Posted on 05/31/2006 11:53:41 PM PDT by MadIvan
A NEW $100,000 banknote will be issued in Zimbabwe today. With a value of about 67p, it is worth only the price of a loaf of bread.
Its introduction comes as the economy buckles under the highest rate of inflation in the world, currently at 1,042 per cent. The note makes its debut barely four months after the Reserve Bank introduced the $50,000 note, the highest denomination at the time. In only two weeks the Zimbabwe dollar has lost half of its value.
Despite the hyperinflation, mass unemployment and crippling shortages of fuel and foreign currency, Zimbabwe is a country of millionaires. Shoppers have to carry huge wads of cash to buy the basic foodstuffs available in most shops.
“Last week I filled a single trolley with $30 million of groceries, and I had to count out 600 notes of $20,000 at the checkout counter,” John Robertson, an economist, said.
Despite the economic gloom, he said that at least the new note “means when we go shopping, we don’t have to take a suitcase of money: we can carry it in a shoulder bag”.
As the Government announced the introduction of the note, queues were forming outside banks that had begun to limit withdrawals because of the latest shortage of currency. All coins disappeared from circulation two years ago.
Gideon Gono, governor of the central bank, said that the note was being introduced “to ensure convenience to the public”. Although he predicted that inflation would be down to 50 per cent in a year’s time, he held out the prospect of even bigger denominations if the new note failed to ease the banking problems.
Zimbabwe used to boast one of Africa’s most robust economies, but eight years of recession and a radical programme of land redistribution has left millions in poverty.
In its relentless search for cash to fill its empty treasury, the Government last week imposed a punishing new tax on the stock market. Brokers immediately halted trading, losing the state tax revenue equal to £17,000 a day.
On Monday the Government declared potatoes a “strategic crop” after realising that “the country cannot continue depending on maize alone for its food security”.
All sales of potatoes, which cost ten times as much as maize meal, can now be handled only by the Government.
In 2000, just before the farm invasions began, the Zim dollar was trading at a fairly stable Z$55.00 to US$1.00
Socialism at its finest. You would think that the idiots who promote wealth re-distribution in the USA and Britain would learn something from this, but, of course, they're idiots and hence incapable of learning. (I'm talking about New Yorkers and Massholes especially as well as any of the voters who voted for anyone in the black Kongressional caucus, all democrats, people who think John McCain is distinguishable from dog squeeze, and Bushbots who think that no child left behind, the senior prescription drug give away and amnesty for Mexicans is a good idea)
just when you think they cannot find any way to screw up more in Zbwe, they find one.
"In its relentless search for cash to fill its empty treasury, the Government last week imposed a punishing new tax on the stock market. Brokers immediately halted trading, losing the state tax revenue equal to £17,000 a day.
On Monday the Government declared potatoes a “strategic crop” after realising that “the country cannot continue depending on maize alone for its food security”.
"
I don't see why they don't go ahead and start printing 500k or 1M notes instead of 100k, for that matter.
Gold anyone???
The smart ones would immediately put a bullet in his head.
"you can ignor reality, but you can not ignor the results of ignoring reality."...........even for libs and socialists.
And as I recall, Zimbabwe was feeding most of Africa.
How sad.
Libs and socialists seem to ignore the results of their policies quite easily.
They still think they can make it work.
(I could make socialism work. My method would involve lots and lots of capitalism. Socialism will then be unnecessary.)
This is worse than Germany in the late 1920s, no? People back then were using the money for wallpapering and such.
My grandmother said the Bahamas were lovely. I've got one of their dollars somewhere, it has a dolphin on it.
O Great Mod, you might want to sniff this guy a bit.
William Jefferson, Democrat La., seems to have done well financially in both New Orleans and Washington, DC.
Strange comment. I thought that the people were responsible for the kind of law and government they have.
Mugabe's just following the plan pioneered by Lenin, a white man, in the Soviet Union. Indeed, if you compare the history of the Soviet Union and what Mugabe's doing in Zim, you find they're almost identical.
Except for the life expectancy of 34 years the 37% adult prevalence of HIV/AIDS infection, and infant mortality rate of over 50/1000 births (US = 6.4/1000). Other than that, they're doing great.
Economically, they might be OK, but can it last?
BTW, I think it has nothing to do with race an everything to do with culture.
Try Yugoslavia in 1993-1994 and Hungary 1945-46. Talking in the quintillions of percent!
Here's a collection of hyperinflation episodes, just google "hyperinflation" for more.
http://www2.sjsu.edu/faculty/watkins/hyper.htm
Did Carter's stagflation make the list? ROFL
I cannot think of a more racist comment.
You have been given many examples, so no need to refute your KKKomments.
I see in further reading, that you are yourself an African-American.
However, your statement is still racist. It just happens that you are of that very race you disparage.
It doesn't make sense to me, but there it is.
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