The destruction of a currency is, without doubt, positively devastating for a society. History is generous with examples dating all the way back to 212 BC when Rome first devalued its denarius silver coin by 50%. Recent examples are also plentiful.

Zimbabwe’s hyperinflationary period is well documented; what most people don’t realize is that after inflating several trillion percent, the government simply discontinued the currency… literally devaluing the Zimbabwe dollar to zero. People holding Zimbabwe dollars lost their entire savings overnight.

Argentina’s devaluation in 2002 sent its peso from 1:1 vs. to roughly 4 pesos to the dollar. Banks closed, taking depositors’ savings with them. Those with any cash savings were paying four times as much for goods, practically overnight. Unemployment soared. Even now, over ten years later, the economy has yet to fully recover.