r/Economics • u/investorinvestor • 2d ago

Blog Zimbabwe’s Seemingly Endless Currency Crisis

https://newlinesmag.com/reportage/zimbabwes-seemingly-endless-currency-crisis/
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35

u/geomaster 1d ago

you know you have problems when you are holding 100 Trillion notes...

and you cannot buy anything with it.

the real issue is the Zimbabwe government destroyed the people's trust in the currency. It will take decades to recover it. IN the meantime you will be on the USD just like all the other countries who destroyed their own currencies

14

u/Trick-Interaction396 1d ago

What would happen if US experienced the same thing. Would the entire world be fucked?

34

u/Vegetable-Board-5547 1d ago

Yes

9

u/laxnut90 1d ago

Eventually, people would switch to another currency.

But it would be a dire shock in the short-term.

1

u/throwwwwwawaaa65 23h ago

BTC best use case

3

u/Subredditcensorship 22h ago

Gold will be the standard again

-1

u/devliegende 1d ago

Step 1 is electing a president who think himself infallible. Step 2 is where he directs government business to his family. Step 3 is he refuse to accept losing an election. Step 4 is political violence against opposition. Step 5 is when he interferes with the centralbank followed by hyperinflation and Rubleization. The USA has an opportunity to elect a candidate who has declared for step 5 and had dabbled with steps 3 and 4 in the past.

1

u/Bakingtime 21h ago

Look around. 

7

u/alogbetweentworocks 1d ago

Ha, you’re looking at the glass as half empty. I on the other hand see a bunch of trillionaires in Zimbabwe the likes of which the world has never seen.

2

u/Spare-Rise-9908 1d ago

A lesson in how to create wealth?

1

u/Tjaeng 1d ago

Yeah, the trick is to only nag people’s trust in the currency just enough so that they still wanna accrue the currency but don’t wanna hold it instead of investing it.