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MONEY TREE
01 Nov 11 18:33
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Date Joined: 02 Jul 09
| Topic/replies: 25,595 | Blogger: MONEY TREE's blog
And I donr want a description of a situation in a third world country, I mean a madern economy thats actually suffered it.
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Report Menelaus November 1, 2011 5:38 PM GMT
define "modern"
Report J2BLUE. November 1, 2011 5:39 PM GMT
'And I donr want a description of a situation in a third world country'

That is such a telling comment. Not taking a shot at you, but this attitude of 'it can't happen here' as if we're special in some way.

It has happened in Argentina (great blog here from an Argentine -  ferfal.blogspot.com/ - he talks about people selling their jewellery by the link to buy food) and Zimbabwe (search on youtube for hyperinflation Zimbabwe).

Also, it;s not modern but google 'America continental currency hyperinflation'. There's a phrase of 'not worth a Continental'

You can see where that comes from.
Report MONEY TREE November 1, 2011 5:45 PM GMT
the reason is not because it can not happen here, I wanted to do a comparison and think comparing to a third world would not good.

Modern as in recent times say 10 years.
Report MONEY TREE November 1, 2011 5:47 PM GMT
I am not saying anythinf posted is wrong, just for me feel that it would take a lot more for this to happen but if it does it will not be confined to just UK so would be breaking new ground financially.
Report Menelaus November 1, 2011 6:01 PM GMT
My favorite example is Yugoslavia 1989-94. Cigarettes became the most commonly accepted medium of exchange. Many other lessons there too but I don't want to bore you.

The most "modern"/recent (last ten years as you define it) are:

Belarus is on the doorstep again (previously 1999-2000), their currency has lost 287pc of it's value since Jan. 2011, and of course Zimbabwe (2004-2007) were the most recent.

Others examples just prior include:

Bulgaria 1996-1997
Ukraine 1995-1996
Georgia 1994-1995
Romania 1998-2000
Zaire 1992-1996
Poland 1989-1991
Bosnia 1990-1992
Peru 1990-1991
Nicaragua 1987-1990

there's probably others too if you spend more time researching
Report Menelaus November 1, 2011 6:06 PM GMT
One last thought. The ONLY currency that matters is the USD. Keep that in mind when you are trying to assess the prospects of hyperinflation that is not localized to a single economy or country.
Report MONEY TREE November 1, 2011 6:27 PM GMT
how will the usd get us into hyperinflation.
Report Menelaus November 1, 2011 6:32 PM GMT
I'll post a 10,000 word response to your question as soon as I get a chance Wink

It's not the USD that will get us into hyperinflation, it's monetizing the massive USG deficits once UST buyers go on strike that will get us into hyperinflation. It's complicated. Grin
Report J2BLUE. November 1, 2011 7:13 PM GMT
'When the United States sneezes, the world catches a cold'

Bernanke swore under oath he wouldn't monetise their debt but he is. They have no other option.
Report Menelaus November 1, 2011 7:22 PM GMT
Spot on.

He has, he is (I'm convinced he is right NOW surreptitiously - I was thinking of doing a post about it) and he will again soon. Like you said, THERE.IS.NO.OTHER.OPTION.
Report Mrben November 2, 2011 1:03 AM GMT
if brains were made of dynamite, the hyperinflationists would not be able to blow their nose.Silly

i see you mentioned all the biggies there melly-nicaragua, zaire, georgiaExcited  what a turkey.
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