I picked up what promises to by a very interesting book. It’s called, “When Money Dies: The Nightmare of the Weimar Collapse” by Adam Fergussen. There are actually a few very similar titles because this book was reprinted, but they all mean the same thing.
I find this topic quite intriguing because it’s not something many people know much about. Sure, I meet the very few who can tell me about one chunk of history or another, but I have yet to meet anyone who can tell me any type of history of currency, not even the history of the currency they have in their very own pocket. I have said this over and over and over again…I am absolutely amazed at how little people know about what they slave for, spend and ultimately stand to lose – their money.
Anyway, I bought this book so I can learn a little about hyperinflation. Hyperinflation is “inflation that is very high or “out of control” (Source). I’m already aware of many causes of hyperinflation, but I’m not too well versed in what happens during and afterward.
Recent history offers nine cases of hyperinflation that are generally simple to understand. They are:
– Germany Weimer Republic 1922-1923
– Hungary 1945-1946
– Chile 1971-1981
– Argentina 1975-1992
– Peru 1988-1991
– Angola 1991 – 1999
– Yugoslavia 1992-1995
– Belarus 1994-2002
– Zimbabwe 2000-2009
We have all probably heard about Zimbabwe’s issues with their failed currency. If you visit the link above and read the last few lines, you’ll see, “In August 2008, the government removed ten zeros from the currency, and 10 Billion ZWD became equal to 1 New ZWD, with an estimated annual inflation rate of about 500 quintillion (18 zeros) percent, with a monthly rate of 13 billion percent.”
That’s nuts. Can you imagine what life is like for people who have a currency that inflates at a rate of 13 billion percent monthly?
This book should be an easy read. I am going to get to it right after I’m done with The Fountainhead. Unlike The Fountainhead, this book has nice big print and good spacing. I do well with that. I’ll let you know how it goes.