https://www.cia.gov/library/publications/the-world-factbook/geos/zi.html
Posted on 02/21/2008 6:32:06 AM PST by TigerLikesRooster
Zimbabwe Inflation Tops 100,000 Percent
Thursday February 21, 9:01 am ET
By Angus Shaw, Association Press Writer
World Record Breaking Inflation in Zimbabwe Soars Past 100,000 Percent
HARARE, Zimbabwe (AP) -- The official rate of annual inflation in Zimbabwe has rocketed past the 100,000 percent barrier, by far the highest in the world, the state central statistical office said Thursday. Second-placed Iraq has inflation of just 60 percent, according to international estimates.
In a brief statement, the statistics office said inflation rose to 100,580 percent in January, up from 66,212 in December. A further breakdown of its calculations would be released later, officials said.
The new official figure was still well below the rate calculated by independent analysts. They estimate the real inflation is closer to 150,000 percent, citing supermarket receipts showing the price of chicken rose more than 236,000 percent to 15 million Zimbabwe dollars, or about $2.15, per kilogram (2.2 pounds) between January 2007 and January 2008. Slower increases in prices of sugar, tea and other basics brought down the overall average inflation.
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currency, gasoline and most basic goods in an economic meltdown blamed on disruptions in the agriculture-based economy after the often-violent seizures of thousands of white-owned commercial farms began in 2000 accompanied by political violence and turmoil.
Economic hardship is a key issue in national elections scheduled for March 29 in which President Robert Mugabe, who turns 84 on Friday, is facing the biggest challenge to his hold on power since he led the nation to independence in 1980.
Inflation, food shortages and the crumbling of power, water, sanitation, roads, phones and communications and other utilities have fueled deep divisions in the ruling ZANU-PF party.
In early October, the state central statistical office gave official inflation at just below 8,000 percent. It then suspended its monthly updates on inflation because there was not enough in the shortage-stricken shops to calculate a regular basket of goods.
November's already dizzying rate of 24,470 percent was announced in January and earlier this month the official rate for December was given as 66,212 percent, a dramatic escalation in the space of a month.
The National Incomes and Prices Commission, the government's price control body, this month allowed sharp increases in the prices of the corn meal staple, sugar, bread and other basics in a bid to restore viable operations by producers and return the goods to empty shelves.
But the new prices were still roughly half the price demanded on the black market and were unlikely to guarantee regular supplies to food stores.
Executives at a milling company producing corn meal said the price increase allowed by the government was already overtaken by soaring production costs and gasoline prices. The National Bakers Association said bread shortages were set to worsen unless the price of a loaf was nearly doubled to more than 5 million Zimbabwe dollars (55 U.S. cents at the dominant black market exchange rate) for a regular loaf.
Inflation in southern Africa is mostly in single digits.
Neighboring South Africa recorded inflation last year of about 5 percent and in northern neighbor Zambia inflation rose slightly to just below 9 percent.
In Africa's fastest shrinking economy, per capita gross domestic product in Zimbabwe fell from about $200 in 1996 to about $9 a head last year.
You can have a boatload of the stuff for a hundred dollars - wait, I mean $50, no, $20...
100,000% here, a 100,000% there, and soon you’re talking about real money...
Wait an hour or two and they’ll pay you to take it.
“We have seen our future, and it is Zimbabwe.:-)”
This is what happens when you have a crazy lunatic at the helm of a government. Robert Mugabe is in the same league as Idi Amin and is a modern-day Adolf Hitler or Joseph Stalin. This is what dictatorial rule brings you, too. Let’s pray the world always remembers this.
This is why the US Dollar is used as a standard form of currency in much (or most) of Africa. If you go to Mozambique, for instance, they have 3 currencies from which to choose: the local Meticas (banana republic money), the South African Rand (much more stable but still volatile) and the US Dollar. I’m sure that Zimbabwe must use the US Dollar to keep a measure of stability in the country (as there’s virtually none). If wealthy South Africa were not their neighbor, I can’t imagine how Zimbabwe wouldn’t be starved to death by now.
https://www.cia.gov/library/publications/the-world-factbook/geos/zi.html
Yep, and that is Obama’s blueprint for us!
Their treasury seal a picture of a pile of rocks. No joke. Google a picture of the currency.
Communist dictators love to reduce the value of savings, assets, property and money. This strips wealth from anyone who worked hard and accumulated some assets. This makes everyone “equal”. If I have assets worth $0.50 and you have assets worth $50, we’re equally poor. Thus one of the goals of communism is reached: everyone equally miserable, no one having more than anyone else.
Dictators and other politicians blame this on a mysterious entity called “inflation”. They should take the blame on themselves, because their policies cause the loss of value.
Politicians and other communists love inflation, because it makes everyone dependent on the collectivity, the government. Everyone except the party elite and the politicians who created inflation.
Looks like they have a lot of Change going on in Zimbabwe.
That's its foreign exchange value which is very different from its purchasing power in the U.S. which has fallen about 19% in 8 years.
“That’s its foreign exchange value which is very different from its purchasing power in the U.S. which has fallen about 19% in 8 years.”
It’s leading indicator. Real inflation always follows albeit with a lag.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Alan Greenspan is available. He’ll blame their inflation on economic overheating.
What does Obama think about all of this, or is this asking too much from Obama?
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