Posted on 08/19/2022 3:47:18 AM PDT by EBH
HARARE, Zimbabwe (AP) — After working as an overnight security guard at a church in Harare’s impoverished Mabvuku township, Jeffrey Carlos rushes home to help his wife fetch water to sell.
Prolonged water shortages mean most residents of the capital city of more than 2.4 million must source their own water. Carlos is lucky because the property he rents has a well and his family can haul up buckets of water to sell to neighbors.
“This is our gold,” he says of the well water.
“If we are lucky, we can sell up to 12 buckets of water (per day) for $2,” said the 50-year-old father of three. That’s about enough money to buy the family’s food for the day, he said.
Rising prices and a fast depreciating currency have pushed many Zimbabweans to the brink, reminding people of when the southern African country faced world-record inflation of 5 billion% in 2008. With inflation jumping from 191% in June to 257% in July, many Zimbabweans fear the country is heading back to such hyperinflation.
o prevent a return of such economic disaster, President Emmerson Mnangagwa’s government last month took the unprecedented step of introducing gold coins as legal tender. The country’s central bank, the Reserve Bank of Zimbabwe, said that because the value of the one-ounce, 22-carat coins would be determined by the international price of gold they will help tame the runaway inflation and stabilize the nation’s currency
(Excerpt) Read more at apnews.com ...
EBH : (From the news source) " Rising prices and a fast depreciating currency have pushed many Zimbabweans to the brink,
reminding people of when the southern African country faced world-record inflation of 5 billion% in 2008.
With inflation jumping from 191% in June to 257% in July, many Zimbabweans fear the country is heading back to such hyperinflation.
EBH : " Gold coins as currency? Let's see if it works. "
(My comment) : See the written comments ...
Combo of 3 Bs might work better 🤷♀️
And just how exactly does gold lead to inflation?
The issue in Zimbabwe is only the rich have the gold. How does the average person get access? Go to work for them and slave away for a gold coin? I am not sure that is going to work.
They are hoping it will ‘trickle down.’ Kind of like trickle down economics, but theoretically it should. The question is how long will that take?
Actually... it would. If you could keep the federal government from destroying it.
R E T E N M A R K
vs.
Holding the bag
The “petro-dollar” conceived by Kissinger and others is the only reason the USD is any different than the Argentine Peso.
Now, with the Ukraine fiasco, we are blowing up the dollar’s last lifeline.
If wishes were horses, beggars would ride.
Gold only serves to preserve your ability to re-enter the economy when things turn around.
Keeping up stores of consumables, alcohol, fuel and such beforehand is the only way to go. And stockpiling gold if you can afford it.
Would you want to be on the government books as having bought X gold coins?
Would you want to trust the purity of government coins?
https://sdbullion.com/gold-and-silver-purity-testing-scanner-sigma-metalytics
If it wasn’t for the petro dollar, our currency would currently be as worthless as the Zim dollar. I remember when our ship had a port of call in Trieste, Italy so I took a tour to see some interesting places in what was Yugoslavia and bought a few trinkets, The exchange rate was 500-600 Yugos to the dollar. Less than 3 years later I found a couple of 20,000 Yugos stuffed into a seat pocket of a aircraft we were overhauling. They were worth less than a buck.
Now with the world trying to join the BRICS bloc, and petroleum contracts denominated outside of the dollar, we are on our way to “Argentina with nukes.”
The BRICS are too powerful to take out the way we took out Saddam, Qadaffi, etc.
Anyone remember (back when SNL was iireverant and really funny): “The Gift That Keeps On Grinning” (cannot find on YT)?
Fair point, well recieved.
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