Tuesday, June 16, 2020

One Hundred Trillion


My last post wrote about the approximate one trillion platelets in my blood donation. Another post described the power of compound interest in which a very modest investment could grow substantially over four hundred years at just a modest interest rate.

There is another example of when interest rates are very high. The enormous multiplying effect doesn't take hundreds of years - only months. That it what led the country of Zimbabwe to issue a one hundred trillion dollar note. At the peak of this period of hyper-inflation around 2007-2009, the cash in your pocket could be worth half, or less, than what it was the day before. In a single year, prior to the issuance of the note shown above, the country issued notes ranging from 10 dollars to 100 billion dollars.

When Zimbabwe gain independence in 1980, their dollar was about worth one United States dollar (USD). When my friend gave me the 100 trillion dollar note shown, it was worth about one USD.

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