Why are countries with larger denominations poorer?

More money may be everyone's dream, and the so-called counting money cramps are rich imagination. People often ask me, since money is printed, if we work overtime to print money and distribute it to the whole country, won't the whole country be monopolized?

Another friend asked: What would happen if a country printed a lot of money to buy goods from other countries?

I believe that there is more than one person who has this problem, if any exchange rate, currency depreciation, inflation and so on are used. If you want to explain, you will definitely be particularly weak. After all, people who ask these questions are not interested in these conceptual things.

Today, we are going to introduce a country that has been printing money crazily and has been destroyed into the poorest country because of too much money. This country is Zimbabwe.

First of all, Zimbabweans are richer than people think.

Why is Zimbabwe the richest country? Of course, it is also because Zimbabwe has more money than people expected and imagined.

A joke goes like this: When you are down and out, passers-by can give you 20 yuan, friends can give you 200 yuan, relatives can give you 2,000 yuan, brothers and sisters can give you 20,000 yuan, and parents can give you 200 million yuan. The best answer is: Zimbabwe passers-by.

But if you think that all Zimbabweans are rich, you are wrong, not because Zimbabweans are rich and rich, but because Zimbabweans are poor and just rich.

Zimbabwe began to print a large number of banknotes in 2004, and then more and more banknotes were printed, and then prices rose at a rate of more than 100%. Prices doubled or even tripled in 2006. Price increase in February 2008165.00%; In June 2008, the price increase rate reached 200.00%, which is not the most serious. At its worst, the rate of price increase rose by 200,000 a year.

More money, but no more materials. Of course, the result is that only money is poor. Many ordinary Zimbabweans will come out to buy things with a thick stack of Zimbabwean dollars. At this time, money is not a symbol of wealth, but a symbol of pain.

In 2007-2008, the highest denomination of Zimbabwe's currency was 65,438+000 trillion yuan, which is horrible to think about. Some people even joked that if you count all zeros in Zimbabwe's currency, the money is worthless. It can be seen that the range of price increase also shows that the face value of money is too large to be valuable. There used to be a joke in our country. In the worst period of inflation in the past, when we saw the price of rice in the morning, we could only buy half a bag of rice when we went home to buy it. The situation in Zimbabwe was even more serious.

How much is Zimbabwe? It costs 3 trillion Zimbabwe dollars to take a bus, 3 trillion Zimbabwe dollars to buy a loaf of bread and 70 trillion Zimbabwe dollars to buy a fruit. If you want to buy TV sets, refrigerators and other large daily necessities, you have to use trucks to pull money. When the price fluctuates the most, vegetables, meat, eggs and milk will increase in price every hour. It is said that at the most extreme time, it will even increase every few minutes. One hundred trillion Zimbabwe dollars can buy five bottles of water in the morning and only two bottles in the afternoon.

Do you still think more money is a good thing? Do you think it's incredible?

Second, how worthless is Zimbabwe's currency? Just look at you.

Having said that, how worthless was Zimbabwe's currency at that time? Is it true that the Zimbabwean dollar is worthless at home and valuable abroad? Not exactly. Remember: when a country's money is worthless at home, it is worthless to go abroad.

The simplest statement is: at that time, all the cartons containing money in Zimbabwe were worth more than the money inside. The printing cost of Zimbabwe coins printed with the cheapest paper and ink has far exceeded the face value of the currency itself. This is the saddest reminder. Maybe you can't afford to print money? Because printing money is too expensive.

In 2009, the Zimbabwean government gave up the worthless Zimbabwean dollar and began to adopt currencies such as the US dollar and RMB as the national legal tender. According to the exchange rate at the worst time of currency devaluation, the exchange rate between Zimbabwe's currency and the US dollar reached 350 trillion 1, which means that it takes 3.5 1 trillion Zimbabwe dollars to exchange 1 US dollar. So what is it if it is converted into RMB? 1 yuan RMB can be converted into 9596544 199 Zimbabwe, that is to say, 1 yuan RMB can be converted into about 9.6 billion Zimbabwe. Can a dollar become a billionaire in an instant? Are you excited just to think about it? But when you look at what you can buy with tens of billions of Zimbabwe dollars, you will feel that it is not as useful as a napkin for an instant.

Some people may ask, is the Zimbabwe dollar worthless in the first place? Actually, it is not. In the 1980s, the Zimbabwean dollar of 1 was convertible into 1.47 USD. Do you think the Zimbabwe dollar is more "valuable" than the US dollar? Before 2003, the highest face value of Zimbabwe dollar was only 1 1,000 yuan. It is only because Zimbabwe has encountered difficulties and is short of materials that it has adopted the method of printing money on a large scale, resulting in money becoming less and less valuable.

The conclusion is that paper money itself does not represent how much wealth there is, only valuable paper money is the representative of wealth, and only paper money with wealth and valuable assets is valuable. Only by working hard to create wealth will money be more valuable. Do you still think that those who think that printing more money can make everyone rich should print more money? Controlling the amount of paper money and creating wealth will make most people rich. what do you think?