Zimbabwe to issue Z$100,000,000,000 note

[Makh]

Germans can sometimes prove to be adaptable people.

[adciv]

Is it trillion based on long scale or short scale? Because for Americans, trilion has 12 zero, while long scale trillion has 18 zero, which would be quite surprising even for Germany at this time.

What is this long scale and short scale?

[adciv]

Can you post a link to the list of the long system? I'm not sure where to look. However, this would explain something I came across a while ago. Someone was talking about how the British use billion as $1,000,000,000,000 and this was with the cost of the B-2 bomber. Well, the B-2 cost $2.2billion apiece*, but it was translated as $2,200,000,000,000 not $2,200,000,000.

*It would have been less if the original expected order of ~120 were built.

[StruckingFuggle]

<Jeff Foxworthy>If communism would be an improvement for your country's economy, you might've fucked up.</Jeff Foxworthy>


But seriously, man. Dang.

Though I don't seem to get it. Why do they need bills that big? If there's no need for, say, Z$1,000,000 notes, why not just knock six zeroes off all bills? And if there is an actual need for and use for Z$1m notes, who needs the Z$1x10^12 notes?

[adciv]

Daaaamn, after reading up on it, it turns out that I was closer to the truth then I´m comfortable with, with the US making up the system just because they can.

http://en.wikipedia.org/wiki/Long_and_short_scales

Mid 18th century The short-scale meaning of the term "billion" was brought to the British American colonies.

Sorry. You probably still need to blame the British for this one.

[Arres]

Don't some people use commas where periods belong also?

[Arc Orion]

I agree. If there is one thing we Americans do wrong, it's how we display the date.

In other news, Zimbabwe to issue Z$100,000,000,000 note.

[adciv]

However, does it matter just who is to blame for this?

Then quit saying the US did something it didn't. There's plenty of things we've done, no need to try to add to the list.

[ampersand]

<Jeff Foxworthy>If communism would be an improvement for your country's economy, you might've fucked up.</Jeff Foxworthy>

But seriously, man. Dang.

Quoted for Truth. I'm waiting for the inevitable problems that comes from Zimbabweans (sp?) leaving the country to the surrounding countries and somehow that puts Zimbabwe into a war with one or two of her neighboring countries.

[adciv]

I'm waiting for the inevitable problems that comes from Zimbabweans (sp?) leaving the country to the surrounding countries

This has already happened. About two million refugees are in South Africa alone and there has already been some violence related to that. And I hate to say it, but communism might be the best start to getting out of the crisis.

and somehow that puts Zimbabwe into a war with one or two of her neighboring countries.

This part I doubt is going to happen.

[Martin Blank]

Though I don't seem to get it. Why do they need bills that big? If there's no need for, say, Z$1,000,000 notes, why not just knock six zeroes off all bills? And if there is an actual need for and use for Z$1m notes, who needs the Z$1x10^12 notes?

Devaluing a currency is a serious step, taken only in rare circumstances and when in a period of (relative) stability. If they devalue the currency now and make a $100,000,000,000 note now worth $100, there is confusion over existing $100 notes, which were printed not that long ago. At the current rate of inflation, they would be devaluing again in a few months.

There's also a strong negative psychology to devaluation. It requires accepting that things are not going to return to where they were, and that takes a very strong will to do successfully.

[Martin Blank]

Effective August 1, Zimbabwe is devaluing their currency, lopping off 10 zeroes. A Z$10,000,000,000 becomes (or actually became, since it's already August 1 there) Z$1.

The reason for this wasn't because the currency has stabilized, or because the psychological barrier was broken. It was much more simple than that.

Adding machines and cash registers just don't handle transactions in the trillions of dollars.

[Arres]

So, when a devaluation occurs like that, what happens to a $1 bill? is it worth .0000000001$ ? Or, if you should have them bank accounts? The whole thing must be a nightmare for the common person.

[Martin Blank]

Official exchange rates are set, and yes, they become worth the tiniest fractions of a cent.

[ampersand]

So in other words, no matter how you set the rate, you'd probably get a better deal in Zimbabwe if you used Monopoly money instead of their actual currency.