~ Doesn't this Zimbabwean woman look happy with all that money in her hands?
This posting was originally written October, 2010-- still relevant today...
___________________________________You hear many fiscal conservatives talk about reigning in spending and debt loads and they mention the currency of Zimbabwe as example of the path the US and the rest of the world is going down. Those who are seriously concerned about the devaluation of the US dollar and other world currencies, also tend to use Zimbabwe as a means to emphasize their points.
But how many people really have seen what Zimbabwean currency looks like?
Let's take a look...
Did you notice on the currency, it had expiration dates? Yep. Each reserve note says "Pay the bearer on demand X dollars on or before Y date" After the date expires, the little pieces of paper with colorful words and numbers becomes 100% valueless.
When you devalue the currency, eventually it becomes worthless and you need stacks and stacks of bills backed by nothing, to buy basic necessities of life such as milk, eggs and bread. This occurred in pre-Nazi Weimer Republic Germany and is currently what life is like in Zimbabwe.
The following answers I found through an old article from Huffington Post entitled Zimbabwe Money Worth More On eBay Than As Actual Money, dated July 24. 2008-
"Amid Zimbabwe's mind-boggling hyper inflation, a new 100 billion dollar bank note has more value as a novelty item on eBay than on the streets of the capital. The note, launched this week, is worth enough to buy a loaf of bread - if you can find one on Zimbabwe's depleted store shelves. Meanwhile on eBay, the bill was on offer for nearly US$80."
~ Notice the price to buy a home in Zimbabwe isn't in millions, billions, trillions or even zillions- but quadrillions. People can say 'It will never happen here" and hopefully they are correct- but it is not as far-fetched a doomsday scenario as some wish to believe.
When government devalues its currency with such intensity, as ours is doing with the Fed and Bernanke's Quantitative Easing stimulus and dramatically expanding the National Debt, it is akin to playing with fire.