TUESDAY, MAY 4, 2021
This is How Bad Currency Devaluations Can Really Get
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Re how vicious currency devaluations can be for many people, I heard an interesting anecdote today in a podcast about a young man who escaped the horrors of North Korea. He described in excruciating detail the various ways that the communist regime savaged the common man/woman there.
Almost in passing, the young man mentioned “did you hear about the currency devaluation that occurred in North Korea in 2010.” (It caused him to be homeless again.) He said that it, “killed thousands of people because the money that people had been saving became worthless.”
He added, “a lot of our neighbors committed suicide. It was like one day they had something and another day they have nothing. And they have no hope of living.”
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Once upon a time, before I was old enough to get a job that paid real money, I had the childhood dream that “Monopoly money would become REAL money.” Sigh, the child’s fantasies, have sort of become true. The “REAL” money of my youth has become almost as worthless as Monopoly money.
The dollar of the 1960’s has lost NINETY SOMETHING per cent of it’s purchasing power.
Using the “penny candy” standard, it’s a 100%.
Using the “quarter a gallon of gas” standard, (a silver quarter is worth about five 2021’s “dollars”; 5 2021’s “dollars will buy you 2.78 gallons; a 2021 quarter “slug” will buy you about 0.14 of a gallon; that about 0.05 of value) it’s about 95%.
Using the “Kendall Park ranch house” standard, (a 35k$ house now sells for about 325k$; or about 9 times it’s nominal value) it’s about 92%.
Pick the number you like best to describe the “devaluation”!
The Gooferment might as well devalue. “We, The Sheeple” are already screwed.