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The Chip Board Archive 19

Re: Want to see what the effects of the stimulus p

The Zimbabwean Dollar is the most recent example of fiat currency that become pretty much worthless. Through government corruption and the misuse of their funds. The Zimbabwe government could no longer pay back IMF funds it had borrowed so the government decided to print more Zimbabwean Dollars to help pay off debts. The result was too many dollars with no solid backing to keep it from hyperinflating. Today, it takes billions and trillions of Zimbabwean Dollars to purchase anything of value. Presently, many of its citizens are resorting to the "Black Market" to trade for goods and services. The result is chaos in the financial and business sector and increased poverty among its citizens. Many people are also using other currencies to purchase goods and services but this is very difficult to acquire. The Zimbabwean economy is a total wreck!

The country of Argentina also experienced a period of hyperinflation in the early 1980's. This period caused governmental and civil unrest in the country. Several attempts were made to handle hyperinflation - from increasing the numbers on the currency to starting new currencies with the offer of exchanging millions of the old inflated currency to one new currency. Also pegging the peso to the U.S. dollar was also attempted. The late 1980's and the 1990's continued with economic unrest. Today in the twenty-first century, although hyperinflation is somewhat held at bay, Argentina's economy still suffers and is very unstable at best. It remains the most unstable currency in South America.

The Pre-WWII German Marks or Deutsche Marks are another example of Fiat Currency that went awry. During the time between WWI and WWII the German economy went bust. The economy had considerable debt to pay for World War I and the amount of gold to stabilize the currency and pay for debts quickly dwindled and created instability with the German commerce. The wealthy class did not want to pay any taxes or pay any more than the minimum. The poor people preferred that the taxes fall on the wealthy - especially those that started the First World War. Others expressed that everyone should share the burden. The result was the government didn't do anything so the economy began to wane, unemployment rose, the government printed more money to pay debts, and hyperinflation consumed the entire German economic system until it finally collapsed! The collapse wiped out the middle and upper middle class finances in Germany. Other nearby countries whose economy were not tied to the Gold Standard also decayed until sound money - hard currency - was set to maintain a new and stable economy.

The next country experiencing trouble in the economy that could lead to hyperinflation is the United States of America. With recent economic bubbles popping, banks failing, corruption in both U.S. governmental and banking bailouts the United States as well as the entire world is affected by these economic shakeups. The massive amounts of dollars being flooded into the economy most likely will have a inflationary impact on the economy. Too many dollars into the system could result in hyperinflation and the complete collapse of the dollar!

Messages In This Thread

NCR, Banking.....
Comments....
Regarding Gold...
World gold production
Re: World gold production
Wow - South African production
Re: Comments....
Awesome
Want to see what the effects of the stimulus pkg
Re: Want to see what the effects of the stimulus p
Well said

Copyright 2022 David Spragg