r0b0r0b
I'm a Multi-Billionaire!
Inflation is an increase in money supply, which causes a decrease in the purchasing power of the currency and consequently a rise in the price of goods and services.
In 1980, 1 Zimbabwe dollar converted to about 1.59 U.S. dollars. Since that time, Magabe has allowed the Zimbabwe Reserve Bank to create money at will (inflationary). Current estimates put Zimbabwe's annual inflation rate at 89.7 sextillion percent. That's an 89.7 followed by 21 zeroes. It is estimated that the price of goods and services doubles every 15.6 hours.
In March of 2008, a dinner cost $1.2 billion (receipt, waiter carrying away tray of money) in Zimbabwe. On July 19, 2008 the Zimbabwe Reserve bank introduced a $100 billion bank note. That is what is pictured here. Eleven days after issuance of this note, the Zimbabwe Reserve bank redenominated the Zimbabwe dollar such that $10 billion would become $1. They essentially removed 10 zeroes. Therefore, this note is only worth about $10 now.
As of this moment 1 U.S. dollar would convert to 15,602 Zimbabwe dollars after the redenomination. Had the Zimbabwe dollar not been redenominated, 1 U.S. dollar would convert to 156 quadrillion Zimbabwe dollars.
************************************************************
You have probably noticed that the U.S. economy is struggling; the price of goods and services are going up, people are losing their jobs and homes, small and large businesses are going bankrupt-- we are experiencing stagflation. Now ask yourself this. What has the U.S. government's 'solution' been?
The answer is inflation. The Federal Reserve Bank is creating more money for banker bailouts, auto bailouts, income tax rebate checks, etc. The Fed is lower lending rates again a la Alan Greenspan, whom was the catalyst for this bubble in the first place. The U.S. spends $1 trillion on defense-related purposes. The U.S. is $10 trillion in debt. The U.S. owes $60 trillion in entitlements. The U.S. borrows money from other countries in exchange for Treasury Bonds, and if foreign countries stop buying U.S. dollars and starts spending their reserves in the U.S., Americans will see the price of everything sky rocket.
Inflation is evil. It is created by the Federal Reserve Bank. And it cannot be fixed with more inflation. Zimbabwe is a very recent example of this and yet the U.S. is following the same slippery path to economic destruction.
I'm a Multi-Billionaire!
Inflation is an increase in money supply, which causes a decrease in the purchasing power of the currency and consequently a rise in the price of goods and services.
In 1980, 1 Zimbabwe dollar converted to about 1.59 U.S. dollars. Since that time, Magabe has allowed the Zimbabwe Reserve Bank to create money at will (inflationary). Current estimates put Zimbabwe's annual inflation rate at 89.7 sextillion percent. That's an 89.7 followed by 21 zeroes. It is estimated that the price of goods and services doubles every 15.6 hours.
In March of 2008, a dinner cost $1.2 billion (receipt, waiter carrying away tray of money) in Zimbabwe. On July 19, 2008 the Zimbabwe Reserve bank introduced a $100 billion bank note. That is what is pictured here. Eleven days after issuance of this note, the Zimbabwe Reserve bank redenominated the Zimbabwe dollar such that $10 billion would become $1. They essentially removed 10 zeroes. Therefore, this note is only worth about $10 now.
As of this moment 1 U.S. dollar would convert to 15,602 Zimbabwe dollars after the redenomination. Had the Zimbabwe dollar not been redenominated, 1 U.S. dollar would convert to 156 quadrillion Zimbabwe dollars.
************************************************************
You have probably noticed that the U.S. economy is struggling; the price of goods and services are going up, people are losing their jobs and homes, small and large businesses are going bankrupt-- we are experiencing stagflation. Now ask yourself this. What has the U.S. government's 'solution' been?
The answer is inflation. The Federal Reserve Bank is creating more money for banker bailouts, auto bailouts, income tax rebate checks, etc. The Fed is lower lending rates again a la Alan Greenspan, whom was the catalyst for this bubble in the first place. The U.S. spends $1 trillion on defense-related purposes. The U.S. is $10 trillion in debt. The U.S. owes $60 trillion in entitlements. The U.S. borrows money from other countries in exchange for Treasury Bonds, and if foreign countries stop buying U.S. dollars and starts spending their reserves in the U.S., Americans will see the price of everything sky rocket.
Inflation is evil. It is created by the Federal Reserve Bank. And it cannot be fixed with more inflation. Zimbabwe is a very recent example of this and yet the U.S. is following the same slippery path to economic destruction.