Korean Job Discussion Forums

[tfunk]

For all you economists out there...

Under what economic circumstances can money become worthless? Is there a risk that this scenario could happen in countries like Korea, America etc. under the current global situation?

[Thedudeabides]

Without trying to be an armchair economist, I think by the time money would become worthless, there would be larger problems to worry about. I'm talking about massive food and energy shortages, war, and the general breakdown of everything we see around us. At that point, when businesses stop opening, we would see a return to the barter system.

This is a worst case scenario, which we won't see in the foreseeable future. Citizens in every country will keep buying food and other necessities, businesses will stay open, and the economy worldwide will recover and flourish.

[sjrm]

Ask the residents of Zimbabwe! With their inflation rate at about 50,000,000% or something around that, they've ended up not using their own currency, but instead using foreign currency to buy good since their own isn't worth the paper it's written on literally. Read more into it, and you'll see the effects of worthless currency.

[Ilsanman]

50 million percent is months ago. They've topped trillions.

[Rusty Shackleford]

[mole]

You need to read and research a lot to fully get it, but here's a few starters.

FIAT PAPER MONEY: The History and Evolution of Our Currency--Ralph T. Foster
"Dedicated to the world's worthless paper money."
I'm not sure if it's even in widespread print. My copy looks like a manuscript and is signed by the author.
"28 July 2008. mole- May our research benefit your long-term goals.... Ralph T. Foster"
I ordered the book because I'd seen it quoted in several financial commentary/editorials.
Particularly by Dr. Darryl Robert Schoon.

Look up Antal Fekete, Ludwig von Mises and Austrian School economics in general.

I'm currently reading Crash Proof by Peter D. Schiff.

Study hyperinflation in the Wiemar Republic. Here's a brief wiki.

To answer the OP question, CURRENCY becomes worthless through hyperinflation which is caused by printing paper monopoly money
that sheeple have been trained to accept in exchange for their labor and time. Sheeple eventually awaken to the fact that this paper,
no matter how widely accepted it has been for however long, is simply paper, unbacked by any hard asset.

Each fiat currency unit printed (on paper or digital cyberbyte) is created out of thin air as a debt. An unpayable irredeemable IOU.

Most tinfoil hatters (HI, Thunndarr~!) know there is not only the risk of this happening, but it's inevitable.
As evidenced by the fact that every fiat currency in history has failed.


Also see Zeitgeist: Addendum. Free streaming video on Google.

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[greedy_bones]

[mole]

G_B: That sounds like Zeitgeist. The Addendum version is well, as you might expect, NEW & IMPROVED!

OWT: Still have that letter-sweater you earned on the middle school debate team?

I'm preaching, not debating.

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