$200,000 ain't worth what it used to be

The Big Ragu · Jul 31, 2007

http://news.bbc.co.uk/2/hi/business/6924062.stm

Zimbabwe is to start circulating a new 200,000 Zimbabwe dollar note, in a bid to tackle the country's inflation, the highest in the world.

The new note, issued by the Reserve Bank of Zimbabwe from Wednesday, can buy 1kg (2.2lb) of sugar.

Food and fuel shortages have become common as the government relies more heavily on imports, pushing prices to new heights.

The official annual rate of inflation in Zimbabwe is nearing 5,000%.

In practice, this means the price of a loaf of bread costs 50 times more in cash than it did a year ago.

Shortages

The new note is worth US$13 at the official exchange rate or $1 on the black market.
Click to expand...

I don't mean to make light of food shortages and runaway inflation that bad. But wow.

Football_Bat · Jul 31, 2007

My Econ 101 professor told the story of when he was in Argentina on vacation, and the minute he paid his cab driver, the driver got out of his cab and ran across the sreet to a store to buy a can of beans. Because the can of beans held more value than the currency.

expendable · Jul 31, 2007

The Big Ragu said:

http://news.bbc.co.uk/2/hi/business/6924062.stm

Zimbabwe is to start circulating a new 200,000 Zimbabwe dollar note, in a bid to tackle the country's inflation, the highest in the world.

The new note, issued by the Reserve Bank of Zimbabwe from Wednesday, can buy 1kg (2.2lb) of sugar.

Food and fuel shortages have become common as the government relies more heavily on imports, pushing prices to new heights.

The official annual rate of inflation in Zimbabwe is nearing 5,000%.

In practice, this means the price of a loaf of bread costs 50 times more in cash than it did a year ago.

Shortages

The new note is worth US$13 at the official exchange rate or $1 on the black market.
Click to expand...

I don't mean to make light of food shortages and runaway inflation that bad. But wow.
Click to expand...

Gheesh, and that's against what is our weak dollar.

Birdscribe · Jul 31, 2007

Welcome to Weimar Germany, circa 1923.

I've got a half-billion mark note from that time frame that couldn't have bought the aforementioned can of beans.

That hyperinflation was one of the springboards that lifted Hitler into power. Of course Zimbabwe already has its megalomaniac dictator in place. So let's see what economic atrocities the government trots out to match it's other atrocities.

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$200,000 ain't worth what it used to be

The Big Ragu Moderator Staff Member

Football_Bat Well-Known Member

expendable Well-Known Member

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$200,000 ain't worth what it used to be

The Big Ragu Moderator Staff Member

Football_Bat Well-Known Member

expendable Well-Known Member

Birdscribe Active Member

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