Tim Ferriss Boldly Shares a Money Wake-Up Call That Is Likely to Affect You

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I was scrolling the ‘gram’ and stumbled across a photo Tim Ferriss posted. His posts stick out more these days since he dropped the tech-lover, work-four-hours-a-week persona.

Now he’s completely entangled in the complexity of humans.

The transformation started when he shared his story of childhood sexual abuse. Now that story has sprouted into many different Tims. One of those Tims is becoming more vocal about money.

Tim posted a picture of his 100-trillion-dollar Zimbabwean bill with this quote below. You can buy one for yourself on eBay for less than $100 US dollars.

“This is a real 100-TRILLION-dollar bill. I had it framed years ago to remind me of how quickly ‘money’ can change in value.

Zimbabwean dollars in 2008 = US dollars in 2040? Probably not, but looking at examples of ultra-inflation, the position of ‘that can’t happen to a reserve currency’ is wishful thinking. Reserve currencies have changed throughout history and will continue to change.”

Money Can Definitely Change in Value.

The wake-up call he wants us to remember is hyperinflation can occur. Hyperinflation affects you because the cost of goods and services spirals out of control. It’s caused by a government creating too much currency out of thin air to fund an event like a World War.

Hyper-inflation isn’t unique to countries like Zimbabwe. Hyperinflation has already occurred in China, Germany, Russia, Hungary, and Argentina.

It is often thought that a global reserve currency is safe from hyperinflation. Right now, the US dollar is the world’s global reserve currency. All this means is the bulk of the world’s trade is done in US dollars. Investopedia says “A reserve currency reduces exchange rate risk since there’s no need for a country to exchange its currency for the reserve currency to do trade.”

Being the global reserve currency is a privilege. Countries around the world are forced to hold US dollars. The advantage is subtle: more US dollars can be created out of thin air and the effects will take longer to be felt.