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Fiat Currency Follies


machinehead

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"Riot police are out in force in Yangon as the country's worst financial crisis continues to spiral out of control even as the central bank pulls out all the stops to stem a bank run. The heightened security measures followed a massive run on local banks on Feb 6, sparked by the collapse of several non-banking financial companies."

 

"The government panicked and rushed to print money, which exacerbated the situation by sapping confidence in the kyat. It is believed that 19 trucks carried newly printed 1,000 kyat notes from Wazi, in central Myanmar where the government prints its notes, to Yangon."

 

'Wazi' is probably a typo. I believe they meant "newly printed 1,000-kyat notes from the Wazoo."

 

Burma shave

 

It happened in Yugoslavia; it happened in Argentina; now it's going down in Burma. This is the eventual fate of every fiat currency. In the long run (to paraphrase Mr Keynes) they are all dead.

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