Hyperinflation – 10 Worst Cases

I have a neat little app on my smartphone that I like to look at when I’m feeling bored. It won’t change anything in my life, but it makes me think as I see the numbers clocking up, and then suddenly stopping for a few seconds. It’s the app that tells me the how much the National Debt of each country stands at in real-time. As I sit down at my computer screen the USA National Debt amounts to $17 041 241 xxx xxx. Forgive the x’s…they’re not kisses…I tried to get the last six digits, but, there’s no point, they’re moving too fast! Speedie Gonzalez has got into that app! It works out to $54 087 per person. That’s the same value as 3 408 248 816 XXX Big Mac Meals.

Inflation is hot property today, hyperinflation is even hotter! We think we are modern, contemporary, smart and ready to deal with anything. We’ve got that seen-it-all-before, been-there-done-it attitude. But, we are not a patch on what some countries have been through in the worst cases of hyperinflation in history. Here’s the top 10 list of worst cases in history. We’ll start with the worst first…let’s think positive!

1. Hungary 1946

Inflation at its peak reached a staggering figure of 13.6 quadrillion % per month! That’s 13, 600, 000, 000, 000, 000%. The largest denomination bill was a 100 Quintillion note. Prices ended up doubling every 15 hours at the time.

2. Zimbabwe 2008

Prices doubled here every 24.7 hours in November 2008 and inflation reached levels of 79 billion-odd %. They eventually stopped using the official currency and switched to the South African Rand or the $US. A loaf of bread ended up costing $35 million. This is the most recent case. It was Mugabe’s land-redistribution program that caused this.

3. Yugoslavia 1994

In just the one month of January 1994 inflation rose by 313 million %. Prices doubled every 34 hours (which is nothing compared to Hungary). The currency ended up getting revalued 5 times in all between 1993 and 1995, all to no avail. The cause? A recession triggered by overseas borrowing and an on-going political struggle in the 1980s and the following decade.

4. Germany 1923

Adolf Hitler rose to power as a consequence of hyperinflationary pressure (at least one of the reasons). Prices doubled every 3.7 days and inflation stood at 29, 500%. Germany was crippled with the reparation payments after the Treaty of Versailles and the end of World War I.

5. Greece 1944

Prices started rising by 13, 800% in October 1944 and they doubled every 4.3 days. The trouble was the debt incurred by World War II.

6. Poland 1921

Prices rose in 1921 by 251 times in comparison with those of 1914. They doubled every 19.5 days. The Zloty was introduced as the new currency in 1924 in an attempt to start afresh. Inflation stood at 988, 233% in 1924.

7. Mexico 1982

Mexico had a rate of inflation of 10, 000% in 1982 (due mainly to too much social expenditure).

8. Brazil 1994

Inflation was 2, 075.8% at its worst in 1994. The Real was adopted in 1994 and it managed to calm inflation down.

9. Argentina 1981

The highest denomination bill was the one million pesos note. The Peso was revalued three times.

10. Taiwan 1949

This was a knock-on effect from China and the Chinese Civil War. The New Taiwan Dollar was issued in June 1949. The monthly rate of inflation stood at 399%

Inflation can be creeping (mild or moderate inflation) or galloping. We can talk of Hyperinflation and stagflation (inflation and recession). Deflation is not better. We have so many names for it.

Hyperinflation means prices doubling in such a short space of time that we can’t keep up with it all. Hyperinflation comes about at times of trouble, war, conflict, upheaval, change on unprecedented levels. It comes about because we still haven’t learnt how to control it. History repeats itself, we hear people say. Thankfully, it doesn’t repeat itself too often. Fingers crossed.

But, in the time it took for me to write this, the US National Debt is now worth $17 041 308 85xx xxx, that means 3 408 261 915 xxx Big Mac Meals!

10 Comments on "Hyperinflation – 10 Worst Cases"

BillT on Thu, 23rd May 2013 12:35 pm 



Will it or won’t it? Some say a deflation followed by a massive inflation. Either way, it is going to happen in the near future. You can bet on that. And when it is over the Middle Class will be gone forever.

Arthur on Thu, 23rd May 2013 1:06 pm 



None of the currencies mentioned was reserve currency, that’s the difference. 180m Americans can export their inflation over 7b people.

On top of that, as we speak, Assad is gaining the upper hand in Syria, according to German intelligence…

http://www.spiegel.de/international/world/german-intelligence-believes-assad-regime-regaining-lost-power-a-901188.html

This could lead to the containment of Washington by the rest of the world and SCO in particular and stop it from doing foolish things vis a vis Iran. This is bad news for a certain minority in Washington, but good news for Americans and the rest of the world, as fighting WW3 is not something you want to do for fun. Postponing/calling off WW3 will extend the life span of the dollar as reserve currency.

Arthur on Thu, 23rd May 2013 1:08 pm 



Make that 330m Americans.

DC on Thu, 23rd May 2013 4:14 pm 



Eventually, even the US dollar, ‘reserve’ currency or no, will have to crack under the flood of new US dollars they are printing. This time around, the result is commodity inflation in a time of stagnant economies around the globe. THAT is effecting everyone, food prices are up, energy prices are up. True the US dollar isnt being used as buttwipe-yet, but all that commodity inflation is a form of stealth inflation. Besides the official inflation rate the US publishes is BS anyhow. The real rate -is much higher.

Mike on Thu, 23rd May 2013 4:38 pm 



Except, they ARE NOT PRINTING Dollars.
They have transferred funds to banks, to make them non-takeover targets.

Secondly, looks like hyperinflation is at least a rate of 25%. At the current inflation rate of 2% we are NOWHERE NEAR Hyperinflation.

There’s probably a good Econ 101 course in a Community College Near You.

Stephen on Thu, 23rd May 2013 6:50 pm 



If the energy supply fails and causes the banks to fail, I see HYPER DEFLATION.

That is because items that rely on energy to work (and that is many electronic items, transportation, and even the government’s money presses themselves) will not work anymore (or can be used sparingly), and there would be so many of them that selling them would not do much good and drive prices down.

Even suburban houses would take a nosedive to the point where foreclosures would not be profitable for the banks (because who would want one if there is no farm nearby and no cars that run)? Again the inventory would create no buyers (or if they did, for pennies on the dollar).

The liens that protect the banks by forcing repayment would become worthless (or at least seriously reduced usefulness). Combine this with the unemployment that will be created with the permanent failure of the energy and transportation system. I predict we will get to a point in which many of the debts aren’t going to be paid at all, leading to a failure of the banking system, making “real cash” the only cash in existence. With the ability to loan and collect reduced, this will INCREASE THE CURRENCY VALUE but DECREASE THE AMOUNT IN CIRCULATION. As bills and coins age, and the reduce ability to print new ones, this will again make the currency more valuable.

What it may mean is that we end up with inflation of food prices (and a shortage), and massive HYPER DEFLATION OF MOST OTHER GOODS. Many items will decline to the point it isn’t worth liquidating to pay debts.

Arthur on Fri, 24th May 2013 9:02 am 



“Except, they ARE NOT PRINTING Dollars.
They have transferred funds to banks, to make them non-takeover targets.
Secondly, looks like hyperinflation is at least a rate of 25%. At the current inflation rate of 2% we are NOWHERE NEAR Hyperinflation.”

Are you saying that all this QEx stuff is BS? You are right, inflation is low, but that is because the US can export their inflation. Oh what a Walhalla this is for the US. The FED visits all the major banks in friendly states with crates of freshly printed dollars and offers it against minimal interest. An offer these banks can’t or won’t refuse. The intention of course is to create a globalist currency. The only way to stop this, is to simply refuse being paid in dollars, which is a political decision and major trading partners are working towards that goal. The very fact that dollar inflation is still low, indicates that this process is merely in infant stage. But once a giant like China refuses to be paid in dollars (=dumping dollar), it will be game over for the dollar and a global game of musical chairs will begin and everybody will try to find a fool who still accepts dollars against real values. Unfortunately, Americans do not have a choice other than being those ‘fools’, because the dollar is all they have. As long as the US behaves, the Chinese will not dump the dollar but instead try to lower their dollar reserves and for instance buy real estate in Canada or land in Africa. But once the US will attack Iran, my estimate would be that China will pull the plug. Is that econ 101 enough?

BillT on Fri, 24th May 2013 12:00 pm 



Arthur, those dollars are going to Europe to prop up your banks, not American ones.

“…What is notable about the chart above is that while cash parked at US-domiciled banks, both small and large, has been relatively flat in the past 3 years at just about $800 billion, it was been foreign banks that absorbed the bulk of the Fed’s newly created reserves….”

http://www.zerohedge.com/news/2013-02-11/how-fed-handing-over-billions-profits-foreign-banks-each-year

BillT on Fri, 24th May 2013 12:03 pm 



Mike, I have a bridge in Manhattan that I can sell to you cheap…

2% inflation? Where? What planet? Not Earth and especially not the US. Real inflation is running at 5%+ and has for years. If you take out food and fuel, maybe 2% is close, but I bet even that is up closer to 5%+.

Arthur on Fri, 24th May 2013 12:23 pm 



“Arthur, those dollars are going to Europe to prop up your banks, not American ones. ”

(Not just European banks).

That is what zerohedge and me are saying:

ZH: “it was been foreign banks that absorbed the bulk of the Fed’s newly created reserves…”

Me: “The FED visits all the major banks in friendly states with crates of freshly printed dollars and offers it against minimal interest. An offer these banks can’t or won’t refuse.”

That’s why the global banking system as a whole will get hit, once non-western politicians decide to refuse the dollar. And that moment is coming. The end of the dollar. All savings wiped out. The end of globalism. The end of pensions. The end of Anglosphere. Ethnic cleansing on a global scale, to start with in the US, UK, Holland, France and Sweden. This event will be provoked by the US (focal point Iran, likely as a flight forward, to justify martial law) but China will push the dollar-dumping button.