Global Hyperinflation Histories
- Part II
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Global Hyperinflation Histories
|Part 1|Part 2|Hyperinflation History - Hyperinflation is a dread of economists, a transformation for investors, an unworthy concern of central bankers, and a disaster for the unprepared. Why?
3 – Hyperinflation Histories? -14) Greece, Rome, and the United States are not alone in pool of hyperinflation history, numerous nations have completely exploded from currency crisis. 15) Suppose we look into some of subjects of the currency explosion – excerpted from Born to Die: Rising from the Explosion of the Global Financial Time Bomb: 1. Zimbabwe - “I…live in Zimbabwe. If you ever needed a case study on the effects of money printing, which lead to inflation, price controls and empty shelves, Zimbabwe 2002 to 2008 would be a good one…[and] most of the people didn't realize they were getting robbed of their savings and pensions until [they were] worth nothing.” - Says a subscriber to a newsletter from Silver-Investor.com As of Nov 17, 2008, Zimbabwe’s annual inflation rate was 89,700,000,000,000,000,000,000% or 89.7 sextillion percent. At this time, prices in Zimbabwe were doubling every five days. Zimbabwean banknotes have been used to paper walls in the cities and to
create billboards.
During a presentation discussing the possible profits of investing in numismatic gold coins, the presenter showed a picture of three eggs laid atop of a 100 billion banknote from the Reserve Bank of Zimbabwe and said that each egg cost 33 billion notes. Zimbabwe holds the record for the banknote issued with the largest number of zeros printed on it, at 14 or a 100,000,000,000,000 (100t) Zimi note.” 2. Examples of Countries who have Floated Away during Hyperinflation (1910-2010): 1 – Angola 2 - Argentina 3 - Austria 4 – Belarus 5 – Bolivia 6 – Bosnia and Herzegovina/Republika Sprska 7 – Brazil 8 – Bulgaria 9 – Chile 10 – China 11 – Free City of Danzig 12 – Georgia 13 – Greece 14 – Hungary 15 – Israel 16 – Japan 17 – Krajina 18 – Madagascar 19 – Mozambique 20 – Nicaragua 21 – Peru 22 – Philippines 23 – Poland 24 – Romania 25 – Russian Federation 26 – Taiwan 27 – Ukraine 28 – Yugoslavia 29 – Zaire/Democratic Republic of Congo 30 - Zimbabwe 3. Brazil -
(Brazil Inflation) Brasil Inflacao – 1950-1997 -
5. Hungary -“Post-WWII Hungary holds the all-time record for hyperinflation. In1946, the Hungarian money supply hyperinflated at a rate of 41,900,000,000,000,000% or 41.9 quadrillion percent, per month.In 1946, prices in Hungary doubled every 13 hours and quadrupled nearly every day. In 1946, which is not too long ago, the Hungarian National Bank set the record for the largest denomination banknote ever officially issued for circulation by issuing the 100,000,000,000,000,000,000 pengo or the 100 quintillion pengo, also known as the 100 million billion pengo or szazmillio billio pengo in Hungarian.”
Largest Denomination Banknote in History – 100 Million Billion Pengo
- Hungary – 1946 -
6. Germany - “During WWI, the Weimar Republic was taking their turn printing off bales of currency, however, because of the chaotic times, people were saving their currency. Since people were not spending their currency, no one could see the effects of inflation. Once the war ended and people began consuming again, the effects of unrestrained printing began to show. By the end of 1923, thirty-three printing plants in Germany were printing a total 500 quadrillion marks every single day. During these times, you could purchase a full city block in downtown Berlin for only 25oz of gold. Today, October 12, 2010 at 10:52 PM, gold is $1358.23/oz, meaning you could purchase a city block of downtown Weimar real estate for $34,000 and back then, for $533.”
Weimar Republic (Germany) – Hyperinflation
– 'X' Paper Marks (=) One Gold Mark (0.36g of gold) – 1918-1923 -
7. “Within the one hundred years between 1910 and 2010 at least thirty-three countries have experienced hyperinflation. A few of the highest denomination (number value) bank notes issued during this period of hyperinflation were the 10 million Dinara note of Republika Srpska in 1993, the 180 million Yuan note of China in 1948 and the 10 billion Mark note of the Free City of Danzig in 1923.As we learned earlier, when too much currency is created, the currency is Born to Die because it devalues itself and thereby approaches self-destruction.” 8. Greece did not wholly shake its inflation illness from ancient days and has caught the sickness again. Greece has resorted to changing its currency at least 3 times – creating a new currency that is equal to a multiples of the previous one. Said another way – (1) create an over abundance of currency, (2) currency experiences hyperinflationary death, (3) currency experiences rebirth, (4) one increment of new currency is equal to multiple increments of previous currency.
4 – Moving Forward -16) Hyperinflation history seems to have quite a stake in global financial history. Indeed, as discussed in Everybody's Guide to Economics by John Kenneth Galbraith, it seems that to a notable extent - monetary history is hyperinflation history and global inflation crisis is a cyclical occurrence. 17) Indeed, currency explosion is apparently quite comfortable with global finance and may be continuing to visit societies around the globe. 18) Global hyperinflation histories and its child - global inflation crisis - form yet another component of the GFC. On behalf of The Global FC Zone, Crisis to Profit. Roth
Sources - 1) Barrons, Roth E. Born to Die: Rising from the Explosion of the Global Financial Time Bomb. 2) http://www.wikipedia.org 3) Maloney, Mike. Guide to Investing in Gold and Silver. 4) http://www.silver-investor.com 5) Griffin, G. Edward. The Creature from Jekyll Island. 6) http://www.bbc.co.uk 7) Walker, David. I.O.U.S.A.
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