Tammy Bruce: The Hazards of Fiscal Mismanagement

The Hazards of Fiscal Mismanagement

This will buy 3 eggs

A post by Maynard

The economic setbacks of Zimbabwe have been greatly exaggerated. Here's proof: A hundred-billion dollar note! (I saw people selling these notes on eBay.) It stands to reason that a nation can never be impoverished as long as the government keeps printing money. Who could argue with that?

After Rhodesia became Zimbabwe in 1980, the Rhodesian dollar was replaced by the Zimbabwean dollar. Inflation grew, and the second Zimbabwean dollar replaced the first Zimbabwean dollar in 2006 at a conversion ratio of 1000 to 1. The inflation became hyperinflation; the bill pictured above is a "second dollar". During July of 2008, the number of Zimbabwean dollars needed to equal a US dollar grew from 142,024,433,315 at the start of the month to 669,809,343,407 at the end. As of August, 2008, with inflation running at an annual rate of 11,268,759%, the third Zimbabwean dollar has replaced the second Zimbabwean dollar at a conversion ratio of 10,000,000,000 to 1.

The Reserve Bank of Zimbabwe website is something of a joke, spouting the usual platitudes about what a wonderful job they're doing. You see how politicians around the world and throughout history often say the same thing.

Posted by Maynard · September 20, 2008 03:15 AM · Permalink
Corruption | Economy/Economics | Just Wrong | Maynard Post | Tyrants

Comments

"This will buy 3 eggs"

Not any more it won't. That was HOURS ago.

Posted by: Dave J at September 20, 2008 05:21 AM

Good grief. That's so bad, it seems like an unbelievable joke!

I wonder how you make change?

Posted by: Brooke at September 20, 2008 05:59 AM

What a mess that country is.
Ending Apartheid was obviously important

but then turning over the country to Mugabe,
who turned a perfectly efficient agarian economy
into a sesspool, very sad

Posted by: dasche44 at September 20, 2008 09:55 AM

As long as your touching on currency, I recommend what might be a topic of every countries concern should globalization lead us one currency as the Euro. Who will underwrite it?

http://www.energypublisher.com/article.asp?idcategory=34&idSub=158&idArticle=16166

Posted by: Shawmut at September 20, 2008 11:47 AM

SHAMUT, My money is on the SDR. You can check it out at:
http://www.imf.org/external/np/exr/facts/sdr.htm

They've been working on this problem a lot longer than we've been worrying about it.

The SDR will be a perfect world solution to the world economy after they pull the plug on the dollar and start WWIII.

Posted by: jdb at September 20, 2008 02:03 PM

Due consideration granted, JDB. I'd lke to think, well have faith at least, that we could maintain some sovereignty of our own.
Have lost it already?
Thanks for the tip.

Posted by: Shawmut at September 20, 2008 04:04 PM

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