Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
INTEL (INTC) Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 18th Jan 20
Gold Stocks Wavering - 18th Jan 20
Best Amazon iPhone Case Fits 6s, 7, 8 by Toovren Review - 18th Jan 20
1. GOOGLE (Alphabet) - Primary AI Tech Stock For Investing 2020 - 17th Jan 20
ERY Energy Bear Continues Basing Setup – Breakout Expected Near January 24th - 17th Jan 20
What Expiring Stock and Commodity Market Bubbles Look Like - 17th Jan 20
Platinum Breaks $1000 On Big Rally - What's Next Forecast - 17th Jan 20
Precious Metals Set to Keep Powering Ahead - 17th Jan 20
Stock Market and the US Presidential Election Cycle  - 16th Jan 20
Shifting Undercurrents In The US Stock Market - 16th Jan 20
America 2020 – YEAR OF LIVING DANGEROUSLY (PART TWO) - 16th Jan 20
Yes, China Is a Currency Manipulator – And the U.S. Banking System Is a Metals Manipulator - 16th Jan 20
MICROSOFT Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 15th Jan 20
Silver Traders Big Trend Analysis – Part II - 15th Jan 20
Silver Short-Term Pullback Before Acceleration Higher - 15th Jan 20
Gold Overall Outlook Is 'Strongly Bullish' - 15th Jan 20
AMD is Killing Intel - Best CPU's For 2020! Ryzen 3900x, 3950x, 3960x Budget, to High End Systems - 15th Jan 20
The Importance Of Keeping Invoices Up To Date - 15th Jan 20
Stock Market Elliott Wave Analysis 2020 - 14th Jan 20
Walmart Has Made a Genius Move to Beat Amazon - 14th Jan 20
Deep State 2020 – A Year Of Living Dangerously! - 14th Jan 20
The End of College Is Near - 14th Jan 20
AI Stocks Investing 2020 to Profit from the Machine Intelligence Mega-trend - Video - 14th Jan 20
Stock Market Final Thrust - 14th Jan 20
British Pound GBP Trend Forecast Review - 13th Jan 20
Trumpism Stock Market and the crisis in American social equality - 13th Jan 20
Silver Investors Big Trend Analysis for – Part I - 13th Jan 20
Craig Hemke Gold & Silver 2020 Prediction, Slams Biased Gold Naysayers - 13th Jan 20
AMAZON Stock Investing in AI Machine Intelligence Mega-trend 2020 and Beyond - 11th Jan 20
Gold Price Reacting to Global Flash Points - 11th Jan 20
Land Rover Discovery Sport 2020 - What You Need to Know Before Buying - 11th Jan 20
Gold Buying Precarious - 11th Jan 20
The Crazy Stock Market Train to Bull Eternity - 11th Jan 20
Gold Gann Angle Update - 10th Jan 20
Gold In Rally Mode Suggests Commitment of Traders (COT) Data - 10th Jan 20
Disney Could Mount Its Biggest Rally in 2020 - 10th Jan 20
How on Earth Can Gold Decline During the U.S. – Iran Crisis? - 10th Jan 20
Getting Your HR Budget in Line - 10th Jan 20
The Fed Protects Gamblers at the Expense of the Economy - 9th Jan 20
Last Chance to Get Microsoft Windows 10 for FREE! - 9th Jan 20
The Stock Market is the Opiate of the Masses - 9th Jan 20
Is The Energy Sector Setting Up Another Great Entry? - 9th Jan 20
The Fed Is Creating a Monster Bubble - 9th Jan 20
If History Repeats, Video Game Stocks Could Soar 600%+ - 9th Jan 20
What to Know Before Buying a Land Rover Discovery Sport in 2020 - 8th Jan 20
Stock Market Forecast 2020 Trend Analysis - 8th Jan 20
Gold Price at Resistance - 8th Jan 20
The Fed Has Quietly Started QE4 - 8th Jan 20
NASDAQ Set to Fall 1000pts Early 2020, and What it Means for Gold Price - 8th Jan 20
Gold 2020 - Financial Analysts and Major Financial Institutions Outlook - 8th Jan 20
Stock Market Trend Review - 8th Jan 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

South Africa To Copy Zimbabwe Model To Hyperinflation‘Prosperity’

Economics / HyperInflation Mar 16, 2018 - 10:28 AM GMT

By: Jeff_Berwick

Economics

Doesn’t South Africa have the internet yet?  Or, even books?

The new South African finance minister, Nhlanhla Nene, has just come out with an amazing plan to help the people!  He will devalue their money into worthlessness! This always works out well. 


Nhlanhla has proposed an “ingenious” new plan to help the country's impoverished black population: print money and hand it out to people.

The minister declared:

South Africans are continuing to be poor when we can print more money to ensure that everybody has it. Our people are poor because there is a shortage of money in the country.

It’s not the shortage of jobs that makes people poor, it is the shortage of money. We have paper and ink, so we will print more money and give it to the poor, and make all of them billionaires if that is possible.

es, make them billionaires.  There were countless trillionaires in Zimbabwe, even quadrillionaires… but it turns out that “trill-life” isn’t all it’s cracked up to be, as many were left eating bugs in torn up t-shirts.

But let's go ahead and break down just how ridiculous the minister's plan is.

His main fallacy: “Our people are poor because there is a shortage of money in the country.”

No, money is just a signal, or representation of value, which leads to his second fallacy, “It's not the shortage of jobs that makes people poor, it is the shortage of money.”

Really? How does anyone anywhere ever make money to begin with? By working a damn job!

If instant riches was as easy as printing money, then why not make everyone on Earth a trillionaire by printing up more money?  Because that’s moronic, that’s why.

Unfortunately, the South African finance minister seems incapable of learning from his nation's neighbor. Or from any other hyperinflation in history.  

If Nhlanhla doesn’t even realize he's making the same mistakes as Zimbabwe, which is right next door and happened a few years ago, then the Republic of “Weimar” probably just sounds like “wiener” in German to him. Which he probably likes.

But, way back in the 1920s in Germany, they proclaimed the exact same thing. “There isn’t enough money!”

They fixed that “problem” within just a few years and German girls became prostitutes to the world in a bid to survive.

Meanwhile, in more recent times, the situation in Zimbabwe has become so bad that the price of bitcoin recently surged there, trading at nearly double the international rate.

The reason? Rampant hyperinflation left the country with essentially no currency, forcing the government to adopt the US dollar and South African rand.

Border patrol in South Africa was even put on “red alert” because so many Zimbabweans were fleeing their own nation.

Apparently, Nhlanhla or whatever his name is, never even heard about it.

Which begs the question we always ask of central bankers… are they really THIS stupid or are they acting on purpose to destroy the country, put in stricter controls, impoverish the people and keep their place at the top of the food chain?

It’s hard to imagine even this Nhlanhla guy could be this dumb.  He’d have to be living in a bubble to not even notice what's been going on in his own country due to Zimbabwe’s hyperinflation.

Luckily, it doesn’t really matter if they are stupid or evil… or both. They are probably both. We now have access to non-central bank currencies like bitcoin and others.  And, I advise everyone in South Africa to run, not walk, to trade in what is remaining of the South African rand for precious metals and cryptos before Nhlanhla completely obliterates it.

And, if you want more information on how to do so, make sure to check out The Dollar Vigilante’s newsletter (HERE) where our subscribers gained a 2,192% return in cryptos in 2017!

Or, you can listen to Nhlanhla and become a South African rand “billionaire” and see how that works out for you.

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2018 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jeff Berwick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules