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Showing posts with label Real Value Table. Show all posts
Showing posts with label Real Value Table. Show all posts

Monday 31 May 2010

Real Value Table

Where Julius Malema will take South Africa if no-one stops him: hyperinflation.

                     Real Value Table

Per cent of Today’s Real Value Destroyed
...........................................................Hyperinflation*
Annual Inflation                   2%          6%            10%             26%

Years                                  %             %              %                  %
    5                                     10            27              41                 78
  10                                     18            46              65                 95
  16                                     28            63              84                 99
  20                                     33            71              88
  30                                     45            84              96
  35                                     51            89              98
  44                                     59            93              99
  75                                     78            99
114                                     90
228                                     99

*Cumulative inflation over three years equals or is more than 100%: for example, inflation at 26% per annum for three years in a row.

The 2% column illustrates what HC accountants are unknowingly, unnecessarily and unintentionally doing in the low inflationary world to companies´ capital and profits with their very destructive stable measuring unit assumption; that is, with normal, generally accepted, traditional 700 year old Historical Cost Accounting in the USA, EU, etc.

The 6% column illustrates what they are doing in SA.
The 26% column illustrates what they are doing in Venezuela with the generous help of Hugo Chavez; Julius Malema´s model country: where he will take South Africa if no-one stops him.
Copyright © 2010 Nicolaas J Smith