Mackerel Money Inflation

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I heard this interesting story on YouTube.

A guy who was in prison for some kind of bitcoin scam was talking about the prison money system.

Since he had training in economics, that's what he did to pass the time.

Study the economic system in prison.

They used these foil packets of mackerel for money.

(They used to use cigarettes, but those are illegal now).

He said there was two kinds of currency.

"Eating mackerel" and "money mackerel."

If you wanted to buy something, it cost less in terms of "eating mackerel" since it wasn't expired.

Once a pack of mackerel became expired, it became "money mackerel."

It cost slightly more in "money mackerel."

But the reason for the interview (it was a replayed podcast from a money type talk show) was that while the guy was studying the prison money system, the guards found that one prisoner had a TON of mackerel "saved" in his cell.

They didn't know how he got it.

But they didn't LIKE that he had it.

After all, they were the guards, and if any one prisoner gets a bunch of money, that makes the guards seem less powerful.

So they took all his "mackerel money" and dumped it in a common area.

According to the jailhouse economist, this led to instant hyperinflation.

This is what happens you inject a whole bunch of NEW money into an economic system.

Same amount of stuff being bought and sold, but with a lot more money, that stuff being bought and sold will go up in price.

The story a very interesting microcosm, which can be used to demonstrate a lot of "economic truths."

One of which is that humans will ALWAYS find some kind of "trading money."

Even when little kids are trading Pokemon cards (or whatever cards they trade).

Many times they'll take a card in trade not because they actually want it, but because they know they can trade it for something they DO want later on.

All humans have an instinct for sniffing out this "commodity money."

This is part of our human nature.

To trade what we have for what we want.

And to use any kind of money available to facilitate that.

If you jumped into a time machine and went ANYWHERE in time, and ANYWHERE on the planet, this is what you'd find.

Humans doing whatever they can to GET whatever money that society was using, so they could then GET what they wanted.

People have been doing this since the beginning of time, and they will continue to do this until the sun goes out.

Learn How:

Wealth Tuning