Greenspan and Bernanke may have us a tad over 5%.

Our congressmen are generally arrogant and stupid, not ignorant... I doubt I'll ever see more then 15% inflation in my life here.

[Bruno]

Gee, I used to think that there was a limit to the rate of inflation due to the maximum processing speed of computers required to add all those trailing zeros, even if scientific notation is used to indicate the huge ever expanding numbers involved. Paper fiat money will soon be out of the question due to its short life span, weight and the volume required for everyday cash transactions. Any linkage back to gold will eventually need to be measured in atoms.

I still predict that we will soon see a new pastel pink $500 or $1,000,000 denomination USD or Amero fiat note featuring an oversize portrait of King Obama and a holographic rainbow.

All this makes the existence of our new "low copper" penny seem kind of silly in an attempt to reduce the perception of "inflation".

I just threw up in my mouth a little. Yuck!

[Conza88]

Our congressmen are generally arrogant and stupid, not ignorant... I doubt I'll ever see more then 15% inflation in my life here.

Hahaha... It's practically already that.

Don't tell me you believe the government numbers... :confused:

I wonder what M3 is... and how much the real supply of money has gone up in just this year alone... AHHhh helllo... maybe more than 15%? :eek:

Ohh yea, they stopped reporting the M3... wonder why.. :confused:

[Kludge]

Don't tell me you believe the government numbers... :confused:

Sure I do. They can't just leave the number unaccounted for - it'd be inviting disaster because eventually, they'd have to acknowledge that either the standard of living is dropping dramatically and America is unproductive or that America is suddenly in an incredible depression.

Wall Street will correct the government if they don't do it themselves, and those capitalist-minded fellows are ruthless and unforgiving.

Until I see numbers from a source I know to be independent (i.e. NOT from libertarians/conservatives with something to prove) I trust the gov't numbers. For now, the market is correcting the Fed-made monetary bubble.

[Bruno]

Hahaha... It's practically already that.

Don't tell me you believe the government numbers... :confused:

I wonder what M3 is... and how much the real supply of money has gone up in just this year alone... AHHhh helllo... maybe more than 15%? :eek:

Ohh yea, they stopped reporting the M3... wonder why.. :confused:


I remember a hearing in spring in which Paul questioned Bernanke on not reporting the M3 anymore. The insinuation was that the M3 wasn't being reported because too much money had been created and the numbers would be too telling.

[Conza88]

Sure I do. They can't just leave the number unaccounted for - it'd be inviting disaster because eventually, they'd have to acknowledge that either the standard of living is dropping dramatically and America is unproductive or that America is suddenly in an incredible depression.

Wall Street will correct the government if they don't do it themselves, and those capitalist-minded fellows are ruthless and unforgiving.

Until I see numbers from a source I know to be independent (i.e. NOT from libertarians/conservatives with something to prove) I trust the gov't numbers. For now, the market is correcting the Fed-made monetary bubble.

WELL... sorry to burst YOUR bubble.. But guess what... those wannabe capitalists on wall street are paying money to get the real numbers.

Kludge are you really this ignorant on this stuff? You believe the govt numbers? :confused: You're not actually pretending to be a retard?

Cus total loss of respect if thats the case. I thought you were switched on. :confused:

Henry Blodget and Aaron Task had an interesting dialogue about Gross on Yahoo!’s Tech Ticker: (http://finance.yahoo.com/tech-ticker/article/23878/Bill-Gross:-Lies,-Damn-Lies-and-Government-Inflation-Data)

Henry Blodget: You are not going to believe this, but your government is lying to you; and it’s not Scott McClellan and George Bush. This is, in fact, the inflation numbers. And now we have Bill Gross at Pimco basically coming out–incredibly esteemed bond manager; has written about it before; but now it’s a front burner issue–saying the inflation numbers that we’re focusing on are a joke.

[Conza88]

I remember a hearing in spring in which Paul questioned Bernanke on not reporting the M3 anymore. The insinuation was that the M3 wasn't being reported because too much money had been created and the numbers would be too telling.

You're spot on as to why it's not being reported.... but Bernanke didn't give that reason.

It was alone the lines of 'it costs too much to calculate'...

:D .. coming from an org that prints cash out of thin air... lol.. :rolleyes:

http://www.house.gov/paul/press/press2006/pr021506.htm

Paul Questions Bernanke on M3, Inflation
February 15, 2006

Washington, DC: Congressman Ron Paul of Texas today questioned new Federal Reserve Chairman Ben Bernanke before the House Financial Services committee. Paul continued his longtime criticism of Fed policies, focusing on whether the relentless increase in the money supply that took place during Alan Greenspan’s tenure will continue.

Mr. Bernanke has pledged to bring increased transparency to Federal Reserve policymaking, but the recent Fed decision to discontinue compiling and releasing the M3 monetary aggregate figure casts doubt on this promise. M3 is widely used by economists, policy makers, and investors as the most accurate and reliable true measure of the money supply.

Paul, known as a congressional expert on monetary policy, reminded Mr. Bernanke that inflation is always a monetary phenomenon, resulting from an increase in the money supply as ordered by the Fed itself. M3 has risen more than twice as fast as M2 and GDP in recent years, illustrating that real inflation is much higher than the government admits through its CPI statistics. The troubling possibility is that the Fed discontinued M3 for the simple reason that it wants to conceal the extent to which the money supply- and hence price inflation- really grows.

Paul is preparing legislation that will compel the Fed to continue publishing M3, and plans to introduce the bill in the Financial Services committee later this month.

[acptulsa]

There was a wag in The South during the Civil War who once said, "I used to take my money to market in my pocket and bring my purchases home in a basket. Now I take my money to market in the basket and bring my purchases home in my pocket."

Wish I knew his name. He deserves credit for this one, I think...

[Truth Warrior]

There was a wag in The South during the Civil War who once said, "I used to take my money to market in my pocket and bring my purchases home in a basket. Now I take my money to market in the basket and bring my purchases home in my pocket."

Wish I knew his name. He deserves credit for this one, I think...
google it? ;)

[Kludge]

WELL... sorry to burst YOUR bubble.. But guess what... those wannabe capitalists on wall street are paying money to get the real numbers.

Kludge are you really this ignorant on this stuff? You believe the govt numbers? :confused: You're not actually pretending to be a retard?

Cus total loss of respect if thats the case. I thought you were switched on.

I believe in their numbers until the market proves them wrong. As of yet, it hasn't.

[acptulsa]

I believe in their numbers until the market proves them wrong. As of yet, it hasn't.

Federal inflation numbers leave out food and energy and you believe them? Unemployment numbers leave out unemployed people whose benefits have run out and you believe them?

[Conza88]

Federal inflation numbers leave out food and energy and you believe them? Unemployment numbers leave out unemployed people whose benefits have run out and you believe them?

Whats even more humorous/sad is he thinks, that the market is some how FREE to fulfill it's role. Pretty sure... you ain't got a free market.. right? Or does the FED bailing out everyone left right and centre not mean much to you? :rolleyes:

Why does this even need to be discussed? :confused:

[Kludge]

Federal inflation numbers leave out food and energy and you believe them? Unemployment numbers leave out unemployed people whose benefits have run out and you believe them?

I wasn't aware the federal CPI market basket doesn't include food and energy. As for unemployment, I'm not aware of someone who has had that happen who was actively searching for a job and agree with leaving out those who have not found a job in so long a time.

[AutoDas]

They did the exact same thing two years ago and it didn't help then.

[Fox McCloud]

www.shadowstats.com is a good place for real inflation rates--no way in hell is the government even remotely telling the truth when it comes to inflation--how can the market prove them wrong when it basically trusts the government?

Either way, it started in the Evil and Maniacal Days of Terror Under Greenspan (EMDTUG) that M3 was ignored since it, as I recall him saying "doesn't fit our current models"...so it should be of no surprise that M3 isn't being reported anymore.

[muh_roads]

I should buy one of those 100 billion dollar bills while they're still around.

lol

Don't worry, I don't think they are going anywhere.

[Bruno]

www.shadowstats.com is a good place for real inflation rates--no way in hell is the government even remotely telling the truth when it comes to inflation--how can the market prove them wrong when it basically trusts the government?

Either way, it started in the Evil and Maniacal Days of Terror Under Greenspan (EMDTUG) that M3 was ignored since it, as I recall him saying "doesn't fit our current models"...so it should be of no surprise that M3 isn't being reported anymore.

There's a lot of good educational reading on that site. Thanks for sharing it.

[Pauls' Revere]

Here's more...

Just what the hell is America doing to influence The World Bank to clear Zimbabwe of it's 1.2 BILLION debt?

Anyone have any info/ideas?

http://allafrica.com/stories/200812230116.html

From Article:

We were prepared to use American influence to negotiate with the World Bank and the International Monetary Fund to clear the $1.2 billion Zimbabwe debt, but now we are no longer prepared to do that," Frazer told AFP.

Frazer is our assistant Sec of State for African Affairs.

[heavenlyboy34]

"Those that do not learn from history are condemned to repeat it." ;)

Indeed, sensei. ;)

[sam9657]

Sure I do. They can't just leave the number unaccounted for - it'd be inviting disaster because eventually, they'd have to acknowledge that either the standard of living is dropping dramatically and America is unproductive or that America is suddenly in an incredible depression.

Wall Street will correct the government if they don't do it themselves, and those capitalist-minded fellows are ruthless and unforgiving.

Until I see numbers from a source I know to be independent (i.e. NOT from libertarians/conservatives with something to prove) I trust the gov't numbers. For now, the market is correcting the Fed-made monetary bubble.

ROFL, this is one of the funniest posts I have read on the forums. You made my day.

[BlackTerrel]

Africa wouldn't be in the hole they are if Westerners hadn't screwed it up. It's going to take a lot to turn it around. The West should pay reperations to Africa just like the Nazi's paid reperations to the Jews.

There's a reason every single African country is messed up.

[Chosen]

Mexico did this very thing a few years back-1993-when the peso was in Zimbabwe status. They lopped off a few zeros. However, this was a preliminary step to NAFTA, the US and Canada absorbed a great deal of their debt and conned the imf for a great deal more. Taxpayers have essentially been paying for Mexico's currency debacle ever since.

Zimbabwe could easily just switch to a greenback system, but they don't have the intellectual infrastructure to make that transition.


Reparations? This would mean that various African nations would have to pay reparations to one another, it was a continent screwed up long before Europeans arrived. Sure there were discrepancies, but this is what happens when someone from the pre-Industrial age meets someone in the Stone Age, exploitation was bound to occur. For the Europeans who obtained slaves, there was already a slave selling infrastructure in place, the African slave dealers just found a new market.

The Western world has poured trillions of dollars into Africa over a long period of time, it doesn't help. Pooring money into corruption just foments it. A cultural change has to take place, but when this has been attempted it has been labeled racist and Western colonialism. Besides, many African nations are still tribal economies and structures. Giving them Western money will do nothing to stop ethnic violence and murder.

Take AIDS for example. This spread has nothing to do with the West, it mostly has to do with cultural practices. Non use of condoms, in South Africa it is rape which accounts for a large portion of disease spreading. Some South Afrcans have raped infants, claiming that the act would remove their HIV infection. Money from reparations would not change something like this. People are responsible for themselves is the point here...

BTW, Nazi's never paid reparation to the Jews, some German companies did.

[The_Orlonater]

Oh, Zimbabwe. :D

[The_Orlonater]

BTW, Nazi's never paid reparation to the Jews, some German companies did.

I heard Germany gave like 6 billion to Isreal.

I wonder why people are still paying for this crap?

[ThePieSwindler]

I should buy one of those 100 billion dollar bills while they're still around.

At less than a penny, youll have to overpay if you want one.

[BlackTerrel]

Mexico did this very thing a few years back-1993-when the peso was in Zimbabwe status. They lopped off a few zeros. However, this was a preliminary step to NAFTA, the US and Canada absorbed a great deal of their debt and conned the imf for a great deal more. Taxpayers have essentially been paying for Mexico's currency debacle ever since.

Zimbabwe could easily just switch to a greenback system, but they don't have the intellectual infrastructure to make that transition.


Reparations? This would mean that various African nations would have to pay reparations to one another, it was a continent screwed up long before Europeans arrived. Sure there were discrepancies, but this is what happens when someone from the pre-Industrial age meets someone in the Stone Age, exploitation was bound to occur. For the Europeans who obtained slaves, there was already a slave selling infrastructure in place, the African slave dealers just found a new market.

The Western world has poured trillions of dollars into Africa over a long period of time, it doesn't help. Pooring money into corruption just foments it. A cultural change has to take place, but when this has been attempted it has been labeled racist and Western colonialism. Besides, many African nations are still tribal economies and structures. Giving them Western money will do nothing to stop ethnic violence and murder.

Take AIDS for example. This spread has nothing to do with the West, it mostly has to do with cultural practices. Non use of condoms, in South Africa it is rape which accounts for a large portion of disease spreading. Some South Afrcans have raped infants, claiming that the act would remove their HIV infection. Money from reparations would not change something like this. People are responsible for themselves is the point here...

BTW, Nazi's never paid reparation to the Jews, some German companies did.

You can sugar coat it all you want but going into a country, taking out millions of there most fit individuals and enslaving them. Taking resources, pitting one against the other, ruling for a while then just pulling out and say your hands are clean doesn't work. Pretty much every single poorest nation on earth is in Africa, excluding maybe Egypt which isn't black and never had their citizens sold as slaves. It's not a coincidence.

I don't think throwing money at it is necesarily the solution, but the West caused it and it's their duty to fix it.

[Fox McCloud]

I don't think throwing money at it is necesarily the solution, but the West caused it and it's their duty to fix it.

http://www.spiegel.de/international/spiegel/0,1518,363663,00.html

the IMF doesn't help out either.

the best thing we could do is pull out of the IMF and stop funding it...that'd put a dent into it, then stop giving them money.

that won't solve all the problems, as some of Africa's problems are self-generated, but it'd certainly help.