History Main / RidiculousFutureInflation

23rd Nov '17 5:13:16 PM somerandomdude
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* UsefulNotes/{{Ecuador}}'s ''sucre'' currency went through severe hyperinflation beginning in 1983, with prices eventually changing almost as fast as merchants could change their signs. The country eventually switched over to the US dollar in 2000, at a rate of 25,000 sucre to 1 dollar.
23rd Nov '17 5:09:01 PM aquagon
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** To elaborate, the problems with inflation began when the government established a currency exchange control system in 2003 to contain the outward flow of foreign currency (particularly American dollars), and to mask the steady increase in prices, they tried applying the "drop three zeros" strategy to the Venezuelan Bolivar with the creation of the Bolivar Fuerte (Strong Bolivar) in 2007. However, they didn't take any measures to solve the underlying problems with the economy, so the currency exchange control is still there, the government continues acquiring debt after debt with China, with no visible intention of paying them off, and they continue forcing the central bank to print inorganic money. All in all, this resulted in the American Dollar now having a value of over 8000 [=BsF=] (8.000.000 of the old Bolivares) in the black market, with the official exchange rate of an America dollar to 6,30 Bolivars being severely limited and hard to acquire for anyone, and an excessive amount of Bolivars in circulation that have next to no value. And that's without mentioning the current annual inflation rate of 63,4% or the fact that due to the government's treaties with other countries and bad handling of the economy, there's a widespread scarcity of food, medicine, personal care products, industrial raw materials and even toilet paper.

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** To elaborate, the problems with inflation began when the government established a currency exchange control system in 2003 to contain the outward flow of foreign currency (particularly American dollars), and to mask the steady increase in prices, they tried applying the "drop three zeros" strategy to the Venezuelan Bolivar with the creation of the Bolivar Fuerte (Strong Bolivar) in 2007. However, they didn't take any measures to solve the underlying problems with the economy, so the currency exchange control is still there, the government continues acquiring debt after debt with China, with no visible intention of paying them off, and they continue forcing the central bank to print inorganic money. All in all, this resulted in the American Dollar now having a value of over 8000 84.000 [=BsF=] (8.(84.000.000 of the old Bolivares) in the black market, with the official exchange rate of an America dollar to 6,30 Bolivars being severely limited and hard to acquire for anyone, and an excessive amount of Bolivars in circulation that have next to no value. value, with the extra problem that cash has become scarce and banking networks have collapsed due to overuse. And that's without mentioning the current annual inflation rate of 63,4% 4115%, the shadow of default looming constantly over it or the fact that due to the government's treaties with other countries and bad handling of the economy, there's a widespread scarcity of food, medicine, personal care products, industrial raw materials and even toilet paper.paper. So it pretty has become a second Zimbabwe, down to prices doubling pretty much daily.
9th Oct '17 2:02:36 PM BobBrom
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** In most places nowadays you'd be lucky if £5 will pay for 2 pints let alone 6.
18th Sep '17 8:37:54 PM Ferot_Dreadnaught
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* Creator/MarkTwain's ''Literature/AConnecticutYankeeInKingArthursCourt'' [[GenreSavvy anticipates this effect]] when converting 6th-century [[Myth/KingArthur Arthurian Britain]] to decimal currency. He defines the units so that a cent is a ''lot'' of money and a dollar an inconceivable fortune, so that prices can inflate to those of 19th-century America on schedule.

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* Creator/MarkTwain's ''Literature/AConnecticutYankeeInKingArthursCourt'' [[GenreSavvy anticipates this effect]] effect when converting 6th-century [[Myth/KingArthur Arthurian Britain]] to decimal currency. He defines the units so that a cent is a ''lot'' of money and a dollar an inconceivable fortune, so that prices can inflate to those of 19th-century America on schedule.
4th Sep '17 1:01:12 PM eroock
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-->[[https://www.youtube.com/watch?v=smKrmXxxWQ4 "Take your hat off, boy, that's a dollar bill!"]]
25th Aug '17 6:38:02 PM nombretomado
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** Forget TheNewRussia, look at the RedOctober era. The scrip of the newborn Soviet Republic had to be revalued every year to keep it barely afloat, and despite all revaluations, prices were in the millions range. The kerenki, scrip of the Provisional Government which was used as more or less universal between Soviet and non-Soviet territories, was never revalued and people just stopped counting zeroes and started to accept kerenki as 1x1 meter uncut sheets.

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** Forget TheNewRussia, UsefulNotes/TheNewRussia, look at the RedOctober era. The scrip of the newborn Soviet Republic had to be revalued every year to keep it barely afloat, and despite all revaluations, prices were in the millions range. The kerenki, scrip of the Provisional Government which was used as more or less universal between Soviet and non-Soviet territories, was never revalued and people just stopped counting zeroes and started to accept kerenki as 1x1 meter uncut sheets.
1st Aug '17 5:34:11 PM ImperialMajestyXO
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* Even gold, the proverbial rock in the tempest of economic turbulence, is not immune to inflation. In 1342, Mansa Musa of the Mali Empire was passing through Cairo his pilgrimage to Mecca. Either he did not quite notice the prices on the other side of the Sahara or he wanted to make a reputation for himself (or both), He ended up spending so much gold in the bazaar of Cairo that the gold market in the Mediterranean region collapsed for a decade. Like every other commodity, gold's value is whatever people are willing to pay for it, making it subject to the same laws of supply and demand as anything else that can be bought and sold. Thus, even the long traditional association between gold and wealth in nearly all cultures doesn't prevent huge sudden increase in supply from reducing its value.

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* Even gold, the proverbial rock in the tempest of economic turbulence, is not immune to inflation. In 1342, Mansa Musa of the Mali Empire was passing through Cairo on his pilgrimage to Mecca. Either he did not quite notice the prices on the other side of the Sahara or he wanted to make a reputation for himself (or both), He ended up spending so much gold in the bazaar of Cairo that the gold market in the Mediterranean region collapsed for a decade. Like every other commodity, gold's value is whatever people are willing to pay for it, making it subject to the same laws of supply and demand as anything else that can be bought and sold. Thus, even the long traditional association between gold and wealth in nearly all cultures doesn't prevent huge sudden increase in supply from reducing its value.
9th Jul '17 2:30:21 PM bwburke94
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* A 1976 ''Series/SaturdayNightLive'' sketch titled "{{Jeopardy}} 1999" had dollar values in the Jeopardy! round ranging from $10,000 to $50,000. This is 400 times the actual {{Jeopardy}} clue values in 1976 ($25 to $125) and 100 times what the actual clue values turned out to be in 1999 ($100 to $500).

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* A 1976 ''Series/SaturdayNightLive'' sketch titled "{{Jeopardy}} "Series/{{Jeopardy}} 1999" had dollar values in the Jeopardy! round ranging from $10,000 to $50,000. This is 400 times the actual {{Jeopardy}} ''Jeopardy!'' clue values in 1976 ($25 to $125) and 100 times what the actual clue values turned out to be in 1999 ($100 to $500).



* While the caveat of the future tropes cannot have any real observations cause it is in the future, what is the present was yesterday's tomorrow. With that in mind, it's always funny to watch movies set in a modern period complain about modern prices which today would be welcomed if not outright ridiculously cheap. For example, in EscapeToWitchMountain, at one point Mr. O'Day is filling his Winniebago with gas and complains about the outrageos price for $10 to completely fill such a vehicle. During the height of the fuel crisis in America, it is pretty high, but it becomes hilarious to people who viewed the movie in 2015 (it's 40th anniversary) where filling a small car (with a minimum 10 gallon tank) is twice as expensive.

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* While the caveat of the future tropes cannot have any real observations cause it is in the future, what is the present was yesterday's tomorrow. With that in mind, it's always funny to watch movies set in a modern period complain about modern prices which today would be welcomed if not outright ridiculously cheap. For example, in EscapeToWitchMountain, ''Film/EscapeToWitchMountain'', at one point Mr. O'Day is filling his Winniebago with gas and complains about the outrageos outrageous price for $10 to completely fill such a vehicle. During the height of the fuel crisis in America, it is pretty high, but it becomes hilarious to people who viewed the movie in 2015 (it's 40th anniversary) (40 years after its release) where filling a small car (with a minimum 10 gallon tank) is twice as expensive.
9th Jul '17 8:47:41 AM nombretomado
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*** This is also a reason why 1 yen coin is minted in aluminum since 1955: during WorldWarTwo the Japanese economy suffered huge inflation, and in 1946 the yen was pegged to the US dollar at the rate of ¥360 per $1. At first the yen coins were minted in brass, similar to the modern 5 yen coin, but the rise in copper prices meant that the coin was worth more than its face value as a bullion, resulting in significant losses for the Bank of Japan. This led to the change of its material to the much cheaper aluminum, and it remains the same ever since, even if it appreciated more than 4 times, so now the rate is ~¥120 per $1 as of 17.5.2015 according to google.

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*** This is also a reason why 1 yen coin is minted in aluminum since 1955: during WorldWarTwo UsefulNotes/WorldWarII the Japanese economy suffered huge inflation, and in 1946 the yen was pegged to the US dollar at the rate of ¥360 per $1. At first the yen coins were minted in brass, similar to the modern 5 yen coin, but the rise in copper prices meant that the coin was worth more than its face value as a bullion, resulting in significant losses for the Bank of Japan. This led to the change of its material to the much cheaper aluminum, and it remains the same ever since, even if it appreciated more than 4 times, so now the rate is ~¥120 per $1 as of 17.5.2015 according to google.
5th Jul '17 9:38:32 AM klaun
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** Doesn't sound all that realistic, since the Federal Reserve manages money supply via Capital Requirements and Reserve Requirements on banks. The amount of printed currency in circulation is a relatively small percentage of the amount of '''money'''. So printing more currency is not how inflation happens.
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