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Hyperinflation In Action: Beer For Bag Of Cash

Tyler Durden's picture




 

In May 2011, Belarus surprised its citizens by devaluing its currency by 50% overnight in an attempt to kickstart its economy, leading to swift and brutal hyperinflation. And while written narratives of the most recent episode of monetary collapse are one thing, nothing is quite as amusing, and grounding for those attempting to "value" money (such as Nobel prize winning economists writing out of their steel exoskeletal ivory towers), as watching a bag of cash be used to pay for seven boxes of beer. And nothing is quite a cathartic as spending several hours trying to count said cash - cash backed by the "full faith and credit" of the Belarus central bank...

h/t Daan

 

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Sat, 01/12/2013 - 13:39 | 3147131 laozi
laozi's picture

Monies bitches! (i'm just soooo happy to be just like Trav: first on the ball)

Sat, 01/12/2013 - 13:49 | 3147162 laozi
laozi's picture

All that ironic talk of Jews by the wstlblwr guy in a previous post was just aimed to make people think that all people are equally successful in life.

That is simply not true. Jews get most of the Nobel prizes, something the Jew community is very proud of, and by all means, they are EXTREMELY successful in almost all lines of work.

But you should not hate them for that.

Sat, 01/12/2013 - 13:53 | 3147171 flacon
flacon's picture

Very soon now the oceans will turn to lemonade just like they promised. 

Sat, 01/12/2013 - 14:03 | 3147196 whstlblwr
whstlblwr's picture

mistake

Sat, 01/12/2013 - 14:03 | 3147200 the mad hatter
the mad hatter's picture

you sir just ruined all the comments related to this post.

Sat, 01/12/2013 - 14:06 | 3147212 laozi
laozi's picture

This post is all crap anyway. Nothing to discuss really.

Sat, 01/12/2013 - 14:10 | 3147220 whstlblwr
whstlblwr's picture

Now, now, nothing to be depressed about, maybe you can figure out how to help me hide the poor Jew problem. We want everyone to believe they are better than us...

"Project ORE has served more than 400,000 emergency kosher meals and provided counseling, case management, and other supportive services to isolated, poor, homeless, mentally ill, elderly Jews--including Holocaust survivors-- since 1987.

Sat, 01/12/2013 - 14:14 | 3147232 Thoth
Thoth's picture

Thank you for your constant Jew information, we will keep it in mind. Can you give it a rest for a few days?

Sat, 01/12/2013 - 14:21 | 3147248 Troll Magnet
Troll Magnet's picture

"Very soon now the oceans will turn to lemonade just like they promised."

will it be real lemonade or paper lemonade?

Sat, 01/12/2013 - 14:23 | 3147250 laozi
laozi's picture

Paper.

I believe in hyperinflation too, but not yet. It will take a while.

Sat, 01/12/2013 - 14:53 | 3147297 phyuckyiu
phyuckyiu's picture

I didn't realize that the Hasbara Trolls are now invading posts with the active word Cash. Makes perfect sense though when you think about it.

Sat, 01/12/2013 - 15:02 | 3147314 mick68
mick68's picture

Anyone else notice the absurd number of Jew haters around here and other forums?

Whitewashing an entire race with the crimes of a few is always the start of a fascist society.

Sat, 01/12/2013 - 15:09 | 3147331 laozi
laozi's picture

I hope you understand that whstlblwr is NOT a Jew hater.

Sat, 01/12/2013 - 15:12 | 3147336 phyuckyiu
phyuckyiu's picture

No, he is your Hasbara doppleganger.

Sat, 01/12/2013 - 15:24 | 3147354 James_Cole
James_Cole's picture

What's happened to the comments section in the past couple days??

Anyway, Belarus is another IMF success story to add to their worldwide campaign of excellence. 

Sat, 01/12/2013 - 15:27 | 3147357 laozi
laozi's picture

How deep are you into the Jew community? How much do you know about the attitudes in there?

Sat, 01/12/2013 - 15:33 | 3147366 whstlblwr
whstlblwr's picture

Pssttt, inside info would be good. But I think check back with YOU KNOW WHO they have intel on all things JEW.

Of course I'm not JEW hater, I'm oil disinfo-er Aren't you?

Sat, 01/12/2013 - 17:10 | 3147517 macholatte
macholatte's picture

 

What about the wiggers, niggers, spics, wops, grease balls, micks, white trash, beaners, brownies, gringos, buddhaheads, crackers, chinks, frogs, gooks, breeds, honkys, japs, jerrys, krauts, nips, oreos, prarie niggers, sand niggers, slants, slopes, spooks, towel heads, wet backs, white boys, curry munchers, Coconuts, camel jockeys, or the zipper heads?

 

Sat, 01/12/2013 - 19:52 | 3147762 CrockettAlmanac.com
CrockettAlmanac.com's picture

They all think that Ferris is a righteous dude.

Sat, 01/12/2013 - 22:35 | 3148021 Its_the_economy...
Its_the_economy_stupid's picture

Funny!!!

Sat, 01/12/2013 - 15:12 | 3147338 economics9698
economics9698's picture

Yea the smart Joos like Einstein who plagiarized his shit from James Maxwell and  Olinto De Pretto.  Oh wait didn't Zukerberg plagiarize facebook?

WTF?

Yea the smart Joos who could not think their way out of a box which is why they have to kill presidents to get the power to print money and rip off the goyim. 

Sat, 01/12/2013 - 15:31 | 3147360 whstlblwr
whstlblwr's picture

Economics! brother! Glad to see you back. Were you fracking it up in S. Texas? I'll use the bold in the future, it adds nice sense of urgency. The Joos always steal their knowledge. How true! Always, you can count on it.

Sat, 01/12/2013 - 17:10 | 3147515 ilion
ilion's picture

What's your problem with jews? Aren't they lovely people who share peace and prosperity with the whole world. I wish all people in the world would be jews, then we would live in paradise!!!!

Sat, 01/12/2013 - 18:06 | 3147598 economics9698
economics9698's picture

lol, yea I can see that happening in Israel.

Sat, 01/12/2013 - 20:08 | 3147793 Tursas
Tursas's picture

Laozi knows!  Smart 50% devaluation does not mean hyperinflation.  One Nordic coutry has devaluated it's squirrel skins several times after WW II - and much more than a mere 50%.  It coptinues to enjoy strong economy and less real inflation than the USA! 

Sat, 01/12/2013 - 14:28 | 3147242 laozi
laozi's picture

I think you're trolling is sloppy. If you want to pretend to be a Nazi you should at least say that Jews are powerful.

To deny that is like claiming there is no Mafia in Sicily.

Sat, 01/12/2013 - 14:30 | 3147262 whstlblwr
whstlblwr's picture

And don't forget it's Jews, joos, Jooooz BAD

Oil barons, defense contractors, military spending, GOOD

Sat, 01/12/2013 - 14:36 | 3147272 laozi
laozi's picture

Man, that is pure copy paste from previous posts.

You are NOT as smart as the Jews I know.

Sat, 01/12/2013 - 15:01 | 3147307 phyuckyiu
phyuckyiu's picture

I believe he's been sharing his saliva with too many freshly cut penis' (penii?), so he can keep out the goyim.

Sat, 01/12/2013 - 15:16 | 3147342 laozi
laozi's picture

You are probably correct sir. As far as I understand this man behaves just like a Hasbara Troll would.

Sat, 01/12/2013 - 15:22 | 3147351 phyuckyiu
phyuckyiu's picture

He only shows up for certain keyword posts. He couldn't care less about any other topic. It's unusual to see him spamming other topics, he must be SERIOUSLY BUTTHURT from something earlier.

LasVegasDave in 3...2....1...

Sat, 01/12/2013 - 15:29 | 3147363 whstlblwr
whstlblwr's picture

LOL, you have the jews in your TV, too, it seems!

Sat, 01/12/2013 - 15:32 | 3147372 Skateboarder
Skateboarder's picture

Shoo, gutter-troll.

Sat, 01/12/2013 - 15:32 | 3147373 phyuckyiu
phyuckyiu's picture

Laf, I think they have some over the counter ointment for your butthurt.

Sat, 01/12/2013 - 15:42 | 3147387 whstlblwr
whstlblwr's picture

Wow, you're clever, but not clever enough to work for the oily dudes, so you must be a dumb follower. Welcome aboard!!

Sat, 01/12/2013 - 15:42 | 3147390 phyuckyiu
phyuckyiu's picture

Isn't there a new post for you to troll yet?

Sat, 01/12/2013 - 16:00 | 3147412 whstlblwr
whstlblwr's picture

phyuckyiu, glad you're a follower man, but tell you starting to think the Jews are pretty smart, and maybe prominent because they work hard. And smart, shit, maybe the only way to win is to make love with them, you know, get some of those DNAs. Get me JEW DNAs. Too much herb this morning. I need the paycheck.

Oil barons GOOD

JEWS BAD

Sat, 01/12/2013 - 16:05 | 3147423 phyuckyiu
phyuckyiu's picture

I realize you are running low on herb, but making two cents per post is not the way to a better lifestyle.

Sat, 01/12/2013 - 16:08 | 3147425 robertocarlos
robertocarlos's picture

Everything bad in America stems from OJ Simpson. You know, The Juice!

Sat, 01/12/2013 - 17:09 | 3147512 Winston Churchill
Winston Churchill's picture

He just wanted to be Jewish.

Unfortunately,at cicumcission they threw the wong piece away.

Sat, 01/12/2013 - 14:55 | 3147300 Poetic injustice
Poetic injustice's picture

Have you looked for a professional help, or is your family doctor a jew?

Sat, 01/12/2013 - 15:33 | 3147379 Skateboarder
Skateboarder's picture

That's how Hitler got pissed. His mom's doctor was a jew, and he couldn't do anything to save her from dying. Ergo holocaust. :(

Sat, 01/12/2013 - 16:09 | 3147426 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Go. Away. Nobody wants to hear your vitriol. Tyler can we get a bouncer over here? I'm ready to stop reading ZH, this is getting ridiculous.

Sat, 01/12/2013 - 14:21 | 3147247 Matt
Matt's picture

Step 1: verify that all the bills in each stack are the same denomination

Step 2: use deli scale. Count a stack and weigh it.

Step 3: weigh all the stacks by denomination.

5 minutes maximum.

 

Bill counting machine is a good investment if you run a small business during a hyperinflation, especially if it also verifies authenticity of the bills.

Sat, 01/12/2013 - 15:17 | 3147264 laozi
laozi's picture

When I was in Laos 10 years ago, the largest bill was 10 kip (I think?). Anyway, to buy something worth $10 you just handed a pile of bills to the seller. They never counted OR weighted the bills. They just looked at the height of the pile. They knew that it is no use counting that many bills.

Sat, 01/12/2013 - 16:36 | 3147455 Rogue Trooper
Rogue Trooper's picture

LOL! I was in Vientiane end of 2001.  I recall paying 21,800 Kip for a steak dinner.

Mind you they had great bread (first had seen in SE Asia) that French colonial past paid off in that aspect. Along with the architecture.

Place was sureal and wierd.... all the mansions outside the Thai boarder on the mud road... all the Mafia dudes I understand.

Sun, 01/13/2013 - 18:41 | 3149456 Matt
Matt's picture

With practise, you can know how many bills are in a stack based on thickness. By eye and by feel, you can know if the right amount is in the stack.

Sat, 01/12/2013 - 17:03 | 3147505 cranky-old-geezer
cranky-old-geezer's picture

 

 

This post is all crap anyway. Nothing to discuss really.

Quite a lot to discuss actually, because currency printing and debasement is the core problem.

It affects everybody, rich, middle class, poor. 

The only people who escape it are currency printers.  Their currency is debased too, but they can print more of it.   And printed currency receivers too, let's not forget them (govt, banks).  Their currency debases too, but they receive more of it.

Everybody else is screwed.

Belarus devalued their currency 50% overnight.  Fed has debased USD 50% too, but over a 4 year span of time, and not "officially".

How can Belarus say their currency is suddenly worth 50% less?  Or 50% more?

These govt edicts are bullshit.  Their currency was already down 50%.  They just made it "official" (whatever that means).

The market determines what a fiat currency is worth, not govt.  Notbody cares what govt says it's worth.

Govt may control how many FRNs are printed, but they can't control what FRNs are worth in the marketplace, not directly anyway, certainly not by some "decree". 

They can't control how many FRNs somebody wants for their stuff.  They can do price controls, holding prices down by some law, but they can't make someone sell their stufff at that price.

A currency worth less than 1 cent is bullshit.  They lay one of their "bank notes" on the counter.  I lay a penny next to it.  My penny is worth more than their "bank note".

A currency worth less than 1 cent is toilet paper pretty much.  Forget it.  Not worth messing with.

8700 Belarus ruble = 1 FRN.  That's bullshit.  Fucking currency is worthless.

There's gonna come a time when US military can't maintain FRN value anymore.  It'll be when Russia & China openly challenge US superiority in the midde east.   The "showdown" I believe is coming before much longer. 

I believe US will back down.  It'll be the end of the "petrodollar", and the end of FRN as reserve currency.  Not sure what will replace it, time will tell.

That's when FRN starts losing value rapidly, quickly reaching a point where 1 FRN today will be worth 1 cent then.  A $3.50 gallon of gas today will be $350 then.  That's when FRNs become toilet paper too.

Sat, 01/12/2013 - 17:06 | 3147509 FEDbuster
FEDbuster's picture

"It took the Federal Reserve 98 years to devalue the dollar 97%, the next 97% won't take as long." Dr. Marc Faber 2011

Sat, 01/12/2013 - 23:18 | 3148113 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

I'd hit that cashier for a bitcoin

Sat, 01/12/2013 - 23:35 | 3148135 Antifaschistische
Antifaschistische's picture

here's the relevance....100% of the people in Belarus wish they had put 100% of their cash into silver/gold/platinum/copper etc prior to this devaluation.

That's the only takeaway from this....now, do what you want with that fact.

Sat, 01/12/2013 - 14:01 | 3147197 the mad hatter
the mad hatter's picture

coming soon to a grocer near you

Sat, 01/12/2013 - 14:23 | 3147246 THX 1178
THX 1178's picture

All the USD necessary for a hyperinflation have already been printed. It is in circulation worldwide presently. All we need to do now is wait for worldwide demand to stop. Shouldn't take long, right? Then... supply of currency far outstrips demand for it. HYPERINFLATION.

Sat, 01/12/2013 - 14:44 | 3147266 centerline
centerline's picture

Yup.  Shadow banking sector among other things allowed for the blow off top to occur out of sight... in unconventional channels.  Now, we are just waiting for it show up in real terms.

Sat, 01/12/2013 - 16:04 | 3147417 Renfield
Renfield's picture

Hey. Upvoted you b/c I agree with your overall idea, but have to differ with you in one respect: hyperinflation is not so much where supply outstrips demand, but rather demand for currency (price) outstrips the supply (wages). The supply snowballs, trying to meet the demand (price) that moves even quicker and always stays just ahead of it.

If it were the other way around, then people could still (theoretically) have savings in that currency.

Sat, 01/12/2013 - 16:15 | 3147435 robertocarlos
robertocarlos's picture

I have to review my notes because I don't understand the fundamentals. Maybe it's because I don't believe in hyperinflation, (my lying eyes it seems) but believe we will have severe deflation instead.

Sat, 01/12/2013 - 17:15 | 3147486 Renfield
Renfield's picture

heh. Well, I'm half with you - again. I certainly think we'll have severe deflation in markets that rely on access to credit...! I see hyperinflation as sort of the "last gasp" of the currency, the very end game where at last even the proletariat turn to the black market. As to how close (or if ever) the US is to that, it's for wiser minds than mine to say. I do believe that's coming but it's a mistake not take collapsing credit markets into consideration of "when" that would happen. "Hyperinflation" and "money-printing" are perhaps inadequate terms, considering how much of our money is not actually printed nowadays. I've been fascinated watching the PTB trying to mitigate/prevent credit market deflation, while ALSO mitigating/preventing price inflation in food/energy AND keeping wages low.

(Didn't downvote you b/c I think we're in agreement where it matters: that generally we won't be able to afford many things that we want/need. Either via deflation or hyperinflation, either way there's a loss of confidence in markets to provide goods/services at a fair price. AND that - sooner or later - all that "printed" US currency is going to find its way home, with drastic consequences for the North American population.)

Sat, 01/12/2013 - 17:16 | 3147519 Winston Churchill
Winston Churchill's picture

Really a question of if we have a deflationary collapse followed by

hyperinflation,or go straight to hyperinflation.It will end in hyperinflation either way,

but you have to hedge both ways.

Sun, 01/13/2013 - 11:23 | 3148670 Stares straight...
Stares straight ahead's picture

I have been thinking about the remote possibility of a crash in stocks causing an immediate loss of liquidity.
Tyler talked about when banks return to lending, the reserves they have put in play in equities will dry out the market as the money flows to the lending. what if there is an uncontrolled or sudden collapse in the market? Although the fed may ramp up and print its way out of this, and may have already demonstrated its ability to do so, there is always the risk that some black swan could overwhelm even the Fed/treasury' s ability to resist it. Bernanke could be right about drying up excess liquidity in "minutes", intentionally or not.
Although I tend to reside in the hyperinflation camp, one must consider the opposite ("hyperdeflation" ) as a remote possibility.

Sun, 01/13/2013 - 17:06 | 3149324 auric1234
auric1234's picture

Hyperdeflation would imply that everybody who is long on FIAT gets a free ride. Forget it, the banksters would never allow this from happening.

Besides, you can only deflate by paying back debt principal plus interest, which isn't possible because all money was created from debt, thus there's only enough money to pay the principal. For each person who manages to pay back, there will be another who defaults.

 

Sun, 01/13/2013 - 17:35 | 3149361 Stares straight...
Stares straight ahead's picture

Maybe hyperdeflation is not the correct term ( or result). You would see a lot of defaulting and definitely the liquidity would be gone in this scenario. Another great depression?

Tue, 01/15/2013 - 18:44 | 3155760 auric1234
auric1234's picture

When someone defaults, the money is not gone. On the contrary, it switched hands to a third party, who is not debt-encumbered.

Simple example:

Bank creates money and lends it to A.

A uses this money to buy a house from B.

A defaults.

B gets to keep all the money without any obligation to give it back.

 

Sat, 01/12/2013 - 18:55 | 3147667 Debugas
Debugas's picture

when Obama was giving money to bankers it was not causing inflation because the banks were writing off bad debts (debts devflationary pressure cancelation)

when Obama started giving money to households for food it does and will continue have impact on food prices

Sun, 01/13/2013 - 17:11 | 3149331 auric1234
auric1234's picture

That's just a cheap trick. "It's not inflationary because we sterilized it". Let's be honest, if it wasn't inflationary, what would be the point in doing it?

On one hand, we have debt being created. They tell us: "The Fed doesn't create money, it just lends it!". So, the money will be eventually be paid back. This is not inflationary!

On the other hand, we have the debt being written off. Platinum coin, whatever. Then they tell us: "This is not inflationary! It just covers for debt expansion which had already happened".

So with this line of reasoning, no kind of money creation is inflationary, provided that you split it in two steps. Then you can explain how neither of the steps is inflationary. Problem solved!

 

Sat, 01/12/2013 - 16:48 | 3147475 NidStyles
NidStyles's picture

It's a pull relationship. Supply drives Demand initially to keep up with prices, but the point where it becomes 'Hyper' and spirals out of control is when the demand drops lower than supply but the prices still are climbing to meet the supply surplus. By that point the currency is usually dead.

 

The situation is not as linear and direct as what the Macro schools teach.

Sat, 01/12/2013 - 16:44 | 3147470 mr. mirbach
mr. mirbach's picture

Haven't those dickwads seen the visa checkcard commercials? 

Sat, 01/12/2013 - 14:02 | 3147189 whstlblwr
whstlblwr's picture

.

Sat, 01/12/2013 - 14:50 | 3147294 Ketsa
Ketsa's picture

And who is in the nobel prize commitee ?

Sat, 01/12/2013 - 15:08 | 3147326 cornflakesdisease
cornflakesdisease's picture

Perhaps cultural and family traditions advocate higher education and values moreso them other cultures.  Many Asian cutures tend to be that way.

Sat, 01/12/2013 - 16:12 | 3147430 laozi
laozi's picture

I don't know why they score so high. Anyone who has not noticed the success of Jews in academia and litterature over the centuries simply has not paid attention.

Sat, 01/12/2013 - 15:08 | 3147327 cornflakesdisease
cornflakesdisease's picture

Perhaps cultural and family traditions advocate higher education and values moreso them other cultures.  Many Asian cutures tend to be that way.

Sat, 01/12/2013 - 15:21 | 3147350 Wjunk
Wjunk's picture

There is an undercurrent of Jew-hating, one-worlder, secret-cabal-protocols-of-zion stuff in the postings and minds of a few folks here - very true

However, thankfully almost everyone else here seems to have avoided that particular delusion.

Sat, 01/12/2013 - 16:08 | 3147421 Renfield
Renfield's picture

I've never understood why anyone, in this day & age, thinks tribe (or race or culture) is the problem.

Fascism is the problem. That happens in all tribes. Even if one tribe has a higher number of fascists than another, fascism is not tribe-specific.

The day we (as a nation/city/community/family) take fascism seriously, and treat it as the primary issue, is the very same day we begin thinking like free peoples again.

If an anti-fascism "law & order" crime purge takes out more people from one race than from another, so be it. I will leave that for the census-takers to sort out, AFTER the primary issue has been addressed.

Sat, 01/12/2013 - 17:25 | 3147532 Herd Redirectio...
Herd Redirection Committee's picture

Have you ever heard of a genetic component to psychopathy?  May I refer you to Political Ponerology.  Therefore it is important to know the family links, and to publicly out psychopaths (esp. those in positions of power, who are seemingly well-adjusted psychopaths).  No psychopath has ever been cured.  If you put them in counseling they learn from observing the counselor how to better manipulate people.

Sun, 01/13/2013 - 20:23 | 3149590 trav777
trav777's picture

simple:  because you're a fucking idiot.

you are incapable of understanding much, and one of those things is that everyone is NOT LIKE YOU.

Different populations have ENTIRELY DIFFERENT understandings of what "civilized" behavior is.

The fuckin sumerians had a civilization but they were not what WE in the white west would call "civilized."  In Africa, it's likelier for a woman to be raped than graduate high school, which is an expression of their idea of civilization and the norms of behavior.

JFC, you can't even figure out that your concept of FREE isn't even universal.  That's the problem with morons like you; you haven't a clue how utterly DUMB you are.

You arrogantly assume your notions are universal; they AREN'T.

Sat, 01/12/2013 - 15:32 | 3147370 edb5s
edb5s's picture

It seems like you mention Nobel prizes as if they are something to be respected...

Sun, 01/13/2013 - 20:21 | 3149579 trav777
trav777's picture

nobels including fake ones like economics?

Sat, 01/12/2013 - 16:14 | 3147434 Snakeeyes
Snakeeyes's picture

Just waiting for massive devaluation of the Federal (or Feral) debt in the USA.

http://confoundedinterest.wordpress.com/2013/01/12/debt-star-federal-deb...

Sat, 01/12/2013 - 16:23 | 3147439 HomeBrewPrepper
HomeBrewPrepper's picture

Paper is just a pile of paper, good for starting fires or wiping your arse. Maybe even wrapping a present or two, but real tangible assets should be used for money or said paper backed by it.

Silver bitches

Sat, 01/12/2013 - 16:46 | 3147474 FEDbuster
FEDbuster's picture

"Extreme Currencies" coming to a cable station this Fall.  Soon you will use the grocery cart to wheel in the cash, and carry the groceries out in your hands.

I always seem to get behind these types in the grocery lines, too.   

Sat, 01/12/2013 - 13:38 | 3147132 SHEEPFUKKER
SHEEPFUKKER's picture

See, hyperinflation is fun, hence all the laughter.  

Sat, 01/12/2013 - 13:39 | 3147133 Shizzmoney
Shizzmoney's picture

I wonder what the deposit for the bottle is worth under hyperinflation?

Sat, 01/12/2013 - 13:52 | 3147166 flacon
flacon's picture

Prolly worth more than all the botles and the beer. See, getting rich is so easy - you get to have your cake and eat it too AND still get paid a bonus at the end with a trillion rubles left over to take him to use to heat your home. 

Sat, 01/12/2013 - 14:59 | 3147309 debtor of last ...
debtor of last resort's picture

Keep stacking!

Sat, 01/12/2013 - 15:29 | 3147364 FEDbuster
FEDbuster's picture

While watching them pile up the paper, I was thinking two silver eagles would have taken care of the purchase.

Sat, 01/12/2013 - 16:51 | 3147489 NidStyles
NidStyles's picture

More likely a Silver dime.

Sat, 01/12/2013 - 15:35 | 3147383 SAT 800
SAT 800's picture

271,583 Klingons. glad to be of help.

Sun, 01/13/2013 - 17:14 | 3149337 auric1234
auric1234's picture

Nothing. There was a beer run, then all deposits suddenly became insolvent (as if they hadn't been all along).

 

Sat, 01/12/2013 - 13:39 | 3147134 lordbyroniv
lordbyroniv's picture

Context mssing here.

 

Why is the cashier surprised and everyone else too?

 

The laughing by the guys gives the impression its some sort of inside joke.

 

What am I missing?

Sat, 01/12/2013 - 13:47 | 3147154 flacon
flacon's picture

That's what I'm wondering too. Perhaps this is like paying for beer in "one cent" coins, or buying a new car with one FRN "dollar" bills?

Sat, 01/12/2013 - 13:58 | 3147180 laozi
laozi's picture

Of course. This article is all bogus.

It is like the post about swedish cash machines running out of cash a year ago. Totally false.

Sat, 01/12/2013 - 14:26 | 3147253 Matt
Matt's picture

Perhaps they saved their bills from the beginning of the hyperinflation; like if you were paid $10 per hour at the start, and you saved all your bills, then in the end when the 100 trillion dollar bills are out, pay for things with $1 bills. People probably have not seen those bills in months.

Sat, 01/12/2013 - 14:34 | 3147254 Raymond Reason
Raymond Reason's picture

They are speaking Russian, and the joke is that she has to find a suitcase and accept the Belarusian ruble, rather then the Russian ruble or Euro that the other customers are using.  Maybe they're paying with pre-2000 rublie. 

Sat, 01/12/2013 - 13:56 | 3147183 defender
defender's picture

Just looked up the exchange rate for Bellarus and it shows 8,660 rubles to 1 USD.  You can see several 10 ruble stacks in the video, so it would be like paying for the beer with 1/100th cent coupons.

I am kinda starting to feel sorry for the check-out girl.

Sat, 01/12/2013 - 14:01 | 3147194 A Lunatic
A Lunatic's picture

Exactly. Nothing to see here but a bunch of drunken assholes making a scene at the local grocer...........

Sat, 01/12/2013 - 14:28 | 3147260 Matt
Matt's picture

Except those bills were probably earned at something like 10 rubles an hour, and now people get like 40,000 rubles an hour. Personally, I would swap the bills at the bank, and to pay taxes etc to the government, to punish those closer to those responsible. Too bad there is no way to punish those directly responsible.

Sat, 01/12/2013 - 15:33 | 3147375 FEDbuster
FEDbuster's picture

At least with copper coins, you can melt them and re-cast them as bullets.

Sat, 01/12/2013 - 16:11 | 3147428 Renfield
Renfield's picture

"Too bad there is no way to punish those directly responsible."

Oh, there certainly are ways. Just not ones that can be discussed on a public message board.

Sat, 01/12/2013 - 16:23 | 3147440 Taffy Lewis
Taffy Lewis's picture

Really? They look like some young kids trying to have fun and enjoy life, and play a prank on the cashier who they probably know.

Sheesh.

Sat, 01/12/2013 - 20:18 | 3147817 TheDuke
TheDuke's picture

Ten years ago a gram of gold cost around 23,000 BYR. Two years ago it was around 133,000 BYR. Today it is close to 465,000 BYR. (Source: http://www.nbrb.by/engl/

If the USD had declined at a similar rate then an ounce of gold would be around 10,000 USD today.

Yeah please disperse, nothing to see hear.

Sat, 01/12/2013 - 14:08 | 3147218 Bohm Squad
Bohm Squad's picture

@Byron

They're surprised because everyone usually just swipes their EBT card...

Sat, 01/12/2013 - 14:59 | 3147306 Koba
Koba's picture

They could have paid in much larger bills.  It would take a long time to collect all of these small notes!  It is a joke.

Sat, 01/12/2013 - 17:31 | 3147536 Winston Churchill
Winston Churchill's picture

Reminds me of my first visit to an Afghan bank to change dollars.

Teller gave me budles ,and bundles of low denomitaion notes.

Stood there counting for five minutes.When I called me on shorting me,

rec'd no argument from him and he passed over the balance.

Sat, 01/12/2013 - 15:04 | 3147318 theprofromdover
theprofromdover's picture

I think the context is this:

These are mostly 'old' notes, like from a year or so ago. At one point that was real cash that folks had saved. And it was worth something.

The guys have gathered them up (say they were equivalent to $1 notes) as a fatalistic gesture. In the intervening period, the Bank of Belorus has had to print £100, $1000, £10,000 $100,000 notes to act as cash currency and weekly wages. So now when the guys want to buy their $80 of booze, it actually costs $800,000 (maybe add another zero or too) in todays notes.

They need a collosal stack of small denomination bills to pay the cashier.

The lesson is -in hyperinflationary times, you can't hang on to cash. It is worthless within the day. The bizarre thing is the cashier bothering to count it. It is already worthless by the time she has added it all up. Turn all your wages either straight into something that will hold its value (gold, silver, tinned goods, property), or just buy the bullets.

 

Coming soon to a town near you.

 

Sat, 01/12/2013 - 15:33 | 3147376 pursueliberty
pursueliberty's picture

I'm not really sure how that works with turning cash into assets right now, what if hyper inflation starts out with deflation?  You are assuming this will happen.  What if you owe over a million dollars to a bank for property, why spend your cash buying it when you can pay less than $10k a month for it? 

 

If you are to assume hyperinflation would it not be the time to leverage to the hilt? 

 

I'm sitting on cash.  I've got a little ammo, and less silver/gold.  Tinned goods are on the list, but I've got a large lot of land with a spring.

Sat, 01/12/2013 - 15:51 | 3147402 traderjoe
traderjoe's picture

Are you sure you will be able to time the transition from deflation to hyper-inflation? Seems like a stretch. Anything ultimately valuable (like farmland) takes time to acquire. [Yes, you mentioned you own some land.]

Just look at the latest rush to AR-15's and .223 ammo. You had maybe 1-2 weeks to act, maybe less. 

 

Sat, 01/12/2013 - 16:32 | 3147448 pursueliberty
pursueliberty's picture

How could any southern boy who is into firearms need to act in these current times.  I'm a seller at the present.  Just listed two black rifles for sale today.  Holding the rest for when something gets in writing and makes it to a table.

I'm not trying to time it, I'm just saying I don't give two shits about hyperinflation.  I'm hedged through debt, I'm hedged through the ability to meet debt obligations for a somewhat extended period of time, and I'm hedged by the fact that I'm not one to go down with the ship.

I'm also hedged for deflation by my ability to meet contracted debt obligations through my aforementioned ability to meet debt obligations, which in turns means I'd be able to buy wanted objects at deflationary prices.

 

The last thing I think will happen is a extreme devaluation of the USD> still a pretty edible apple in a batch of rotten ones, and I haven't seen fresh fruit in a while.

 

Sun, 01/13/2013 - 01:51 | 3148346 SilverRhino
SilverRhino's picture

Out of curiousity what did you price them at? And which region of the country? (NE, SW, NW, S, SE, MW?)

Sun, 01/13/2013 - 18:39 | 3149447 pursueliberty
pursueliberty's picture

SE.

Mini 14 law enforcement $1,200 with some mags.

AR upper: 7.62x39, bolt, mags for $800.

I've got a colt upper I'm debating on selling, old A1 chrome bore/barrel.  They are bringing $500 without the bcg.  I paid that for the whole gun it was attached to.

Mon, 01/14/2013 - 16:29 | 3151919 SilverRhino
SilverRhino's picture

I've got an AR going for $1650 right now.   Kel-tec PLR-16 for $1200 as well in 5.56 

Texas area. 

Mon, 01/14/2013 - 17:32 | 3152145 pursueliberty
pursueliberty's picture

I saw someone asking $2k locally for a plr16.  I'd sell mine in a minute for that kind of coin.  I think I like it 1200 worth though.  I sold a SKS in late 08 for $500.  What kind of AR for that coin?  I purchased a diamond back nib with two mags for under $1100 with tax last week.  Only reason I purchased is so the pawn shop owner would get me to the top of the list for a colt ar when it came in.  His gotten two in stock in the last for weeks but I wasn't high on the list. 

Sun, 01/13/2013 - 17:23 | 3149348 auric1234
auric1234's picture

Anything ultimately valuable (like farmland) takes time to acquire.

Things will change. Just wait for the LAND IPO.

 

Sat, 01/12/2013 - 16:54 | 3147492 SilverDOG
SilverDOG's picture

pursueliberty,

 

 

At least you have a place to bury what you may no longer legally possess.

Hope your cash is not USD as it has lost 30% of its value since 2000. Truly the greatest risk currency available. 

USSR ruble done in less than 2 weeks.

Food holds value regardless of which -flation strikes. Calories baby!

Sat, 01/12/2013 - 16:00 | 3147413 OneTinSoldier66
OneTinSoldier66's picture

I pretty much agree with what you are saying, except perhaps one thing.

 

I believe that beer/liquor holds it's value. They are tangible assets that someone put some effort into creating.

 

Someone could perhaps say the same thing about pieces of paper with ink on them. The difference is the amount of thought, effort, and reason that went into their creation.

Sat, 01/12/2013 - 23:22 | 3148119 Curiously_Crazy
Curiously_Crazy's picture

believe that beer/liquor holds it's value. They are tangible assets that someone put some effort into creating.

 

True, but the downside is you need to be able to put it away and forget about it for a long period of time. Some of us would drink the stuff before it was even a tradable commodity. That's why my stash now consists mainly of metals and food, and why I no longer even keep a liquor cabinet but buy as required. Damn Scotch.

Sat, 01/12/2013 - 18:32 | 3147640 Koba
Koba's picture

theprofromdover, they are just giving this woman a hard time.  These notes are very very small and it would have been far easier to get larger notes.  Ask any Belarusian who lived through this.  The lesson is to remain skeptical.

Sat, 01/12/2013 - 18:58 | 3147672 Debugas
Debugas's picture

you are right (they intentionally give her small banknotes ) but the fact that over a course of aprox 5 years some banknotes became worthless paper should ring a bell

Sat, 01/12/2013 - 13:40 | 3147138 giggler123
giggler123's picture

 

 

Your are short by 1 ruble

 

No, are you sure, please count it again!

Sat, 01/12/2013 - 13:42 | 3147144 Its_the_economy...
Its_the_economy_stupid's picture

funny.

Sat, 01/12/2013 - 14:06 | 3147153 Its_the_economy...
Its_the_economy_stupid's picture

Reminds of a episode 40 years ago at a Dairy Queen. It was late at night, quite a few stoners showed up for a frosty midnight snack. One ordered a chilli cheese dog, large coke, fries and a Dilly Bar. The clerk told him the rpice as she slid the food out the window, maybe 7 bucks. The guy handed her a 10 and she gave him mthe change. Without looking down the guy said, "i gave you a 20", the clerk said "no you gave me a ten". Back and forth it went. The manager came to the window and the guy said, "give me change for a 20 or balance the drawer right now in front of me". The manager gave him the ten and said," Don't let me ever see you here again."

Sat, 01/12/2013 - 14:06 | 3147213 Its_the_economy...
Its_the_economy_stupid's picture

Down arrow??

What did I say?

Sat, 01/12/2013 - 14:08 | 3147219 walküre
walküre's picture

You lied. No way anyone spent 7 bucks at a DQ for anything 40 years ago unless they were treating their town to a meal.

FYI I didn't junk you. LOL

Sat, 01/12/2013 - 16:56 | 3147498 NidStyles
NidStyles's picture

Maybe re-read the story. He said quite a few stoners.

Mon, 01/14/2013 - 12:22 | 3150743 e-recep
e-recep's picture

not so funny, mediocre at best.

Sat, 01/12/2013 - 13:41 | 3147139 BLOTTO
BLOTTO's picture

You know that paper shit is totally worthless when no one...

zero...

not one person tries to steal it off the belt.

Sat, 01/12/2013 - 13:49 | 3147165 BattlegroundEur...
BattlegroundEurope2011's picture

Yeah.  No one needed toilet paper.

Sat, 01/12/2013 - 17:44 | 3147554 Dugald
Dugald's picture

So what you are saying is the Ruble has become Rubble...Oy vey!

Sat, 01/12/2013 - 13:48 | 3147160 zilverreiger
zilverreiger's picture

That girl deserves a silverling and a kiss.

Sat, 01/12/2013 - 13:52 | 3147168 dick cheneys ghost
dick cheneys ghost's picture

"I was told there would be no math"

Sat, 01/12/2013 - 13:53 | 3147169 lasvegaspersona
lasvegaspersona's picture

They are probably using the 'old' ruble just after the 'new' much more convenient ruble has been introduced. Why walk around with a whole bag of money when the government's new bills, with several zeros, make life so much easier.

Sat, 01/12/2013 - 14:00 | 3147176 HansHauge
HansHauge's picture

This was a prank originated in India.

http://belarusdigest.com/story/sms-devaluation-12696

 

Sat, 01/12/2013 - 13:55 | 3147178 Curt W
Curt W's picture

New growth area for the world will be bigger cash registers to store all that worthless green paper.

Sat, 01/12/2013 - 14:12 | 3147225 Bohm Squad
Bohm Squad's picture

They did bring in Clifford, the big red bucket.

Sat, 01/12/2013 - 14:34 | 3147267 Matt
Matt's picture

Or they will go Swedish: electronic money only, remove paper ATM machines from everywhere so people cannot bank with paper money.

Sat, 01/12/2013 - 13:58 | 3147184 tooriskytoinvest
tooriskytoinvest's picture

MORGAN STANLEY & FED & CITI: There's A Storm Coming In The TIPS Market And A Possible Currency War. Expect Higher Gold & Unemployment As Stocks Set To Plunge

http://investmentwatchblog.com/morgan-stanley-fed-citi-theres-a-storm-coming-in-the-tips-market-and-a-possible-currency-war-expect-higher-gold-unemployment-as-stocks-set-to-plunge/

Sat, 01/12/2013 - 13:59 | 3147186 CheapBastard
CheapBastard's picture

I only have one question to ask the Chinese, and it's a question at the heart of the whole economic crisis"

$4.95 all you can eat Chinese buffet, how do you people do it?

Sat, 01/12/2013 - 14:00 | 3147187 HansHauge
HansHauge's picture

what do you mean, "you people?"

Sat, 01/12/2013 - 16:42 | 3147464 Renfield
Renfield's picture

"Joos" "you people"

Come on, ZH. 3 more Politically Incorrect catchphrases and I'll have a whole row on Interwebs Bingo.

Sat, 01/12/2013 - 20:42 | 3147858 knowless
knowless's picture

How in the fuck is "you people" politically incorrect? Are you trolling or just stupid?

Sat, 01/12/2013 - 23:17 | 3148109 juslen
juslen's picture

It's a joke. http://www.youtube.com/watch?v=x1iV24hL8Rk I believe it's also in some Adam Sandler movie.

Sat, 01/12/2013 - 14:04 | 3147199 walküre
walküre's picture

MSG tenderized rat meat. Tastes like chicken.

Sat, 01/12/2013 - 14:10 | 3147221 seek
seek's picture

It's easy when you cut quality standards so that expired meat and rotting vegetables are acceptable, and you used the same cooking oil for months at a time.

Or worse, get the cooking oil from sewer grease traps, which actually happens in China itself: http://www.upi.com/Top_News/World-News/2011/09/14/China-cracks-down-on-g...

Sat, 01/12/2013 - 14:27 | 3147255 Never One Roach
Never One Roach's picture
Super Size Me

 

While examining the influence of the fast food industry, Morgan Spurlock personally explores the consequences on his health of a diet of solely McDonald's food for one month.

 

http://www.imdb.com/title/tt0390521/

 

Unhealthy food is not limited to Chinese Buffets. Check out fast food. IT's a global problem that cuts across all cultures and locations. "Those people" just charge you less.

Sat, 01/12/2013 - 14:13 | 3147230 Bohm Squad
Bohm Squad's picture

Have you ever heard a barking dog near a Chinese restaurant?

Sun, 01/13/2013 - 01:32 | 3148328 El Tuco
El Tuco's picture

What do you call a Chinaman with more than one dog.....

 

A rancher.....

Sat, 01/12/2013 - 14:17 | 3147241 Curt W
Curt W's picture

And all the neighborhood boys have a job $1 per cat.

Sat, 01/12/2013 - 16:48 | 3147483 Son of Loki
Son of Loki's picture

I just got back from a delicous buffet at the Golden Pagoda so you turds can stuff it. Where else can you eat for $5.95 like that? As someone posted here, do you have any idea what goes into that "beef" burger?  Interesting that all the cooks in the back are Hispanic.

Sat, 01/12/2013 - 16:56 | 3147495 akak
akak's picture

"$5.95"?!

Where the Hell did you get the time machine that allowed you to go back to 1983?  I haven't seen a Chinese buffet for less than $10 for at least fifteen years now.

Sat, 01/12/2013 - 14:00 | 3147192 Motorhead
Motorhead's picture

Not to be a spoil sport, but those guys were buying kvass, not beer.

Sat, 01/12/2013 - 14:01 | 3147195 ptoemmes
ptoemmes's picture

On the plus side, once you have the beer you have something of REAL value....

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