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Zimbabwe To Trade Diamonds For Gold As It Prepares To Launch Gold-Backed Currency

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http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency

A week ago we presented the idea floated by once hyperinflationary Zimbabwe, oddly jeered by most, that the country is seeking to move to a gold-backed currency, adding, somewhat surrealistically, that the "days of the US dollar as the world's reserve currency are numbered." And if anyone should know a hyperinflationary basket case, it's Zimbabwe. Well, today this bizarre story just went fuller retard, after the country announced that it may exchange diamonds for gold "so that it can have a gold-backed currency, according to a recent proposal from the governor of Zimbabwe’s central bank." Indeed we speculated previously why: "Zimbabwe, a country rich in natural resources, took so long to figure out that it was nothing but a puppet in the hands of western monetary interests." Well, others are now getting this idea - Commodity Online reports that "The country is a resource hub: It sits on gold reserves worth trillions. It has the world’s second largest reserves of platinum, has got alluvial diamonds that can fetch the nation $2 billion annually and even boasts of chrome and coal deposits." And since Zimbabwe is now fully on board this whole "pioneering" thing perhaps it should just go ahead and create the first diamond-platinum backed currency. Just don't give China and Russia ideas about floating a new reserve currency that actually has real commodity backing. What's that, you say? They are launching one soon? Oh well.

From Commodity Online:

The Zimbabwean dollar is no longer in active use after it was officially suspended by the government due to hyperinflation. The United States dollar, South African rand, Botswanan pula, Pound sterling, and Euro are now used instead. The US dollar has been adopted as the official currency for all government transactions with the new power-sharing regime, says Wikipedia.

But the central bank of Zimbabwe—Reserve Bank of Zimbabwe (RBZ)—believes that the US dollar is no longer stable.

According to Dr Osborne Gono, RBZ Chief, the inflationary effects of United States’ deficit financing of its budget may impact foreign countries and would lead to a resistance of the green back as a base currency; cited newzimbabwe.com.

This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency, no wonder they want ownership of all the banks.

Gono certainly appears to have a sense of humour.

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http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency

This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency, no wonder they want ownership of all the banks.

Gono certainly appears to have a sense of humour.

The US$ is a couple of years behind the Zimbabwe$ tbh, the Fed will simply not stop printing in the short or medium term. When gas in the USA is $10 they may have a respite, then they will print more money to bomb somebody who happens to have some oil under the guise of terrorism (they being the terrorists)

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The US$ is a couple of years behind the Zimbabwe$ tbh, the Fed will simply not stop printing in the short or medium term. When gas in the USA is $10 they may have a respite, then they will print more money to bomb somebody who happens to have some oil under the guise of terrorism (they being the terrorists)

yer- venuzuela

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This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency

If they have the necessary gold, why not?

Expect Zimbabwe to be added to the "Axis of Evil" if this goes ahead.

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Looks like they're going for reserve currency status.

deflationary currencies can't attain reserve status because the whole point of a reserve currency is that there is enough to go around.

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http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency

This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency, no wonder they want ownership of all the banks.

Gono certainly appears to have a sense of humour.

...fools gold.... :rolleyes:

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deflationary currencies can't attain reserve status because the whole point of a reserve currency is that there is enough to go around.

Maybe it's the inflationary/deflationary currency turning point for the Zimbabwe dollar given time. On the other hand maybe I should have added a smiley after my original comment.

Edited by billybong

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If they have the necessary gold, why not?

Expect Zimbabwe to be added to the "Axis of Evil" if this goes ahead.

I predict a "liberation of the Zimbabwean people" within the year if this goes ahead.

Despite Mugabe killing at will for several years.

Seriously, how many more dots need joining now?

Edit: Typo.

Edited by shindigger

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I predict a "liberation of the Zimbabwean people" within the year if this goes ahead.

Despite Mugabe killing at will for several years.

Seriously, how many more dots need joining now?

Edit: Typo.

Even the most idiotic of left wing liberals will start to "get it" if they go after Zim now.

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I predict a "liberation of the Zimbabwean people" within the year if this goes ahead.

Despite Mugabe killing at will for several years.

Seriously, how many more dots need joining now?

Edit: Typo.

:ph34r:

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Even the most idiotic of left wing liberals will start to "get it" if they go after Zim now.

Exactly. If we didn't go in to stop the killings, land grabs, etc before, it'll be tough justifying anything now.

Good luck to them IMO, if it was the UK talking about a gold backed pound I'd be fully in favour.

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deflationary currencies can't attain reserve status because the whole point of a reserve currency is that there is enough to go around.

Flexible prices?

Gold was the world's reserve currency for centuries - prices fell - simples

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I predict a "liberation of the Zimbabwean people" within the year if this goes ahead.

Despite Mugabe killing at will for several years.

Seriously, how many more dots need joining now?

Edit: Typo.

Probably best if we encourage a local rebellion or coup from afar. Military invasion would be an unmitigated disaster imho.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
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      • up 5%



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