Wednesday, May 1, 2013

I have 100 trillion dollars

You read the title correctly, I have just received 100 trillion dollars. Here's a photo to prove it:
If only it weren't Zimbabwe dollars. Its hard to believe that the currency went way downhill from having a 1:1 exchange rate with the US dollar in the early 1980s to having a 100 trillion : 1 rate thirty years later. This is wealth destruction on a massive scale and you can't help but feel sorry for the citizens of that country. The prudent Zimbabwean investors probably moved on to hard assets and foreign currency way before hyperinflation really took off and there is a lesson in this for all of us: be vigilant with what the government is doing and re-balance your portfolio accordingly.

This note is a reminder that some governments cannot be trusted with the economy; that they can print as many zeroes on a banknote as they would see fit; that it is up to us to educate ourselves on how best to preserve and grow wealth to provide for our family's future. Fortunately, foreign currency is now being used to transact in Zimbabwe such as the US dollar or the euro and no longer this joke of a currency. Happy investing!

P.S. A big thanks to my good friend Patrick, it's not often that you know someone who just gives away a hundred trillion dollars :)

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