Buying green bananas there might be a decent inflation hedge. 
Posted on 08/22/2007 2:50:54 PM PDT by knighthawk
HARARE (Reuters) - Zimbabwe's inflation rate has leapt to a record high, official data showed on Wednesday, raising pressure on President Robert Mugabe to ease an economic crisis that foes hope will weaken the veteran leader.
Zimbabwe's inflation -- already the highest in the world -- hit 7,634.8 percent in July, reminding Zimbabweans there is no relief in sight from daily hardships including chronic food, fuel and foreign currency shortages.
Although the government says the inflation figure is correct, many analysts and critics say it is likely much higher. The International Monetary Fund said last month inflation may reach 100,000 percent by year-end.
Mugabe has accused some businesses of raising prices without justification as part of a Western plot to oust him.
He launched a blitz on inflation by ordering businesses to freeze prices in late June. But the move exacerbated shortages, leaving shop shelves empty. The government eased some restrictions on Wednesday.
Mugabe, who remains defiant despite sanctions imposed by Western powers and criticism that his policies are to blame for the crisis, is taking new steps aimed at tightening his grip before seeking another five-year term in next year's elections.
The former hero of African liberation who has ruled Zimbabwe since independence from Britain in 1980 is embarking on what critics say is his classic strategy of condemning his Western foes to focus attention away from his economic failures.
He is pushing for a bill in parliament, which is dominated by his ruling ZANU-PF, that will give him room to choose a successor if he were to retire or parliament the power to pick a president if the current president died in office.
Mugabe is also pressing to localise foreign-owned companies through a separate bill.
The government said on Wednesday a clerical mistake had forced it to postpone to Thursday the introduction in parliament of the bill seeking to give majority control of foreign-owned firms to Zimbabweans.
Critics say the bill is reminiscent of Mugabe's controversial policy of seizing white-owned farms to give to landless blacks, which may say triggered the current crisis.
DISCONTENT
Frustrations, meanwhile, are growing on the streets but a tough crackdown on the opposition has made it clear that dissent will not be tolerated.
Although Mugabe faces growing criticism from Western powers, neighbouring African nations have failed to press him to enact political reforms, diplomats say.
Regional states hope mediation by South Africa between Mugabe and the opposition will ease political and economic troubles. But they have so far not produced any breakthroughs.
Zimbabwe's main opposition Movement for Democratic Change (MDC), too weak and divided to challenge Mugabe, on Wednesday accused the government of taking measures to prevent its supporters from registering to vote in next year's elections.
The Zimbabwe Electoral Commission (ZEC) announced this week that more than 80,000 new voters were registered between June 18 and August 17, when voter registration closed.
But Ian Makone, director of elections in the Morgan Tsvangirai-led faction of the MDC, told reporters the number of new voters was "a far cry from the hundreds of thousands of prospective voters".
"The MDC is aware of the overt machinations by the regime to steal the people's vote through a biased and opaque mobile voter registration," Makone said.
Neither the ZEC nor government officials were immediately available to comment.
Reuters (IDS)
Ping
Hasn’t it been reaching a new record high every day for the past two years?
inflation in a banana republic is as newsworthy as purse snatchers in nyc.
Is that new record for that country
Just damnnnnn
Zimbabwe, the UN’s guiding light for sustainable development.
Past time for this inept fool to disappear.
It’s because of drought...
What does 100,000 percent inflation look like? Why bother even printing currency when it has so little value? And even if it does today, by tomorrow, it will be worthless. The economy has to be based on barter or black market trading. Nobody is going to pay for any durable goods in specie that’s not worth the paper it’s printed on.
Are liberals still holding up Zimbabwe as a symbol of progress in Africa?
"Yeah, that's the ticket." (LOL)
10,000% inflation = prices double every 55 days.
100,000% inflation = priced double every 37 days.
The formula is:
days to double = 365 * log 2 / log (1 + inflation/100)
“Are liberals still holding up Zimbabwe as a symbol of progress in Africa?”
Of course - progress means kicking out the honkies. That the country goes to hell by doing so is irrelevant.
Buying green bananas there might be a decent inflation hedge.
africawinsagain...
The man’s an economic jerk and won’t do anything right. The only economic remedy for Zimbabwe will come when Mugabe is called home to his maker.
Venezuela is next.
“It’s because of drought...”
Yep, same thing that wrecked North Korea. Kim Jong-il had nothing to do with it. Darn droughts.
Boy, doing that will sure bring in the foreign investments they so desparately need, won't it?
Thank you. Useful formula.
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