Opinion: Chilling ways the global economy echoes 1930s Great Depression era

marketwatch.com ^ | February 19, 2016 | John Coumarianos

[Oatka]

Each family can only turn in X-amount of the old currency in exchange for X-amount of the new currency.

My brother was in the 1960s Army in Korea, where they used Military Payment Certificates instead of dollars.

One evening he was out by the base's back fence and saw the local prostitutes throwing wads of these bills over the fence. He scooped up a bunch and thought he was a rich man. The next day they were all assembled and told that there was a new MPC issue and that the old worthless MPCs were to be turned in - any large amounts would be questioned. Sic transit gloria.

He figured the hookers had gotten wind of this "secret" maneuver and threw the soon-to-be-worthless "money" on to the base on the theory that they would soon get it all back anyway.

[Sidebar] I remember reading that before WWII, the French Franc was worth 4.3 to the dollar. After the war, inflation took the rate higher and higher. At some point the govt. waited until it was 430:1, moved the decimal two points to the left, declared only the new currency was acceptable and redeemed the old currency at that rate.

The reason govts hate gold is that they can't tell you the one ounce coin you have now only weighs one half ounce.

[SampleMan]

I was in Brazil when they were moving the decimal three places to the left.

Bought a cheeseburger, fries, & coke with a $5 bill U.S. and got around 850,000 Brazilian Real in return. I got the old bills, so the change on a $5 fill both my hands. It cracked me up that they took the time to count the change out, as if I knew or cared what the change was.

[SampleMan]

Simple question. Cash windfall...pay off 28 year mortgage at 4.5 percent or keep cash?

Probably neither. Buy more property with the cash.