Posted on 02/10/2006 7:42:37 AM PST by dead
RESERVE Bank governor, Gideon Gono, has told President Robert Mugabe that Zimbabwe faces economic meltdown within a month if a financial rescue package is not found.
Gono's surreal warning has led to Mugabe flying off to China, his deputy, Joyce Mujuru, visiting Iran and Finance Minister Herbert Murerwa being sent scurrying to South Africa -- all looking to borrow billions of dollars to steady the country's weak economy.
A senior government source said: "There is no masking this one, Zimbabwe's economy is failing and the government has no money. Gono held a series of meetings with Mugabe and his advisers where the President was left in no doubt that the country will be ungovernable if nothing was done within the next 30 days."
Despite a raft of economic recovery plans drawn up by Gono, Zimbabwe's inflation has not slowed down. In June, year-on-year inflation rose by 19.9 percent, up from 15 percent in May, representing total inflation of 164.3 percent.
A delegation led by Finance Minister Herbert Murerwa and Foreign Minister Samuel Mubengegwi went cap in hand to South Africa on Sunday this week to seek an urgent R6,5-billion (about US$1 billion) loan to buy fuel, food, seed and fertiliser.
The World Bank and the International Monetary Fund are preparing to summarily call in Zimbabwe's debt of R4,5-billion next week.
President Mugabe first made the appeal to South Africa when he met Deputy President Phumzile Mlambo-Ngcuka during her visit to Zimbabwe on Tuesday last week.
Mugabe was told that any help from South Africa would be subject to "strict pre-conditions", according to the South African City Press newspaper.
The conditions included that the so-called "cleaning up" operation, which had already left at least 400 000 Zimbabweans homeless, be stopped.
An unnamed senior government official was quoted as saying that Mlambo-Ngcuka's visit had been aimed at finding out what Zimbabwe intended to do and how South Africa could help.
"We also wanted to see what conditions could be imposed, should South Africa agree to render aid," the South African official said.
Murerwa's delegation which arrived in South Africa on Sunday was expected to meet Finance Minister Trevor Manuel and South African Reserve Bank Governor Tito Mboweni.
Zimbabwe is saddled with huge debts and has been borrowing from local and international banks, individuals and other African states.
Just last week, the Netherlands Bank, ING announced it was going to court to recover 32 million euros borrowed by the Zimbabwe government in 1994 to finance the digitalisation of the country's telephone network.
Zimbabwe's fuel situation remains dire, and the foreign currency inflows have dried up owing to low production output, and the sophistication of the parallel market which now has the lion's share of forex deals.
Sounds like one giant utopian chocolate nation.
Let those socialist/communist idiots starve and rot I say.
But that won't bother Zimbabwe's "Dear Leader" because the *only* thing that matters to him is power.
Good!
Examples of the consequences of following a "leader" such as Mugabe - need to be left in the open as an example to others....
Bad acts results in bad consequences, and the white devils should NOT be relied upon to come to the rescue....
The "white devils" are in a struggle for their own survival - at the moment....
Semper Fi
Yeah, borrowing your way out of debt when you have no income and few assets is always a good idea.
/sarcasm
But maybe if Mugabe actually SOLD 'Rhodesia' to China it may work out... China is at least somewhat capable of some level of productivity, and 'Rhodesia' was a prosperous country with good natural resources.
He needs a bullet in his brain.
Inviting white farmers back, begging for bailouts, another failure of state seizure of the means of production. Sadly, a lot of people are going to die before it is all over. Hayek's Fatal Conceit revisited (for the umteenth time). Chavez is Mugabe in slow motion, and the end result will be the same.
Please don't give these nutcases any money. It will never get to those who need it most and will only prolong the death spiral.
Is this a bad thing ?
If there was no oil that would be true.I think that the only way that your prediction could come true is if The Generalissimo starts spending billions on Russian and Chinese weapons...which,I guess,*could* happen.
In fact, the only thing he cares about is money. His Swiss bank account is said to be in the billions US$. Loaning him or his henchmen money means new accounts will be open--all in Switzerland and not to benefit the country. The chocolate country and people are toast.
To solve Zimbabwe's problem:
One head - one pike!
I think President Bush is wrong when he says all people long for freedom.
There are a few nations...and I believe Iraq is one.
But the record of one man rule makes me believe most of the world wants a BIG Momma.
Anywhere one man thinks he knows it all....Castro for example......the country declines.
American liberal elites are the same way......they think they know better than the little guy.
I still remember studying "Rhodesia, Africa's Breadbasket" when I was in school 40 years ago.
Whatever happened?
But that doesnt solve the misery part.
The misery will only be relieved by a revolution which secures property rights.
Otherwise, they'll just get a new boss, same as the old boss.
What about their good buddy Chavez? He's got lots of money.
Zim's economy has already melted down.
Marxism, AKA "Socialsim", "Communism", "Progressive", "Liberal"
Wasnt getting a soccer stadium, mansion and private jet from China enough, Now they want money. Wow, One day china will realize that Zimbabwe is too expensive to maintain. Even their $800 B foreign reserve wont last a year in Zimbabwe. Mugabe should be thankful that his country has vast untapped minerals, Because if it werent for those materials his ass would be on the street right now hitchhiking for a ride to South Africa.
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