Sweeping up the banknotes from the street after the Hungarian pengő was replaced in 1946

Certain figures in this article use scientific notation for readability.

In economics, hyperinflation occurs when a country experiences very high and usually accelerating inflation. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases rapidly as the functional or internal currency, as opposed to a foreign currency, loses its real value very quickly, normally at an accelerating rate.^[1] Economists usually follow Cagan's description that hyperinflation occurs when the monthly inflation rate exceeds 50%.^[2]

Hyperinflation results from a rapid and continuing increase in the supply of money, which occurs when a government prints money or creates credits in bank accounts, instead of collecting taxes to fund government activities. The price increases that result from increased government spending create a vicious circle, requiring ever increasing amounts of money creation to fund government activities. Hence both monetary inflation and price inflation rapidly accelerate. Such rapidly increasing prices cause widespread unwillingness of the local population to hold the local currency as it rapidly loses its real value. Instead they quickly spend any money they receive, which rapidly increases the velocity of money flow which causes further acceleration in prices.^[3] Hyperinflation is often associated with wars or their aftermath, political or social upheavals, or other crises that make it difficult for the government to tax the population.

Definitions[link]

In 1956, Phillip Cagan wrote The Monetary Dynamics of Hyperinflation, generally regarded as the first serious study of hyperinflation and its effects. In it, he defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%, and it ending when the monthly inflation rate drops below 50% and stays below for at least a year.^[4]

The International Accounting Standards Board does not establish an absolute rate at which hyperinflation is deemed to arise, but in International Accounting Standard 29 It lists factors that indicate the existence of hyperinflation:^[5]

• The general population prefers to keep its wealth in non-monetary assets or in a relatively stable foreign currency. Amounts of local currency held are immediately invested to maintain purchasing power
• The general population regards monetary amounts not in terms of the local currency but in terms of a relatively stable foreign currency. Prices may be quoted in that currency;
• Sales and purchases on credit take place at prices that compensate for the expected loss of purchasing power during the credit period, even if the period is short;
• Interest rates, wages, and prices are linked to a price index; and
• The cumulative inflation rate over three years approaches, or exceeds, 100%.

Causes[link]

Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth is results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.^[6]

As it allows a government to devalue their spending and displace (or avoid) a tax increase, governments have sometimes resorted to excessively loose monetary policy to meet their expenses. Inflation is effectively a regressive consumption tax,^[7] but less overt than levied taxes and therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months or years later. Monetary inflation can become hyperinflation if monetary authorities fail to fund increasing government expenses from taxes, government debt, cost cutting, or by other means, because either

• during the time between recording or levying taxable transactions and collecting the taxes due, the value of the taxes collected falls in real value to a small fraction of the original taxes receivable; or
• government debt issues fail to find buyers except at very deep discounts; or
• a combination of the above.

Theories of hyperinflation generally look for a relationship between seigniorage and the inflation tax. In both Cagan's model and the neo-classical models, a tipping point occurs when the increase in money supply or the drop in the monetary base makes it impossible for a government to improve its financial position. Thus when fiat money is printed, government obligations that are not denominated in money increase in cost by more than the value of the money created.

From this, it might be wondered why any rational government would engage in actions that cause or continue hyperinflation. One reason for such actions is that often the alternative to hyperinflation is either depression or military defeat. The root cause is a matter of more dispute. In both classical economics and monetarism, it is always the result of the monetary authority irresponsibly borrowing money to pay all its expenses. These models focus on the unrestrained seigniorage of the monetary authority, and the gains from the inflation tax.

The price of gold in Germany, 1 January 1918 – 30 November 1923.

In neo-classical economic theory, hyperinflation is rooted in a deterioration of the monetary base, that is the confidence that there is a store of value which the currency will be able to command later. In this model, the perceived risk of holding currency rises dramatically, and sellers demand increasingly high premiums to accept the currency. This in turn leads to a greater fear that the currency will collapse, causing even higher premiums. One example of this is during periods of warfare, civil war, or intense internal conflict of other kinds: governments need to do whatever is necessary to continue fighting, since the alternative is defeat. Expenses cannot be cut significantly since the main outlay is armaments. Further, a civil war may make it difficult to raise taxes or to collect existing taxes. While in peacetime the deficit is financed by selling bonds, during a war it is typically difficult and expensive to borrow, especially if the war is going poorly for the government in question. The banking authorities, whether central or not, "monetize" the deficit, printing money to pay for the government's efforts to survive. The hyperinflation under the Chinese Nationalists from 1939 to 1945 is a classic example of a government printing money to pay civil war costs. By the end, currency was flown in over the Himalayas, and then old currency was flown out to be destroyed.

Hyperinflation is regarded as a complex phenomenon and one explanation may not be applicable to all cases. However, in both of these models, whether loss of confidence comes first, or central bank seigniorage, the other phase is ignited. In the case of rapid expansion of the money supply, prices rise rapidly in response to the increased supply of money relative to the supply of goods and services, and in the case of loss of confidence, the monetary authority responds to the risk premiums it has to pay by "running the printing presses."

Nevertheless the immense acceleration process that occurs during hyperinflation (such as during the German hyperinflation of 1922/23) still remains unclear and unpredictable. The transformation of an inflationary development into the hyperinflation has to be identified as a very complex phenomenon, which could be a further advanced research avenue of the complexity economics in conjunction with research areas like mass hysteria, bandwagon effect, social brain and mirror neurons.^[8]

Models[link]

Since hyperinflation is visible as a monetary effect, models of hyperinflation center on the demand for money. Economists see both a rapid increase in the money supply and an increase in the velocity of money if the (monetary) inflating is not stopped. Either one, or both of these together are the root causes of inflation and hyperinflation. A dramatic increase in the velocity of money as the cause of hyperinflation is central to the "crisis of confidence" model of hyperinflation, where the risk premium that sellers demand for the paper currency over the nominal value grows rapidly. The second theory is that there is first a radical increase in the amount of circulating medium, which can be called the "monetary model" of hyperinflation. In either model, the second effect then follows from the first — either too little confidence forcing an increase in the money supply, or too much money destroying confidence.

In the confidence model, some event, or series of events, such as defeats in battle, or a run on stocks of the specie which back a currency, removes the belief that the authority issuing the money will remain solvent — whether a bank or a government. Because people do not want to hold notes which may become valueless, they want to spend them. Sellers, realizing that there is a higher risk for the currency, demand a greater and greater premium over the original value. Under this model, the method of ending hyperinflation is to change the backing of the currency, often by issuing a completely new one. War is one commonly cited cause of crisis of confidence, particularly losing in a war, as occurred during Napoleonic Vienna, and capital flight, sometimes because of "contagion" is another. In this view, the increase in the circulating medium is the result of the government attempting to buy time without coming to terms with the root cause of the lack of confidence itself.

In the monetary model, hyperinflation is a positive feedback cycle of rapid monetary expansion. It has the same cause as all other inflation: money-issuing bodies, central or otherwise, produce currency to pay spiralling costs, often from lax fiscal policy, or the mounting costs of warfare. When businesspeople perceive that the issuer is committed to a policy of rapid currency expansion, they mark up prices to cover the expected decay in the currency's value. The issuer must then accelerate its expansion to cover these prices, which pushes the currency value down even faster than before. According to this model the issuer cannot "win" and the only solution is to abruptly stop expanding the currency. Unfortunately, the end of expansion can cause a severe financial shock to those using the currency as expectations are suddenly adjusted. This policy, combined with reductions of pensions, wages, and government outlays, formed part of the Washington consensus of the 1990s.

Whatever the cause, hyperinflation involves both the supply and velocity of money. Which comes first is a matter of debate, and there may be no universal story that applies to all cases. But once the hyperinflation is established, the pattern of increasing the money stock, by whichever agencies are allowed to do so, is universal. Because this practice increases the supply of currency without any matching increase in demand for it, the price of the currency, that is the exchange rate, naturally falls relative to other currencies. Inflation becomes hyperinflation when the increase in money supply turns specific areas of pricing power into a general frenzy of spending quickly before money becomes worthless. The purchasing power of the currency drops so rapidly that holding cash for even a day is an unacceptable loss of purchasing power. As a result, no one holds currency, which increases the velocity of money, and worsens the crisis.

That is, rapidly rising prices undermine money's role as a store of value, so that people try to spend it on real goods or services as quickly as possible. Thus, the monetary model predicts that the velocity of money will rise endogenously as a result of the excessive increase in the money supply. At the point when ordinary purchases are affected by inflation pressures, hyperinflation is out of control, in the sense that ordinary policy mechanisms, such as increasing reserve requirements, raising interest rates or cutting government spending will all be responded to by shifting away from the rapidly dwindling currency and towards other means of exchange.

During a period of hyperinflation, bank runs, loans for 24-hour periods, switching to alternate currencies, the return to use of gold or silver or even barter become common. Many of the people who hoard gold today expect hyperinflation, and are hedging against it by holding specie. There may also be extensive capital flight or flight to a "hard" currency such as the US dollar. This is sometimes met with capital controls, an idea which has swung from standard, to anathema, and back into semi-respectability. All of this constitutes an economy which is operating in an "abnormal" way, which may lead to decreases in real production. If so, that intensifies the hyperinflation, since it means that the amount of goods in "too much money chasing too few goods" formulation is also reduced. This is also part of the vicious circle of hyperinflation.

Once the vicious circle of hyperinflation has been ignited, dramatic policy means are almost always required, simply raising interest rates is insufficient. Bolivia, for example, underwent a period of hyperinflation in 1985, where prices increased 12,000% in the space of less than a year. The government raised the price of gasoline, which it had been selling at a huge loss to quiet popular discontent, and the hyperinflation came to a halt almost immediately, since it was able to bring in hard currency by selling its oil abroad. The crisis of confidence ended, and people returned deposits to banks. The German hyperinflation (1919-November 1923) was ended by producing a currency based on assets loaned against by banks, called the Rentenmark. Hyperinflation often ends when a civil conflict ends with one side winning. Although wage and price controls are sometimes used to control or prevent inflation, no episode of hyperinflation has been ended by the use of price controls alone. However, wage and price controls have sometimes been part of the mix of policies used to halt hyperinflation.

Effects[link]

Hyperinflation effectively wipes out the purchasing power of private and public savings, distorts the economy in favor of the hoarding of real assets, causes the monetary base, whether specie or hard currency, to flee the country, and makes the afflicted area anathema to investment.

Enactment of price controls to prevent discounting the value of paper money relative to gold, silver, hard currency, or commodities, fail to force acceptance of a paper money which lacks intrinsic value. If the entity responsible for printing a currency promotes excessive money printing, with other factors contributing a reinforcing effect, hyperinflation usually continues. Hyperinflation is generally associated with paper money, which can easily be used to increase the money supply: add more zeros to the plates and print, or even stamp old notes with new numbers.^[9] Historically, there have been numerous episodes of hyperinflation in various countries followed by a return to "hard money". Older economies would revert to hard currency and barter when the circulating medium became excessively devalued, generally following a "run" on the store of value.

Much attention on hyperinflation naturally centers on the effect on savers whose investment become worthless. Academic economists seem not to have devoted much study on the (positive) effect on debtors. This may be due to the widespread perception that consistently saving a portion of one's income in monetary investments such as bonds or interest-bearing accounts is almost always a wise policy, and usually beneficial to the society of the savers. By contrast, incurring large or long-term debts (though sometimes unavoidable) is viewed as often resulting from irresponsibility or self-indulgence. Interest rate changes often cannot keep up with hyperinflation or even high inflation, certainly with contractually fixed interest rates. (For example, in the 1970s in the United Kingdom inflation reached 25% per annum, yet interest rates did not rise above 15% – and then only briefly – and many fixed interest rate loans existed). Contractually there is often no bar to a debtor clearing his long term debt with "hyperinflated-cash" nor could a lender simply somehow suspend the loan. "Early redemption penalties" were (and still are) often based on a penalty of x months of interest/payment; again no real bar to paying off what had been a large loan. In interwar Germany, for example, much private and corporate debt was effectively wiped out; certainly for those holding fixed interest rate loans.

Aftermath[link]

Hyperinflation is ended with drastic remedies, such as imposing the shock therapy of slashing government expenditures or altering the currency basis. One form this may take is dollarization, the use of a foreign currency (not necessarily the U.S. dollar) as a national unit of currency. An example was dollarization in Ecuador, initiated in September 2000 in response to a 75% loss of value of the Ecuadorian sucre in early 2000.

Hyperinflation has always been a traumatic experience for the area which suffers it, and the next policy regime almost always enacts policies to prevent its recurrence. Often this means making the central bank very aggressive about maintaining price stability, as was the case with the German Bundesbank or moving to some hard basis of currency such as a currency board. Many governments have enacted extremely stiff wage and price controls in the wake of hyperinflation but this does not prevent further inflating of the money supply by its central bank, and always leads to widespread shortages of consumer goods if the controls are rigidly enforced.

Currency[link]

Germany, 1923: banknotes had lost so much value that they were used as wallpaper.

In countries experiencing hyperinflation, the central bank often prints money in larger and larger denominations as the smaller denomination notes become worthless. This can result in the production of some interesting banknotes, including those denominated in amounts of 1,000,000,000 or more.

• By late 1923, the Weimar Republic of Germany was issuing two-trillion Mark banknotes and postage stamps with a face value of fifty billion Mark. The highest value banknote issued by the Weimar government's Reichsbank had a face value of 100 trillion Mark (100,000,000,000,000; 100 million million).^[10][11] At the height of the inflation, one US dollar was worth 4 trillion German marks. One of the firms printing these notes submitted an invoice for the work to the Reichsbank for 32,776,899,763,734,490,417.05 (3.28 × 10¹⁹, or 33 quintillion) Marks.^[12]

• The largest denomination banknote ever officially issued for circulation was in 1946 by the Hungarian National Bank for the amount of 100 quintillion pengő (100,000,000,000,000,000,000, or 10²⁰; 100 million million million) image. (There was even a banknote worth 10 times more, i.e. 10²¹ pengő, printed, but not issued image.) The banknotes however did not depict the numbers, "hundred million b.-pengő" ("hundred million trillion pengő") and "one milliard b.-pengő" were spelled out instead. This makes the 100,000,000,000,000 Zimbabwean dollar banknotes the note with the greatest number of zeros shown.

• The Post-World War II hyperinflation of Hungary held the record for the most extreme monthly inflation rate ever — 41,900,000,000,000,000% (4.19 × 10¹⁶% or 41.9 quadrillion percent) for July 1946, amounting to prices doubling every 15.3 hours. By comparison, recent figures (as of 14 November 2008) estimate Zimbabwe's annual inflation rate at 89.7 sextillion (10²¹) percent.,^[13] which corresponds to a monthly rate of 5473%, and a doubling time of about five days. In figures, that is 89,700,000,000,000,000,000,000%.

One way to avoid the use of large numbers is by declaring a new unit of currency (an example being, instead of 10,000,000,000 Dollars, a bank might set 1 new dollar = 1,000,000,000 old dollars, so the new note would read "10 new dollars.") An example of this would be Turkey's revaluation of the Lira on 1 January 2005, when the old Turkish lira (TRL) was converted to the New Turkish lira (TRY) at a rate of 1,000,000 old to 1 new Turkish Lira. While this does not lessen the actual value of a currency, it is called redenomination or revaluation and also happens over time in countries with standard inflation levels. During hyperinflation, currency inflation happens so quickly that bills reach large numbers before revaluation.

Some banknotes were stamped to indicate changes of denomination. This is because it would take too long to print new notes. By the time new notes were printed, they would be obsolete (that is, they would be of too low a denomination to be useful).

Metallic coins were rapid casualties of hyperinflation, as the scrap value of metal enormously exceeded the face value. Massive amounts of coinage were melted down, usually illicitly, and exported for hard currency.

Governments will often try to disguise the true rate of inflation through a variety of techniques. None of these actions addresses the root causes of inflation and they, if discovered, tend to further undermine trust in the currency, causing further increases in inflation. Price controls will generally result in shortages and hoarding and extremely high demand for the controlled goods, resulting in disruptions of supply chains. Products available to consumers may diminish or disappear as businesses no longer find it sufficiently profitable (or may be operating at a loss) to continue producing and/or distributing such goods at the legal prices, further exacerbating the shortages.

There are also issues with computerized money-handling systems. In Zimbabwe, during the hyperinflation of the Zimbabwe dollar, many automated teller machines and payment card machines struggled with arithmetic overflow errors as customers required many billions and trillions of dollars at one time.^[14]

Examples of hyperinflation[link]

Angola[link]

Angola experienced hyperinflation from 1991 to 1995. It was a result of exchange restrictions following the introduction of the novo kwanza (AON) to replace the original kwanza (AOK) in 1990. At the first months of 1991, the highest denomination was 50 000 AON. By 1994, the highest denomination was 500 000 kwanzas. In the 1995 currency reform, the readjusted kwanza (AOR) replaced the novo kwanza at the ratio of 1 000 AON to 1 AOR, but hyperinflation continued as further denominations of up to 5 000 000 AOR were issued. In the 1999 currency reform, the kwanza (AOA) was reintroduced at the ratio of 1 million AOR to 1 AOA. Currently, the highest denomination banknote is 2 000 AOA and the overall impact of hyperinflation was 1 AOA = 1 billion AOK.

Argentina[link]

Argentina went through steady inflation from 1975 to 1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 peso argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentinos. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 (1992) peso = 100,000,000,000 pre-1983 pesos.

Austria[link]

In 1922, inflation in Austria reached 1426%, and from 1914 to January 1923, the consumer price index rose by a factor of 11836, with the highest banknote in denominations of 500,000 krones.^[15]

Belarus[link]

Belarus experienced steady inflation from 1994 to 2002. In 1993, the highest denomination was 5,000 rublei. By 1999, it was 5,000,000 rublei. In the 2000 currency reform, the ruble was replaced by the new ruble at an exchange rate of 1 new ruble = 1,000 old rublei. The highest denomination in 2008 was 100,000 rublei, equal to 100,000,000 pre-2000 rublei.

Bolivia[link]

Bolivia experienced its worst inflation between 1984 and 1986. Before 1984, the highest denomination was 1,000 Bolivian pesos. By 1985, the highest denomination was 10 million Bolivian pesos. In 1985, a Bolivian note for 1 million pesos was worth 55 cents in US dollars, one-thousandth of its exchange value of $5,000 less than three years previously.^[16] In the 1987 currency reform, the Peso Boliviano was replaced by the Boliviano at a rate of 1,000,000 : 1.

Bosnia and Herzegovina[link]

Bosnia and Herzegovina went through its worst inflation in 1993. In 1992, the highest denomination was 1,000 dinara. By 1993, the highest denomination was 100,000,000 dinara. In the Republika Srpska, the highest denomination was 10,000 dinara in 1992 and 10,000,000,000 dinara in 1993. 50,000,000,000 dinara notes were also printed in 1993 but never issued.

Brazil[link]

From 1967–1994, the base currency unit was shifted seven times to adjust for inflation in the final years of the Brazilian military dictatorship era. A 1967 cruzeiro was, in 1994, worth less than one trillionth of a US cent, after adjusting for multiple devaluations and note changes. In that same year, inflation reached a record 2,075.8%. A new currency called real was adopted in 1994, and hyperinflation was eventually brought under control.^[17] The real was also the currency in use until 1942; 1 (current) real is the equivalent of 2,750,000,000,000,000,000 of Brazil's first currency (called réis in Portuguese).

China[link]

As the first user of fiat currency, China has had an early history of troubles caused by hyperinflation. The Yuan Dynasty printed huge amounts of fiat paper money to fund their wars, and the resulting hyperinflation, coupled with other factors, led to its demise at the hands of a revolution. The Republic of China went through the worst inflation 1948–49. In 1947, the highest denomination was 50,000 yuan. By mid-1948, the highest denomination was 180,000,000 yuan. The 1948 currency reform replaced the yuan by the gold yuan at an exchange rate of 1 gold yuan = 3,000,000 yuan. In less than a year, the highest denomination was 10,000,000 gold yuan. In the final days of the civil war, the Silver Yuan was briefly introduced at the rate of 500,000,000 Gold Yuan. Meanwhile the highest denomination issued by a regional bank was 6,000,000,000 yuan (issued by Xinjiang Provincial Bank in 1949). After the renminbi was instituted by the new communist government, hyperinflation ceased with a revaluation of 1:10,000 old Renminbi in 1955. The overall impact of inflation was 1 Renminbi = 15,000,000,000,000,000,000 pre-1948 yuan.

France[link]

During the French Revolution, the National Assembly issued bonds backed by seized church property called Assignats. These evolved into fiat legal tender money, were overprinted and caused hyperinflation. Napoleon replaced them with the franc in 1803, at which time the assignats were basically worthless.

Free City of Danzig[link]

Danzig went through its worst inflation in 1923. In 1922, the highest denomination was 1,000 Mark. By 1923, the highest denomination was 10,000,000,000 Mark.

Georgia[link]

Georgia went through its worst inflation in 1994. In 1993, the highest denomination was 100,000 coupons [kuponi]. By 1994, the highest denomination was 1,000,000 coupons. In the 1995 currency reform, a new currency, the lari, was introduced with 1 lari exchanged for 1,000,000 coupons.

Germany[link]

Germany went through its worst inflation in 1923. In 1922, the highest denomination was 50,000 Mark. By 1923, the highest denomination was 100,000,000,000,000 Mark. In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar.^[18] In 1923, the rate of inflation hit 3.25 × 10⁶ percent per month (prices double every two days). Beginning on 20 November 1923, 1,000,000,000,000 old Marks were exchanged for 1 Rentenmark so that 4.2 Rentenmarks were worth 1 US dollar, exactly the same rate the Mark had in 1914.^[18]

Greece[link]

Greece went through its worst inflation in 1944. In 1942, the highest denomination was 50,000 drachmai. By 1944, the highest denomination was 100,000,000,000 drachmai. In the 1944 currency reform, 1 new drachma was exchanged for 50,000,000,000 drachmai. Another currency reform in 1953 replaced the drachma at an exchange rate of 1 new drachma = 1,000 old drachmai. The overall impact of hyperinflation: 1 (1953) drachma = 50,000,000,000,000 pre 1944 drachmai. The Greek monthly inflation rate reached 8.5 billion percent in October 1944.

Hungary, 1922–24[link]

The Treaty of Trianon and political instability between 1919 and 1924 led to a major inflation of Hungary’s currency. Unable to tax adequately, the government resorted to printing money and by 1922 inflation in Hungary had reached 98% per month.

The 100 million b.-pengő note was the highest denomination of banknote ever issued, worth 10²⁰ or 100 quintillion Hungarian pengő (1946). B.-pengő was short for "billion pengő".

Hungary, 1945–46[link]

Hungary went through the worst inflation ever recorded between the end of 1945 and July 1946. In 1944, the highest denomination was 1,000 pengő. By the end of 1945, it was 10,000,000 pengő. The highest denomination in mid-1946 was 100,000,000,000,000,000,000 pengő. A special currency the adópengő – or tax pengő – was created for tax and postal payments.^[19] The value of the adópengő was adjusted each day, by radio announcement. On 1 January 1946 one adópengő equaled one pengő. By late July, one adópengő equaled 2,000,000,000,000,000,000,000 or 2×10²¹ pengő. When the pengő was replaced in August 1946 by the forint, the total value of all Hungarian banknotes in circulation amounted to ¹/_1,000 of one US dollar.^[20] It is the most severe known incident of inflation recorded, peaking at 1.3 × 10¹⁶ percent per month (prices double every 15 hours).^[21] The overall impact of hyperinflation: On 18 August 1946, 400,000,000,000,000,000,000,000,000,000 or 4×10²⁹ (four hundred quadrilliard on the long scale used in Hungary; four hundred octillion on short scale) pengő became 1 forint.

Some historians believe^{[22][unreliable source?]} that this hyperinflation was purposely started by trained Russian Marxists in order to destroy the Hungarian middle and upper classes.

Krajina[link]

The Republic of Serbian Krajina went through its worst inflation in 1993. In 1992, the highest denomination was 50,000 dinara. By 1993, the highest denomination was 50,000,000,000 dinara. Note that this unrecognized country was reincorporated into Croatia in 1995.

Mexico[link]

In spite of the Oil Crisis of the late 1970s (Mexico is a producer and exporter), and due to excessive social spending, Mexico defaulted on its external debt in 1982. As a result, the country suffered a severe case of capital flight and several years of hyperinflation and peso devaluation. On 1 January 1993, Mexico created a new currency, the nuevo peso ("new peso", or MXN), which chopped 3 zeros off the old peso, an inflation rate of 10,000% over the several years of the crisis. (One new peso was equal to 1000 of the obsolete MXP pesos).

Nicaragua[link]

Nicaragua went through the worst inflation from 1987 to 1990. From 1943 to April 1971, one US dollar equalled 7 córdobas. From April 1971-early 1978, one US dollar was worth 10 córdobas. In early 1986, the highest denomination was 10,000 córdobas. By 1987, it was 1,000,000 córdobas. In the 1988 currency reform, 1 new córdoba was exchanged for 10,000 old córdobas. The highest denomination in 1990 was 100,000,000 new córdobas. In the 1991 currency reform, 1 new córdoba was exchanged for 5,000,000 old córdobas. The overall impact of hyperinflation: 1 (1991) córdoba = 50,000,000,000 pre-1988 córdobas.

Peru[link]

Peru experienced its worst inflation from 1988–1990. In the 1985 currency reform, 1 inti was exchanged for 1,000 soles. In 1986, the highest denomination was 1,000 intis. But in September 1988, monthly inflation went to 132%. In August 1990, monthly inflation was 397%. The highest denomination was 5,000,000 intis by 1991. In the 1991 currency reform, 1 nuevo sol was exchanged for 1,000,000 intis. The overall impact of hyperinflation: 1 nuevo sol = 1,000,000,000 (old) soles.

Philippines[link]

The Japanese government occupying the Philippines during the World War II issued fiat currencies for general circulation. The Japanese-sponsored Second Philippine Republic government led by Jose P. Laurel at the same time outlawed possession of other currencies, most especially "guerilla money." The fiat money was dubbed "Mickey Mouse Money" because it is similar to play money and is next to worthless. Survivors of the war often tell tales of bringing suitcase or bayong (native bags made of woven coconut or buri leaf strips) overflowing with Japanese-issued bills. In the early times, 75 Mickey Mouse pesos could buy one duck egg.^[23] In 1944, a box of matches cost more than 100 Mickey Mouse pesos.^[24]

In 1942, the highest denomination available was 10 pesos. Before the end of the war, because of inflation, the Japanese government was forced to issue 100, 500 and 1000 peso notes.

Poland, 1921–1924[link]

After Poland’s independence in 1918, the country soon began experiencing extreme inflation. By 1921, prices had already risen 251 times above those of 1914, but in the following three years they rose by 988,223%^[25] with a peak rate in late 1923 of prices doubling every nineteen and a half days.^[26] At independence there was 8 marek per US dollar, but by 1923 the exchange rate was 6,375,000 marek (mkp) for 1 US dollar. The highest denomination was 10,000,000 mkp. In the 1924 currency reform there was a new currency introduced: 1 zloty = 1,800,000 mkp.

Poland, 1989–1991[link]

Poland experienced a second hyperinflation between 1989 and 1991. The highest denomination in 1989 was 200,000 zlotych. It was 1,000,000 zlotych in 1991 and 2,000,000 zlotych in 1992; the exchange rate was 9500 zlotych for 1 US dollar in January 1990 and 19600 zlotych at the end of August 1992. In the 1994 currency reform, 1 new zloty was exchanged for 10,000 old zlotych and 1 US$ exchange rate was ca. 2.5 zlotych (new).

Republika Srpska[link]

Republika Srpska was a breakaway region of Bosnia. As with Krajina, it pegged its currency, the Republika Srpska dinar, to that of Yugoslavia. Their bills were almost the same as Krajina's, but they issued fewer and did not issue currency after 1993.

Roman Egypt[link]

In Roman Egypt, where the best documentation on pricing has survived, a measure of wheat which sold for 200 drachmae in 276 AD increased to more than 2,000,000 drachmae in 334 AD, roughly 1,000,000% inflation in a span of 58-years.^[27]

Romania[link]

Romania experienced hyperinflation in the 1990s. The highest denomination in 1990 was 100 lei and in 1998 was 100,000 lei. By 2000 it was 500,000 lei. In early 2005 it was 1,000,000 lei. In July 2005 the leu was replaced by the new leu at 10,000 old lei = 1 new leu. Inflation in 2005 was 9%. [2] In July 2005 the highest denomination became 500 lei (= 5,000,000 old lei).

Soviet Union / Russian Federation[link]

Main article: Hyperinflation in early Soviet Russia. See also: Soviet ruble.

Between 1921 and 1922, inflation in the Soviet Union reached 213%.

In 1992, the first year of post-Soviet economic reform, inflation was 2,520%. In 1993, the annual rate was 840%, and in 1994, 224%. The ruble devalued from about 40 r/$ in 1991 to about 5,000 r/$ in late 1997. In 1998, a denominated ruble was introduced at the exchange rate of 1 new ruble = 1,000 pre-1998 rubles. In the second half of the same year, ruble fell to about 30 r/$ as a result of financial crisis.

Taiwan[link]

As the Chinese Civil War reached its peak, Taiwan also suffered from the hyperinflation that has ravaged China in late 1940s. Highest denomination issued was a 1,000,000 Dollar Bearer's Cheque. Inflation was finally brought under control at introduction of New Taiwan Dollar in 15 June 1949 at rate of 40,000 old Dollar = 1 New Dollar

A 100,000 Ukrainian karbovantsi (used between 1992 and 1996). In 1996, it was taken out of circulation, and was replaced by the Hryvnya at an exchange rate of 100,000 karbovantsi = 1 Hryvnya (approx. USD 0.50 at that time, about USD 0.20 as of 2007). This translates to an average inflation rate of approximately 1400% per month between 1992 and 1996

Ukraine[link]

Ukraine experienced its worst inflation between 1993 and 1995. In 1992, the Ukrainian karbovanets was introduced, which was exchanged with the defunct Soviet ruble at a rate of 1 UAK = 1 SUR. Before 1993, the highest denomination was 1,000 karbovantsiv. By 1995, it was 1,000,000 karbovantsiv. In 1996, during the transition to the Hryvnya and the subsequent phase out of the karbovanets, the exchange rate was 100,000 UAK = 1 UAH. This translates to a hyperinflation rate of approximately 1,400% per month. By some estimates, inflation for the entire calendar year of 1993 was 10,000% or higher, with retail prices reaching over 100 times their pre-1993 level by the end of the year.^[28]

United States[link]

During the Revolutionary War, when the Continental Congress authorized the printing of paper currency called continental currency, the monthly inflation rate reached a peak of 47 percent in November 1779 (Bernholz 2003: 48). These notes depreciated rapidly, giving rise to the expression "not worth a continental."

A second close encounter occurred during the U.S. Civil War, between January 1861 and April 1865, the Lerner Commodity Price Index of leading cities in the eastern Confederacy states increased from 100 to over 9,000.^[29] As the Civil War dragged on, the Confederate dollar had less and less value, until it was almost worthless by the last few months of the war. Similarly, the Union government inflated its greenbacks, with the monthly rate peaking at 40 percent in March 1864 (Bernholz 2003: 107).^[30]

Yugoslavia[link]

A 500 billion Yugoslav dinar banknote c. 1993, the largest nominal value ever officially printed in Yugoslavia, the final result of hyperinflation.

Yugoslavia went through a period of hyperinflation and subsequent currency reforms from 1989–1994. The highest denomination in 1988 was 50,000 dinars. By 1989 it was 2,000,000 dinars. In the 1990 currency reform, 1 new dinar was exchanged for 10,000 old dinars. In the 1992 currency reform, 1 new dinar was exchanged for 10 old dinars. The highest denomination in 1992 was 50,000 dinars. By 1993, it was 10,000,000,000 dinars. In the 1993 currency reform, 1 new dinar was exchanged for 1,000,000 old dinars. However, before the year was over, the highest denomination was 500,000,000,000 dinars. In the 1994 currency reform, 1 new dinar was exchanged for 1,000,000,000 old dinars. In another currency reform a month later, 1 novi dinar was exchanged for 13 million dinars (1 novi dinar = 1 German mark at the time of exchange). The overall impact of hyperinflation: 1 novi dinar = 1 × 10²⁷~1.3 × 10²⁷ pre 1990 dinars. Yugoslavia's rate of inflation hit 5 × 10¹⁵ percent cumulative inflation over the time period 1 October 1993 and 24 January 1994.

Zaire (now the Democratic Republic of the Congo)[link]

Zaire went through a period of inflation between 1989 and 1996. In 1988, the highest denomination was 5,000 zaires. By 1992, it was 5,000,000 zaires. In the 1993 currency reform, 1 nouveau zaire was exchanged for 3,000,000 old zaires. The highest denomination in 1996 was 1,000,000 nouveaux zaires. In 1997, Zaire was renamed the Congo Democratic Republic and changed its currency to francs. 1 franc was exchanged for 100,000 nouveaux zaires. One post-1997 franc was equivalent to 3 × 10¹¹ pre 1989 zaires.

Zimbabwe[link]

The 100 trillion Zimbabwean dollar banknote (10¹⁴ dollars), equal to 10²⁷ pre-2006 dollars

Hyperinflation in Zimbabwe was one of the few instances that resulted in the abandonment of the local currency. At independence in 1980, the Zimbabwe dollar (ZWD) was worth about USD 1.25. Afterwards, however, rampant inflation and the collapse of the economy severely devalued the currency. Inflation was steady before Robert Mugabe in 1998 began a program of land reforms that primarily focused on taking land from white farmers and redistributing those properties and assets to black farmers, which sent food production and revenues from export of food plummeting.^[31][32][33] The result was that to pay its expenditures Mugabe’s government and Gideon Gono’s Reserve Bank printed more and more notes with higher face values.

Hyperinflation began early in the 21st-century, reaching 624% in 2004. It fell back to low triple digits before surging to a new high of 1,730% in 2006. The Reserve Bank of Zimbabwe revalued on 1 August 2006 at a ratio of 1 000 ZWD to each second dollar (ZWN), but year-to-year inflation rose by June 2007 to 11,000% (versus an earlier estimate of 9,000%). Larger denominations were progressively issued:

1. 5 May: banknotes or "bearer cheques" for the value of ZWN 100 million and ZWN 250 million.^[34]
2. 15 May: new bearer cheques with a value of ZWN 500 million (then equivalent to about USD 2.50).^[35]
3. 20 May: a new series of notes (“agro cheques”) in denominations of $5 billion, $25 billion and $50 billion.
4. 21 July: “agro cheque” for $100 billion.^[36]

Inflation by 16 July officially surged to 2,200,000%^[37] with some analysts estimating figures surpassing 9,000,000 percent.^[38] As of 22 July 2008 the value of the ZWN fell to approximately 688 billion per 1 USD, or 688 trillion pre-August 2006 Zimbabwean dollars.^[39]

On 1 August 2008, the Zimbabwe dollar was redenominated at the ratio of 10¹⁰ ZWN to each third dollar (ZWR).^[40] On 19 August 2008, official figures announced for June estimated the inflation over 11,250,000%.^[41] Zimbabwe's annual inflation was 231,000,000% in July^[42] (prices doubling every 17.3 days). For periods after July 2008, no official inflation statistics were released. Prof. Steve H. Hanke overcame the problem by estimating inflation rates after July 2008 and publishing the Hanke Hyperinflation Index for Zimbabwe.^[43] Prof. Hanke’s HHIZ measure indicated that the inflation peaked at an annual rate of 89.7 sextillion percent (89,700,000,000,000,000,000,000%) in mid-November 2008. The peak monthly rate was 79.6 billion percent, which is equivalent to a 98% daily rate, or around 7× 10^¹⁰⁸ percent yearly rate. At that rate, prices were doubling every 24.7 hours. Note that many of these figures should be considered mostly theoretic, since the hyperinflation did not proceed at that rate a whole year.^[44]

At its November 2008 peak, Zimbabwe's rate of inflation approached, but failed to surpass, Hungary's July 1946 world record.^[44] On 2 February 2009, the dollar was redenominated for the fourth time at the ratio of 10¹² ZWR to 1 ZWL, only three weeks after the $100 trillion banknote was issued on 16 January,^[45][46] but hyperinflation waned by then as official inflation rates in USD were announced and foreign transactions were legalised,^[44] and on 12 April the dollar was abandoned in favour of using only foreign currencies. The overall impact of hyperinflation was 1 ZWL = 10²⁵ ZWD.

Worst hyperinflations in world history[link]

Units of inflation[link]

Inflation rate is usually measured in percent per year. It can also be measured in percent per month or in price doubling time.

Failed to parse (Missing texvc executable; please see math/README to configure.): \hbox{New price } y \hbox{ years later} = \hbox{old price } \times \left(1+\frac{\hbox{inflation}}{100}\right)^{y}

Failed to parse (Missing texvc executable; please see math/README to configure.): \hbox{Monthly inflation } = 100 \times \left(\left(1+\frac{\hbox{inflation}}{100}\right)^{\frac{1}{12}} -1\right)

Failed to parse (Missing texvc executable; please see math/README to configure.): \hbox{Price doubling time} = \frac{\log_{e} 2}{\log_{e} \left(1+ \frac{\hbox{inflation}}{100}\right)}

Failed to parse (Missing texvc executable; please see math/README to configure.): \hbox{Years per added zero of the price } = \frac{1}{\log_{e} \left(1+ \frac{\hbox{inflation}}{100}\right)}

Often, at redenominations, three zeroes are cut from the bills. It can be read from the table that if the (annual) inflation is for example 100%, it takes 3.32 years to produce one more zero on the price tags, or 3 × 3.32 = 9.96 years to produce three zeroes. Thus can one expect a redenomination to take place about 9.96 years after the currency was introduced.

See also[link]

• Biflation
• Chronic inflation
• Gold as an investment
• Inflation accounting
• Inflationism
• Deflation
• List of economics topics
• Zero stroke

References[link]

Further reading[link]

External links[link]

Wikimedia Commons has media related to: Hyperinflation

• San José State University: Episodes of hyperinflation
• Hanke Hyperinflation Index for Zimbabwe

Greg Hunter (born 1965) is a British composer and sound engineer. He attended Goldsmiths, University of London. He is known for his work with The Orb and with producer Youth in their collaboration to form Dub Trees, and as a composer of electronic / world music.^[1] His work with Youth includes the remix and production on Suns of Arqa's album 'Jaggernaut Whirling Dub' released in 1992.^[2]

Though Hunter is frequently uncredited, he has worked on a wide variety of albums and also for the film industry including the sequels Matrix Reloaded and Matrix Revolutions.^{[citation needed]}

He has a small but devoted fan-base thanks to his attention to detail and a stylistic quality that is widely recognizable. Primary examples of his work would include the seminal Subsurfing album Frozen Ants and his world music collaborations such as Alien Soap Opera, Fifth Sun and Lotus Blossoms.^[3]

James Wesley Rawles
Born	1960 Livermore, California, United States
Nationality	United States
Education	San Jose State University
Occupation	Novelist
Influenced by	Robert Heinlein, Jerry Pournelle, Pat Frank, George R. Stewart, Mel Tappan, David Brin, Tom Clancy, Howard Ruff, Dr. Gary North, Ayn Rand, Ludwig von Mises
Website
http://www.survivalblog.com

James Wesley, Rawles^[1] is a New York Times best-selling^[2] survivalist-fiction author, blogger, and survival retreat consultant.^[3] A conservative Christian,^[4] Rawles is the editor of SurvivalBlog.com, a blog on survival and preparedness topics.^[3] Rawles is the author of the survivalist novels Patriots: A Novel of Survival in the Coming Collapse^[5] and Survivors: A Novel of the Coming Collapse, as well as the national bestseller^[6] How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times.

Biography[link]

Rawles was born in Livermore, California in 1960 and received a BA degree from San Jose State University. He was a United States Army Military Intelligence officer, serving from 1984 to 1993.^[7] He resigned his commission as an Army Captain, immediately after Bill Clinton became President of the United States.^[7] Rawles worked as an Associate Editor and Regional Editor (for the Western U.S.) with Defense Electronics magazine in the late 1980s and early 1990s^[8] and concurrently was Managing Editor of The International Countermeasures Handbook.^[9] He worked as a technical writer through most of the 1990s with a variety of electronics and software companies^[7] including Oracle Corporation.^[10] In 2005 he began full-time blogging.^[3]

He is now a freelance writer, blogger and retreat consultant.^[11][12] He has been called a "survival guru"^[4] and the "conscience of survivalism."^[13] Rawles is best known as the author of the survivalist novel Patriots: A Novel of Survival in the Coming Collapse.^[14]

Blog presence and consulting[link]

Rawles is the editor of SurvivalBlog.com, a popular blog on survival and preparedness topics.^[15] The blog has been described as "the guiding light of the prepper movement."^[16] According to a Los Angeles Times article from February, 2012, SurvivalBlog receives 300,000 unique visitors per week.^[17] The main focus of his blog is preparing for the multitude of possible threats toward society.^[18] In his various writings, Rawles has warned about socio-economic collapse,^[19][20] terrorist attacks,^[21] and food shortages. As a consultant, Rawles advises his clients primarily via telephone on emergency preparedness.^[3]

Books[link]

James Rawles has written three books that are sold by mainstream booksellers. The second sequel to Patriots: A Novel of Survival in the Coming Collapse will be released in October 2012.

[edit] Patriots: A Novel of Survival in the Coming Collapse

His first book was a work of speculative fiction set in a near future period of hyperinflation and socio-economic collapse first titled: Patriots: Surviving the Coming Collapse, and later re-titled: Patriots: A Novel of Survival in the Coming Collapse. The book was originally released in draft form as shareware^[22] under the title "Triple Ought" in the early 1990s but was later printed by the Christian partner publisher Huntington House. After Huntington House went out of business, the book was re-released by Xlibris, a "print on demand" publisher. Starting in April, 2009, the novel went back into wide circulation, in a 400-page trade paperback edition, published by Ulysses Press, Berkeley, California. This new edition was updated and expanded to include a glossary^[23] and index.^[24]

In early April 2009, shortly after its release, it was ranked number 6 in Amazon.com's overall book sales rankings, but fell to number 33 a week later.^[5] By the end of the month it had fallen to number 98.^[25] The book's initial popularity caught librarians unprepared because the book was considered a niche title, and had not been reviewed by the major book review publications. According to Library Journal, the topic struck a chord with "a small but vociferous group of people concerned with survivalism" who share a sense of societal anxiety associated with the economic recession. The journal went on to say that Patriots was "reportedly originally conceived as a nonfiction guide. According to a number of Amazon.com reviewers, the novel will not win any literary prizes; its strength lies in its practical reassurances, focus on guns, and Christian ideology." Librarians then scrambled to purchase copies of the book to meet the unanticipated demand.^[5]

[edit] Survivors: A Novel of the Coming Collapse

Survivors: A Novel of the Coming Collapse is a contemporaneous sequel novel that parallels the events that occurred in Patriots, following a hyperinflationary socioeconomic collapse and the subsequent events known as "The Crunch." The novel follows several new characters (as well as some characters from Patriots) as they attempt to survive in the United States following The Crunch as they deal with criminal gangs, a provisional American government and the general breakdown of society. The book was released on 4 October 2011. It rose to #2 in Amazon's overall book sales ranks, the same day. On 23 October 2011, it was listed at #3 in the New York Times best-selliers list in the fiction hardback category.^[2] Less than a month after publication, the novel had gone through four printings and had 52,500 copies in print.^[26]

[edit] How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times

Rawles authored the international bestseller^[6] How to Survive the End of the World as We Know It: Tactics, Techniques, and Technologies for Uncertain Times, a non-fiction book drawn primarily from posts from SurvivalBlog.com, his popular blog on preparedness topics. SurvivalBlog has about 160,000 unique visitors per week. The book was called "The preppers' Bible", by a Reuters journalist.^[16] The main focus of his blog is preparing for the multitude of possible threats toward society. In his various writings, Rawles advises preparedness in the event of catastrophe, including preparedness against the risks of a post-disaster society which include looting, armed violence and food shortages. He also recommends preparedness measures including the establishment of rural safe havens at least 300 miles from the nearest major city, financial planning for a future barter based economy, water retrieval and purification, food production and storage, security and self-defense techniques and strategies.^[27][28]

The book received a favorable book review on the weblog of Orville R. Weyrich Jr.^[29] There was also a summary of the book published in the March–April 2010 issue of The Futurist magazine, under the headline: "Alarmingly Practical Advice For Doomsday."^[27] The book is briefly quoted and the title is mentioned in the article "Are You Ready for the End of the World?" in the January 2010 issue of The Philadelphia Trumpet, a publication of the Philadelphia Church of God.^[28]

In an interview with Rawles about the book, syndicated radio talk show host G. Gordon Liddy said that the book "posits a collapse of civilization."^[30] When interviewed by syndicated radio talk show host Laura Ingraham about the book on 5 October 2009, she said that the book "goes through point by point the basics of being prepared and heightening your chances of surviving some type of major crisis." Echoing Rawles's writings, Ingraham warned that "there is a thin line between order and total anarchy in time of a crisis, when peoples lives are on the line—and all the nicities and the rules go out the door."^[31]

How to Survive the End of the World as We Know It has 14 chapters and three appendices, 336 pages, ISBN 978-0-452-29583-4. September 2009. First Printing (September 2009): 20,000 copies. Second Printing (October 2009): 6,000 copies. Third Printing (October 2009): 25,000 copies. An unabridged audiobook edition is also available (ISBN 978-1441830593), produced by Brilliance Audiobooks. It was narrated by Dick Hill. As of March 2011, there were 132,000 copies of the book in print, and it had gone through 11 printings. ^[32] As of April, 2012, there were 12 foreign publishing contracts in place to produce editions in 11 languages, and the book was still in Amazon.com's Top 250 titles, overall. ^[33]

FAQs[link]

Starting in the early 1990s, he also authored or co-authored 17 Internet frequently asked questions (FAQ) reference pages, primarily on firearms topics, such as one on antique guns that is often cited.^[34]

Philosophical, political and economic views[link]

Rawles is an outspoken proponent of family preparedness, especially regarding food storage^[35] and advocates relocating to lightly populated rural "retreat" areas. His preparedness philosophy emphasizes the fragility of modern society, the value of silver and other tangibles for barter, recognition of moral absolutes, being well armed, maintaining a "deep larder," relocation to rural retreats, and Christian charity.^[36] In an interview in The New York Times, Rawles referred to himself as a "guns and groceries" survivalist.^[37]

Rawles is a strong proponent of the right to keep and bear arms, having said that people are "merely exercising a pre-existing right" when they carry firearms to public events such as political rallies. When he was asked about open carry, "but...without a permit?", he replied, "We have a permit—it is called the Second Amendment,"^[38]

Rawles is outspokenly anti-racist.^[39][40]

The Survivalist movement[link]

A central premise of the growing survivalist movement, of which Rawles is a leading spokesman,^[41] is concern about the risk of a coming societal meltdown and the need to prepare for the repercussions. Rawles said that an incorrect far-right "lunatic fringe" media image has developed in part because of the actions of a radical few such as Timothy McVeigh. He called this a distortion of the true message of survivalism. Unlike the fringe proponents, Rawles focuses instead on "family preparedness" and "personal freedom". Rawles explains that the typical survivalist does not actually live in a rural area, but is rather is a city dweller worried about the collapse of society who views the rural lifestyle as idyllic. Speaking from his experience, Rawles cautions that rural self-sufficiency actually involves "a lot of hard work".^[42] In 2009, he was quoted as saying: "There's so many people who are concerned about the economy that there's a huge interest in preparedness, and it pretty much crosses all lines, social, economic, political and religious. There's a steep learning curve going on right now."^[3]

American Redoubt concept[link]

In March, 2011, Rawles formulated the American Redoubt concept. This plan designates five western states (Idaho, Montana, Wyoming, eastern Oregon, and eastern Washington) as a safe haven for conservative Christians.^[43] The concept was endorsed by former Presidential candidate Chuck Baldwin, who had recently relocated his entire extended family to western Montana.^[44] It also soon inspired the launch of a weekly podcast by Christian Libertarian journalist John Jacob Schmidt, called Radio Free Redoubt.^[45]

Secret ranch location[link]

An article published by the Australian Broadcasting Corporation in 2008 asserts that Rawles lives in California, but later in the article, Rawles noted that the location of his ranch in the US is kept secret. "We don't actually reveal our location, even at the state level, All that I'm allowed to say is that we're somewhere west of the Rockies. We intentionally keep a very low profile. We just don't want a lot of people camping out on our doorstep the day after everything hits the fan."^[46] The German FAZ newspaper asserts that the ranch is in northern Idaho.^[47] Others have claimed that the "undisclosed location" of the ranch is in Nevada, Utah, Wyoming or even in Central America.^[1] A CNN Europe article written before his wife died noted that Rawles "...lives on a ranch in an undisclosed location with his wife (who he refers to in his blog affectionately as "the Memsahib") and their children. Their life is almost entirely self-sufficient: They keep livestock, hunt elk and the children are schooled at home. Stored away in the ranch somewhere is a three-year supply of food."^[48] In an article titled "The Most Dangerous Novel in America", Rawles told The Daily Beast: "I’m not at liberty to discuss where I live. It’s part of an agreement I made with my wife. I really can’t go into the details. We live in a very remote area. I embrace technology. We don’t live in a cellphone area, but I’m online constantly. We’re just prepared to live off-grid, if the power grid goes down. Because of the nature of my blog and my novel, I don’t just want anonymity, I need anonymity. I could wake up some morning in the aftermath of some crisis and look out in my barnyard and see five Winnebagos and some TV crews. I don’t want fans of my books to descend on my property, so I have to be perspicacious."^[49] In 2009, Rawles told an Agence France-Presse reporter: "I'm surrounded by national forest. A river runs through the back end of the property, so there's no shortage of water and no shortage of fish or game to shoot. If Western civilization were to collapse tomorrow, I'd have to read about it on the Internet. I just wouldn't notice."^[50]

Bibliography[link]

• Rawles on Retreats and Relocation, Print on demand from CafePress, No ISBN (January 2007)
• SurvivalBlog: The Best of the Blog, Volume 1, Print on demand from CafePress, No ISBN (February 2007)
• Patriots: A Novel of Survival in the Coming Collapse, Ulysses Press, Berkeley, California, ISBN 978-1-56975-599-0 (April 2009), ISBN 978-1-56384-155-2 (November 1998), ISBN 978-1-4257-3407-7 (December 2006),
• Survivors: A Novel of the Coming Collapse, Atria Books, Simon & Schuster, ISBN 978-1-4391-7280-3, (October, 2011)
• How to Survive the End of the World as We Know It, Plume, New York, ISBN 978-0-452-29583-4, (September 2009)

Quotes[link]

• Owning a gun doesn’t make someone a “shooter” any more than owning a surfboard makes someone a surfer.^[51]

• There is no substitute for mass. Mass stops bullets. Mass stops gamma radiation. Mass stops (or at least slows down) bad guys from entering a home and depriving its residents of life and property. Sandbags are cheap, so buy plenty of them. When planning your retreat house, think: medieval castle.^[52]

• I'm often asked why I make such a 'big deal' about choosing conservative Christians, Messianic Jews, or Orthodox Jews for neighbors. The plain truth is that in a societal collapse there will be a veritable vacuum of law enforcement. In such times, with a few exceptions, it will only be the God fearing that will continue to be law abiding. Choose your neighborhood wisely.^[53]

• The three most important things to look for when searching for a church home are doctrine, doctrine, and doctrine. If your main criteria are 'programs' and 'outreach' to this or that niche group, then in my opinion you are starting your search the wrong way.^[54]

• As an Army officer, I learned that in order to be effective, an army must have three key abilities: To move, shoot, and communicate. Take away any one, and you are ineffective. But if you get all three right, you can absolutely devastate an opponent—even one that has vastly superior numbers.^[55]

• Modern military planners often talk in terms of “threat spirals” when a given threat escalates and inspires a defensive countermeasure. Ideally you should anticipate your opponent’s next escalation and take countermeasures, insulating yourself from the future threat.^[56]

• If you are serious about preparedness, then it is time to get out of your armchair and start training and preparing. It will take time. It will take some sweat. It will take money. But once you’ve prepared, you can sleep well, knowing that you’ve done your best to protect and provide for your family, regardless of what the future brings. Don’t get stuck in the rut of simply *studying* preparedness. Unless the shelves in your pantry and garage are filling with supplies, and unless you are growing muscles and calluses, you are not preparing.^[57]

• Governments tend to expand their power to the point that they do harm. In SurvivalBlog, I often warn of the insidious tyranny of the Nanny State... ...If the state where you live becomes oppressive, then don’t hesitate to relocate. Vote with your feet! ^[58]

• When the time to perform is at hand, the time to prepare has passed. Amageddon Medicine, by Dr. Cynthia Koelker, 2012, MD Books, Akron Ohio, (Foreword, p xv.)

• As a Christian, I feel morally obligated to assist others who are less fortunate. Following the Old Testament laws of tzedakah (charity and tithing), I believe that my responsibility begins with my immediate family and expands in successive rings to supporting my immediate neighborhood and church, to my community, and beyond, as resources allow. My philosophy is to give until it hurts in times of disaster.^[59]

• The foundational morality of the civilized world is best summarized in the Ten Commandments. Moral relativism and secular humanism are slippery slopes. The terminal moraine at the base of these slopes is a rubble pile consisting of either despotism and pillage, or anarchy and the depths of depravity. I believe that it takes both faith and friends to survive perilous times.^[60]

• My father often told me, “It is better to have a gun and not need it than to need a gun and not have it.” I urge readers to use less than lethal means when safe and practicable, but at times there is not a satisfactory substitute for well-aimed lead going down range at high velocity.^[61]

• It is one of the great ironies of our modern 'civilized' era that in most of the places where you don't feel the need to carry a firearm for self defense you can legally do so if you choose. But in most of places where you do indeed justifiably feel the immediate need to carry a gun, they are banned.^[62]

• With a few exceptions, lower population [density] means fewer problems [for survivalist retreats]. When the Schumer Hits the Fan, there will be a mass exodus from the cities. Think of it as an army that is spreading out across a battlefield: The wider they are spread, the less effective they are. The inverse-square law hasn’t been repealed.^[61]

• The modern world [of survivalism] is full of pundits, poseurs, and Mall Ninjas. Preparedness is not just about accumulating a pile of stuff. You need practical skills, and those come only with study, training, and practice. Any armchair survivalist with a credit card can buy a set of stylish camouflage fatigues and an “M4gery” carbine encrusted with umpteen accessories. Style points should not be mistaken for genuine skills and practicality.^[63]

• Much like a muscle that atrophies with disuse, any right that goes unexercised for many years devolves into a privilege, and eventually can even be redefined as a crime.^[64]

• Tangibles trump conceptuals. Modern fiat currencies are generally accepted, but have essentially no backing. Because they are largely a by-product of interest-bearing debt, modern currencies are destined for inflation. In the long run, inflation dooms fiat currencies to collapse. The majority of your assets should be invested in productive farmland and other tangibles such as useful hand tools. After you have your key logistics squared away, anything extra should be invested in silver and gold.^[58]

• Some things are worth fighting for. I encourage my readers to avoid trouble, most importantly via relocation to safe areas where trouble is unlikely to visit. But there may come an unavoidable day when you have to make a stand to defend your own family or your neighbors. Furthermore, if you value your liberty, then be prepared to fight for it, both for yourself and for the sake of your progeny.^[52]

• When the time to perform is at hand, the time to prepare has passed.^[65]

References[link]

External links[link]

Wikiquote has a collection of quotations related to: James Wesley Rawles

• "Surviving The Apocalypse," 31 October 2008, Forbes.com
• SurvivalBlog.com
• The Rawles Home Page
• James Wesley, Rawles on Survival Fire Arms: The End of the World as We Know It at Y2KChaos

James Wesley
James Wesley, June 2010.
Background information
Birth name	James Wesley Prosser[1]
Also known as	James Prosser
Born	Mound Valley, Kansas
Genres	Country
Occupations	Singer
Instruments	Vocals
Years active	1999-present
Labels	Warner Bros. Broken Bow
Associated acts	Rodney Clawson

James Wesley Prosser (born in Mound Valley, Kansas) is an American country music singer. In 1999, Prosser released the album Life Goes On through Warner Bros. Records. Ten years later, he signed to Broken Bow Records under the name James Wesley. Wesley has released four singles for this label: "Jackson Hole," the top 40 hit "Real", "Didn't I," and "Walking Contradiction" all of which will be included on his second studio album Real.

Recording career[link]

[edit] Life Goes On

James Wesley Prosser was born in Mound Valley, Kansas.^[2] He played music at several venues in college before meeting songwriter Rodney Clawson, who has co-written singles by Jason Aldean and George Strait.^[2] Prosser signed to a recording deal with Warner Bros. Records and released his debut album, Life Goes On, in 1999.^[3][4] The album produced two singles which charted on the Billboard Hot Country Singles & Tracks (now Hot Country Songs) chart. Allmusic gave the album three stars, saying that Prosser's "singing and writing … are truly unique."^[5]

After the release of this album, Prosser worked various blue collar jobs. He returned to Nashville in 2006.^[6]

Second album[link]

Wesley signed to Broken Bow in 2009 and released his first single for the label, "Jackson Hole," on December 7, 2009. This song debuted at number 54 on the Billboard Hot Country Songs charts dated for January 16, 2010.^[7] Later in 2010, Wesley charted again with the song "Real", written by Neal Coty and Jimmy Melton.^[8] "Real" was made into a music video in September 2010, directed by Chris Hicky.^[9] Wesley's third single for Broken Bow, "Didn't I," was released in April 2011. "Jackson Hole," "Real", "Didn't I" and "Walking Contradiction" will be included on an album titled Real.

Discography[link]

Studio albums[link]

Singles[link]

As James Prosser[link]

As James Wesley[link]

Music videos[link]

References[link]