eric pinto wrote: > Merv - he imprinted his mug, seven digit numerals alongside, > on kiln dried pine pulp paper for currency shipped by Canada, > but his folk continued to starve. > With the game now up, he ends the gag, and orders them to > shop for what little they can find with foreign currency. > I suppose the 'foreign' equivalent for the Dollar, Sterling, Euro > and Yen states, when their goose is cooked someday soon, > will be gold nuggets. > You are right, I fear.
Doc, I lived in Africa for 30 years. There was a period when Tanzania had a 30% inflation rate. This meant that every shilling I had saved at the beginning of the year would buy me 30% less bread at the end of the year. Here is how QE works in Africa. The govt receives 100 dollars in taxes and spends 110. To pay the short fall, it prints bank notes in Canada and distributes the same in Tanzania. This results in more money chasing the same amount of goods and services. Prices go up and so do profits. The following year the govt collects 110 dollars in taxes because businesses have done so well. However, the neighbouring country has a lot of Muslims so it increases its defence budget and spends 120 dollars. More money is ordered from Canada, etc, etc. The Kenyan born Muslim son of an African economist has released his idea of QE on the world markets. I never ever dreamt that the lessons I learnt in Africa on the storage of wealth, would become nuggets 20 years later......... Mervyn1354Lobo
