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<p>[QUOTE="kaparthy, post: 1023729, member: 57463"]Do not confuse "the country" with "the government." Inflation like that happens when the government is broke: they have no more assets. In the case of Germany, they lost all of their gold to the Allies who made them pay for the cost of World War I. In the case of Zimbabwe, they have no tax income because the government destroyed the economy by chasing out (or allowing to be killed) the most productive people. </p><p><br /></p><p>I am sure that the survivors used whatever currency was available -- and I saw reports of people panning for gold in streams where a a tenth of a gram would buy food for the day. </p><p><br /></p><p>But what does the government use to pay the troops and bureau workers? Where does the government get revenue?</p><p><br /></p><p>By the way, suffering the same inflation after World War I, but not being totally looted by the Allies, Austria borrowed gold and restabilized its currency. That was a benefit of having Austrian economists close at hand when they were needed.[/QUOTE]</p><p><br /></p>
[QUOTE="kaparthy, post: 1023729, member: 57463"]Do not confuse "the country" with "the government." Inflation like that happens when the government is broke: they have no more assets. In the case of Germany, they lost all of their gold to the Allies who made them pay for the cost of World War I. In the case of Zimbabwe, they have no tax income because the government destroyed the economy by chasing out (or allowing to be killed) the most productive people. I am sure that the survivors used whatever currency was available -- and I saw reports of people panning for gold in streams where a a tenth of a gram would buy food for the day. But what does the government use to pay the troops and bureau workers? Where does the government get revenue? By the way, suffering the same inflation after World War I, but not being totally looted by the Allies, Austria borrowed gold and restabilized its currency. That was a benefit of having Austrian economists close at hand when they were needed.[/QUOTE]
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