Zimbabwe introduces $100 billion banknotes

(Gotta wonder -- is something similar on our horizon)

HARARE, Zimbabwe (CNN) -- Zimbabwe's troubled central bank introduced new $100 billion banknotes Saturday in a desperate bid to ease the recurrent cash shortages plaguing the inflation-ravaged economy. <snip>

As high as they are, though, the new bills still aren't enough to buy a loaf of bread. They can only buy four oranges.

The new note is equal to just one U.S. dollar

Once-prosperous Zimbabwe has seen an unprecedented economic meltdown since it gained independence in 1980, with the official inflation rate now at 2.2 million percent. <snip>

more>>>> http://www.cnn.com/2008/WORLD/africa/07/19/zimbabwe.banknotes/index.html

I mean, if Bush was really serious about spreading freedom and democracy and ridding the world of murderous despots, his invasion of Zimbabwe would be a natural...

This would be a great way to do it on the cheap. Great stocking stuffers for the kids. ;)

Mugabe in Zimbabwe & Bush in the USA both are prime examples.

We shouldn't think "it can't happen here". It can happen anywhere. Argentina.

Are considered fruit cakes.

Even here on DU.

Oh well <sigh>

Inflation between 1820 and 1910, almost zip (Except for a brief spike during Civil War)

Inflation between introduction of the Fed and current day American economy? At least twenty fold if not more.

"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs." -- Thomas Jefferson -- The Debate Over The Recharter Of The Bank Bill, (1809)







Kennedy tried to change it and put it back into the power of the people and Johnson rescinded the order.

The unregulated and vastly different currency markets that existed in the USA in one form or another from 1820 to 1910 or a single, centrally controlled currency?

Perhaps the reason why there has been the inflation rates you point to is because deflation and depression scenarios have been largely mitigated if not eliminated. If this is the tangible benefit of the creation of the Federal Reserve Bank, is it a bad thing or a good thing?

Please bear in mind that in the time span you refer to, economic depressions and currency collapses were MUCH more frequent. Its just that many of them were localized and often relatively short lived.

I understand your and others point of view regarding the Federal Reserve, but do you have a viable alternative in mind?

Rich people don't need money for themselves. They have the means of production and the real estate.
When rich people use money, all it represents to them is slave hours.

If your idea of a viable alternative to the Central Bank system is "Exchange goods for goods", are you actually prepared to travel everywhere you go with the appropriate amount of your own goods for exchange?

If nothing else, the present system allows you to do that, but without hauling a U-Haul full of your own production with you everywhere you go.

That our government requires.

Then because it is an outside concern, we the taxpayers have to pay INTEREST to the Federal Reserve. Whereas if we held to the letter of the law created by the framers of the Consititution, the nation could print its own money and NOT PAY THE INTEREST!!

Our Founding Fathers knew what they were doing. As Jefferson said (And the direct quote is in a response to mine) as soon as a Central bank is created, the people of the nation become debtors and then their children become slaves. This is exctly what is happening.

Note that the Fed obstensibly was created to avoid bank panics. However there was a bank panic less than ten years after its creation, and a major depression within sixteen years.

Oh but wait, part of it worked out really well - the same families that helped see to it that the Federal Reserve was created were able to help create the bubble of the nineteen twenties and then were able to ALL get out before the October 1929 crash. So I guess I can't say that it doesn't work for at least a few Americans!

Not true. The Federal Reserve does not print the money. The Treasury Departments' Bureau of Engraving and Printing actually prints the money. This fact makes the rest of your initial statement incorrect.

Which included this statement;
Any "interest" paid to the Federal Reserve (And I would be very curious how you think such a thing actually happens) is returned to the United States Treasury. It is not pocketed by ANYONE as profit.

All I am curious about is exactly what the viable alternative to the system we have now would be.

Pointing out the failings and the shortcomings of the Federal Reserve system is easy. Pointing out the successes and strengths is pointless.

What's the workable alternative? The thing is, most ideas have been tried before and have been dramatic failures.

Or perhaps a Graham's Number Dollars bill.

Greenspan explaining to Lehrer on his nightly show that he had nothing to do with the sub prime failure, that the Federal Reserve could not have acted differently.
http://www.youtube.com/watch?v=ol3mEe8TH7w&feature=related

Maybe the feds couldn't have acted differently (It would be nice to know for instance that the inner banking families hadn't needed to buy out our Congress!) - but the real question is WHY THE HECK do the American people let the Federal Reserve print our money and then charge us interest for the privilege of doing so.

Notice also that Greenspan does not once indicate that the bought-and-paid for Congress had allowed for the banking reform Act of 1999 - and this Act is what allowed people to buy homes even though the homes were over priced, the buyer was under employed, and there was NO downpayment for a house that was ten or fifteen times the worker's salary!!