Previously, we look at the Worst Hyperinflations in World History. Recently, I came across with a nice cartoons about hyperinflation from Duck Tales episode called Dough Ray Me.
This is the short synopsis about this episode.
Dough Ray Me, was the 82nd episode of Duck tales. It was first aired on the 3rd November 1989.
In this episode, the inventor Gyro creates a multiphonic duplicator. This device is capable of making exact copies of any objects. Huey, Duey and Louie play with the device and later on start duplicating money. Things go terribly wrong when the duplicated money begins to spontaneously duplicate on its own. Duckburg is quickly over run with duplicated money, causing prices to skyrocket or in other word hyperinflation.
What happen when hyperinflation occur and how do they solve the problem?
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We are now approaching to the end of year 2009. How do the stock market around the world performed? And how do our local stock market, Bursa Malaysia performed?
The real winner for year 2009 is Brazil Stock Market. It has taken off off like a rocket. It was the world’s best performing stock market. Brazil Bovespa Stock Index surged 132.2% during the period of 30th December 2008 to 21st December 2009.
Brazil is the fastest growing in Latin America is blessed with abundant of natural resources. The other resouces rich countries such as Indonesia, Peru and Russia are also performing really well. It seem that many resources rich countries are performing really well in 2009.
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Hyperinflation is a condition when a country experience very high inflation rate or “out of control”. The minimum inflation rate per month in order to quality as hyperinflation is 50% or equivalent to 12,875% per year. During hyperinflation, prices increase rapidly and out of control as the currency loses its value.
Hyperinflation occurs when there is a rapid increase in the amount of money supply which is not corresponding to the growth in the output of goods and services. This results in imbalance between the supply and demand for the money. Hyperinflation is generally associated with paper money because this can easily be used to increase the money supply.
Hyperinflation effectively wipes out the purchasing power of private and public savings. It will distorts the economy & causes the monetary base, whether specie or hard currency, to flee the country. In the end it makes the afflicted area anathema to investment.
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The 5% real property gains tax (RPGT) announced during the 2010 Budget last October will now only apply to property sold within 5 years from the date of purchase. Finally, our Prime Minister listen to the complains from the many property buyers which stress their unhappiness through many medium such as newspaper and blogs.
This is indeed a very good news to property buyers or investors in Malaysia.
Prime Minister said that the decision would cause the Government to lose about RM200mil in revenue. However, the benefit of this decision country we will see a stronger growth in the property sector.
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The credit cards tax is to stay & no changes will be done. It is will be according to the budget accouncement last October as it was approved in the parliment recently. Principal credit or charge cards holder have to pay RM50 per card while supplement card holder have to pay RM25 per card.
Starting 2010, new credit card applicants will have to pay the RM50 service tax upfront when they issued with new credit or charge cards.
For existing card holders, the charge will be imposed on the anniversary date of cards. The service tax will be pay through their issuing banks. For example, if the card’s anniversary date is in April, then you pay the tax in starting April 2010 & every subsequent anniversary date.
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