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.
Regards, Ivan
Ping!
I'm going to go out on a limb and say they need to start planning 1 million dollar notes post haste!
All those zeroes use up precious ink. They need to learn exponential format, as pretty soon they will require 1e9 dollar bills.
There came a point when a pligh of toilet paper was worth more than their printed currency, giving rise to a more economical use of money.
Very sad state of affairs.
Regards, Ivan
This sounds like the hyperinflation that happened before Hitler came into power. People would take a wheelbarrow load of Marks to the market to buy a loaf of bread.
This lead to Hitler's rise to power. They better watch out that this doesn't happen in Zimbabwe. Oh, wait, they already have Hitler in power. Now what they gonna do
Botswana is the best investment deal in Africa. It also has 1/10th the population of Zimbabwe.
Comrade Commedante M'gabe is the reason for the failure of the country. The darling of the west is now the darling of China. He would have no problem being the darling of Hell if it would keep him in power. Zimbabwe looks more like Haiti every day. Perhaps we should call him 'Papa Doc' M'gabe!
I bet you are loads of fun at a cocktail party.
I don't want to sound racist but can anyone please tell me any country, state or municipality that you have black leadership where they are doing well financially.
Tanzania
You wrote, "I don't want to sound racist..." and then wrote something blatantly racist. I don't throw the racist epithet around lightly, as a means of shutting people up who state well-thought-out positions contrary to my own, but your query was loaded with an implicit conclusion; i.e., black people seem incapable of governing. Look up the word 'disingenuous'. If you're a Stormfront troll testing the waters, you've come to the wrong place. If you're a DU troll hoping to spark a 'racialist' discussion to snapshot and take back to your buddies, go away disappointed. Republicans have been at the forefront of civil rights advancement since before the Civil War. We get things done, and bleed for it when necessary. Democrats are only adept at posturing and pandering.
Seems that your little paragraph there has a problem. Let me see if I can help.
I don't want to sound racist capitalist but can anyone please tell me any country, state or municipality that you have black socialist leadership where they are doing well financially. It seems that corruption or just plain ignorant policy is the main problem.
What they need is a Federal Reserve System!
/sarc
Ah... but the Liberals still love Mugabe. Even though he is a homophobe.
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