I like Kedrosky’s inflation chart primarily because it extols the “neatness” of the Zimbabwe inflation rate for November, 2008 at 98% daily. Considering Hungary’s rate, it’s no stretch to round up to a simple 100%.

But how does this apply to ”Week One- Zimbabwe Style” for America, in practical terms?

OK, on Monday a loaf of bread is $1.49
On Tuesday, that loaf of bread is $2.98
On Wednesday, there are a few loaves of bread on the shelves for $5.96 and you pick up two loaves while witnessing the remaining ten being grabbed before you leave the aisle.
On Thursday, there is no bread. You drive to the next county and find two loaves of stale bread for $11.92 each (you buy both and freeze them).
On Friday, you don’t really shop for bread, but you see cars spilling onto the street from the Publix parking lot at 6:45 am. People are arguing and fighting over the last few loaves of bread on sale at $23.84 per loaf.

On Saturday, you take all the flour, yeast and baking soda in the cabinet, bake bread all morning and sell it for $40 per loaf on your front lawn (with shotgun in tow) to help pay your upcoming $4800 utility bill.

Now do we understand why the average employee at Goldman Sachs needs to make over $600,000 per year?

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