Wednesday, July 30, 2008

Devalued

Zimbabwe's inflation has run rampant and Mugabe's goons can't print currency fast enough or find trucks big enough to cart around the amount necessary to buy a single US dollar's worth of produce.

Their solution? Rejigger the Zimbabwean financial system so that 10 billion Zimbabwean dollars is equal to a new one Zimbabwean dollar bill.
Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country's reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country's economic and political unraveling.
It wont work.

Inflation continues to increase and the economy continues to be in shambles due to Mugabe's insane economic redistribution and confiscatory policies.

The Zimbabwean currency is worthless and everyone knows it. Trying to criminalize those who are trying to eek out a living is going to drive out those remaining businesses that aren't in cahoots with Mugabe.

While the official estimate of inflation is running around 2.2 million percent, independent economists suggest the true inflation is running at 12.5 million percent.

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