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A Thousand Pictures Is Worth One Word: Worthless

Tyler Durden's picture




 

Jeff Clark of Casey Research has created a wonderful historical "art" album which addresses the number one question which most people living in the US right now are unable to fathom: how can one's currency go from X to 0. It is impossible. It certainly can not happen to the dollar. Right? Well, as Jeff says: "History has a message for us: No fiat currency has lasted forever. Eventually, they all fail. You might suspect this happened only to third world countries. You’d be wrong. There was no discrimination as to the size or perceived stability of a nation’s economy; if the leaders abused their currency, the country paid the price." We may add one other thing: no country in the history of the world has imploded from hyperdeflation. Not one. At the point where the debt load was insurmountable and not enough cash flow was being generated to sustain it, the authorities would always find a way to step in and be the terminal source of dilutive fiat demand: from ancient Rome, to Weimar, to the collapse of the Soviet Block, to, inevitably, the unwind of the failed (neo) Keynesian model, where we are right about now. Sure, we can all come up with goalseeked theories that validate our perspective but they are all meaningless at the end. Past a given threshold debt money ceases to function as backed by the full "faith and credit" of the backstopper and is nothing but paper. Yes. Even the abstract concept of so-called "reserve" currencies. Quote Clark: "As you scroll through the currencies below, you’ll see some long-ago casualties. What’s shocking, though, is how many have occurred in our lifetime. You might count how many currencies have failed since you’ve been born." There are many more where these came from. Thousands in fact. Which brings us to the title of this post. What are all these images, which is really all they are now - fancy paperweights (no pun intended) from near and far history, worth now? Precisely.

 

Yugoslavia – 10 billion dinar, 1993

Zaire – 5 million zaires, 1992

Venezuela – 10,000 bolívares, 2002

Ukraine – 10,000 karbovantsiv, 1995

Turkey – 5 million lira, 1997

Russia – 10,000 rubles, 1992

Romania – 50,000 lei, 2001

Central Bank of China – 10,000 CGU, 1947

Peru – 100,000 intis, 1989

Nicaragua – 10 million córdobas, 1990

Hungary – 10 million pengo, 1945

Greece – 25,000 drachmas, 1943

Germany – 1 billion mark, 1923

Georgia – 1 million laris, 1994

France – 5 livres, 1793

Chile – 10,000 pesos, 1975

Brazil – 500 cruzeiros reais, 1993

Bosnia – 100 million dinar, 1993

Bolivia – 5 million pesos bolivianos, 1985

Belarus – 100,000 rubles, 1996

Argentina – 10,000 pesos argentinos, 1985

Angola – 500,000 kwanzas reajustados, 1995

Zimbabwe – 100 trillion dollars, 2006

Clark concludes:

So, will a similar fate befall the U.S. dollar? The common denominator that led to the downfall of each currency above was the two big Ds: Debts and Deficits.

With that in mind, consider the following:

Morgan Stanley reported in 2009 that there’s “no historical precedent” for an economy that exceeds a 250% debt-to-GDP ratio without experiencing some sort of financial crisis or high inflation. Our total debt now exceeds GDP by roughly 400%.

Investment legend Marc Faber reports that once a country’s payments on debt exceed 30% of tax revenue, the currency is “done for.” On our current path, analyst Michael Murphy projects we’ll hit that figure by October.

Peter Bernholz, the leading expert on hyperinflation, states unequivocally that “hyperinflation is caused by government budget deficits.” This year’s U.S. budget deficit will end up being $1.5 trillion, an amount never before seen in history.

Since the Federal Reserve’s creation in 1913, the dollar has lost 95% of its purchasing power. Our government leaders clearly don’t know how – or don’t wish – to keep the currency strong.

Whether the dollar goes to zero or merely becomes a second-class currency in the global arena, the possibility of the greenback being added to the above list grows every day. And this will lead to serious and painful consequences in our standard of living. While money is only one of many problems we’ll have to deal with, you can protect your assets with the one currency that can’t be debased, devalued, or destroyed by irresponsible leaders.

Because when it comes to money, worthless is not a fun word.

 

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Wed, 07/27/2011 - 13:59 | 1498550 Mongo
Mongo's picture

Now... where is the US dollar?

Wed, 07/27/2011 - 14:06 | 1498585 Cole Younger
Cole Younger's picture

Soon....very soon :-(

Wed, 07/27/2011 - 14:08 | 1498592 Pladizow
Pladizow's picture

Its not worth its own digital image to list!

Wed, 07/27/2011 - 14:37 | 1498746 Almost Solvent
Almost Solvent's picture

The FED should just deposit the 100 trillion dollar note and credit it to the Treasury.

That should take care of it.

Wed, 07/27/2011 - 16:56 | 1498833 AldousHuxley
AldousHuxley's picture

DELETED

Wed, 07/27/2011 - 15:06 | 1498841 AldousHuxley
AldousHuxley's picture

That is exactly what they are doing. Trying to cure debt and financial mismanagement with inflation.

Wed, 07/27/2011 - 16:50 | 1499251 ViewfromUnderth...
ViewfromUndertheBridge's picture

A good comment...but, when you printed it again, it became half as good.

Wed, 07/27/2011 - 17:02 | 1499300 AldousHuxley
AldousHuxley's picture

make it up with this video....

 

Gold For Bread - Zimbabwe

http://www.youtube.com/watch?v=7ubJp6rmUYM

Wed, 07/27/2011 - 16:54 | 1499273 max2205
max2205's picture

If the Zimab Note had four rocks on it, how much would it be worth... (hint, big bag of suck)

Wed, 07/27/2011 - 17:43 | 1499503 I think I need ...
I think I need to buy a gun's picture

i saw a special on cnbc.....bernanke got a 1590 on his sat's so im confident that won't happen here

 

look at some of the coloring its so pretty though

Wed, 07/27/2011 - 18:33 | 1499686 Anonymouse
Anonymouse's picture

I'm just wondering when that 15 minutes starts.  Perhaps Bernanke's watch is broken...

Thu, 07/28/2011 - 06:04 | 1500530 Urban Redneck
Urban Redneck's picture

So did I, and the last time I took them was my sophomore year in high school.  I missed fewer (no) questions on my ASVAB, which is a far more practical exam for determining capacity in the real world.  Perhaps Bernanke should take his confidence back to his ivy league ivory tower and GTFU of DC.  Tests don’t mean shit once you get into the real world.

Wed, 07/27/2011 - 14:58 | 1498813 55 men
55 men's picture

The comment coming soon to the U.S.... NOT WORTH A DOLLAR!

Wed, 07/27/2011 - 15:09 | 1498848 AldousHuxley
AldousHuxley's picture

not coming soon...it is here already. US IS BANKRUPTED ALREADY. Symptoms are already apparent

 

from Wikipedia's article on national bankruptcy...

Consequences for the citizen

National bankruptcy always means for the private citizen a dramatic devaluation of his monetary wealth, because the private/individual saver is often an important creditor of the state (e.g. government bonds).

More severe is the impact on the national economy. These comprise typically

  • a banking crisis, as banks have to make write downs on credits given to the state. CHECK
  • an economic crisis, as the interior demand will fall and investors withdraw their money CHECK
  • a currency crisis as foreign investors avoid this national economy CHECK

The citizen feels the impact indirectly through high unemployment CHECK and the decrease of state services and benefits. CHECK

 

 

 

 


 

Wed, 07/27/2011 - 17:01 | 1499294 navy62802
navy62802's picture

The Bernanke testimony cited in that article is a perfect example of cognitive dissonance.

Wed, 07/27/2011 - 14:10 | 1498604 Mike2756
Mike2756's picture

1 more rally as the EU implodes first? Then it will be time to go all in on the pm's.

Wed, 07/27/2011 - 18:21 | 1499633 trav7777
trav7777's picture

dollar is coming soon to a list near you.

Brazil is a HUGE country with a gigantic economy...they're on their 3rd currency in the past 20 years or so.  All these nations had debt money...every single one.

I'm not sure where the Mishes and Douchingers get the idea that debtmoney nations can't implode.  Something maybe "special" supposedly about the reserve?  FX makes the notion of foreign-denominated debt irrelevant.  Perhaps the reserve will have a less abrupt slide to that same spot, but it's coming anyway.

The future of less means all debts now must be discounted.  In any event, should this "hyperdeflation" come, the FRN would lose its ability, via scarcity, to serve as money.  It would revert to just being paper.  The USSR also did not have external debt denominated in others' currencies.  The ruble still went to bagel.

Wed, 07/27/2011 - 14:01 | 1498557 MiguelitoRaton
MiguelitoRaton's picture

Where is the US Continental? My less intelligent friends always cling to the "Yes, but America would never do that!"

Wed, 07/27/2011 - 14:20 | 1498648 hedgeless_horseman
hedgeless_horseman's picture

This 1775 seven dollar note is typical of the paper money issued by the Continental Congress to pay for the costs of the American Revolution. Due to over-issue and lack of confidence in the government, the notes became nearly worthless. Eventually, Congress redeemed them at 1/100th of their original value in bonds, not maturing until 1811. Image courtesy of EarlyAmerican.com 

 

http://www.us-coin-values-advisor.com/the-american-revolution.html

Wed, 07/27/2011 - 14:35 | 1498735 Spigot
Spigot's picture

The Continental Dollar dropped to 1/16500th of a troy ounce of gold, or the price of gold "increased" to $16,500 Continental Dollars before the currency was terminated.

Wed, 07/27/2011 - 15:45 | 1498983 Newsboy
Newsboy's picture

The English massively and expertly counterfeited the "Continental", largely leading to it's ignominious fate.

Financial warfare.

Wed, 07/27/2011 - 17:08 | 1499330 Cleanclog
Cleanclog's picture

Everyone start growing your hair long now.  Save money on hairdressers and barbers . . . while you prepare for the haircut that the US $ will extract.

Wed, 07/27/2011 - 17:38 | 1499484 OldTrooper
OldTrooper's picture

Or you could just get some pre-65 coins...some barbers will still take a fifty cent piece for their services.

Wed, 07/27/2011 - 18:53 | 1499752 disabledvet
disabledvet's picture

see below

Wed, 07/27/2011 - 18:22 | 1499639 MissCellany
MissCellany's picture

And let's not forget the Confederate Dollar...it made good wallpaper for Mammy's attic bedroom at Tara in Gone With the Wind...

Wed, 07/27/2011 - 14:03 | 1498563 HoofHearted
HoofHearted's picture

Can you scan a $100 FRN and add it to the pictures above? Or maybe an older $500 or $1000....

Wed, 07/27/2011 - 14:06 | 1498564 Smiley
Smiley's picture

I have some of those $100T Zimbabwe bills.  Hilarious. 

 

"You hear that Mr. Anderson?  That is the sound of inevitability.  It is the sound of your death."

Wed, 07/27/2011 - 14:18 | 1498650 pupton
pupton's picture

I was thinking how the Trillion+ Zimbabwe bills might still have some value as a novelty.  I'd pay $5 US for one of them just to have to look at/show off.  Heck, that might be a decent Forex play if things don't pan out here...Where can I get one?

Wed, 07/27/2011 - 14:34 | 1498730 Smiley
Smiley's picture

I get em at coin shows for $5 each with my leftover scratch money after I buy the gold and silver I budgeted for.  I put a few in plastic display cases, they make GREAT gifts and everyone I give one to displays it prominently in their house or office; it makes me feel good when people show off something I gave em.

Wed, 07/27/2011 - 14:35 | 1498734 sdmjake
sdmjake's picture

they are available on eBay. {you can get a dozen for a few bucks}

Wed, 07/27/2011 - 14:41 | 1498754 Manbarepig
Manbarepig's picture

Got mine on eBay, cost me about $3-4

Wed, 07/27/2011 - 15:33 | 1498929 pupton
pupton's picture

Done.  I just electronically exchaned 3.9 of my worthless American Dollars for 100 trillion awesome "Kill Whitey" dollars!  That shit is pretty sad, too.  Their bill features a pile of rocks...WTF is that???  At least we put dead presidents on our paper.  I can't wait to frame that mofo and hang it on the wall in my office.  I'll have an empty frame up next to it..........

Wed, 07/27/2011 - 15:46 | 1498985 cossack55
cossack55's picture

That is because the pile of rocks is worth more than dead presidents.  I have embossed labels made "In case of emergency----break glass" and afix to the frame. Great gifts all seem to get a kick out of.  Last Xmas I used Weimar bills, next Xmas looking at 1946 Hungarian.

Wed, 07/27/2011 - 17:25 | 1499402 IAmNotMark
IAmNotMark's picture

Hey!  Those are NICE rocks!

 

Wed, 07/27/2011 - 17:25 | 1499404 IAmNotMark
IAmNotMark's picture

Hey!  Those are NICE rocks!

 

Wed, 07/27/2011 - 20:36 | 1500017 Al Gorerhythm
Al Gorerhythm's picture

That pile of rocks is the Zimbabwe national monument. It's all they could afford.

Wed, 07/27/2011 - 21:50 | 1500135 Bananamerican
Bananamerican's picture

reminds me of this...

http://4.bp.blogspot.com/_i3lRnft7JYc/S2rd4PTzH3I/AAAAAAAAAls/wZN763OCBG...

That 100 trill zimbab note would buy you an egg right before it went kaput in 2009...guess what they replaced it with?

Thu, 07/28/2011 - 03:26 | 1500463 zhandax
zhandax's picture

I'd pay $5 US for one of them just to have to look at/show off.

Funny how the cash market works....when the $100,000,000,000,000 note would still buy a cab ride in Harare, I bought 20 new ones on eBay for $2o.  I keep one in my wallet to show the disbelievers.

Wed, 07/27/2011 - 14:58 | 1498812 PulauHantu29
PulauHantu29's picture

I have a few of the Zimbabwe notes...They are great! Too bad the gubberment took the $1000 and $500 out of circulation...they would be a Hoot.

Wed, 07/27/2011 - 16:56 | 1499278 Sabibaby
Sabibaby's picture

Shhh..... The guy at 7-11 doesn't know....

Wed, 07/27/2011 - 16:20 | 1499142 goldm3mb3r
goldm3mb3r's picture

I like the one with Barton Fink on it.

Wed, 07/27/2011 - 14:06 | 1498565 Cognitive Dissonance
Cognitive Dissonance's picture

All that pretty fiat paper looks much better, and immensely more valuable, while under the influence of a few hits of blotter acid and some fiat crack cocaine.

Peace baby.

Wed, 07/27/2011 - 14:04 | 1498571 Ahmeexnal
Ahmeexnal's picture

Where's the $10,000 USD bill with a smiling Soetoro portrait?

Wed, 07/27/2011 - 14:26 | 1498680 LeBalance
LeBalance's picture

dude!  We want the Fuckin' Wingnuts WB7 image of Barry Soe on our $!!!  Glasses and Fro'do!

Wed, 07/27/2011 - 21:12 | 1500075 Freddie
Freddie's picture

Hope & Change.

Thu, 07/28/2011 - 03:33 | 1500467 zhandax
zhandax's picture

All that pretty fiat paper looks much better, and immensely more valuable, while under the influence of a few hits of blotter

Trade you Z$100,000,000,000,000 for hit of blotter?

Wed, 07/27/2011 - 14:05 | 1498573 MonsterZero
MonsterZero's picture

I think Ben just wants his picture and autograph on the 10 trillion dollar bill.

Wed, 07/27/2011 - 23:42 | 1500291 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

How 'bout a direct overhead shot of his bald noggin to fill the space of the final zero in 10T?

Wed, 07/27/2011 - 14:05 | 1498576 Al Huxley
Al Huxley's picture

there’s “no historical precedent” for an economy that exceeds a 250% debt-to-GDP ratio without experiencing some sort of financial crisis or high inflation. Our total debt now exceeds GDP by roughly 400%. So there you go, we've set the precedent. /sarcasm

Wed, 07/27/2011 - 18:46 | 1499735 espirit
espirit's picture

Correction: "Hysterical Precedent".

Wed, 07/27/2011 - 14:06 | 1498578 mmlevine
mmlevine's picture

Priceless.

Wed, 07/27/2011 - 14:05 | 1498580 drink or die
drink or die's picture

At least it makes it easy to stay ahead of counterfeiters

Wed, 07/27/2011 - 15:46 | 1498990 Cash_is_Trash
Cash_is_Trash's picture

Rothbard considered notes themselves "counterfeit". In that case, you, me and Pladizow's supple breats have counterfeits in our wallets (Pladizow's are in the thong on stage).

But if you and I whoop out the Lexmark and scan-away we go visit Schiff's father, Irwin, in the federal slammer.

Wed, 07/27/2011 - 14:06 | 1498584 paxxi
paxxi's picture

find the similarities!

 

then you know which notes are produced by Germany Bundes-Druckerei :) 

Wed, 07/27/2011 - 14:07 | 1498586 Sudden Debt
Sudden Debt's picture

I only have the Zimbabwe bills but I think I'm going to look for the others also on Ebay.

The Crown  Of My Collection Will Be:

The Million Euro Bill

The Trillion Dollar Bill

 

And when I've got them all, I'm going to frame them and hang them in my toilet.

Wed, 07/27/2011 - 14:28 | 1498698 wandstrasse
wandstrasse's picture

but when you frame them, you have to pull them out to use them. Better get more and put it on a roll.

Wed, 07/27/2011 - 14:43 | 1498763 Sudden Debt
Sudden Debt's picture

Jeez, I looked up all those bills and if you want the XF versions of those, it will set you back 800$ easy.

They don't look that worthless to me :)

 

Wed, 07/27/2011 - 17:18 | 1499379 mickeyman
mickeyman's picture

I have some of the Brazilian notes from that time kicking around somewhere. Not as good condition though.

Every day in the newspaper they had both the official rate and the official black market rate (conversion to USD).

With very few exceptions it was impossible to access credit or money from outside the country (this was early 1993). For two months I had to convert a few dollars at a time so as not to lose too much purchasing power. Luckily I made a side trip to Chile and was able to access money. Also engaged in barter with Brazilians to save on currency.

Wed, 07/27/2011 - 17:54 | 1499542 Sudden Debt
Sudden Debt's picture

WAW!

You should write a piece about the stuff you did during that time!

First I find it fascinating to hear all this and very interesting and who knows informative for the rest of us ;)

Thu, 07/28/2011 - 03:39 | 1500468 zhandax
zhandax's picture

Since we may need some practical advice on this next year?

Wed, 07/27/2011 - 18:56 | 1499764 disabledvet
disabledvet's picture

how 'bout just a "dollar bill hiccup"? i do have a "silver certificate" right next to me actually. when people ask me about "money" (and they rarely if ever do) it's what i show them.

Wed, 07/27/2011 - 14:07 | 1498587 williambanzai7
williambanzai7's picture

SPECIMEN O NOTE

Wed, 07/27/2011 - 14:13 | 1498624 Dr. Engali
Dr. Engali's picture

LOL. You never cease to crack me up. Are you selling these on the web site? I'd love them for the office. Of course I wouldn't want to get you in trouble for counterfeiting.

Wed, 07/27/2011 - 14:20 | 1498657 williambanzai7
williambanzai7's picture

No problemo, I will arrange for the O notes to go in the shop ;-) 

Wed, 07/27/2011 - 16:42 | 1499206 Cognitive Dissonance
Cognitive Dissonance's picture

Bro,

I've got a bone to pick with you. Or more to the point I've got a pick to pick with you.

The Big O needs an afro pick in his fro bro.

Like this.

Fro Pick

Wed, 07/27/2011 - 14:19 | 1498654 Cassandra Syndrome
Cassandra Syndrome's picture

Ha ha! Excellent! The guy on the Central Bank of China note from 1947 half ways up looks like Obama.

Wed, 07/27/2011 - 14:24 | 1498668 Juan Wild
Juan Wild's picture

I just realized Debt Brother's afro makes a big zero too! lolz

Wed, 07/27/2011 - 14:32 | 1498715 KeyserSoze
KeyserSoze's picture

Racist mofo'!!

Don't blame the black man on Honky Cracker economic policies.

Wed, 07/27/2011 - 15:28 | 1498902 Esso
Esso's picture

No kidding. Check out the skyscraper on the $100 trillion Zimbabwe note. Three stones high, their finest accomplishment!

Them dudes got it goin' on!

Wed, 07/27/2011 - 16:42 | 1499216 V in PA
V in PA's picture

Thanks Esso! I haven't laughed that hard in a long time (in tears).

Wed, 07/27/2011 - 15:37 | 1498907 Esso
Esso's picture

Damn dupe post.

Wed, 07/27/2011 - 16:12 | 1499096 williambanzai7
williambanzai7's picture

Actually, he is as white as Wall Street sliced bread. Meanwhile the brothers and sisters, Hispanics and every other minority are suffering the burden of the wealth disparity exacerbated by his hand picked PhD goon squad.

Fuck every last one of them. They all belong up on the gallows.

Wed, 07/27/2011 - 17:58 | 1499557 Juan Wild
Juan Wild's picture

And round up all the fuckers responsible for 9/11, fly em over Ground Zero and push them out of the airplane!! And MSM fuckers, the guillotine for you! Times Square, baby.

Wed, 07/27/2011 - 18:59 | 1499774 disabledvet
disabledvet's picture

"white" or otherwise--we're all getting killed. "the only thing a man lies about more than sex is money."

Thu, 07/28/2011 - 05:26 | 1500511 williambanzai7
williambanzai7's picture

We are all getting killed is right. And he sold out on all of us.

Wed, 07/27/2011 - 15:49 | 1499008 DosZap
DosZap's picture

William,

My fav, from Yo pockit, to your ass.......................see, it's still good fo' sompin.(;

Wed, 07/27/2011 - 14:09 | 1498590 TradingJoe
TradingJoe's picture

I have a similar collection, one original note from Dec 15 1922 reads, "ein tausend deutsche mark", red-stamped to Eine Milliarde Mark! Any takers? :))

Wed, 07/27/2011 - 14:31 | 1498712 wandstrasse
wandstrasse's picture

wait a while, I will soon offer you one billion Dollar / Euro for it, you choose.

Wed, 07/27/2011 - 14:09 | 1498601 Oh regional Indian
Oh regional Indian's picture

Awesome headliner!!! :-)

Try these movng pictures? http://www.youtube.com/watch?v=38qt-noulzw

It's me.

;-)

ORI

 

PS: Fiat, 40 year life, nixon, 1971, 15th August. 

Mark your calendars. Perhaps that is the chosen day for default! Omen like, I'd seen on a sign on a road here in Bangalore. FRN/FED and 15th August. Potent!

Wed, 07/27/2011 - 14:15 | 1498637 Caviar Emptor
Caviar Emptor's picture

That's astronomical 

Tricky Dick's big plan is coming apart. Where is he when you need him? 

Wed, 07/27/2011 - 14:23 | 1498666 Dr. Richard Head
Dr. Richard Head's picture

Tricky Dick said it was supposed to be temporary.  http://www.youtube.com/watch?v=iRzr1QU6K1o

Kinda like Bernanke's transient nature of inflation.

I counted the list of defaulted currencies in my life and every two years of my life a currency had lost the faith of the people.  Last hyperinflated currency of the list was Zimbab in 2006.  We are well overdue for another currency to crash, two in fact, so I nominate the US Federal Reserve Note and the Euro.  All in favor?

Thu, 07/28/2011 - 01:05 | 1500370 StychoKiller
StychoKiller's picture

What, no Yen for the Yuan?  :>D

Wed, 07/27/2011 - 15:00 | 1498822 Oh regional Indian
Oh regional Indian's picture

CE, what if it is coming together exactly as per plan?

Of course, I think we are in a long planned demise cycle, overall. These guys are tricky like foxes.

ORI

Wed, 07/27/2011 - 16:23 | 1499156 Theta_Burn
Theta_Burn's picture

ORI, I just realized, with all the shit going down around the world, rarely if at all is India mentioned as being caught up in the turmoil.

Am I wrong?

 

Wed, 07/27/2011 - 16:56 | 1499281 Oh regional Indian
Oh regional Indian's picture

I'm afraid you are wrong Theta. India is on the edge of the very same precipice. And It's buring money on Arms from Israel and the US and EU, phenomenal growth. China is clearly the foe again, a rhyme of 1962.

Lots of sectarian and religious tensions off late, Mumbai has the bomb blasts again 913/7 I think)... J&K remains a flash point, China continues to probe the north east...

And you should see easy credit redux, part deaux or whatever.

We know a new car brings joy to your family. We are happy to be a part of your happiness. 10 Year, Ninja-ish, Variable rate loans at 9% for one a all. Almost same terms for home loans, only higher down. Newspaper delivery boy can show three stubs and get a loan on a bike worth $3,000 when he makes approxinately $150 a month.

I am told my outlook is particularly dour though, so please take salt appropriately. I see people all around me wild eyed with joy at the rampant consumerism all around them. Positively glowing! :-)

ORI

Wed, 07/27/2011 - 19:12 | 1499803 slewie the pi-rat
Wed, 07/27/2011 - 21:17 | 1500085 Freddie
Freddie's picture

I wonder if things get bad in India - if they will burn down that billionaire's home that is 20 or 40 stories high.

Thu, 07/28/2011 - 01:09 | 1500375 Oh regional Indian
Oh regional Indian's picture

Freddie, knowing said billionaire (Ambani), it's probably bomb proof! Not that it has stopped determined mobs before, eh? 

ORI

Wed, 07/27/2011 - 21:33 | 1500100 KeyserSoze
KeyserSoze's picture

Food inflation in India is already at 10%. They won't report it on India, because India is very much in bed with the US. It gets the same protection of MSM bullshit afforded to it like every good willing 'patsy' of western powers.

Unemployment is already rising simply because western nations are now unable to export jobs to India in quite the same numbers. The economy is intrinsically tied to western Foreign Direct Investment. When western economies prosper so does India, when the west falters, so does India.

This is the price India is now paying for getting rid of its own self determination policies of the past and relying on western hand outs from the last 15 years. Why Indians fell for the idea that a nation with $3,300 GDP per capita can be a consumer based economy is beyond me. Some bankster probably sold them a pack of lies.... isn't it always the case...

Wed, 07/27/2011 - 17:55 | 1499534 Jason_1sandal
Jason_1sandal's picture

Fascinating...

Edit: your videos that is

Thu, 07/28/2011 - 00:49 | 1500351 Oh regional Indian
Oh regional Indian's picture

Thanks Jason. :-)

ORI

Wed, 07/27/2011 - 18:10 | 1499587 JR
JR's picture

Blame Nixon’s departure from the gold-dollar link on the overhang of dollars abroad that began in the 1960s.  At least that's the way analyst George J.W. Goodman's views could be interpeted.

That’s when more dollars went overseas than came in -- causing America’s deficit in the balance of payments – and led to the Eurodollar. Everyone in the mid-1950s used the dollar in their international transactions.

The Eurodollar was simply a dollar abroad, EXCEPT that in foreign hands it could be presented for gold.

With the Fed pumping money and unwilling to defend the value of the world’s reserve currency as the British had defended the pound, the system devised at Bretton Woods in 1944 with the dollar as its centerpiece was coming apart; simply put, there were too many dollars for the gold.  When the potential claims on gold got too great, on August 1971 the U.S. went off the gold standard altogether.

Capitalist bankers loved the Eurodollar, of course, because it was unregulated, borderless and beyond the reach of the Federal Reserve and other government authorities. There were no interest rate ceilings, no loan limits, no reserve requirements – they could loan 100 percent of their Eurodollars – all could be borrowed and repaid outside the American banking system.

Its defenders, such as Chase, Citicorp, Bank of America and Deutsche Bank – all now chartered in the “Wonderful Country of Offshore” beyond the reach of the taxing authorities and doing business in the unregulated “Wonderful World of Euroland” -- claimed the Eurodollar “financed the world’s greatest boom.”  And now, perhaps, overfinanced the world’s greatest unregulated bust. Today, according to Wikipedia, the Eurodollar market is by a wide margin the largest source of global finance. In 1997, nearly 90% of all international loans were made this way.

http://en.wikipedia.org/wiki/Eurodollar

“There are more things in Heaven and earth (and banking) Horatio, than are dreamt of in your philosophy.” –Hamlet, 1601 (apologies to Hamlet)

Wed, 07/27/2011 - 14:11 | 1498603 carbonmutant
carbonmutant's picture

The American image is cellphone with NFC...

Wed, 07/27/2011 - 14:10 | 1498605 dick cheneys ghost
dick cheneys ghost's picture

Who's picture will be on the Trillion dollar note? Uncle Ben?.......Greenspan?.......Obumer?.........GWB?........

Wed, 07/27/2011 - 14:18 | 1498647 Shameful
Shameful's picture

God I hope Nixon!  Get the picture of him doing the peace sign.  Can see it now the "Tricky Dick Trillion Dollar Value Menu" at fast food places, and everyone carrying around a pocket full of Dicks...If it's going to be a hyper inflationary hell I think they owe us a little comedy.

Wed, 07/27/2011 - 14:31 | 1498710 Dr. Richard Head
Dr. Richard Head's picture

There could be some nice gansta rap with those too. Music leads revolutions you know -

"I got Dicks in my wallet and Dicks in my purse

Couldn't buy an apple but them bitchez feed my furnace!"

DJ Richard Head

Wed, 07/27/2011 - 14:37 | 1498738 DaveyJones
DaveyJones's picture

had the same vision...  like this with zeroes

http://www.ioffer.com/i/RICHARD-NIXON-FROZEN-DOLLAR-BILL-39492531

Wed, 07/27/2011 - 22:48 | 1500198 Shameful
Shameful's picture

I was hoping for a wider shot of him so the fingers toughing the outer edges of the bill, but I guess Treasury Sec Dimon will have to hash that out with the engraver. But I would still be proud to carry that bill in my pocket to represent rotting purchasing power.

"This is not a crooks money!"

Thu, 07/28/2011 - 00:13 | 1500318 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

It is not a Bill -- it is a Dick.  Sorry, had to correct that one.

Wed, 07/27/2011 - 15:12 | 1498860 zerozulu
zerozulu's picture

Pyramid, ever watching eye and star of David.

Wed, 07/27/2011 - 14:10 | 1498606 Juice Box
Juice Box's picture

Zimbabwe bill looks like three big elephant turds!  Why do they have this on their bill?  Don't they have anyone famous to put on the bill?

Wed, 07/27/2011 - 14:16 | 1498642 Bam_Man
Bam_Man's picture

Yes, but they all look alike.

Wed, 07/27/2011 - 19:15 | 1499805 LMAO
LMAO's picture

I can see this could be the reason as to why they went for the turds LOL

On a more serious not, people don't seem to get their heads around the idea that this is a case of HYPER-DEFLATION instead of inflation. The title clearly states WORTHLESS. If the 1 million Zimbabwean note is deemed worthless, the 1 trillion note is even exponentially more worthless.

Wed, 07/27/2011 - 14:10 | 1498609 buzzsaw99
buzzsaw99's picture

When it hits we will drag a bunch of countries down with us.

Wed, 07/27/2011 - 14:28 | 1498696 Long-John-Silver
Long-John-Silver's picture

We're all tied together like mountain climbers. Once Europe or US go over they all go over. 

The only people that survive are people with rope cutters made of Beans, Bullets, and Bullion.

Wed, 07/27/2011 - 14:10 | 1498610 Caviar Emptor
Caviar Emptor's picture

The Wampum/Florin cross is a tell

Wed, 07/27/2011 - 14:12 | 1498618 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Jew Confetti!

Same scam played over and over and over again throughout history... when will we say no to this madness?

Wed, 07/27/2011 - 14:30 | 1498707 Long-John-Silver
Long-John-Silver's picture

Google "Jew Confetti" before you neg the comment above.

Wed, 07/27/2011 - 14:38 | 1498749 ww2vet
ww2vet's picture

scum-dog-die!!!!!!!!!!

 

Wed, 07/27/2011 - 18:28 | 1499662 trav7777
trav7777's picture

DATZ RAYCISS

But, seriously, the Federal Reserve is an unholy alliance between some anglo families like the Rocks and Morgans along with some Jewish ones like the Rothschilds.

Those who could, got in on it.  Banking is seigniorage.  It's really that simple.  Rothschild correctly realized that this was the situs of the King's real power and stole it.

Wed, 07/27/2011 - 19:17 | 1499813 disabledvet
disabledvet's picture

Rothschild vs Napolean. Think that was an "nice and easy" place to hang out? Needless to say "that was no King" but one of the greatest if not the greatest "General" in history. If you can say "le Etat c'est moi" then trust you are man to be feared.

Wed, 07/27/2011 - 21:22 | 1500089 Freddie
Freddie's picture

Rocks and Morgan were their errand boys in the USA.  Just about every war, currency collapse, etc was to wipe the average Joe and his family.   Just seizing the wealth every 70 years or so.

Wed, 07/27/2011 - 15:07 | 1498845 zerozulu
zerozulu's picture

Jews have done the same thing to each and every super power ( stealing their wealth), which gave them refuge,since the time of Moses. Here is the list. Hard for 6PJ's to comprehend.

http://www.simpletoremember.com/articles/a/HistoryJewishPersecution/

 

Wed, 07/27/2011 - 16:54 | 1499261 V in PA
V in PA's picture

Where are they going to go after they piss of Americans? The Chinese already don't like them.

 

6PJ's???

Wed, 07/27/2011 - 18:18 | 1499623 zerozulu
zerozulu's picture

India. They (MSM, Jews ) promoted it a lot, but India is 50 years behind to accept Jews. They are not out of their own caste system.

Wed, 07/27/2011 - 19:53 | 1499920 V in PA
V in PA's picture

Good Point. I'm still lost on what a 6PJ's is.

Wed, 07/27/2011 - 20:57 | 1500042 zerozulu
zerozulu's picture

Sorry, fat fingered. J6P.

Wed, 07/27/2011 - 21:00 | 1500047 zerozulu
zerozulu's picture

In the United States, the term John Q. Public is used by law enforcement officers to refer to an individual with no criminal bent, as opposed to terms like perp (short for perpetrator) or skell to qualify unsavory individuals.[citation needed]

2008 Republican Vice Presidential nominee Sarah Palin famously referred to "Joe Sixpack and Hockey moms" during a debate. Presidential Candidate John McCain referenced a similar symbol, this time represented by an actual person, saying that Senator Obama's tax plan would hurt Joe the Plumber's bottom line. A fifteen-minute debate on this issue ensued, with both candidates speaking directly to "Joe".[1]

When John Q. Public is used in conjunction with an example credit card number, the number 1234 5678 9100 0000 is often used

From wikipedia

Wed, 07/27/2011 - 21:05 | 1500054 Orange Pekoe
Orange Pekoe's picture

They rape their babies at birth. Vicious custom. No wonder they mass murder through hyperinflation.

Wed, 07/27/2011 - 14:12 | 1498619 Placerville
Placerville's picture

Wait for the bigger denomintion notes to start hitting the presses.

As the famous (Fed) saying goes, WE HAVE NOT YET BEGUN TO PRINT!

Wed, 07/27/2011 - 14:32 | 1498719 Long-John-Silver
Long-John-Silver's picture

I've been wondering when $500 Federal Reserve Notes for circulation start getting printed.

Wed, 07/27/2011 - 14:54 | 1498799 DonnieD
DonnieD's picture

I'm surprise Reid or Boner hasn't found 1 trillion in savings by not minting the penny. Seems like low hanging fruit to me.

Wed, 07/27/2011 - 14:43 | 1498765 traderjoe
traderjoe's picture

I think the plan is an electronic currency system or even better a chip to store all of your information and to track you by.

Wed, 07/27/2011 - 14:51 | 1498789 Rick Masters
Rick Masters's picture

Don't Print to you see the whites of their eyes...or...I have but one regret that I only has one printer with which to destory my country....how about this: give me a printer or give me death...

Wed, 07/27/2011 - 15:58 | 1499046 Esso
Esso's picture

I think we're gonna need a bigger wheelbarrow.

Wed, 07/27/2011 - 14:23 | 1498623 MassDecep
MassDecep's picture

Times are different. The Globe depends on the US Dollar, and the Dollar is propping up the Global banks. The world is run by a "Financial Cartel" with the US as the financial front man. So, the question is, How are the owners of this system going to destroy their current Financial tool? If the US dollar fails, so goes the world monetary system. Kinda feel like a frog in a pot of warm water; soon to be boiling.

Wed, 07/27/2011 - 14:25 | 1498675 buzzsaw99
buzzsaw99's picture

the world eCONoME is TBTF. lolololol

Wed, 07/27/2011 - 14:48 | 1498773 DaveyJones
DaveyJones's picture

it will effect the world monetary system but they can still benefit by it. This particular tool is now worn out, They will simply forge a new one 

Wed, 07/27/2011 - 14:13 | 1498628 Bam_Man
Bam_Man's picture

The fiat (post-1971) dollar is not yet worthless and still widely accepted (albeit in ever larger amounts) in exchange for Gold.

Which means that the answer to the question "Should I buy Gold at its all time high price?" is "Yes, while you still can."

Wed, 07/27/2011 - 14:14 | 1498630 Use of Weapons
Use of Weapons's picture

Anyone else notice that the Zimbabwe dollar uses a ROCKING HEAVY METAL FONT?

Wed, 07/27/2011 - 14:25 | 1498671 redpill
redpill's picture

If you're going to hyperinflate, you might as well headbang while you're at it   \m/

Thu, 07/28/2011 - 00:24 | 1500328 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Between a rock and a hard place and another rock.

Wed, 07/27/2011 - 14:31 | 1498713 Ahmeexnal
Ahmeexnal's picture

at this point, a KISS army issued "banknote" has more value than a FRN.

Wed, 07/27/2011 - 14:14 | 1498631 Noah Vail
Noah Vail's picture

What an impressive list of nations.

Every single fiat has failed? BS I can name a few. Start with the British pound and go from there. Canada, Australia, New Zealand, Saudi, Egypt and on and on.

Wed, 07/27/2011 - 14:35 | 1498736 dick cheneys ghost
dick cheneys ghost's picture

I was wondering about the Pound..........any thoughts on this? 

Wed, 07/27/2011 - 16:34 | 1499183 Possible Impact
Possible Impact's picture

"I asked for a Pound Sterling, they said pound sand!"

 

Wed, 07/27/2011 - 14:37 | 1498742 Dr. Richard Head
Dr. Richard Head's picture

I can refute one on the list - British Pound - they defaulted when one could no longer redeem the paper for a pound of sterling. That is a default.  Simliarly, they lost the reserve currency status as well. Double default. 

The reserve currency of the 18th and 19th century was undoubtedly the British pound sterling. As the name says, a one pound note could at any time be redeemed against one pound of sterling (pure) silver at the Bank of England or before that at the treasury of the king.

With the demise of the British empire, which went hand in hand with the outsourcing of its productive capacity to the colonies, where labor was cheap, the pound was replaced by the US dollar in the early 20th century

 

Wed, 07/27/2011 - 14:51 | 1498788 DaveyJones
DaveyJones's picture

outsourcing productive capacity where labor is cheap...now why does that sound familiar?

 

Wed, 07/27/2011 - 15:02 | 1498832 hackettlad
hackettlad's picture

Rescinding convertability is of course a form of default in that you are failing to honour your obligations.  Losing reserve status cannot be considered a default on the other hand.  It is simply a loss of status and economic power.

Wed, 07/27/2011 - 14:41 | 1498757 KeyserSoze
KeyserSoze's picture

The Pound will collapse like the Dollar. And when those go, so too will it trigger a collapse in many other western and world currencies.

Canada and Saudi Arabia and to an extent Australia at least have some hard resources to sell.

Wed, 07/27/2011 - 14:14 | 1498632 Joebloinvestor
Joebloinvestor's picture

The US dollar is a "promise to pay".

 

What ever that means is unclear as that promise got broken when people defaulted on their mortgages.

 

So how much is a broken promise worth?

 

I guess whatever they say it is as it isn't based on anything else.

 

WHEE!

Wed, 07/27/2011 - 14:20 | 1498635 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Monie:

 

1)  An agreed upon medium of exchange

2)  A unit of account

3)  Fungible

4)  A store of wealth

Fiat does not store wealth.

Wed, 07/27/2011 - 14:24 | 1498644 TruthInSunshine
TruthInSunshine's picture

I will gladly catch junks (or down arrows, now), but there is a point where the push to the hoop on precious metals and the hyperinflation argument loses credibility, and I believe this article has easily crossed that line.

What a bunch of absolute rubbish.

You'll find fewer people less sanguine about the prognosis for the U.S., European and even Chinese economies going forward, given the dozens of crises, structural and acute, we can all cite right now.

But this argument that the U.S. is going to suffer hyperinflation and a Weimar rhymed experience is such utter nonsense that I expect anyone who wants to be taken seriously and is publicly making the case for it (in the U.S., with a reserve currency, in a globally interwoven economy where other nations are struggling for many of the same reasons the U.S. is) to at least disclose their book.

This is not like saying "I'm short treasuries because interest rate hikes and heavy inflation are on the horizon." This is somewhat disingenuously INSINUATING that the U.S. is going to lose world reserve currency status over a short time horizon, suffer hyperinflation and an economic collapse, without actually stating the case for this scenario, or the timeline over which it would transpire.

I wish I could junk an article. Matt Casey should be embarassed publicly for even putting those currencies above in the same category as the dollar. Third world nations? African, despotic regimes? Revolutionary France? Post WWI Germany?

You're embarrassing yourself, Casey.

 

Wed, 07/27/2011 - 14:32 | 1498717 Doubleguns
Doubleguns's picture

Embarrassing would be holding a bag full of dollars and still not being able to pay for your dates lunch.

Wed, 07/27/2011 - 14:38 | 1498748 TruthInSunshine
TruthInSunshine's picture

Yes, the hyperinflation is clearly on the way.

Casey jumped the shark today.

 

Wed, 07/27/2011 - 14:46 | 1498772 Larry Darrell
Larry Darrell's picture

I'm not actually trying to pick a fight, as I've read many of your posts since I started following this site, but it seems to me your whole argument against the case laid out is "It's different this time"

The reality is, in my opinion, that there aren't enough of us out there who follow history, thus entire civilizations are doomed to repeat it.  TPTB have treated the US FRN the same way as all other leaders have treated their currencies in the past -- with zero responsibility.  This has always led to worthless currencies.  It may take many more years and iterations of up and down, but from 1913 to now the trend has been all too clear.

Wed, 07/27/2011 - 14:55 | 1498803 TruthInSunshine
TruthInSunshine's picture

If we had another 2008 credit freeze in the global economy tomorrow, foreign central banks would be rushing just as anxiously for liquidity from the U.S. as they were 3 years ago.

The U.S. is a true empire, able to project military power in ways no other nation can (yes, yes, Chinese Aircraft Carriers), with the world's reserve currency, and the largest economy, but we're going to follow in Weimar Germany's footsteps.

Perspective, context and proportionality help when trying to intelligently analyze any subject, and there's none of any of these ingredients in this piss-poor excuse of an analysis (or whatever it is pretends to be) by Casey.

Wed, 07/27/2011 - 16:14 | 1499117 march52011
march52011's picture

This idea is called "exceptionalism".

 

Watch this clip....

http://www.youtube.com/user/wepollock#p/u/33/p3_VqaTVNxY

Every empire falls

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