Inflation

November 2nd, 2008 at 4:59 pm by David Farrar

has blogged Zimbabwe’s new annual inflation rate.

It is 10.2 quadrillion precent. That is 10.2 million billion or 10,200,000,000,000,000%.

That makes me feel better about NZ hitting 5.1%. But only slightly.

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12 Responses to “Inflation”

  1. socialismispoison (5 comments) says:

    Yeah, but at least it gives Helen and Michael something to aspire too!

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  2. Patrick Starr (3,675 comments) says:

    a Labour/Green coalition would soon catch up

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  3. Glutaemus Maximus (2,207 comments) says:

    5.1% is the seasonally adjusted basket full of crap that nobody buys weekly!

    What is the DAY TO DAY Inflation Rate?

    Rent/Rates
    Domestic Fuel
    Food
    Beverages
    Toileteries
    Clothing
    Motor Fuel
    Entertainment
    and all the other stuff that we choose to buy regulary like papers/internet access/union fees.

    I really believe that true ‘living’ inflation is ranging between 12% and 16%

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  4. Spam (586 comments) says:

    Ack – ignore me.

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  5. petal (698 comments) says:

    How does an inflation rate like that actually work in real life? You get paid and run to the shop to spend it all on food right now? Then demand inflation adjusted pay the next week and run to the shop before the prices go up? Surely the only way you can survive that sort of inflation is by barter?

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  6. Zulu (19 comments) says:

    “How does an inflation rate like that actually work in real life?”

    well for starters you order and pay for your beers before you tee off for your 18 holes of golf on Saturday morning :)

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  7. emmess (1,334 comments) says:

    Still away off Hungary in 1945-46

    Hungary
    After the hyperinflation in Hungary
    Hungary went through the worst inflation ever between the end of 1945 and July of 1946. In 1944, the highest denomination was 1,000 pengő. By the end of 1945, it was 10,000,000 pengő. The highest denomination in mid-1946 was 100,000,000,000,000,000,000 pengő. The rate of inflation was 4.19 quintillion (4.19 x 1018) percent. A special currency the adópengő – or tax pengő – was created for tax and postal payments [1]. The value of the adópengő was adjusted each day, by radio announcement. On January 1, 1946 one adópengő equaled one pengő. By late July, one adópengő equaled 2,000,000,000,000,000,000,000 or 2×1021pengő. When the pengo was replaced in August 1946 by the forint, the total value of all Hungarian banknotes in circulation amounted to one-thousandth of one US dollar. [12] It is the most severe known incident of inflation recorded, peaking at 4.19 × 1016 percent per month (prices double every 15 hours). The overall impact of hyperinflation: On the 1st of August, 1946 400,000,000,000,000,000,000,000,000,000 or 4×1029 (four hundred octillion [ short scale ] ) pengő became 1 forint.

    One source [2] states that this hyperinflation was purposely started by trained Russian Marxists in order to destroy the Hungarian middle and upper classes. The 1946 currency reform changed the currency to forint. Previously, between 1922 and 1924 inflation in Hungary reached 98%.

    http://en.wikipedia.org/wiki/Hyperinflation

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  8. MacDoctor (66 comments) says:

    Petal:
    I have a friend in Zimbabwe – he mostly uses South African Rands on the black market, but occasionally he needs to use Zimbabwe dollars (the normal supermarkets are forced to accept only Zim Dollars). It works like this:

    You transfer money in from South Africa. At 8.30 am when the banks open, you draw however many billions your Rands bought. The bills are marked for that day only. You go straight to the supermarket and buy whatever is available. You have little or no choice in what you buy. By 10am the shop is out of goods and the owner rushes to the bank to bank his already devalued Zim Dollars. If they haven’t banked by midday, their dollars become worthless. If they haven’t bought tomorrow’s goods by then, they’ve also had it. Tomorrow’s dollars will have at least two more zeros on them. Whatever profit they made today will only be worth 1% or less than yesterday. Many shop owners do not even bother to bank.

    In the country, everything is on barter. You can’t get to a bank in time to make it worth your while.

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  9. Rex Widerstrom (5,129 comments) says:

    Uh oh…

    Broker: “…so you see, if you give us all your depositors’ savings to invest in Zimbabwean sub-prime mortgages, the property will be worth 10,200,000,000,000,000% more in a year’s time!!”

    Banker: “Sounds good to us. Who needs to invest in activity that actually produces anything?! And anyway, if it turns to s**t the government will bail us out and I’ll still get my bonus. Where do we sign?!”

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  10. Johnboy (13,424 comments) says:

    Sounds good to me. We will need somewhere for Micky to go after next saturday and as Helen has dibs on the UN job, it sounds that Zimbabwe would be ideal.
    I hear the weather is great there and I’m sure Micky could talk his way out of a spear up the jacksy. If not who really gives a shit!

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  11. davidp (3,326 comments) says:

    BigMac Doctor>You transfer money in from South Africa. At 8.30 am when the banks open, you draw however many billions your Rands bought.

    So it’s Social Credit in action? I see they’re standing at this election. I think I’d rather give my vote to a party of Flat Earthers. Or Peters.

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  12. sam269 (39 comments) says:

    “I really believe that true ‘living’ inflation is ranging between 12% and 16%”

    Interesting, any chance you could post up the data you used to calculate this?

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