The Long Crisis

Posts Tagged ‘Zimbabwe trillion dollar bill’

Here is a close up look at the new 100 Trillion Dollar Zimbabwe bill newly authorized by the out of control government of Zimbabwe. Isn’t it lovely to look at?

Of course, the biggest drawback to all of the currency of Zimbabwe is that it is worthless, or nearly worthless. 100 trillion dollars in the currency of Zimbabwe will not even buy you a loaf of bread, even if you could find a loaf of bread to buy. But the Central Bank of Zimbabwe still prints currency, even if no one in or outside of Zimbabwe will accept it in exchange for anything. I guess that they are hoping that someday citizens will again have confidence in their government. After all, confidence is the only thing propping up a fiat currency.

How could such a thing happen to a nation? How could one of the most prosperous nations in Africa fall within a fairly short period of time into such a terrible state of disarray? Well, for one thing they spent far more than they were taking in. Then they borrowed money from whomever was foolish enough to lend it to them like there was no tomorrow and as if the borrowed money never had to be repaid. Then they wasted a lot of their resources on building expensive poorly designed projects, enriching a few select friendly to the government contractors in the process. Then of course, there was a lot of corruption and billions of dollars, likely trillions, simply disappeared.

None of this took place overrnight but it did take place within a few frightening years. Once the horrors of mismanagement and high inflation are let loose they can be difficult to contain. Once the inflation rate hits a few thousand percent a year the game is over. Then 100 trillion dollar bills are born soon thereafter.

Of course we proud Americans have nothing to worry about do we? We so far have only about 12 trillion US dollars in debt. Our TARP bailout is only 700 billion. So what if our trade deficit is negative and we constantly spend more than we take in? So what if our unfunded liabilities, most of it for Medicare and Social Security, is approaching 60 trillion dollars. So we are spending a few billion a year on fighting two endless wars? Surely we can handle that expense as our infrastructure falls apart, our unemployment rate goes above 10%, and housing prices continue to decline.

We are Americans and this is America. We can do as we please without consequences. Nothing too bad will happen here, right? Who can envision an American eagle gracing even a one trillion dollar American bill? American exceptionalism will rule the day, forever and ever. Just ask any politician in Washington, D.C. Party on, man. Don’t you have full confidence in America and its currency?

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