shades of zimbabwe

[Ken Gargett]

The highest denomination currency note ever issued was by the Hungarian government in 1946. It was for a Hungarian 100 million Billion pengoe (that's 100,000,000,000,000,000,000 pengoe).

The note's value was around 20 cents.

[Kangaroo495]

Wow! That means a CoRo would set you back about 92 400,000,000,000,000,000,000 in post WW2 Hungary.

(That'll prevent Smithy from getting his knickers in a knot about the thread having nothing to do with cigars)

[Ken Gargett]

(That'll prevent Smithy from getting his knickers in a knot about the thread having nothing to do with cigars)

which was of course, the only reason for posting this and now you've gone and spolit it!! annoying smithers is a favourite queensland sport.

[El Presidente]

The highest denomination currency note ever issued was by the Hungarian government in 1946. It was for a Hungarian 100 million Billion pengoe (that's 100,000,000,000,000,000,000 pengoe).

The note's value was around 20 cents.

So Ken...you are worth 300,000,000,000,000,000,000 Pengoe!

[Ken Gargett]

So Ken...you are worth 300,000,000,000,000,000,000 Pengoe!

i am deeply touched that you think so highly of me. i'd estimate it as more like about 4 pengoe.

[anacostiakat]

Easy Pengoe come, easy Pengoe go. . .

[dcse]

It makes me wonder about the production cost, and what they could buy with these notes. Those days, international trade was based on barter deals between governments. I guess domestic trade was very regulated as well with rationing cards. In Norway the last remnants of rationing disappeared in the early sixties. All trade between Norway and Hungary was based on barter deals well into the fifites, and with the introduction of communism in Hungary, the trade was miniscule. As a strategy to bring down the wealthy, I guess the policy/superinflation was a success....

[MontrealRon]

As a strategy to bring down the wealthy, I guess the policy/superinflation was a success....

In fact, the very wealthy tend to benefit from hyperinflation.

As those who have their modest savings in currency, whether bank accounts or cash, lose out,

the rich, who usually keep the bulk of their equity in hard assets, are well protected.

They also have the opportunity to buy distressed businesses and properties really cheaply,

as the middle class is squeezed out of existance.

Wealthy employers also benefit as their workers' real salaries are greatly reduced.

Authoritarian political movements also benefit, as the severe social disruption turns the newly impoverished towards demogogic leaders.

Had the German people not suffered through the hyperinflation of the 1920's,

the direction they took in the 1930's might well have been very different...