Wednesday, March 30, 2011

a barrel of money for a loaf of bread ....not yet.

wikipedia defines hyperinflation as follows:

A vicious circle is created in which more and more inflation is created with each iteration of the ever increasing money printing cycle.

Hyperinflation becomes visible when there is an unchecked increase in the money supply (see hyperinflation in Zimbabwe) usually accompanied by a widespread unwillingness on the part of the local population to hold the hyperinflationary money for more than the time needed to trade it for something non-monetary to avoid further loss of real value.

Hyperinflation is often associated with:

1). wars (or their aftermath),

2). currency meltdowns,

3). political or social upheavals, or

4). aggressive bidding on currency exchanges.

i think wikipedia made a mistake by saying "or" on number three. it should be "and" because right now...we don't just have one or two of these, we have all four. this must be an old definition; even though wikipedia is constantly updated. can you imagine how out of touch with reality the other dictionary's are.

how much longer? we can't be too far away. better stock up.

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