President Robert Mugabe of Zimbabwe in Africa has presided over the greatest inflation ever seen in recent times, in 2008 the country suffered inflation of over eleven million percent (11,200,000% to be exact). Last week they announced that Zimbabwe has just $217 (this in not a misprint) left in the bank after paying wages to government employees.
When governments print money things get out of control. During the Weimar Republic in Germany 1919-1933 teachers were paid twice a day with wheel barrows full of money.The value of the German mark had declined from 4.2 per the U.S. dollar at the outbreak of World War I to 1 million per the dollar by August 1923.
Eventually the currency was reset and a new mark was introduced called the Rentenmark, there were one trillion old marks to one new Rentenmark, and that was set at 4.4 to the dollar, so the old mark ended at 4.4 trillion the dollar.
The US, Europe, Japan, and many other countries are all printing money as fast as they can, trillions and trillions. So hyperinflation is on the horizon. Gold is how you protect yourself. You’ll probably be able to pay off your mortgage with just a few ounces of gold once a loaf of bread is $10,000.
© Stuart Wilde 2013 – www.stuartwilde.com