# Peak Monthly Inflation In 1945 Hungary: 12,950,000,000,000,000% And Other Hyprinflationary Facts

For some reason, whenever people want to make a historical example of a hyperinflationary period, they always bring up the Weimar Republic, aka Germany in 1920-1923. Yet with a highest monthly inflation of just under 30,000%, Weimar was a true walk in the park compared to the 309,000,000% monthly inflation in 1992-1994 Serbia, but especially to the 12,950,000,000,000,000% inflation that Hungarians had to deal with in the aftermath of WWII. For these and more  comparative examples of hyperinflation, particularly relevant now that the entire world is rumored (for now) to be getting ready to print, see below.

## Comment viewing options

Scientific notation... Bitchez

Carrying your cash in a wheelbarrow is so 20th century.  The preferred method of transport is wrapping it up in a Spiderman beach towel and slinging it over your back.

If we're talking about actual money, I thought it was sewing it into your hems? It's definitely my preferred method.

Credit cards have replaced wheel barrows - making hyperinflation so much easier!

The problem with credit cards and hyperinflation is that the machines which read them can only cope with 'small' numbers.

If true, easily remedied with software.

Nope.  Most should be able to handle double precision floating point numbers.  Means can hit 1.7976931348623157 x 10308 before a problem happens.  If we are seeing transactions in the 1 x 107 for normal people (IE restaurant) we are already well, well off the deep end.  Getting to the upper bounds of even a single precision point number (3.4028234 × 1038) is well past currency death.  So have no fears for the tech ability to handle a digital hyper inflation.

It could never happen here because... because... because... Obama is so smart!

And because the dollar would be \$0.50 to the euro

Where the \$\$\$\$ is the Robot Trader?

Financial systems don't use floating point math because of rounding errors (http://en.wikipedia.org/wiki/Floating_point#Accuracy_problems). Retail machines can deal with integer cents instead of fractional dollars. If more precision is required, simply deal with integer amounts of smaller fractions. Legacy embedded systems (i.e. those card reader thingies at the grocery store and gas station) likely deal with 32-bit integer values at best. That provides a maximum of 4,294,967,295 cents or \$42,949,672.95 per transaction, well within the scope of a severe hyperinflation.

Sure makes pre-paid Visa cards valuable.

Scientific notation is easier to fit in a Spiderman beach towel full of plastic rectangles....

Digital currency can be snatched much easier than cash in hand.

1016% per month is no slouch at snatching.

It sucks when inflation is so bad your \$1000 pre-paid VISA card zeros out the day after you bought it.  You didn't even get to use it.  The fees were inflation indexed.  By the way, next week you'll get a bill for the remainer of the fees that the \$1000 didn't cover.

Digital money sucks.

Here: check out the rise in value of the Hungarian pengö;

http://tomchao.com/hb14.html

And what was the inflation rate of the mythical republic of Goldlandia between 1980 and 1983 when the price of gold went from \$1850 to \$650 in real terms? That equates to around 80-90% inflation  for those loaded up with this supposedly inflation proof "store of value"  currency. It didn't bottom out until 2001 when the precious "ounce" was worth one fifth of its former value at around \$350 of today's dollars...bitchez.

I think the Bernank would call that "deflation" and make a case for more printing.

+ 1E10

To be fair, that is a beautiful case of linear vs exponential thinking. Who would think a harmless 4.62% hourly interest rate could create so much havoc?

/sarc

In comparison, what does the worst case of deflation look like? Did prices ever drop 50% per day somewhere?

That's a lotta goulash.

it's the same amount of goulash at x1016 the price!

All the reserves at banks have to be loaned out to get inflation in the US. Banks aren't lending enough to create inflation. A nice Centrally Planned outcome.

http://confoundedinterest.wordpress.com/2012/06/13/feds-operation-twist-what-did-it-accomplish/

The Fed just keeps twisting and QEing the night away while banks don't lend.

M2 Money Velocity has crashed and burning.

Correct, we in a deflationary  spiral but that is the prelude my friend. The inflation is going to come later

So it is like this?

Step 1. deflation to drive down asset prices.

Step 2. inject credit into the hand's of those well-connected in this system first.

Step 3. well connected purchase those assets

Step 4. money flows to the plebes.

Step5. plebes savings worth nothing.

All you need is a loss of confidence. No printing, no "deflation" no nothing.

Thus the real reason behind their lies and our willingness to believe the lies.

Faith and belief is the only glue that binds this web together. Remove it and you have nothing.

Poof! And it's gone.

The only reason you accept that \$20 in exchange for your goods and/or labor/services is because you have faith and belief that you can "pass it" (notice the same term is used when talking about counterfeit) on to someone else in exchange for what they have to offer.

Wanna play hot potatoe?

I have no faith in the paper I exchange for my services; I am forced to do so.  I asked the board to pay me in gold and silver and the look of shock om their face was interesting.  They offered increase in my 401K matching and profit sharing instead.

I withdrew \$9,999.99 in federal reserve debt today and I must tell you, I am passing this hot potato to everyone that is willing to exchange it for something I am willing to value.

Point of argument.

While you may not have faith in the future of the USA currency (future being loosely defined as anytime beyond today) at least for the moment you have faith that you can pass your Federal Reserve notes NOW in a "fair" exchange for goods and services.

So in effect your actions declare that you still have faith. :>)

I do understand that you have "no choice". At least not a choice that allows you to remain within the system and enjoy what you currently enjoy for a standard of living. But compelled responses serve as willing responses in this case.

BTW withdrawing just under the limit does not stop the bank from reporting your transaction. In fact, it puts you on the radar for reporting because you are obviously trying to avoid reporting requirements. It falls under the general "suspicious activity" heading of the reporting guidelines.

Point of argument accepted and indeed understood.

Every turn we make is covered in the land o' the free.  Great fun.  I will be looking forward to the call from authorities, after they monitor me for the next few months or years.

Every now and then I will stop a phone conversation I'm having with a friend or loved one and shout "suspicious" words into the phone. I want my NSA/CIA file to be impressive when they come to pick me up for my initial interview. :>)

Just doing my part to keep the minders employed.

1. Money: The Greatest Hoax on Earth - 1971

2. Coin's Financial School - 1894

Holy shit....HAHAHAHA.  I do that quite often.  In the middle of a conversation I will usually yell Osama Bin Laden, 9/11, 9/11, jihad! jihad!  Terrorist, bomb plot!  I often think about the poor stooge finding my phone file flagged, where he/she has to go listen to the call. That tard has to listen to a shit ton of mundane conversations about my wife getting her hair done, the kids acting up, cat vomit, whatever just to find me mindlessly spouting off buzz words.  Good times......good times.

Look honey. Someone else has a cat that vomits.

I guess you were right, that it wasn't "personal" that our cat vomitted exactly where I step when I first get out of bed in the morning. :>)

Maybe you will get your own drone assigned?

You are correct, but perhaps he withdrew it from the 401K.

Great point it takes a few sellers to say they no longer want paper or digital fiat for their goods or services and the immediate response by the buyer will be "I will increase my bid of paper/digital fiat" to get your good or service and voila.  It doesn't matter how much dosh in circulation at that point.

More than a few sellers are already taking this route. http://www.opencurrency.com/

cool...my wife is doing some canning as we speak so I will accept mason jars for my labour!

Mason Jars eh?

Pretty soon you would have to raise up a Lodge to handle all those Jars.

Bullets in various calibers could become the coinage of Bartertown.  .22lr, 9mm, .308 etc....  Be sure to have a couple of years of food, they always restrict the food supplies.

Usually what you need is a shooting war.

Most of the inflationary episodes displayed above are correlated to some shooting conflict (either contemporaneously or subsequently).

War makes governments desperate, encourages corruption, tears the fabric of societies, and thus destroys the sheeple's confidence (among other things).

All your 'flations are belong to us.

I believe it does... from Cato, a story on hyperinflation of Yugoslovia.  This is an example of step 2 to 5.  No reason to assume the same type of psychopaths are not at some levers of power in our country.  Some day, people will lose faith in our dollar as well.  Buy Gold.

On January 7, 1991, the federal government of Prime Minister Ante Markovic discovered that, under the control of Slobodan Milosevic, the Serbian parliament had secretly ordered the Serbian National Bank (a regional central bank) to issue \$1.4 billion in credit to Milosevic's friends.

That illegal plunder equaled more than half of all the new money the National Bank of Yugoslavia had planned to create in 1991. The heist sabotaged the Markovic government's teetering plans for economic reform and hardened the resolve of the leaders in Croatia and Slovenia to break away from the Socialist Federal Republic of Yugoslavia.

Without the Croats and Slovenes to fleece, Mr. Milosevic turned on his own people with a vengeance. Starting in January 1992, what was left of Yugoslavia endured the second-highest and second-longest hyperinflation in world history.

How does that compare with the misplaced \$2.3 Trillion that Rummy said the DoD "couldn't account for"?  (So far it still hasn't been located.)

How much currency was in circulation in 2001?  \$2.3 trillion is what % of that?

Probably something like the \$4tr handed out to Fed member banks in 2008.

http://rt.com/usa/news/fed-federal-reserve-report-938/

Yup - I was looking at that chart above and knew instantly that somebody had some 'splainin to do. I have the 12 digit Yugo Dinar notes tucked away next to my 15 digit ZIM dollars.

Correctamundo!

http://www.hark.com/clips/ydjrgglgqn-correctamundo