Zimbabwe unveils $100 trillion banknote.

arnisador

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Zimbabwe unveils $100 trillion banknote


Zimbabwe unveiled a 100 trillion dollar note Friday in the latest grim measure of its staggering economic collapse

The new 100,000,000,000,000 Zim-dollar bill would have been worth about 300 US dollars (225 euros) at Thursday's exchange rate on the informal market, where most currency trading now takes place, but the value of the local currency erodes dramatically every day.


The move came just one week after the bank released a series of billion-dollar notes, which already are not worth enough for workers to withdraw their monthly salaries.


Inflation was last reported at 231 million percent in July, but the Washington think-tank Cato Institute has estimated it now at 89.7 sextillion percent -- a figure expressed with 21 zeroes.

For those who think the U.S. is in bad economic shape...it can be much, much worse.
 

Makalakumu

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Please, people, look at how Zimbabwe got that way. If we inflate our currency to a point where the rest of the world rejects US treasury bonds, we will see trillion dollar notes. And that's not hyperbole.
 

terryl965

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Well all I know is grocerys keep going up and finally my diet is on because I cannot afford to buy hem anymore.
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arnisador

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Zimbabwe needs instead to unveil a new government without Robert Mugabe and his killers in it.

That's an essential first step, but they have deeper problems than that--poverty, lack of education in the populace, land distribution, and a legacy of decades of mistreatment by the govt. and racial mistrust.
 

grydth

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You're 'right on the money' (sorry). This type of hyper inflation has been seen before, such as in Germany 1923, and it is always symptomatic of deep and multiple socio-economic problems.

One would hope that a post Mugabe government would reach out for - and receive - the emergency aid to address these issues. Rebuilding must follow.
 

Makalakumu

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Financial institutions that use the US dollar as a base currency have leveraged 1.14 x 10^15 in derivatives. This number is a quadrillion, I beleive. As this mess unravels because of the mortgage crisis, this money is either destroyed or monetized. The bursting of this bubble would put billion dollar notes in circulation without having all of the social problems that Zimbabwe has. This kind of leverage and greed is sheer madness.

http://www.gold-eagle.com/editorials_08/demeritt061608.html
 

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