When you're running a country, and you don't do what the U.S.A tells you, so they put sanctions on your country so you can't trade goods. Then they lie to the world and say you starve your own people...... We've seen this story time after time again... When will people finally realize our country lies, and puts propaganda out about other countries?
+gino manshit same as USSR, who received a "we accept only gold" trading rules and had to choose to either stay in 19th century and starve like Russian Empire did every few years or sell grain, starve and brutally force industrialisation on that money. 1937-1945 had shown, who was right...
Baked Beanie Sigel or it could be that instead of taxing people for welfare for your own supporters and hiring thugs to beat up people that protest taxation without representation, you could invest in capital goods to diversify your economy so there are more goods to justify printing more money. Or you could blame America. That looks like what you did.
Exactly, this could solve everything, 1 bill for 1 item, everybody would be able to afford whatever he'd want, then they'd just need to introduce some new laws to forbid gluttony. End of poverty.You are a genius!
It's what happens when you have a national printing machine. No matter their understanding of economics, they will fluctuate the value of currency according to what insiders find most profitable at the time. National banks are about exploiting populaces for the benefit of a few.
With the price of toilet paper at ZMB$417 per sheet, you might as well use the useless notes for toilet paper instead. That's probably what they ended up doing too.
They're doing that with the Venezuelan bolivar, the latest victim of hyperinflation. They're turning the notes into bags, sculptures, hats and such. Right now the old Zimbabwean currency is gaining value as a collector's item, so I don't know about using it that way.
*To people who don't get it:* Imagine that your entire economy is $1. It's 100% of your economy. If you printed one more dollar, each of those dollars would be worth 50% of the economy. When you put more and more money into circulation (ie: printing money then buying stuff) the percentage of the economy the currency takes up gets smaller and smaller, decreasing its value.
First get a 1$ then buy zimbabwe money with it . => Now you have paper. Wipe your ass for the rest of your life with zimbabve money - profit no more 1:50 toilet paper
I think he understood economics. He wanted more money for himself. Taxing people to get their money is hard to get. Printing more money to get more of people money is the fastest and easiest way to their money.
@@pear146 I think its because of history. People are scared of the inflation again. You see money is only worth if the people believe in it. We people give it a value
Zimbabwean here. It's sad to see how much my people have suffered. It has been hellish for us. Mugabe was a tyrant and his successor is no different. But I do believe things will get better eventually. We must believe. We could build a better country based on the laws of love, compassion, kindness, forgiveness and respect for everyone regardless of skin colour, belief or gender. Especially for women, children, the environment and all other living beings. We are a beautiful country, with amazing natural beauty, fascinating wildlife and friendly, hard-working people. To everyone in this comment section, please don't judge us too harshly.
If only Smith stayed things would've been much different. Obviously seizing white farms, subsequently plummeting into famine and printing money didn't help
Interestingly, in 2019, Zimbabwe figured it had been ten years since their currency utterly failed, and decided it was time to try it again. They made the use of other currencies illegal again, and have issued new Zimbabwe dollars. As of 4/2021 their inflation rate is at 98% 0_o
you won't be laughing when it happens to your country. put yourself in the shoes of a Zimbabwe citizen, scrambling to get the worthless paper out of his/her hands in exchange for basic necessities - all as a result of an incompetent government. it's not funny. just pray you won't have to experience this
The reason why countries can't simply print all the money it needs is simple: if there's a lot of something, its value goes down. The amount of money in circulation goes up, but the total value of goods and services remains the same, so your dollar buys less. Sure, you can have a billion dollar in your wallet, but it doesn't matter if a burger costs a 100 million dollar to buy.
As a way for back up. Its best to save valuable assets like Gold, silver etc. Unlike bank notes, they are not affected by hyper inflation. They guard your wealth in desperate times
No, not at all. Southern Rhodesia's largest note was 10 Pounds up until 1963. After 1964 the largest note was only 5 pounds. When they changed to decimal system in 1970 their largest note was $10 (formerly 5 pounds). The $10 note remained the largest note in circulation right up until Zimbabwe Independence when they issued a $20 in 1980. So you can see the economy was very stable with very little inflation. The Rhodesian dollar was worth about $US 1.20 in the 1970s.
Even international sports was impacted. Zimbabwe used to be a cricket powerhouse, but it got so bad the cricket board couldn't even pay for the players' hotel and meals when traveling, so a bunch of them quit. Zimbabwe cricket has never been the same since.
Nice video, very well explained. Since hyperinflation is now over in Zimbabwe, I wonder whether Venezuela is currently the most hyperinflationed country in the world. And was Zimbabwe's hyperinflation even worse than Hungary's?
I just saw on another UA-cam video that the hyperinflation had Zimbabwe print the highest denomination note in history: 100 trillion dollars! Must be a Guinness World Record. You can find these notes on eBay now.
Well the Western economies are doing the exact same thing as Zimbabwe with Quantitative Easing(QE).The inflationary effects of QE havent yet hit consumer prices but have fostered mega bubbles in Western stocks,bonds,real estate.Inevitably all this QE money will hit the general economies resulting in massive spike of consumer prices and the downward spiral into hyperinflation will result.As Voltaire once said "Paper money eventually returns to its intrinsic value: zero".The US dollar,Euro,Yen,Yuan and others will go down the drain as Zimbabwean dollar
The process of hyper inflation that you just described is exactly what happened in Venezuela with the Bolivar (bs) from aprox 2012 and up to this day, but the comunist got trickier, and they decided to take 3 ceros (000) out of the currency TWICE in different occasions which bought them some time, so that's (000.000), but still it got to a point where it was imposible for them to keep up with the printing because the cost of the process was greater than the currency itself. Today May 2021: 1 dollar = 3.150.602 bs.s ( three million one hundred and fifty thousand Bolivares Soberanos) When the reality is : 1$ = 3.150.602.000.000 ( three TRILLION Bolivares of the original value) Even the richest nation can go to bankruptcy if you ignore basic economics rules, but this people that did it couldn't care less. Thanks for sharing the knowledge👏.
Wouldn't it be more acurate to say that inflation is caused by the disparity in value between the supply of money and the amount of production - more money in circulation than justified by the amount of production? An increase in money supply in and of itself would not cause inflation if its accompanied by the equivalent increase in production, correct? The money supply has to grow at some point.
Billy Wardlaw Yes, I think it's often just assumed when people say increase in currency that they're talking about disproportionate increase in currency without the increase in goods or services.
The quantity theory equation is MV = PT , where M = money supply, V = velocity, P = average price level, and T = real value of transactions (kinda like real GDP). We can rewrite it like this: ΔM + ΔV = ΔP + ΔT where delta represents change. Lets write the ΔP (inflation) as a function of everything else: ΔP = ΔM + ΔV - ΔT. So your thinking was right: the price level will change directly proportional with money supply, but will change inversely proportionally to an increase in production (ΔT).
"I'd like a loaf of bread and a pack of cigarettes pls." "That'll be 850 billion Zimbabwe dollars sir." Dude everyone in Zimbabwe is a billionaire. #winning
This is madness. Iam from a 3rd world nation, so I can feel how hopeless must aged and handicapped people have felt. Who kept a lotta cash as fixed deposit in banks.
The amusing part here was, humanity especially leaders never learn from history as it was happened in the past. A vicious cycle of greed to no end in sight...
This might be a very stupid question, but when you have money printing machine, can't a president print money for himself to pay his country's debts and not have that money go in the economy? I hope you understood what I was trying to ask.
It would still not work because when Mugabe prints Zimbabwean money to pay his country's debts, his creditors outside Zimbabwe who receive the Zimbabwean money, can only buy Zimbabwean goods with them, and they will. That new money returns to chase the same amount of goods in Zimbabwe. So Mugabe is stuck with the same problem on inflation, which occurs when more Zimbabwean money chases the same amount of Zimbabwean goods.
Armangeddon Gaming Welp, the main issue with that from my understanding is that it's still going towards the economy. Basically, after that money is spent it's added to the economy, since that extra money has to be spent on said services. Then the currency is devalued, and when the President requires more cash he'll print more because it's not circulating, further devaluing the currency. A vicious cycle. Again, this is from my relatively basic, likely flawed knowledge, and other repliers have explained it better.
It's junk. They start off with a false premise "when you're a dictator" and never look back. Just because of the US government does not like the outcome of the election and defies SADC and AU observer missions as well as the Zimbabwe Election Commission, doesn't mean they're a dictatorship, or that the Zimbabwean people didn't get to choose between the ZANU-PF and the MDC. But if you're an economist, you presume you don't need to know that. Now you know what I think of economics. :) Apparently, economists agree.
That's a damn good question. I can't believe any government in their right mind would do something like that. The minister of finance should have been sent to prison for life.
You forgot to mention the not-widely-known hyperinflation that happened in the United States in America in the year 2008 A.D. Spain went through hyperinflation too back in its colonial era.
So couldn’t their be a price freeze during a crisis to prevent this or slow it down that way when the economy calms down it wouldn’t be a complete crash I would happily go on a limb and say 90% of company’s price hike now that people are staying home gas prices are going down
I hear a lot about how important it would be to be debt free in the event of hyperinflation. Why is that? If I owe $90,000 on student loans, a truck, and a car, how would I be affected? Wouldn't most people be in the same situation?
I'm so glad we have very competent leaders here in the US so we don't have to come across anything like this. Heck, because if we were ever in a similar situation, our leaders - they'r too intelligent to overlook other incidents taking place in different countries... I mean, it's great that we're doing nothing like this, right? Fiat currencies never fail, right? It's good were off the gold standard, right?
Zimbabweans became millionaires but they couldn't do anything with the money, if i was a Zimbabwean i would try and keep some money till the time when the currency would be powerful again and i would be a real millionaire
The problem is the money never does become powerful again because when the have to do a revaluation and chop off 12 zeros, the old note are demonitized and become worthless
I was listening to BBC Radio 2 today with Jeremy Vine interviewing John Simpson. Simpson recalled the day he and some of his fellows were in Zimbabwe during Mugabe`s tenure and out to lunch. The price of the lunch - he said - rose four times during the eating.
From Zimbabwe. When pay day came around, staff were given time off as soon as they received salaries to go and buy groceries before the prices went up and the money devalued. I remember a loaf of bread being the equivalent of $1 and within 24 hours the same loaf of bread costed $1 mil
Great video but I have a question as mentioned in the video if the demand is hi so the gov printed more money but why it is not effecting the us economy that is the world courency so the demand is always hi
it was actually worse than it sounds, i remember one day i went into checking out cellphone prices when i went back home to get the money after an hour the money thatwas supposed to buy me a cell phone could now only buy me a cell phone battery
![Lp. Сердце Вселенной #30 ДВА В ОДНОМ [Один человек]• Майнкрафт](http://i.ytimg.com/vi/nrXy15orKhY/mqdefault.jpg)
When you're running a country but know nothing about economics.
*COMMUNISM*
When you're running a country, and you don't do what the U.S.A tells you, so they put sanctions on your country so you can't trade goods. Then they lie to the world and say you starve your own people...... We've seen this story time after time again... When will people finally realize our country lies, and puts propaganda out about other countries?
go to other country then .. nobody cares lol
+gino manshit
same as USSR, who received a "we accept only gold" trading rules and had to choose to either stay in 19th century and starve like Russian Empire did every few years or sell grain, starve and brutally force industrialisation on that money. 1937-1945 had shown, who was right...
Baked Beanie Sigel or it could be that instead of taxing people for welfare for your own supporters and hiring thugs to beat up people that protest taxation without representation, you could invest in capital goods to diversify your economy so there are more goods to justify printing more money.
Or you could blame America. That looks like what you did.
Just print a bill with the ∞ symbol and call it a day. 💰💰💰
Purifier Phoenix The Mecca so how are you going yo pay anyone with infinet money?
I wonder what your change might be in exchange of infinite dollars. Unless every price is in infinite dollars (Which is obviously non-existent)
Exactly, this could solve everything, 1 bill for 1 item, everybody would be able to afford whatever he'd want, then they'd just need to introduce some new laws to forbid gluttony. End of poverty.You are a genius!
I think harvard wants to know your location
They don't know what's infinity symbol means. Look at his face, it got enough grease to fry chicken for entire country for years,
This is what happened when you give someone printing machine, but you don't teach him basic economics.
It's what happens when you have a national printing machine. No matter their understanding of economics, they will fluctuate the value of currency according to what insiders find most profitable at the time. National banks are about exploiting populaces for the benefit of a few.
Yes!!!!!!!!
Gold standard FTW......
With the price of toilet paper at ZMB$417 per sheet, you might as well use the useless notes for toilet paper instead. That's probably what they ended up doing too.
Erwin Schrödinger how did he know?
They're doing that with the Venezuelan bolivar, the latest victim of hyperinflation. They're turning the notes into bags, sculptures, hats and such. Right now the old Zimbabwean currency is gaining value as a collector's item, so I don't know about using it that way.
You have discovered the solution to socialism. I nominate you for a Nobel Prize.
@ they were printing trillions of dollar in a single note ( sry for bad english)
This is what ended up happening. 100% fact
In Zimbabwe they call the rapper 50 cent 50 million dollars
quadro beam funny original joke
Onceuponatimetherewasalongnameitwassolongeveryonedied ummm. Not funny, but i came up with it so its original
quadro beam don't lie u dint come up with this pussy
quadro beam oh my 😂😂
quadro beam u didn't make it tho
The paper and the ink that are used to print the bill cost more than the bill itself.
Stekie this money the world cheapest toilette paper :)
And it worth less than paper itself
Whooaaaaa ! How terrifying 😳
Venezuela: hold my beer Zimbabwe!!
Zimbabwe: hold my beer Venezuela
America and Russia look from afar in awe
1946 hungary : hold my everything
Zimbabwe: I wish I had beer for you to hold Venezuela, but it costs 30 Trillion Dollars, won't arrive for a month and will be from a generic brand.
cafeta Zimbabwe: Sorry buddy, I’ve already got my hands full.
i like that rapper 50 cents or as they say in Zimbabwe "100 billion dollars"
Ha ha. Witty
Thule Sonnenrad no, no, more like 1.3 QUINTILLION DOLLARS (because one US dollar was 2 doctillion or 2 with 33 zeros behind it
MEK not in Zimbabwe it ain't!
Thule Sonnenrad hahahahahhahah good one
@@k1awesomeness how would that work if the highest note was 100 trillion?
*To people who don't get it:*
Imagine that your entire economy is $1. It's 100% of your economy. If you printed one more dollar, each of those dollars would be worth 50% of the economy. When you put more and more money into circulation (ie: printing money then buying stuff) the percentage of the economy the currency takes up gets smaller and smaller, decreasing its value.
Until is like 1/(six hundred quintillion) or some crazy stuff like that.
First get a 1$ then buy zimbabwe money with it . => Now you have paper. Wipe your ass for the rest of your life with zimbabve money - profit no more 1:50 toilet paper
The paper may dirty.
No value for toiler paper.
One thing the currency does it improve your maths . I always wondered what came after the trillions!!!
Yeah anybody with at least one active brain cell knows that stupid
He was economically illiterate
I think he understood economics. He wanted more money for himself. Taxing people to get their money is hard to get. Printing more money to get more of people money is the fastest and easiest way to their money.
crazieeez but what's the use of that more money if it isn't worth a chicken
No just illiterate
Kind of like a certain congresswoman from New York who used to be a bartender
According to some he was the best thing since since sliced cheese.
That means I know more economics than a ruler of a country? Interesting.
Being from Zimbabwe i found this very hilarious , can't believe we went through this and survived
I'm glad you all survived this. How's the economy now?
@@jazlyn7590 not good, got hyperinflation again in 2018. Bread 2018: $1, Bread 2021: $94
@@pear146 I think its because of history. People are scared of the inflation again. You see money is only worth if the people believe in it. We people give it a value
@@pear146 Wow, that sounds terrible. Is that in USD? Do you not store wealth in gold or other alternatives?
we was billionaires kkkk
Zimbabwean here. It's sad to see how much my people have suffered. It has been hellish for us. Mugabe was a tyrant and his successor is no different. But I do believe things will get better eventually. We must believe. We could build a better country based on the laws of love, compassion, kindness, forgiveness and respect for everyone regardless of skin colour, belief or gender. Especially for women, children, the environment and all other living beings. We are a beautiful country, with amazing natural beauty, fascinating wildlife and friendly, hard-working people. To everyone in this comment section, please don't judge us too harshly.
We understand brother. Zimbabwe isn’t bad, Mugabe is. I too believe things will be better in the future for Zimbabwe
If only Smith stayed things would've been much different. Obviously seizing white farms, subsequently plummeting into famine and printing money didn't help
Inflation rate is rising
Our money is becoming worthless
Zimbabwe: PriNT MorE mOnEY
Zimbabwe: _prints more money_
Germany: “Hey, I’ve seen this one before.”
Hungary: w-why aren't y-you s-scared?
*secretly hides 100 quintillion dollars*
“This is a classic”
One hundred trillion dollars...WTF?
DJ NVVGV im starving trillionaire
Lol and it’s still cheap
I wonder if those are still in circulation?
And it's not even a value of one dollar.
@@karlbahena1733 not even .0000000000000000001 dollars
They dont need toilet paper, they use money...
The time he said paper towel was $417, I was like ( ͡⊙ ͜ʖ ͡⊙)..
But then he said"per sheet". ( ͡◉ ͜ʖ ͡◉) holy sheet. 😂😂😂
Hey Bro, you got any money?
I got 25 quadrillion dollars on me.
Sweet, I think we can get a Twix and a Mt dew...
😂
Fack yeah thats a free food
Interestingly, in 2019, Zimbabwe figured it had been ten years since their currency utterly failed, and decided it was time to try it again. They made the use of other currencies illegal again, and have issued new Zimbabwe dollars. As of 4/2021 their inflation rate is at 98% 0_o
I'm i the onlyone who was laughing while watching this?
It's really funny as hell lmao
A year late but nah I am in stitches rn😂😭😭😭😭😭😂😂😂😂
Idk why I'm laughing, I'm from zim
Michael Reyes “Downfall of your fellow man”.
Why does it have to be blacks only? Racist
Kojack Stfu
aloha charlie why did you vote him
you won't be laughing when it happens to your country. put yourself in the shoes of a Zimbabwe citizen, scrambling to get the worthless paper out of his/her hands in exchange for basic necessities - all as a result of an incompetent government. it's not funny. just pray you won't have to experience this
I was 10 years old in argentina during hyperinflation, prices will change every day.
I still have a shoe box full of money
The future of South Africa.
Psy Dog
Future of America
@@DiorLeansthat as well somewhere in the 2030s 2040s we were well on our way in the late 2000's early 2010s
djmars1983
Can you repeat that...
Black people...
RSA WON'T be like that. RSA is a member of BRICS... they'll step in n prevent the nose dive.
I'm so lucky to find this channel, it helps me a lot in studying economic rather than in class. Thank you Marginal Revolution University,
The reason why countries can't simply print all the money it needs is simple: if there's a lot of something, its value goes down. The amount of money in circulation goes up, but the total value of goods and services remains the same, so your dollar buys less.
Sure, you can have a billion dollar in your wallet, but it doesn't matter if a burger costs a 100 million dollar to buy.
Never forget Rhodesia.
Did he become a Rhodes scholar???
One of greatest tragedies of the cold war
As a way for back up. Its best to save valuable assets like Gold, silver etc. Unlike bank notes, they are not affected by hyper inflation. They guard your wealth in desperate times
When your only qualification is ''lol im black''
Almost everyone in Zimbabwe is black. It's not like he was a foreigner.
😀😀😀😀😀
@@joefuckingflacco11tds-0int4 rhodesia never die
What does have to do with anything? It happened in Yugoslavia, China, and Venezuela too. Stupidity knows no color
This chapter in Zimbabwe's history shines a mega light on Mugabe's shortcomings. He did not know jack about economics.
Question: Did Rhodesia have these same problems?
No, not at all. Southern Rhodesia's largest note was 10 Pounds up until 1963. After 1964 the largest note was only 5 pounds. When they changed to decimal system in 1970 their largest note was $10 (formerly 5 pounds). The $10 note remained the largest note in circulation right up until Zimbabwe Independence when they issued a $20 in 1980. So you can see the economy was very stable with very little inflation. The Rhodesian dollar was worth about $US 1.20 in the 1970s.
@Gaming User I think your answer is for Mars Hillman above, not me.
Rhodesias economy rivaled that of european countries. It was a true power house
The US already following their footsteps
Big up Robert
Even international sports was impacted. Zimbabwe used to be a cricket powerhouse, but it got so bad the cricket board couldn't even pay for the players' hotel and meals when traveling, so a bunch of them quit. Zimbabwe cricket has never been the same since.
Nice video, very well explained. Since hyperinflation is now over in Zimbabwe, I wonder whether Venezuela is currently the most hyperinflationed country in the world. And was Zimbabwe's hyperinflation even worse than Hungary's?
So the solution to the worlds energy needs is to burn Zimbabwean currency?
Anonymous Anonymous
Burn the federal reserve note to while your at it
Some of them has been sold in eBay
The fact that it is cheaper than toliet paper...
I just saw on another UA-cam video that the hyperinflation had Zimbabwe print the highest denomination note in history: 100 trillion dollars! Must be a Guinness World Record. You can find these notes on eBay now.
But who keeps increasing the prices of products?
Very interesting. Hyperinflation also happened in the Weimar Republic (Germany) in 1923
What about Hungary ?
Very good explanation. Glad I discovered your channel. Subscribed. Keep up the good work!
50 cent, also known as 50 million
60 million
70 million
😂😂
Great!.Thanks for this
This might happen in the United States with all the stimulus payments.
I'm rich i have ten gazillion Zimbabwe dollars,take that America!
That’s about $5 in US dollars
Well the Western economies are doing the exact same thing as Zimbabwe with Quantitative Easing(QE).The inflationary effects of QE havent yet hit consumer prices but have fostered mega bubbles in Western stocks,bonds,real estate.Inevitably all this QE money will hit the general economies resulting in massive spike of consumer prices and the downward spiral into hyperinflation will result.As Voltaire once said "Paper money eventually returns to its intrinsic value: zero".The US dollar,Euro,Yen,Yuan and others will go down the drain as Zimbabwean dollar
It is not happening as fast as you seemed to believe.
This video is very well made and easy to follow.
Thanks to mugabe everyone in his country is now extremely wealthy people.
Yes, we all know about Zimbabwe and hyperinflation.
Long live Rhodesia!
@@hectormowsmylawn6355English? Just curious.
The process of hyper inflation that you just described is exactly what happened in Venezuela with the Bolivar (bs) from aprox 2012 and up to this day, but the comunist got trickier, and they decided to take 3 ceros (000) out of the currency TWICE in different occasions which bought them some time, so that's (000.000), but still it got to a point where it was imposible for them to keep up with the printing because the cost of the process was greater than the currency itself.
Today May 2021: 1 dollar = 3.150.602 bs.s ( three million one hundred and fifty thousand Bolivares Soberanos)
When the reality is : 1$ = 3.150.602.000.000 ( three TRILLION Bolivares of the original value)
Even the richest nation can go to bankruptcy if you ignore basic economics rules, but this people that did it couldn't care less.
Thanks for sharing the knowledge👏.
keynes approves
Hayek disapproves
Thank you Zimbabwe let’s see who’s laughing now call Africa Zimbabwe the creation of humanity
Venezuala: Finally! A worthy opponent. Our battle will be legendary!
Exactly what is happening in Venezuela
Wouldn't it be more acurate to say that inflation is caused by the disparity in value between the supply of money and the amount of production - more money in circulation than justified by the amount of production? An increase in money supply in and of itself would not cause inflation if its accompanied by the equivalent increase in production, correct? The money supply has to grow at some point.
What happened in Zimbabwe is, instead of producing goods, they produced worthless paper money.
Hi Billy,
Your intuition is correct - this relationship will get more clear when we talk about the quantity theory of money (2 weeks).
-Roman
Billy Wardlaw Yes, I think it's often just assumed when people say increase in currency that they're talking about disproportionate increase in currency without the increase in goods or services.
The quantity theory equation is MV = PT , where M = money supply, V = velocity, P = average price level, and T = real value of transactions (kinda like real GDP). We can rewrite it like this: ΔM + ΔV = ΔP + ΔT where delta represents change. Lets write the ΔP (inflation) as a function of everything else: ΔP = ΔM + ΔV - ΔT. So your thinking was right: the price level will change directly proportional with money supply, but will change inversely proportionally to an increase in production (ΔT).
Billy Wardlaw ii
Great explaination
"I'd like a loaf of bread and a pack of cigarettes pls."
"That'll be 850 billion Zimbabwe dollars sir."
Dude everyone in Zimbabwe is a billionaire. #winning
Watching this on April 1st, 2021
This is madness. Iam from a 3rd world nation, so I can feel how hopeless must aged and handicapped people have felt. Who kept a lotta cash as fixed deposit in banks.
Excelent explanation!
I like how in Zimbabwe you call the rapper 50 Cent “1.3 Decillion Dollars”.
The amusing part here was, humanity especially leaders never learn from history as it was happened in the past. A vicious cycle of greed to no end in sight...
This might be a very stupid question, but when you have money printing machine, can't a president print money for himself to pay his country's debts and not have that money go in the economy? I hope you understood what I was trying to ask.
It would still not work because when Mugabe prints Zimbabwean money to pay his country's debts, his creditors outside Zimbabwe who receive the Zimbabwean money, can only buy Zimbabwean goods with them, and they will. That new money returns to chase the same amount of goods in Zimbabwe. So Mugabe is stuck with the same problem on inflation, which occurs when more Zimbabwean money chases the same amount of Zimbabwean goods.
Armangeddon Gaming by paying his debts, he is putting money into the economy.
Armangeddon Gaming Welp, the main issue with that from my understanding is that it's still going towards the economy. Basically, after that money is spent it's added to the economy, since that extra money has to be spent on said services. Then the currency is devalued, and when the President requires more cash he'll print more because it's not circulating, further devaluing the currency. A vicious cycle. Again, this is from my relatively basic, likely flawed knowledge, and other repliers have explained it better.
it will soon go to the public
Armangeddon Gaming just stick to playing Fortnite kid. And please don't ever vote.
I taught the value of USD TO ZWD is just ZWD35 Quadrillion, but in this video it is over ZWD2 Decillion per USD.
Excellent explanation!
It's junk. They start off with a false premise "when you're a dictator" and never look back. Just because of the US government does not like the outcome of the election and defies SADC and AU observer missions as well as the Zimbabwe Election Commission, doesn't mean they're a dictatorship, or that the Zimbabwean people didn't get to choose between the ZANU-PF and the MDC.
But if you're an economist, you presume you don't need to know that. Now you know what I think of economics. :)
Apparently, economists agree.
Very helpful vid, thanks.
Over print lead to hyperinflation
This video really scared the shit out of me! 1USD bought quadrillions of Zimbabwean dollars! WAKE UP PEOPLE.
Omg who is the minister of finance there ? 😂😂😂
That's a damn good question. I can't believe any government in their right mind would do something like that. The minister of finance should have been sent to prison for life.
Well, Mugabe WAS the Finance Minister. He was Minister of Everything. A dictator.
What can you do w/one sheet of toilet paper? I dont know, but it must be done very, very carefully.
When the Easter Bunny gives you $100 billion but your friend got $100 trillion
The IRS is doing the same in America too
The idiots around you don't know what you are talking about.
You forgot to mention the not-widely-known hyperinflation that happened in the United States in America in the year 2008 A.D.
Spain went through hyperinflation too back in its colonial era.
mecheatgood and thats when Bitcoin came
If printing money is bad but can it used to invest in infrastructure and development ?
Germany 1923 : we have created the greatest hyperinflation ever
Mugabe 2009 : Germany hold my beer
Chavez 2018 : Mugabe hold my beer
Chavez 2018? You mean Maduro 2018
So couldn’t their be a price freeze during a crisis to prevent this or slow it down that way when the economy calms down it wouldn’t be a complete crash I would happily go on a limb and say 90% of company’s price hike now that people are staying home gas prices are going down
Bill Gates getting jelly
I hear a lot about how important it would be to be debt free in the event of hyperinflation. Why is that? If I owe $90,000 on student loans, a truck, and a car, how would I be affected? Wouldn't most people be in the same situation?
I'm so glad we have very competent leaders here in the US so we don't have to come across anything like this. Heck, because if we were ever in a similar situation, our leaders - they'r too intelligent to overlook other incidents taking place in different countries... I mean, it's great that we're doing nothing like this, right? Fiat currencies never fail, right? It's good were off the gold standard, right?
Biden is not competent. He is printed no money and handing it out. He is about to do it again to everyone.
@@mrthud1981 yeah, I hear you. My entire statement was sarcasm :)
You have hyperinflation because most people can't afford to hire someone or to pay rent in a decent flat.
Yes it's good we are off gold standard as today's world economy is too big to be pegged to gold.
@@fatihh2940
You mean today's world economy is based on printing money without standards and limits
Isn't that the same thing Zimbabwe did
When is the US dollar will hit the hyper inflation point ?
YugoSlavia didn't exist in 1994 lawl
Yep, Yugoslavia was bimbed n butchered in 1991.
He probably means all of the countries that used to be apart of Yugoslavia
awesome n simple... great video love it
If the United States Federal Reserve does this...
haha money printer go brrrrrrrrrrrrrrrrrrrrrrr
Rothchild's: were the first trillionaires
Zimbabwean's: hold my worthless trillions!
Zimbabweans became millionaires but they couldn't do anything with the money, if i was a Zimbabwean i would try and keep some money till the time when the currency would be powerful again and i would be a real millionaire
Chizzy kings those trillion dollar bills go for $30-$40 USD on eBay now
Chizzy kings nigga that's not how this works
The problem is the money never does become powerful again because when the have to do a revaluation and chop off 12 zeros, the old note are demonitized and become worthless
the same is happening to IRAN
HE: Hey!!! I am trillionaire!!!
ME: Where are u from???
HE: Zimbabwe
ME: ded!!!XDDDDDDDDDDDDDDDDDD
I was listening to BBC Radio 2 today with Jeremy Vine interviewing John Simpson. Simpson recalled the day he and some of his fellows were in Zimbabwe during Mugabe`s tenure and out to lunch.
The price of the lunch - he said - rose four times during the eating.
From Zimbabwe. When pay day came around, staff were given time off as soon as they received salaries to go and buy groceries before the prices went up and the money devalued. I remember a loaf of bread being the equivalent of $1 and within 24 hours the same loaf of bread costed $1 mil
Me in country simulator
what were their economists thinking
much love from Zimbabwe!
How are things there brother?
Hi
Ooga booga
first seal notes , change new notes updated ,
*Bitcoin!*
Jerry Tan has a limited number of total coins
Bit coin is automatic bankrupcy.
Great video but I have a question as mentioned in the video if the demand is hi so the gov printed more money but why it is not effecting the us economy that is the world courency so the demand is always hi
lmao i could be a better president in economics than mugabe
So what happen to trilliom dollar bank note as of now? Are they removed now?
WE WUZ ECONOMISTS AND SHIIIIIT
10 Billion dollar note about $2.50 on ebay
USA slowly headed for the same demise.
I Agree. Seriously tho- why the US government made such a decision? Pfft
Anti American Dictionary: Slowly, [Sloh-Lee] An event that isn't actually going to happen, but still stated to cause fear.
it was actually worse than it sounds, i remember one day i went into checking out cellphone prices when i went back home to get the money after an hour the money thatwas supposed to buy me a cell phone could now only buy me a cell phone battery