For the double speakedly challenged

[Andy83]

Subj: Fw: Explained
This cuts thru all the political double speak we get.

Lesson # 1:

* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $14,271,000,000,000
* Recent budget cuts: $ 38,500,000,000

Let's now remove 8 zeros and pretend it's a household budget:

* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $142,710
* Total budget cuts so far: $38.50

Got It ?????

[Testiclaw]

Comparing the national budget to a household budget is ridiculously retarded.

For one, the government is the monopoly issuer of a fiat currency. That changes everything.

[Andy83]

If you run your life like the national budget, you sir are ridiculously retarded.

[Testiclaw]

You're right, because none of us are the sole issuers of a fiat currency, using that as our continued example.

Which is why I don't run my budget like a national budget. It's why nobody here runs their household budget like the national budget.

Comparing the two, however, which only one of us is doing, is fucking retarded.

[Andy83]

Who here knows what the fuck flat currency means? If you do, you must be overwhelmingly gifted...not!

[Kazuya Mishima]

You're right, because none of us are the sole issuers of a fiat currency, using that as our continued example.

Which is why I don't run my budget like a national budget. It's why nobody here runs their household budget like the national budget.

Comparing the two, however, which only one of us is doing, is fucking retarded.

Simmer down, Paul Krugman.

The only reason our "monopoly" of printing our particular fiat currency gives us any economic advantage is the fact that the US dollar has been (and continues to be) the world economy's reserve currency. For the first time, major emerging economies (particularly China) are supporting a movement away from the dollar as the worlds reserve currency. It may not happen in my lifetime, but it will happen eventually, and that changes everything. Once it does, the fiat currency monopoly trump card goes out the window, Andy's numbers become perfectly relevant, and we are all true and goodly fucked.

[Testiclaw]

Andy's numbers become perfectly relevant, and we are all true and goodly fucked.

It would take a lot more than that for Andy's numbers to become relevant. But trying to explain anything on this board that falls beyond "niggers and crossfit" is a lost cause.

[Kazuya Mishima]

Andy's numbers become perfectly relevant, and we are all true and goodly fucked.

It would take a lot more than that for Andy's numbers to become relevant. But trying to explain anything on this board that falls beyond "niggers and crossfit" is a lost cause.

It's a wonder why you stay...

[Kazuya Mishima]

Andy's numbers become perfectly relevant, and we are all true and goodly fucked.

It would take a lot more than that for Andy's numbers to become relevant. But trying to explain anything on this board that falls beyond "niggers and crossfit" is a lost cause.

It's a wonder why you stay...

[Andy83]

Andy's numbers become perfectly relevant, and we are all true and goodly fucked.

It would take a lot more than that for Andy's numbers to become relevant. But trying to explain anything on this board that falls beyond "niggers and crossfit" is a lost cause.

So let's get this straight. Are you saying you're the smartest person around here? And that the way the national budget is being run is OK? That nothing can be done about it? That you're advocating for Harry Reid et al? Looking for a job with Barack Obama and his crew or what the fuck?

[Kazuya Mishima]

Andy, you need to calm down, my friend.

We have a $15 trillion deficit.

$100 trillion in unfunded obligations.

Almost half of our debt is held by entities outside our national borders.

None of that really matters because we can just PRINT MOAR MUNNY according to the Testiclaw Institute of Macroeconomic Study and Nigger Sympathy.

[Andy83]

Thanx Kaz. My brain has been damaged periodically over the years but not so much that I don't remember what money people have been saying since the Ponzi scams set in motion by the FDR people of the 40's have been saying, that continued taxation increases will eventually make our money worthless and will crush this nation. The time is near. Critical mass is happening.

[WildGorillaMan]

On the personal finances side, we can take a lesson from how many countries, especially in the Eurozone function:

If you owe the bank a million dollars, you're fucked.

If you owe the bank a billion dollars, they're fucked.

[dead man walking]

if mitt romney would just pay taxes at the same rate as the rest of us, our problems would be solved.

[Andy83]

if mitt romney would just pay taxes at the same rate as the rest of us, our problems would be solved.

You be a funny guy DMW!

[dead man walking]

i just want to make sure the fat govt checks keep arriving at your squatter's lodgings in detroit.

[Testiclaw]

It's a wonder why you stay...

I'm in charge of putting together the list of resistors for the DHS, to be rounded up when Chairman Obama declares martial law in Novem- hey look, a nigger!

Are you saying you're the smartest person around here?

Yes, clearly. That is precisely what I am saying. (??)

And that the way the national budget is being run is OK?

Yes, this is exactly what I said. (??)

That nothing can be done about it?

Yep, nothing. NOTHING. (??)

That you're advocating for Harry Reid et al?

Yes, clearly my posts show that I am for Team Harry. (??)

Looking for a job with Barack Obama and his crew or what the fuck?

Yes, exactly. I hope that, while cruising the IGX Free Speech forum, Obama notices me and welcomes me into his dictatorship. (??)

...

I mean, dude, how are we supposed to believe that you have valuable understanding regarding fiscal budgets and monetary policy when you can't even successfully comprehend a forum post by a guy that's named after testicles?

None of that really matters because we can just PRINT MOAR MUNNY according to the Testiclaw Institute of Macroeconomic Study and Nigger Sympathy.

Because clearly, as mentioned, pointing out that household budgets aren't a good analogy for national fiscal policy means I think we should just run the presses.

Jesus Titty-Fucking Christ, this is exactly what I'm talking about.

[johno]

Comparing the national budget to a household budget is ridiculously retarded.

For one, the government is the monopoly issuer of a fiat currency. That changes everything.

Well then, explain your statement. How does being a monopoly issuer of currency change everything?

[Testiclaw]

Do you not know what a fiat currency is?

[johno]

Do you always answer a question with a question?

[Andy83]

Comparing the national budget to a household budget is ridiculously retarded.

For one, the government is the monopoly issuer of a fiat currency. That changes everything.

Well then, explain your statement. How does being a monopoly issuer of currency change everything?

I hope you will understand him, Johno. I can't because I'm ridiculously retarded.

[Testiclaw]

Do you always answer a question with a question?

Only when it's a stupid question.

Seriously: the government has a handful of abilities that the average household doesn't when it comes to finances;

Namely deficit spending, manipulation of a fiat currency, and international investing/investors. Because of this the idea of balancing one side with the other isn't a useful analogy when it comes to fiscal budgets. This is especially true when considering things like inflation/deflation, return rates and global economies (recession versus booms, etc.).

Since a household can operate only with currency that is "out of its control" in terms of value, availability, etc., it's not the same -at all.

Now you could argue things like credit lines or refinancing or assets offer the household options, and they do, but they still amount to more or less available funds without impacting said values or global economies.

If you're going to say something stupid like, "explain all of that then" I'll do three things:

First, tell you to bite my bag.

Second, send you to Google.

And third, tell you to bite my bag again.

[Testiclaw]

I can't because I'm ridiculously retarded.

You have a knack for understatement.

[buckethead]

My mom looked at a fiat once. Went with a volvo instead

[johno]

Namely deficit spending, manipulation of a fiat currency, and international investing/investors. Because of this the idea of balancing one side with the other isn't a useful analogy when it comes to fiscal budgets. This is especially true when considering things like inflation/deflation, return rates and global economies (recession versus booms, etc.).

It will be fascinating to watch Greece & Spain prove your point. I'm sure they can deficit spend, manipulate currency, and attract investors in such style that Andy's household analogy will look really stupid.

Here's some Wiki for you:

Examples of hyperinflation

[edit]Angola
Angola experienced hyperinflation from 1991 to 1995. It was a result of exchange restrictions following the introduction of the novo kwanza (AON) to replace the original kwanza (AOK) in 1990. At the first months of 1991, the highest denomination was 50 000 AON. By 1994, the highest denomination was 500 000 kwanzas. In the 1995 currency reform, the readjusted kwanza (AOR) replaced the novo kwanza at the ratio of 1 000 AON to 1 AOR, but hyperinflation continued as further denominations of up to 5 000 000 AOR were issued. In the 1999 currency reform, the kwanza (AOA) was reintroduced at the ratio of 1 million AOR to 1 AOA. Currently, the highest denomination banknote is 2 000 AOA and the overall impact of hyperinflation was 1 AOA = 1 billion AOK.

[edit]Argentina
Argentina went through steady inflation from 1975 to 1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 peso argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentinos. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 (1992) peso = 100,000,000,000 pre-1983 pesos.

[edit]Austria
In 1922, inflation in Austria reached 1426%, and from 1914 to January 1923, the consumer price index rose by a factor of 11836, with the highest banknote in denominations of 500,000 krones.[15]

[edit]Belarus
Belarus experienced steady inflation from 1994 to 2002. In 1993, the highest denomination was 5,000 rublei. By 1999, it was 5,000,000 rublei. In the 2000 currency reform, the ruble was replaced by the new ruble at an exchange rate of 1 new ruble = 1,000 old rublei. The highest denomination in 2008 was 100,000 rublei, equal to 100,000,000 pre-2000 rublei.

[edit]Bolivia
Bolivia experienced its worst inflation between 1984 and 1986. Before 1984, the highest denomination was 1,000 Bolivian pesos. By 1985, the highest denomination was 10 million Bolivian pesos. In 1985, a Bolivian note for 1 million pesos was worth 55 cents in US dollars, one-thousandth of its exchange value of $5,000 less than three years previously.[16] In the 1987 currency reform, the Peso Boliviano was replaced by the Boliviano at a rate of 1,000,000 : 1.

[edit]Bosnia and Herzegovina
Bosnia and Herzegovina went through its worst inflation in 1993. In 1992, the highest denomination was 1,000 dinara. By 1993, the highest denomination was 100,000,000 dinara. In the Republika Srpska, the highest denomination was 10,000 dinara in 1992 and 10,000,000,000 dinara in 1993. 50,000,000,000 dinara notes were also printed in 1993 but never issued.

[edit]Brazil
Main article: Hyperinflation in Brazil
From 1967–1994, the base currency unit was shifted seven times to adjust for inflation in the final years of the Brazilian military dictatorship era. A 1967 cruzeiro was, in 1994, worth less than one trillionth of a US cent, after adjusting for multiple devaluations and note changes. In that same year, inflation reached a record 2,075.8%. A new currency called real was adopted in 1994, and hyperinflation was eventually brought under control.[17] The real was also the currency in use until 1942; 1 (current) real is the equivalent of 2,750,000,000,000,000,000 of Brazil's first currency (called réis in Portuguese).

[edit]China
As the first user of fiat currency, China has had an early history of troubles caused by hyperinflation. The Yuan Dynasty printed huge amounts of fiat paper money to fund their wars, and the resulting hyperinflation, coupled with other factors, led to its demise at the hands of a revolution. The Republic of China went through the worst inflation 1948–49. In 1947, the highest denomination was 50,000 yuan. By mid-1948, the highest denomination was 180,000,000 yuan. The 1948 currency reform replaced the yuan by the gold yuan at an exchange rate of 1 gold yuan = 3,000,000 yuan. In less than a year, the highest denomination was 10,000,000 gold yuan. In the final days of the civil war, the Silver Yuan was briefly introduced at the rate of 500,000,000 Gold Yuan. Meanwhile the highest denomination issued by a regional bank was 6,000,000,000 yuan (issued by Xinjiang Provincial Bank in 1949). After the renminbi was instituted by the new communist government, hyperinflation ceased with a revaluation of 1:10,000 old Renminbi in 1955. The overall impact of inflation was 1 Renminbi = 15,000,000,000,000,000,000 pre-1948 yuan.

[edit]France
During the French Revolution, the National Assembly issued bonds backed by seized church property called Assignats. These evolved into fiat legal tender money, were overprinted and caused hyperinflation. Napoleon replaced them with the franc in 1803, at which time the assignats were basically worthless.

[edit]Free City of Danzig
Danzig went through its worst inflation in 1923. In 1922, the highest denomination was 1,000 Mark. By 1923, the highest denomination was 10,000,000,000 Mark.

[edit]Georgia
Georgia went through its worst inflation in 1994. In 1993, the highest denomination was 100,000 coupons [kuponi]. By 1994, the highest denomination was 1,000,000 coupons. In the 1995 currency reform, a new currency, the lari, was introduced with 1 lari exchanged for 1,000,000 coupons.

[edit]Germany
Main article: Hyperinflation in the Weimar Republic
Germany went through its worst inflation in 1923. In 1922, the highest denomination was 50,000 Mark. By 1923, the highest denomination was 100,000,000,000,000 Mark. In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar.[18] In 1923, the rate of inflation hit 3.25 × 106 percent per month (prices double every two days). Beginning on 20 November 1923, 1,000,000,000,000 old Marks were exchanged for 1 Rentenmark so that 4.2 Rentenmarks were worth 1 US dollar, exactly the same rate the Mark had in 1914.[18]

[edit]Greece
Main article: Hyperinflation in Greece
Greece went through its worst inflation in 1944. In 1942, the highest denomination was 50,000 drachmai. By 1944, the highest denomination was 100,000,000,000 drachmai. In the 1944 currency reform, 1 new drachma was exchanged for 50,000,000,000 drachmai. Another currency reform in 1953 replaced the drachma at an exchange rate of 1 new drachma = 1,000 old drachmai. The overall impact of hyperinflation: 1 (1953) drachma = 50,000,000,000,000 pre 1944 drachmai. The Greek monthly inflation rate reached 8.5 billion percent in October 1944.

[edit]Hungary, 1922–24
See also: Hungarian korona
The Treaty of Trianon and political instability between 1919 and 1924 led to a major inflation of Hungary’s currency. Unable to tax adequately, the government resorted to printing money and by 1922 inflation in Hungary had reached 98% per month.



The 100 million b.-pengő note was the highest denomination of banknote ever issued, worth 1020 or 100 quintillion Hungarian pengő (1946). B.-pengő was short for "billió pengő", which in English means trillion pengő.
[edit]Hungary, 1945–46
Main article: Hungarian pengő hyperinflation
Hungary went through the worst inflation ever recorded between the end of 1945 and July 1946. In 1944, the highest denomination was 1,000 pengő. By the end of 1945, it was 10,000,000 pengő. The highest denomination in mid-1946 was 100,000,000,000,000,000,000 pengő. A special currency the adópengő – or tax pengő – was created for tax and postal payments.[19] The value of the adópengő was adjusted each day, by radio announcement. On 1 January 1946 one adópengő equaled one pengő. By late July, one adópengő equaled 2,000,000,000,000,000,000,000 or 2×1021 pengő. When the pengő was replaced in August 1946 by the forint, the total value of all Hungarian banknotes in circulation amounted to 1/1,000 of one US dollar.[20] It is the most severe known incident of inflation recorded, peaking at 1.3 × 1016 percent per month (prices double every 15 hours).[21] The overall impact of hyperinflation: On 18 August 1946, 400,000,000,000,000,000,000,000,000,000 or 4×1029 (four hundred quadrilliard on the long scale used in Hungary; four hundred octillion on short scale) pengő became 1 forint.

Some historians believe[22][unreliable source?] that this hyperinflation was purposely started by trained Russian Marxists in order to destroy the Hungarian middle and upper classes.

[edit]Iraq
Between 1987 and 1995 the Iraqi Dinar went from an official value of 0.306 Dinars/USD (or $3.26 USD per dinar, though the black market rate is thought to have been substantially lower) to 3000 Dinars/USD due to government printing of 10s of trillions of dinars starting with a base of only 10s of billions. That equates to approximately 315% inflation per year averaged over that eight year period. [23]

[edit]Krajina
The Republic of Serbian Krajina went through its worst inflation in 1993. In 1992, the highest denomination was 50,000 dinara. By 1993, the highest denomination was 50,000,000,000 dinara. Note that this unrecognized country was reincorporated into Croatia in 1995.

[edit]Mexico
In spite of the Oil Crisis of the late 1970s (Mexico is a producer and exporter), and due to excessive social spending, Mexico defaulted on its external debt in 1982. As a result, the country suffered a severe case of capital flight and several years of hyperinflation and peso devaluation. On 1 January 1993, Mexico created a new currency, the nuevo peso ("new peso", or MXN), which chopped 3 zeros off the old peso, an inflation rate of 10,000% over the several years of the crisis. (One new peso was equal to 1000 of the obsolete MXP pesos).

[edit]Nicaragua
Nicaragua went through the worst inflation from 1987 to 1990. From 1943 to April 1971, one US dollar equalled 7 córdobas. From April 1971-early 1978, one US dollar was worth 10 córdobas. In early 1986, the highest denomination was 10,000 córdobas. By 1987, it was 1,000,000 córdobas. In the 1988 currency reform, 1 new córdoba was exchanged for 10,000 old córdobas. The highest denomination in 1990 was 100,000,000 new córdobas. In the 1991 currency reform, 1 new córdoba was exchanged for 5,000,000 old córdobas. The overall impact of hyperinflation: 1 (1991) córdoba = 50,000,000,000 pre-1988 córdobas.

[edit]Peru
Peru experienced its worst inflation from 1988–1990. In the 1985 currency reform, 1 inti was exchanged for 1,000 soles. In 1986, the highest denomination was 1,000 intis. But in September 1988, monthly inflation went to 132%. In August 1990, monthly inflation was 397%. The highest denomination was 5,000,000 intis by 1991. In the 1991 currency reform, 1 nuevo sol was exchanged for 1,000,000 intis. The overall impact of hyperinflation: 1 nuevo sol = 1,000,000,000 (old) soles.

[edit]Philippines
The Japanese government occupying the Philippines during the World War II issued fiat currencies for general circulation. The Japanese-sponsored Second Philippine Republic government led by Jose P. Laurel at the same time outlawed possession of other currencies, most especially "guerilla money." The fiat money was dubbed "Mickey Mouse Money" because it is similar to play money and is next to worthless. Survivors of the war often tell tales of bringing suitcase or bayong (native bags made of woven coconut or buri leaf strips) overflowing with Japanese-issued bills. In the early times, 75 Mickey Mouse pesos could buy one duck egg.[24] In 1944, a box of matches cost more than 100 Mickey Mouse pesos.[25]

In 1942, the highest denomination available was 10 pesos. Before the end of the war, because of inflation, the Japanese government was forced to issue 100, 500 and 1000 peso notes.

[edit]Poland, 1921–1924
After Poland’s independence in 1918, the country soon began experiencing extreme inflation. By 1921, prices had already risen 251 times above those of 1914, but in the following three years they rose by 988,223%[26] with a peak rate in late 1923 of prices doubling every nineteen and a half days.[27] At independence there was 8 marek per US dollar, but by 1923 the exchange rate was 6,375,000 marek (mkp) for 1 US dollar. The highest denomination was 10,000,000 mkp. In the 1924 currency reform there was a new currency introduced: 1 zloty = 1,800,000 mkp.

[edit]Poland, 1989–1991
Poland experienced a second hyperinflation between 1989 and 1991. The highest denomination in 1989 was 200,000 zlotych. It was 1,000,000 zlotych in 1991 and 2,000,000 zlotych in 1992; the exchange rate was 9500 zlotych for 1 US dollar in January 1990 and 19600 zlotych at the end of August 1992. In the 1994 currency reform, 1 new zloty was exchanged for 10,000 old zlotych and 1 US$ exchange rate was ca. 2.5 zlotych (new).

[edit]Republika Srpska
Republika Srpska was a breakaway region of Bosnia. As with Krajina, it pegged its currency, the Republika Srpska dinar, to that of Yugoslavia. Their bills were almost the same as Krajina's, but they issued fewer and did not issue currency after 1993.

[edit]Roman Egypt
In Roman Egypt, where the best documentation on pricing has survived, a measure of wheat which sold for 200 drachmae in 276 AD increased to more than 2,000,000 drachmae in 334 AD, roughly 1,000,000% inflation in a span of 58-years.[28]

[edit]Romania
Romania experienced hyperinflation in the 1990s. The highest denomination in 1990 was 100 lei and in 1998 was 100,000 lei. By 2000 it was 500,000 lei. In early 2005 it was 1,000,000 lei. In July 2005 the leu was replaced by the new leu at 10,000 old lei = 1 new leu. Inflation in 2005 was 9%. [2] In July 2005 the highest denomination became 500 lei (= 5,000,000 old lei).

[edit]Soviet Union / Russian Federation
Main article: Hyperinflation in early Soviet Russia. See also: Soviet ruble.
Between 1921 and 1922, inflation in the Soviet Union reached 213%.

In 1992, the first year of post-Soviet economic reform, inflation was 2,520%. In 1993, the annual rate was 840%, and in 1994, 224%. The ruble devalued from about 40 r/$ in 1991 to about 5,000 r/$ in late 1997. In 1998, a denominated ruble was introduced at the exchange rate of 1 new ruble = 1,000 pre-1998 rubles. In the second half of the same year, ruble fell to about 30 r/$ as a result of financial crisis.

[edit]Taiwan
As the Chinese Civil War reached its peak, Taiwan also suffered from the hyperinflation that has ravaged China in late 1940s. Highest denomination issued was a 1,000,000 Dollar Bearer's Cheque. Inflation was finally brought under control at introduction of New Taiwan Dollar in 15 June 1949 at rate of 40,000 old Dollar = 1 New Dollar



A 100,000 Ukrainian karbovantsi (used between 1992 and 1996). In 1996, it was taken out of circulation, and was replaced by the Hryvnya at an exchange rate of 100,000 karbovantsi = 1 Hryvnya (approx. USD 0.50 at that time, about USD 0.20 as of 2007). This translates to an average inflation rate of approximately 1400% per month between 1992 and 1996
[edit]Ukraine
Ukraine experienced its worst inflation between 1993 and 1995. In 1992, the Ukrainian karbovanets was introduced, which was exchanged with the defunct Soviet ruble at a rate of 1 UAK = 1 SUR. Before 1993, the highest denomination was 1,000 karbovantsiv. By 1995, it was 1,000,000 karbovantsiv. In 1996, during the transition to the Hryvnya and the subsequent phase out of the karbovanets, the exchange rate was 100,000 UAK = 1 UAH. This translates to a hyperinflation rate of approximately 1,400% per month. By some estimates, inflation for the entire calendar year of 1993 was 10,000% or higher, with retail prices reaching over 100 times their pre-1993 level by the end of the year.[29]

[edit]United States
During the Revolutionary War, when the Continental Congress authorized the printing of paper currency called continental currency, the monthly inflation rate reached a peak of 47 percent in November 1779 (Bernholz 2003: 48). These notes depreciated rapidly, giving rise to the expression "not worth a continental."

A second close encounter occurred during the U.S. Civil War, between January 1861 and April 1865, the Lerner Commodity Price Index of leading cities in the eastern Confederacy states increased from 100 to over 9,000.[30] As the Civil War dragged on, the Confederate dollar had less and less value, until it was almost worthless by the last few months of the war. Similarly, the Union government inflated its greenbacks, with the monthly rate peaking at 40 percent in March 1864 (Bernholz 2003: 107).[31]

[edit]Yugoslavia


A 500 billion Yugoslav dinar banknote c. 1993, the largest nominal value ever officially printed in Yugoslavia, the final result of hyperinflation.
Yugoslavia went through a period of hyperinflation and subsequent currency reforms from 1989–1994. The highest denomination in 1988 was 50,000 dinars. By 1989 it was 2,000,000 dinars. In the 1990 currency reform, 1 new dinar was exchanged for 10,000 old dinars. In the 1992 currency reform, 1 new dinar was exchanged for 10 old dinars. The highest denomination in 1992 was 50,000 dinars. By 1993, it was 10,000,000,000 dinars. In the 1993 currency reform, 1 new dinar was exchanged for 1,000,000 old dinars. However, before the year was over, the highest denomination was 500,000,000,000 dinars. In the 1994 currency reform, 1 new dinar was exchanged for 1,000,000,000 old dinars. In another currency reform a month later, 1 novi dinar was exchanged for 13 million dinars (1 novi dinar = 1 German mark at the time of exchange). The overall impact of hyperinflation: 1 novi dinar = 1 × 1027~1.3 × 1027 pre 1990 dinars. Yugoslavia's rate of inflation hit 5 × 1015 percent cumulative inflation over the time period 1 October 1993 and 24 January 1994.

[edit]Zaire (now the Democratic Republic of the Congo)
Zaire went through a period of inflation between 1989 and 1996. In 1988, the highest denomination was 5,000 zaires. By 1992, it was 5,000,000 zaires. In the 1993 currency reform, 1 nouveau zaire was exchanged for 3,000,000 old zaires. The highest denomination in 1996 was 1,000,000 nouveaux zaires. In 1997, Zaire was renamed the Congo Democratic Republic and changed its currency to francs. 1 franc was exchanged for 100,000 nouveaux zaires. One post-1997 franc was equivalent to 3 × 1011 pre 1989 zaires.

[edit]Zimbabwe
Main article: Hyperinflation in Zimbabwe


The 100 trillion Zimbabwean dollar banknote (1014 dollars), equal to 1027 pre-2006 dollars
Hyperinflation in Zimbabwe was one of the few instances that resulted in the abandonment of the local currency. At independence in 1980, the Zimbabwe dollar (ZWD) was worth about USD 1.25. Afterwards, however, rampant inflation and the collapse of the economy severely devalued the currency. Inflation was steady before Robert Mugabe in 1998 began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets to black farmers, which sent food production and revenues from export of food plummeting.[32][33][34] The result was that to pay its expenditures Mugabe’s government and Gideon Gono’s Reserve Bank printed more and more notes with higher face values.

Hyperinflation began early in the 21st-century, reaching 624% in 2004. It fell back to low triple digits before surging to a new high of 1,730% in 2006. The Reserve Bank of Zimbabwe revalued on 1 August 2006 at a ratio of 1 000 ZWD to each second dollar (ZWN), but year-to-year inflation rose by June 2007 to 11,000% (versus an earlier estimate of 9,000%). Larger denominations were progressively issued: