This is HyperInflation

What is $23 quadrillion amoung friends?

2009-07-15T19:09:00.000-07:00

Good to know our credit card system can handle such large numbers just incase we have Zimbabwe like inflation.

NEW YORK (CNN) -- A technical snafu left some Visa prepaid cardholders stunned and horrified Monday to see a $23,148,855,308,184,500 charge on their statements.

Josh Muszynski noticed the 17-digit charge while making a routine balance inquiry.

That's about 2,007 times the size of the national debt.
Josh Muszynski, 22, of Manchester, New Hampshire, was one Visa customer aghast to find the 17-digit charge on his bill. Adding insult to injury, he had also been hit with a $15 overdraft fee.
He noticed that his debt exceeded the world GDP while making a routine balance inquiry on his online Bank of America account. According to his statement, he had spent the profound sum in one pop at a nearby Mobil gas station -- his regular stop for Camel cigarettes.
"Very, very panicked," he jumped in his car and sped to the station.
Had they perhaps noticed any "outrageous" charges come across their books recently, he inquired of the cashier there. She checked the records. They had not. Watch the story of an astounded customer in Memphis, Tennessee »
Muszynski wondered aloud what he might possibly have asked to purchase for such an astronomical price. "Can I buy Europe on pump 4?"
He next called Bank of America, the issuer of his Visa prepaid debit card. The bank kept him on hold for two hours, during which time he contemplated the impossibly bleak financial future that might await him. He also felt a stab of fear that he had saddled all his unborn grandchildren -- and their grandchildren -- with a lifetime of debt. "Down the generational line, nobody would have any money."
Finally, a bank representative told him that the $23 quadrillion charge -- and the $15 overdraft fee -- would be stricken from his account.
Muszynski compared the giant debt reprieve to receiving "an amazing Monopoly card that says, 'Bank error in your favor.' "

In a statement, Visa said the rogue charges affected "fewer than 13,000 prepaid transactions" and resulted from a "temporary programming error at Visa Debit Processing Services ... [which] caused some transactions to be inaccurately posted to a small number of Visa prepaid accounts."
The company assured customers that the problem has been fixed and that all falsely issued fees have been voided. "Erroneous postings have been removed ... this incident had no financial impact on Visa prepaid cardholders.

Is California the next Zimbabwe?

2009-07-12T12:40:00.000-07:00

The Daily Capitalist: We Buy and Sell California IOUs

Buyers are clamoring for discounted scrip, but the SEC tries to put the kibosh on the deal

By Jeff Harding | Published on 07.10.2009

This is the power of capitalism. When the big banks announced that they would not accept California’s IOUs as cash deposits, it took about three minutes for a market to spring up on eBay and Craigslist for this scrip. Of course, many buyers want a discount on the paper.

Then some idiot at the Securities and Exchange Commission comes up and says the scrip is a security and no one can sell without registering them.

So, now a promise to pay is a security because some bureaucrat said so. I don’t think so. I would love to see the SEC try to get away with this. If it was a security, the state of California as the issuer would first have to register the IOUs as a security. Then the people working a secondary market on an already registered security would need a broker-dealer license to trade them. The state controller insists they aren’t securities, but rather “a form of payment.” And they are correct.

If you need cash, what’s wrong with someone buying an IOU at a discount? Willing buyer and willing seller and all that. And don’t try to argue there’s no risk to this stuff. The state just got downgraded to BBB, pretty close to junk.

The best idea I heard today is that you go out and buy these IOUs at a discount and pay your taxes with them. If you buy at 80 percent of notional value, you get a 20 percent tax break. Not bad. (more)

Peter Schiff on The Daily Show with Jon Stewart 6-9-09

2009-06-11T17:30:00.000-07:00

Why is it that The Daily Show tell more truth than MSM?

The Daily Show With Jon Stewart

Mon - Thurs 11p / 10c

Peter Schiff

www.thedailyshow.com

Daily Show
Full Episodes

Political Humor

Newt Gingrich Unedited Interview

Ron Paul's H.R. 1207 Passes 218 Co-sponsors

2009-06-11T17:27:00.000-07:00

Historic news - Dr. Paul's Audit the Fed Bill has passed the 218 co-sponsor benchmark, and now sits with 222.

Read his congressional press release here. More.

Jim Grant on CNBC: Bring on Ron Paul's Audit of the Fed! 6/10/09

2009-06-11T17:26:00.001-07:00

It this doesn't put you asleep, it will wake up of about the Fed and Inflation.

Amazing what a little Economic freedom does in Zimbabwe.

2009-03-26T19:00:00.000-07:00

I came across this today. Zimbabwe still has a long way to go, but at least stores have food now.

Goods reappear in Zimbabwe shops

23 hours ago

HARARE (AFP) — A man whistles as he picks groceries from the shelves of a supermarket in Zimbabwe's capital. Another shopper, spoilt for choice, compares cooking oil bottles while queues form at the tills.
In Zimbabwe, these were simple and almost forgotten luxuries.
For more than a year, supermarket shelves were bare and shops resembled empty warehouses as the country reeled under an economic crisis that turned sugar and the staple corn meal into rare commodities.
Now shops are stocking up again, after the government in January agreed to allow retailers to conduct business in foreign currency.
The government has even stopped printing Zimbabwe dollars, which it once churned out in trillion-dollar denominations that quickly became worthless under inflation that independent economists estimated in the quadrillions. (More)

Yet another form of printing money.

2009-03-16T10:17:00.000-07:00

The sadest part or this artical is the last sentance.

CNN Reports.

Gramley said worrying about inflation now is like worrying about causing water damage when considering whether to spray a hose on a burning house. (Whole)

Will the Fed go long?
The Fed won't cut short-term rates at its next meeting, but look for long-term rates to drop if the central bank announces plans to buy Treasurys...

100 Trillion Dollar Bill

2009-02-21T17:44:00.000-08:00

Zimbabwe's 100 Trillion Dollar Note. This is a highest denominated note ever issued.

CNN Money Headlines for Friday

2009-02-21T07:00:00.000-08:00

Deflation today Inflation tomrrow?

2009-02-19T19:51:00.000-08:00

Someday we may look back at this article and either laugh or cry.

Deflation warning bells ring louder
Consumer prices may fall on an annual basis for the first time in more than 50 years. Is this the beginning of a deflationary spiral or just a blip?

NEW YORK (CNNMoney.com) -- Prices are falling for just about everything these days.
The government will report its key inflation index Friday morning, the Consumer Price Index, and economists believe the report is likely to show the first year-over-year drop in prices since 1955. (more)

What is 12 Zero's Amoung Friends?

2009-02-06T12:45:00.000-08:00

Zimbabwe dollar sheds 12 zeros

Notes valued at millions of Zimbabwe dollars have been virtually worthless

Zimbabwe is revaluing its dollar again, removing twelve zeros from the currency with immediate effect.
The country's central bank is introducing seven new notes in an effort to stave off economic collapse.
The country is in the grip of world-record hyperinflation. The most recent estimate in July 2008 put it at 231m%.
Only last month, a Z$100 trillion note was introduced and the government moved to allow people to use foreign currencies alongside Zimbabwe's dollar.
The announcement will see Z$1 trillion reduced to Z$1.
The denominations of the new notes are Z$1, Z$5, Z$10, Z$20, Z$50, Z$100 and Z$500. (More)

200% Inflation in the US?

2009-02-06T12:42:00.000-08:00

A prediction from CNBC

The US risks being hit by Zimbabwe-style hyperinflation and there are signs that the world's biggest economy risks turning into a banana republic, Marc Faber, author of the Gloom, Doom & Boom report, told CNBC's "Asia Squawk Box."

"In the US, we have a totally new school, and it’s called the Zimbabwe school," Faber said. "And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own country. And that is the monetary policy the US is pursuing." (more)

Glen Beck explains the money supply.

2009-01-31T09:42:00.000-08:00

Trillions out of thin air like never defore

What Ten Trillion Looks like

2009-01-27T06:13:00.000-08:00

This Ten Trillion Zimbabwe Dollar note is the largest bank note ever printed. As of Jan 23rd this note was worth 75 US cents. Zimbabwe also plans to print 100 Trillion Note.

Glen Beck: US Money Supply UP 70% since October

2009-01-22T19:51:00.000-08:00

RBZ unveils $10, $20, $50 and $100 Trillion Notes

2009-01-16T05:34:00.000-08:00

Forget $100 Billion or even 1 Trillion lets jump to $10 Trillion. The Zimbabwe Herald Reports:

THE Reserve Bank of Zimbabwe has introduced a new family of trillion-dollar banknotes in denominations of $100 trillion, $50 trillion, $20 trillion and $10 trillion that go into circulation today, starting with the $10 trillion note.

The $20 trillion, $50 trillion and $100 trillion notes will be introduced gradually.

In a statement yesterday, the Reserve Bank of Zimbabwe said the notes would ensure that those in formal employment withdraw their salaries with minimal hassle.

‘‘In a move meant to ensure that the public has access to their money from banks, the Reserve Bank of Zimbabwe has introduced a new family of banknotes which will gradually come into circulation, starting with the Z$10 trillion,’’ read the statement from the RBZ.

With effect from January 12, workers can now withdraw their entire January salary in cash as long as they produce their current payslips.

The new notes have the same security features as the existing ones: a colour shift stripe with RBZ printed on it, the Zimbabwe Bird colour shift on the front, and see-through of the values on either side which are in perfect register.

The $10 trillion note has the image of the RBZ Building and the Conical Tower at the Great Zimbabwe National Monuments.

The $100 trillion note has the image of a buffalo and the Victoria Falls, the $50 trillion the Kariba Dam spilling and an elephant, while a mineworker drilling in an underground shaft and the GMB grain silos appear on the new $20 trillion note.

RBZ last week introduced $10 billion, $20 billion and $50 billion notes with a view to enabling workers to access their full salaries

$50 Billion Zimbabwe Dollar Picture

2009-01-14T10:22:00.001-08:00

January 2009 $50 Billion Zimbabwe Dollar

Zimbabwe introduces new $20 & $50 billion note

2009-01-10T08:18:00.000-08:00

CNN Reports.

Zimbabwe's central bank will introduce a $50 billion note -- enough to buy just two loaves of bread -- as a way of fighting cash shortages amid spiraling inflation.
Zimbabwe's dollar is virtually worthless with foreign currency now being used to purchase basic items.

The country's acting finance minister, Patrick Chinamasa, made the announcement in a government gazette released Saturday.
While Chinamasa did not give the date on which the $50 billion and new $20 billion notes would come into circulation, an official at the Reserve Bank of Zimbabwe said the notes would be distributed to all banks by the end of Monday.
Zimbabwe is grappling with hyperinflation now officially estimated at 231 million percent and its currency is fast losing its value. As of Friday, one U.S. dollar was trading at around ZW$25 billion.
When the government issued a $10 billion note just three weeks ago, it bought 20 loaves of bread. That note now can purchase less than half of one loaf.(more)

8 Trillion and Counting

2009-01-06T06:14:00.000-08:00

US Bailouts are 8 Trillion and counting.

CNN reports.

NEW YORK (CNNMoney.com) -- Sitting down? It's time to tally up the federal government's bailout tab.
There was $29 billion for Bear Stearns, $345 billion for Citigroup. The Federal Reserve put up $600 billion to guarantee money market deposits and has aggressively driven down interest rates to essentially zero.
The list goes on and on. All told, Congress, the Treasury Department, the Federal Reserve and other agencies have taken dozens of steps to prop up the economy.
Total price tag so far: $7.2 trillion. (more)

Pictures of Zimbabwe's New Billion Dollar Notes Dec 2008

2008-12-20T08:03:00.001-08:00

Images from Wikipedia and Ebay.

1 Billion Front

1 Billion Back

5 Billion Front and Back

10 Billion Front and Back Issued December 2008

New Ten Billion Zimbabwe Dollar Note

2008-12-19T06:30:00.001-08:00

CNN reports on Zimbabwe's new 1, 5 and 10 Billion Dollar Notes.

Zimbabwe's central bank introduced a $10 billion note worth less than 20 U.S. dollars, as the once-prosperous southern African nation battles against spiraling hyperinflation.
Zimbabwe President Robert Mugabe at Zanu-PF National Political Commissar Elliot Manyika's burial last week

The new note, expected to buy just 20 loaves of bread, comes just a week after Zimbabwe issued a $500 million note to ease a cash shortage. (More)

Printing Money USA

2008-12-16T13:33:00.000-08:00

More news stories openly talking about printing more money.

After rate cuts: The Fed's new ball game
With rate cuts doing little to help boost the economy, the Fed has begun to print money to finance its liquidity programs. But that could spell disaster down the road. (More)

Zero Percent

2008-12-16T13:31:00.000-08:00

CNN reports

Fed slashes key rate to near zero
Ben Bernanke & Co. cite weakness in economy and reduced inflation threat as justification for cutting rates to a record low range of 0% to 0.25%.
(More...)

Zimbabwe's new half billion dollar note

2008-12-13T12:08:00.000-08:00

CNN Reports

HARARE, Zimbabwe (CNN) -- Zimbabwe's central bank is introducing a $500 million note -- the highest current denomination -- as the once-prosperous southern African nation battles against spiraling hyperinflation.

A £50 million note introduced earlier in December has failed to clear long lines for cash.
more photos »

Finance Minister Samuel Mumbengegwi made the announcement about the new note in a government gazette set for release Friday. On the back, the purple cotton bill will feature pictures of dairy cows being milked mechanically and a miner drilling underground, he said.
The Reserve Bank of Zimbabwe (RBZ) last week introduced a new set of denominations, including a $100 million note, but that has not helped to clear long lines for cash at banks. Some people sleep outside banks after failing to get cash.
The RBZ said a $200 million note would be in circulation Friday, together with the $500 million note.
The $500 million note is worth about 8 U.S. dollars and enough to buy just eight loaves of bread. Thursday, the greenback was trading around ZW$60 million and is expected to shoot up in light of the new note's introduction.
Prices change on an almost daily basis as businesses now peg their prices against the U.S. dollar.
(more)

Picture of the new 100Million Zimbabwe Note

2008-12-06T12:03:00.001-08:00

Hyperinflation forces Zimbabwe to print $200 million notes

2008-12-06T11:53:00.000-08:00

CNN Reports...

HARARE, Zimbabwe (CNN) -- Cash-strapped Zimbabwe revealed plans Saturday to circulate $200 million notes, just days after introducing a $100 million bill, Finance Minister Samuel Mumbengegwi said.

Zimbabwe central bank governor Gideon Gono shows a new $50 million note at a news conference Thursday.

After the $100 million note began circulating on Thursday, the price of a loaf of bread soared from 2 million to 35 million Zimbabwean dollars. (More)

New One Hundred Million Zimbabwe Banknotes

2008-12-04T05:32:00.001-08:00

Guardian.co.uk and Wikipedia are reporting that Zimbabwe has new banknotes out. $10 Million, $50 Million and $100 Million.

Bailouts: $7 trillion and rising

2008-11-26T10:21:00.001-08:00

Another CNN Report. $7 Trillion out of thin air.

The U.S. government is now willing to spend more than $7 trillion to help rescue the economy. That's about $23,000 for every American, and more than half of U.S. annual gross domestic product. It's a staggering and unprecedented amount of money. (more)

800 Billion Dollars of New Money

2008-11-25T19:57:00.000-08:00

CNN reports the creation of $800 Billion dollars out of thin air.

... Together, the programs from the Federal Reserve and the New York Fed are more than Congress approved in October for a bailout of the nation's banks and Wall Street firms. The Fed said the money will come from an increase in its reserves -- in essence, it is creating new money. (more)

End the Fed protest mentioned on CNN

2008-11-24T17:36:00.000-08:00

Zimbabwe Business Watch : Week 47

2008-11-23T13:06:00.000-08:00

This is Zimbabwe has this report from the business front in Zimbabwe.

... The hyperinflation barrier was passed in January this year and there are no words to describe what is taking place now as no country in the world has experienced these proportions before. The OMIR has reached 443 qdrln and valuing the US Dollar has become a worthless exercise. The government, or shall we say the illegitimate government, has no answers and resists every practical opportunity to deal with the emergency simply because it incurs a high political cost. Companies are paying their workers in a variety of tradable commodities as the daily cash withdrawal limit cannot even begin to buy a loaf of bread. (more)

Wikipedia Explains Large Number Inflation

2008-11-18T17:35:00.000-08:00

Wikipedia has a nice section about understanding inflation when the number get mind blowing huge.

Zimbabwe on a de facto fuel standard?

2008-11-18T17:29:00.000-08:00

From the Zimbabwe Situation.

A leading Internet service provider is also demanding a monthly subscription
fee of 600 litres of fuel for corporate clients and 20 litres for
individuals.

A vehicle auctioneer was the first to introduce the fuel coupons payment
system around June as cash shortages began to worsen.

An eight-year economic crisis has rendered the Zimbabwe dollar virtually
worthless, with most transactions officially or unofficially now taking
place using the more stable United States dollar or South African rand
currencies. (more)

Competition in the creating money out of thin air.

2008-11-18T17:19:00.000-08:00

The Zimbabwe Situation is reporting that Zimbabwe's printing presses cannot keep up with $40 sexillion (hexillion) worth of "fraudlent" checks.

...4. EXTENT OF HARM TO THE ECONOMY
4.1 During the week ended 14 November, 2008, fraudulent bank cheques
valued at $40 hexillion (21 zeros) were intercepted.
4.2 Some of these fictitious cheques had already been deployed on the
Zimbabwe Stock Exchange, whilst others had found their way in the
illicit parallel market.
4.3 Where a total of $40 sexillion (hexillion) is created from
absolute thin air, no Central Bank in the World, even with the best
printing machines can sustain the cash requirements of the market. (more)

Perhaps Reserve Bank of Zimbabwe should listen to their own wisdom. Creating money our of thin air is *harmful* to the economy.

Ron Paul Questions Bernanke, 11/18/08

2008-11-18T17:12:00.000-08:00

Ron Paul once again questions the Fed about gold, inflation, money supply, and one world currency.

89.7 Sextillion

2008-11-18T17:04:00.000-08:00

Cato's Weekly Zimbabwe inflation figures are out this week. Their annual inflation rate is 89.7 sextillion percent. That is nearly 90 followed by 21 zero's. Their monthly inflation rate is 79.6 billion. Last weeks inflation rate gave a a price doubling time of 22hrs 28 minutes, which was slightly better than last week.

10 least values currencies in the world.

2008-11-18T10:21:00.000-08:00

Foxnews has a good review of the 10 least values currencies in the world.

Bernanke hints at rate cut

2008-11-15T06:54:00.000-08:00

CNN is reporting:

8:40am: Fed chairman says policymakers are 'ready to take additional steps' as markets remain volatile and economy weakens. (more)

Rates are already at 1%, this cut would take the rate under 1% for the first time in US History. More cheap loans, increased money supply more inflation.

Zimbabwe bonds back by the full faith and credit of the Zimababwe Reserve Bank

2008-11-14T15:54:00.000-08:00

Perhaps the worse investment bond every issued:

The interest rate is 450% a year. However, you are paid in Zimbabwe dollars. The inflation rate in Zimbabwe is currently running at 100% PER DAY. So in one year your investment would be worth fractions of a penny is terms of purchasing power.

Pictures of Zimbabwe's New $500,000 and 1,000,000 Notes

2008-11-14T05:49:00.000-08:00

$500,000 (Five Hundred Thousand) Zimbabwe Dollar Note

$1,000,000 (One Million) Zimbabwe Dollar Note

These notes are available on ebay for $22 and $35 each respectively.
I haven't been able to track down a picture of the new 100K note yet.

2008-11-13T19:10:00.000-08:00

Zimbabwe Situation is predicting that Zimbabwe will break the all time inflation record in 6 weeks. This would be prices more than doubling every 15.3 hours.

The latest figures put the country's annual rate at 516 quintillion per cent – 516 followed by 18 zeros – overtaking Yugoslavia in 1994 and putting it behind only Hungary in 1946.

With goods unavailable and official statistics widely distrusted, the Cato Institute in Washington calculated the figures based on exchange rate movements and market data.

In post Second World War Hungary monthly inflation reached 12,950,000,000,000,000 per cent, with prices doubling every 15.6 hours – Zimbabwean prices are currently doubling every 1.3 days. Read More ...

Peter Schiff

2008-11-12T19:28:00.000-08:00

This is an amazing Youtube clip of Peter Schiff's predictions on the US economy from 2007. It is past time to listen to Austrian Economics.

Ron Paul warns about Inflation once again.

2008-11-12T19:09:00.000-08:00

Ron Paul warns us in the USA once again today about the risk of inflation.

"...The Republican Congress never once stood up against the Bush/Rove machine that demanded support for unconstitutional wars, attacks on civil liberties here at home, and an economic policy based on more spending, more debt, and more inflation -- while constantly preaching the flawed doctrine that deficits don't matter as long as taxes aren't raised. ..." Read the whole commentary here in CNN...

28,400,000,000,000,000 to One

2008-11-12T18:59:00.000-08:00

SW Radio Africa is reported today that the Zimbabwe Dollar Commercial exchange rate is 28.4 Quadrillion to one US dollar. I sure hope you don't have to pay in cash. Currently Zimbabwe's largest bill is one million dollars, so it would take 28.4 billion one million dollar bills to buy one us dollar. I don't think they have a wheelbarrow large enough to hold 28.4 billion bills.

Zimbabwe Monthly Inflation Rate: 13.2 Billion

2008-11-11T19:31:00.000-08:00

Cato is reporting that the monthly inflation rate is 13.2 billion percent. Stated otherwise prices are doubling every 24.9 hours. The record inflation rate is price doubling ever 15 hours for a whole month. Hungary holds this record.

It looks like Zimbabwe is on pace to break the record. If you look at just the past week's data, prices are doubling every 22 hours 14 minutes. Interesting price doubling discussions here on Wikipedia.

This is HyperInflation

What is $23 quadrillion amoung friends?

Is California the next Zimbabwe?

The Daily Capitalist: We Buy and Sell California IOUs

Peter Schiff on The Daily Show with Jon Stewart 6-9-09

Ron Paul's H.R. 1207 Passes 218 Co-sponsors

Jim Grant on CNBC: Bring on Ron Paul's Audit of the Fed! 6/10/09

Amazing what a little Economic freedom does in Zimbabwe.

Yet another form of printing money.

The sadest part or this artical is the last sentance.

CNN Reports.

Gramley said worrying about inflation now is like worrying about causing water damage when considering whether to spray a hose on a burning house. (Whole)

Will the Fed go long?

The Fed won't cut short-term rates at its next meeting, but look for long-term rates to drop if the central bank announces plans to buy Treasurys...

100 Trillion Dollar Bill

CNN Money Headlines for Friday

Deflation today Inflation tomrrow?

Deflation warning bells ring louder

Consumer prices may fall on an annual basis for the first time in more than 50 years. Is this the beginning of a deflationary spiral or just a blip?

What is 12 Zero's Amoung Friends?

Zimbabwe dollar sheds 12 zeros

200% Inflation in the US?

Glen Beck explains the money supply.

What Ten Trillion Looks like

Glen Beck: US Money Supply UP 70% since October

RBZ unveils $10, $20, $50 and $100 Trillion Notes

$50 Billion Zimbabwe Dollar Picture

Zimbabwe introduces new $20 & $50 billion note

8 Trillion and Counting

Pictures of Zimbabwe's New Billion Dollar Notes Dec 2008

New Ten Billion Zimbabwe Dollar Note

Printing Money USA

After rate cuts: The Fed's new ball game

With rate cuts doing little to help boost the economy, the Fed has begun to print money to finance its liquidity programs. But that could spell disaster down the road. (More)

Zero Percent

Fed slashes key rate to near zero

Ben Bernanke & Co. cite weakness in economy and reduced inflation threat as justification for cutting rates to a record low range of 0% to 0.25%.

Zimbabwe's new half billion dollar note

Picture of the new 100Million Zimbabwe Note

Hyperinflation forces Zimbabwe to print $200 million notes

New One Hundred Million Zimbabwe Banknotes

Bailouts: $7 trillion and rising

800 Billion Dollars of *New* Money

End the Fed protest mentioned on CNN

Zimbabwe Business Watch : Week 47

Wikipedia Explains Large Number Inflation

Zimbabwe on a de facto fuel standard?

Competition in the creating money out of thin air.

Ron Paul Questions Bernanke, 11/18/08

89.7 Sextillion

10 least values currencies in the world.

Bernanke hints at rate cut

Zimbabwe bonds back by the full faith and credit of the Zimababwe Reserve Bank

Pictures of Zimbabwe's New $500,000 and 1,000,000 Notes

Peter Schiff

Ron Paul warns about Inflation once again.

28,400,000,000,000,000 to One

Zimbabwe Monthly Inflation Rate: 13.2 Billion

800 Billion Dollars of New Money