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ZIMBABWE: $100,000 banknote is enough to buy a loaf
The Times ^ | June 1, 2006 | Jan Raath

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.


TOPICS: Crime/Corruption; Extended News; Foreign Affairs; Government; News/Current Events; War on Terror
KEYWORDS: africa; africawatch; inflation; mugabe; rhodesia; zimbabwe
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This is assumes they can afford to print the note in the first place.

Regards, Ivan

1 posted on 05/31/2006 11:53:43 PM PDT by MadIvan
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To: Clive; Texican; Watery Tart; Jersey Republican Biker Chick; Laurita; Semper911; lutz; Deetes; ...

Ping!


2 posted on 05/31/2006 11:54:07 PM PDT by MadIvan (I aim to misbehave.)
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To: MadIvan

I'm going to go out on a limb and say they need to start planning 1 million dollar notes post haste!


3 posted on 05/31/2006 11:59:13 PM PDT by CitizenUSA
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To: MadIvan

All those zeroes use up precious ink. They need to learn exponential format, as pretty soon they will require 1e9 dollar bills.


4 posted on 06/01/2006 12:05:31 AM PDT by The Red Zone
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To: CitizenUSA

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.


5 posted on 06/01/2006 12:08:25 AM PDT by CheyennePress
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Comment #6 Removed by Moderator

To: jk4hc4
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.

Botswana.

Regards, Ivan

7 posted on 06/01/2006 12:30:24 AM PDT by MadIvan (I aim to misbehave.)
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To: MadIvan

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


8 posted on 06/01/2006 12:33:44 AM PDT by gleeaikin
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To: MadIvan
I remember visiting Turkey when 1 Dollar was equal to about 1,300,000 lire. Paying for a meal in millions was kinda funny.
9 posted on 06/01/2006 12:43:23 AM PDT by varyouga (I no longer fear death. I only fear the day when the DUmmies take over.)
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To: MadIvan

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!


10 posted on 06/01/2006 12:46:01 AM PDT by truemiester (If the U.S. should fail, a veil of darkness will come over the Earth for a thousand years)
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To: jk4hc4
I don't want to sound racist

I bet you are loads of fun at a cocktail party.

11 posted on 06/01/2006 1:03:15 AM PDT by opinionator
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To: jk4hc4

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


12 posted on 06/01/2006 1:04:03 AM PDT by jwh_Denver (If your ship hasn't come in it's probably because she docked in Tanzania.)
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To: jk4hc4

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.


13 posted on 06/01/2006 1:19:59 AM PDT by Rembrandt_fan
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To: jk4hc4
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. It seems that corruption or just plain ignorant policy is the main problem.

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.

14 posted on 06/01/2006 1:25:10 AM PDT by Frohickey
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To: MadIvan

What they need is a Federal Reserve System!

/sarc


15 posted on 06/01/2006 1:28:38 AM PDT by LibertarianInExile ('Is' and 'amnesty' both have clear, plain meanings. Are Bill, McQueeg and the President related?)
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Comment #16 Removed by Moderator

To: MadIvan

Ah... but the Liberals still love Mugabe. Even though he is a homophobe.


17 posted on 06/01/2006 1:36:21 AM PDT by Ronin (Ut iusta esse, lex noblis severus necesse est.)
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To: jk4hc4
Seems incongruous that a black American would preface any statement with 'I don't mean to sound racist..' when referring to African political problems. Chip on my shoulder? Nope. Strongly skeptical? Yup.
18 posted on 06/01/2006 1:40:30 AM PDT by Rembrandt_fan
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Comment #19 Removed by Moderator

Comment #20 Removed by Moderator

Comment #21 Removed by Moderator

To: MadIvan
but eight years of recession and a radical programme of land redistribution has left millions in poverty.

Gee... I wonder what happened.

22 posted on 06/01/2006 2:04:06 AM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: MadIvan
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.

An excellent lesson for Demoncrats (or Labour Party) who want to raise taxes on the "rich." When you raise taxes, you get less because people avoid the activity that causes the tax.

23 posted on 06/01/2006 2:04:26 AM PDT by BruceS
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Comment #24 Removed by Moderator

To: MadIvan
This is assumes they can afford to print the note in the first place.

I think I read an article recently which stated that the government over there didn't have enough money to purchase the ink and paper needed to print the new bills.

Too funny.

L

25 posted on 06/01/2006 2:07:26 AM PDT by Lurker (Real conservatives oppose the Presidents amnesty proposal. Help make sure it dies in the House.)
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To: MadIvan
All sales of potatoes, which cost ten times as much as maize meal, can now be handled only by the Government.

Oh, that'll insure an bounteous supply of spuds, won't it? I mean, after the government forces everyone on to collectivist farms to grow them.

But, hey, at least they're not under the horror of aparthied, right? (sarcasm)

26 posted on 06/01/2006 2:09:57 AM PDT by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
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Comment #27 Removed by Moderator

To: gleeaikin
This sounds like the hyperinflation that happened before Hitler came into power.

Or under Lenin from 1918-1920, when the government ended up having to sell some of the gold "inherited" from the Tsar's treasure in order to buy ink from the West...so it could print up more money.

28 posted on 06/01/2006 2:14:43 AM PDT by yankeedame ("Oh, I can take it but I'd much rather dish it out.")
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To: jk4hc4
Ivan, I checked out the Republic Of Botswana and it is truly doing well. Their stock exchange has been doing well for sometime. It is truly an African democratic success story. I would love to visit sometime. Many thanks

I have been to Kenya and South Africa - based on my experience there, the poverty in Africa has absolutely nothing to do with the people - there are loads of enterprising and imaginative individuals there who work very hard. The problem lies in the lack of the rule of law and corrupt government. If that burden was ever corrected, Africa will surprise many people.

It was said of Angola, while it was under Portuguese rule, that it was "so rich, so beautiful, put a dead branch into the ground and it would grow". What Africa perhaps needs is to realise that rejecting the colonial legacy entirely was not the right way to go. Mozambique has learned this, South Africa appears to understand this, if partially - once this lesson is learned, there is no limit to Africa's potential.

Regards, Ivan

29 posted on 06/01/2006 2:22:24 AM PDT by MadIvan (I aim to misbehave.)
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To: MadIvan

A significant problem in many developing, former colonial countries in Africa and elsewhere, including Iraq, is that in order to divide and rule, the colonial powers drew boundries that mixed opposing and hostile tribes into the same country. Nigeria is a good example, with Housa, Yoruba and Ibo tribes. Some may remember the nasty little anti Ibo war they had some years back. Now there is conflict with the northern Islamics and the southern Christians.

Of course the conflict created by the British by drawing the boundries for Iraq with Kurds, Sunnis and Shiites is very obvious today. Its a shame we couldn't have an international boundry redrawing commission.


30 posted on 06/01/2006 2:36:38 AM PDT by gleeaikin
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To: jk4hc4
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. It seems that corruption or just plain ignorant policy is the main problem.

Another example:

Barbados

Note the GDP per head, very respectable.

Regards, Ivan

31 posted on 06/01/2006 2:53:56 AM PDT by MadIvan (I aim to misbehave.)
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To: LibertarianInExile

What they need is a Federal Reserve System!

/sarc

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Right, and anyone who thinks it can never happen here should take note of the fact that thirty years ago the idea of paying $100,000. for a house sounded strange to most of us and anyone who made $10. an hour was very well off indeed.


32 posted on 06/01/2006 3:12:24 AM PDT by RipSawyer (Growing grumpier by the minute.)
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To: MadIvan

a sad place. I send money to some African sisters to pay their family's school fees, but they end up using it to buy food.


33 posted on 06/01/2006 3:29:25 AM PDT by LadyDoc (liberals only love politically correct poor people)
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To: MadIvan

This is what happens when do-gooders replace a working government with trash.


34 posted on 06/01/2006 3:37:08 AM PDT by sgtbono2002
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To: MadIvan

What happens when communism takes control.
This corrupt government seized farms from white owners.
This rampant inflation is just another way of seizing the assets of anyone who was foolish enough to remain in the corrupt country.
It's too bad that the people are suffering, but it's the fault of the corrupt communist government.


35 posted on 06/01/2006 3:54:11 AM PDT by BooksForTheRight.com (what have you done today to fight terrorism/leftism (same thing!))
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Comment #36 Removed by Moderator

To: Rembrandt_fan
"...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..."

Damn well said, sir!

37 posted on 06/01/2006 4:08:25 AM PDT by pickrell (Old dog, new trick...sort of)
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To: Frohickey
I don't want to sound capitalist but can anyone please tell me any country, state or municipality that you have socialist leadership where they are doing well financially.

Well said Frohickey: plus you just stopped this thread becoming a tedious game of PC tennis.

38 posted on 06/01/2006 4:22:22 AM PDT by agere_contra
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Comment #39 Removed by Moderator

Comment #40 Removed by Moderator

To: MadIvan; blam; Cincinatus' Wife; sarcasm; happygrl; Byron_the_Aussie; robnoel; GeronL; ZOOKER; ...

In 2000, just before the farm invasions began, the Zim dollar was trading at a fairly stable Z$55.00 to US$1.00


41 posted on 06/01/2006 5:03:29 AM PDT by Clive
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To: MadIvan
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.

Socialism at its finest. You would think that the idiots who promote wealth re-distribution in the USA and Britain would learn something from this, but, of course, they're idiots and hence incapable of learning. (I'm talking about New Yorkers and Massholes especially as well as any of the voters who voted for anyone in the black Kongressional caucus, all democrats, people who think John McCain is distinguishable from dog squeeze, and Bushbots who think that no child left behind, the senior prescription drug give away and amnesty for Mexicans is a good idea)

42 posted on 06/01/2006 5:10:55 AM PDT by from occupied ga (Your most dangerous enemy is your own government)
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To: MadIvan

just when you think they cannot find any way to screw up more in Zbwe, they find one.

"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”.
"

I don't see why they don't go ahead and start printing 500k or 1M notes instead of 100k, for that matter.


43 posted on 06/01/2006 5:38:55 AM PDT by WoofDog123
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To: MadIvan

Gold anyone???


44 posted on 06/01/2006 5:39:25 AM PDT by AmericaUnited
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To: gleeaikin
Oh, wait, they already have Hitler in power. Now what they gonna do

The smart ones would immediately put a bullet in his head.

45 posted on 06/01/2006 5:40:32 AM PDT by AmericaUnited
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To: coconutt2000

"you can ignor reality, but you can not ignor the results of ignoring reality."...........even for libs and socialists.


46 posted on 06/01/2006 6:33:22 AM PDT by newcthem (When are our congress-men going to start getting paid in Pesos?)
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To: gleeaikin
People would take a wheelbarrow load of Marks to the market to buy a loaf of bread. I read somewhere that when people took the wheelbarrows full of money to the store, the would come back, find the money on the sidewalk and the wheelbarrow stolen.
47 posted on 06/01/2006 6:33:50 AM PDT by nonliberal (Graduate: Curtis E. LeMay School of International Relations)
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To: Clive

And as I recall, Zimbabwe was feeding most of Africa.
How sad.


48 posted on 06/01/2006 6:34:59 AM PDT by newcthem (When are our congress-men going to start getting paid in Pesos?)
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To: newcthem

Libs and socialists seem to ignore the results of their policies quite easily.

They still think they can make it work.

(I could make socialism work. My method would involve lots and lots of capitalism. Socialism will then be unnecessary.)


49 posted on 06/01/2006 6:37:39 AM PDT by coconutt2000 (NO MORE PEACE FOR OIL!!! DOWN WITH TYRANTS, TERRORISTS, AND TIMIDCRATS!!!! (3-T's For World Peace))
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To: MadIvan

This is worse than Germany in the late 1920s, no? People back then were using the money for wallpapering and such.


50 posted on 06/01/2006 6:38:53 AM PDT by Extremely Extreme Extremist (Conservatism is moderate, it is the center, it is the middle of the road)
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