Seeing the dollar lose its value reminds me of growing up in PerÃº during the heavily inflationary 80s and early 90s. I witnessed the collapse of the currency not once but twice during that period.
Though inflation had been part of life for decades, it was not until the 1980s that the severe problems started.Back then, I thought it was fun to see new paper money appear every few months. What began with bills in denominations of 500 and 1000 soon became 50 thousand.
The lesson, sadly, was not learned. Inflation had become a part of life. Prices would rise very quickly and money had to be spent as soon as possible. Just a few years later the paper money (now called the Inti) was becoming worthless.
“By 1990, the inti had itself suffered from high inflation. As an interim measure, from January to July 1991, the “inti en millones” (I/m.) was used as a unit of account. One inti en millones was equal to 1,000,000 intis and hence to one new sol. The nuevo sol (“new sol”) was adopted on 1 July 1991, replacing the inti at an exchange rate of a million to one. Thus: 1 new sol = 1,000,000 inti = 1,000,000,000 old soles.”
Inflation left the economy in shambles, not to mention the social cost in terms of terrorism and crime. When will humanity learn?