interestrateripoff Posted May 20, 2011 Share Posted May 20, 2011 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 $2 billion annually and even boasts of chrome and coal deposits." And since Zimbabwe is now fully on board this whole "pioneering" thing perhaps it should just go ahead and create the first diamond-platinum backed currency. Just don't give China and Russia ideas about floating a new reserve currency that actually has real commodity backing. What's that, you say? They are launching one soon? Oh well.From Commodity Online: The Zimbabwean dollar is no longer in active use after it was officially suspended by the government due to hyperinflation. The United States dollar, South African rand, Botswanan pula, Pound sterling, and Euro are now used instead. The US dollar has been adopted as the official currency for all government transactions with the new power-sharing regime, says Wikipedia. But the central bank of Zimbabwe—Reserve Bank of Zimbabwe (RBZ)—believes that the US dollar is no longer stable. According to Dr Osborne Gono, RBZ Chief, the inflationary effects of United States’ deficit financing of its budget may impact foreign countries and would lead to a resistance of the green back as a base currency; cited newzimbabwe.com. This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency, no wonder they want ownership of all the banks. Gono certainly appears to have a sense of humour. Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted May 20, 2011 Share Posted May 20, 2011 http://www.zerohedge.com/article/zimbabwe-trade-diamonds-gold-it-prepares-launch-gold-backed-currency This is just getting more surreal by the minute, a nation that's printed itself to oblivion has no discovered it can issue it's own gold backed currency, no wonder they want ownership of all the banks. Gono certainly appears to have a sense of humour. The US$ 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 $10 they may have a respite, then they will print more money to bomb somebody who happens to have some oil under the guise of terrorism (they being the terrorists) Quote Link to comment Share on other sites More sharing options...
IDN Posted May 20, 2011 Share Posted May 20, 2011 The US$ 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 Quote Link to comment Share on other sites More sharing options...
R K Posted May 20, 2011 Share Posted May 20, 2011 Osborne, theirs rather than ours, nails the top. Cheers, mate. Quote Link to comment Share on other sites More sharing options...
'Bart' Posted May 20, 2011 Share Posted May 20, 2011 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. Quote Link to comment Share on other sites More sharing options...
billybong Posted May 20, 2011 Share Posted May 20, 2011 Looks like they're going for reserve currency status. Quote Link to comment Share on other sites More sharing options...
scepticus Posted May 20, 2011 Share Posted May 20, 2011 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. Quote Link to comment Share on other sites More sharing options...
South Lorne Posted May 20, 2011 Share Posted May 20, 2011 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.... Quote Link to comment Share on other sites More sharing options...
billybong Posted May 20, 2011 Share Posted May 20, 2011 (edited) 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 May 20, 2011 by billybong Quote Link to comment Share on other sites More sharing options...
shindigger Posted May 20, 2011 Share Posted May 20, 2011 (edited) 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 May 20, 2011 by shindigger Quote Link to comment Share on other sites More sharing options...
Ruffneck Posted May 21, 2011 Share Posted May 21, 2011 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. Quote Link to comment Share on other sites More sharing options...
Guest spp Posted May 21, 2011 Share Posted May 21, 2011 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. Quote Link to comment Share on other sites More sharing options...
MC Fur Q Posted May 21, 2011 Share Posted May 21, 2011 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. Quote Link to comment Share on other sites More sharing options...
Arbitrage Posted May 21, 2011 Share Posted May 21, 2011 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 Quote Link to comment Share on other sites More sharing options...
Lagarde's Drift Posted May 21, 2011 Share Posted May 21, 2011 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. Quote Link to comment Share on other sites More sharing options...
Errol Posted May 21, 2011 Share Posted May 21, 2011 This can't be allowed. Expect UN/Nato/US invasion soon. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted May 21, 2011 Share Posted May 21, 2011 yer- venuzuela Venuzuela is an ideal target. Unlike previous targets it's just a short hop over the gulf of Mexico, not half way round the f*cking planet. Quote Link to comment Share on other sites More sharing options...
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