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.
Speaking of the FRS, their central theory is that too much economic growth causes inflation. Zimbabwe must have had a lot of it.
Seriously, governments cause inflation, not economic growth. Zimbabwe, and other numerous examples throughout history prove it. Until our own Federal Reserve adopts that reality as its operating principle, we will continue to have inflation, and an economy that remains below its potential.
It also meant vastly increasing the amount of coins in circulation. There was a corresponding increase in prices. The emperors usually blamed the price increases on the greed of merchants.
Some things never change.
Also:
When prices rose Diocletian attributed the inflation to the greed of merchants. In 301 AD Diocletian issued an edict declaring fixed prices; i.e., price controls.
Nixon comes to mind, too.
The name 'Rembrandt' as a leftist codeword for 'VP with the ACLU.'
As Bugs Bunny would say, "What a maroon."
One aspect I find most fascinating about the Roman "debullionization" of their coinage was how they gradually diluted the gold/silver bullion content of their coinage. And further, how at one point it was decided that previously 100% silver coins went to 40% Ag---irresistably reminiscent of 1965-1969 Kennedy Halves.
I know where you are coming from. Just a simple statement as a question. Certainly you did have some definitive answers and countries named. I submit that is what was called for.
As to the others, never mind them. I see the poster that called me an idiot, advises the Admin Moderator. He cannot fight his own battles.
Fire away, you beggers.
"Except for the life expectancy of 34 years and the 37% adult prevalence of HIV/AIDs."
One of the interesting aspects of the great dying caused by the plague in Europe (which killed at least 1/3rd the population) was that there was more wealth for those who were left. Subsequently (consequently?) there was the Renaissance, and all kinds of other developments. I wonder what the result will be in Africa. Also will their very relaxed attitudes about sex change to become more like the Islamic values? Is this one reason for growth of Islam in Africa? We have yet to see what will result in India and China, who have barely started to come to grips with AIDS.
"It just happens that you are of that very race you disparage. It doesn't make sense to me."
When I first moved into a racially diverse area in the 1960's and got to know Black people, I heard the term "crabs in a box." This was from an educated and politically active black man who was very frustrated at the tendancy of his people to pull their fellows down in their effort to climb out of the box. This was in contrast to the Jews who would help financially and professionally their fellows rise in the world.
Other than affecting the meltdown value of the coin itself, I can't get too excited about it.
"Diocletian issued an edict declaring fixed prices."
Diocletian also bound the tenant farmers to the soil they cultivated. The vile system of serfdom which prevailed for more than 1,000 years. The middle (curial or decurion) class was also frozen in place and required to meet various public expenses out of their own pocket. The caste system imposed by Diocletian froze them in place. Economic decay and high taxes gradually ruined them.
Those who do not learn the lessons of history are doomed to repeat them. Currently more and more burdens are being placed on the middle class, while the very wealthy become more so. Those who fail to learn the lessons of Enron... In Mexico the extremes of great wealth, great poverty and a small middle class are one of the forces driving Mexicans north.
With their maize-only policy, how can they make bread?
Zimbabwe seems to be the role model for the "new" Bolivia and Venezuela.
Need to post this on the "gold is worthless" thread.
Well, no offense, but I want the mods to check you out. A freeper who doesn't seem to grasp that race has nothing to do with governement competence seems mighty suspicious to me, no matter how long you've been registered here.
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