Wednesday, Jul 30, 2008

Inflation problems solved!

BBC: Zimbabwe introduces new currency

Zimbabwe's central bank has said it will introduce a new currency on 1 August as part of efforts to fight the effects of hyperinflation.
The bank's governor has announced that ten zeros will be lopped off the Zimbabwe dollar, making 10bn dollars one dollar.
Zimbabe's inflation is running at over 9,000,000%
So far this year, Zimbabwe has been forced to print Z$100m, Z$250m and Z$500m notes in rapid succession, now mostly worthless. The new Z$100Bn note introduced last week is not enough to buy a loaf of bread.

Posted by little professor @ 12:59 PM (501 views) Add Comment

7 Comments

1. harold said...

The yanks should watch to see how this goes in Zimb, perhaps as a prelude to introducing the Amero?

http://en.wikipedia.org/wiki/North_American_currency_union

Wednesday, July 30, 2008 12:20PM Report Comment
 

2. beartil2010 said...

I saw this and was thinking of posting it. Goes to show how paper currency itself is worthless, it is faith in your country and government backing that provides the value; hence the dollar and sterling doing so badly recently.

Wednesday, July 30, 2008 01:13PM Report Comment
 

3. Whostolemyendowment said...

Extremely funny, but also extremely sad....history has a habit of repeating itself.....Mugabe's days are numbered once his inner circle see it as the right time to turn on him. What a F@UKING mess for a once proud and productive country.

Wednesday, July 30, 2008 01:15PM Report Comment
 

4. sold out said...

I remember this was done in Poland in about 94.The £ at the time was worth 39,000 zloty so their government lopped off a couple of zeros and issued new notes.
The situation in Zim is a lot more serious, when i was their in 96, i think a £ bought you 12 zim $, since then of couse Mugabe and Zanu PF have managed to complete ruin the economy. I guess Gordon Brown and Zanu-labour, given enough time would reproduce the Zimbabwe experience here in the UK.

Wednesday, July 30, 2008 01:16PM Report Comment
 

5. Yt1 said...

harold...I like the sound of this Amero...and I can think of exactly the right US president to be on it (clue: he's still alive as are both his parents)

PS: I know he can't be on it if he's still living but maybe Congress could declare him "brain dead"?

Wednesday, July 30, 2008 04:46PM Report Comment
 

6. yorkshireman said...

Ian Smith was right.

Wednesday, July 30, 2008 05:02PM Report Comment
 

7. jack c said...

As Sterling continues to depreciate many regulars on here expect the Pound to be replaced in due course

Wednesday, July 30, 2008 05:37PM Report Comment
 

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