I hold, in my hands, a one-hundred billion dollar banknote from Zimbabwe. This is so surreal to me - but it's a reminder of the importance of faith and trust in a fiat currency-driven economy. (Although I wish somebody would explain to me how gold isn't a fiat currency in itself - it has no intrinsic value to the owner; when does being the most malleable metal have any real value? Gold is only worth in as much as what somebody else will give you - how does it render it any different than paper money?)

I can't imagine a world where our currency held no value - imagine if I went to 7-11 and a hot dog cost $8 tomorrow. And $20 the day after. And then $1,000 next week. It's hard to even emphathize the turmoil of people living in a situation like that (couple that with the political uncertainty that derives from the power struggle between Mugabe and opposition parties in Zimbabwe).

The hyperinflation in Zimbabwe is probably gonna go in the history books (Annual inflation rate of 89.7 sextillion percent).

Even with all the economic turmoil we're going through, this bill is a reminder to have some perspective about how bad things could really get.

Posted by roy on February 2, 2009 at 10:24 PM in Ramblings | 3 Comments

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Comment posted on February 5th, 2009 at 03:30 PM
If you hang on to that 100 billion dollar banknote, and their economy bounces back some day, what will it be worth???
Comment posted on February 5th, 2009 at 05:13 PM
unfortunately, the bills were only issued for a temporary time - it's already worthless (expired dec 31st, 2008).

i just love it cause it was history in the making!
Comment posted on February 5th, 2009 at 09:17 PM
Too bad. I'd love to be able to say I knew a billionaire (or even a millionaire) some day. :-)