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Zimbabwe Runs Out Of Paper To Print Money

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http://www.guardian.co.uk/world/2008/jul/23/zimbabwe

The Zimbabwean government was today struggling to find enough cash to pay its workers, and more importantly the military, after it was forced to severely cut back on printing money because sanctions severed its supply of banknote paper from Europe.

Officials involved in the printing of money said the regime was fearful that the presses could be shut down altogether if further political pressure causes the withdrawal of software licences used to design and print the notes.

Paper money was already in desperately short supply because the state-run Fidelity Printers & Refiners in Harare was unable to keep up with the demand created by hyperinflation and rapid devaluation that had caused notes to lose almost their entire value within weeks of being issued.

Awesome, simply awesome.

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What next? Zimbabwe dollar novelty bog rolls? :lol:

(With space left for user to add their own portrait of Mugabe) :blink:

Edited by Dave Spart

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Well they could just invest in a official goverment tresury marker pen and write IOUs on rocks until paper supply was resumed.

IOUs on rocks for goverment paper IOUs.....

Unless the ink runs out of course.

Hmm it will have to be spoken IOUs and handshakes after that.

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I propose a new name for Zimbabwe : Googolplexia

Might they save a bit of paper if they switch from using base 10 to a higher base like base like hexadecimal?

e8d4a51000 (10 characters in hex) = 1000,000,000,000 (16 in dec including commas)

Edited by Dave Spart

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From wikipedia :

"In the documentary Cosmos, physicist and broadcast personality Carl Sagan estimated that writing a googolplex in numerals (i.e., "1,000,000,000...") would be physically impossible, since doing so would require more space than the known universe occupies."

Extrapolating forward, if inflation continues the way its going, the universe may run out of space and no longer able to accomodate bankers and their grubby practices within, oh . . . a few weeks?

:lol:

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well, if they cant print it, theres no more in circulation, hence inflation is cured.

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well, if they cant print it, theres no more in circulation, hence inflation is cured.

I wonder how much cash [m0 money] is in circulation compared to all deposits [m3 money]?

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is now a ream of copier paper actually worth more than the official currency in total circulation? :blink:

Yes. :lol:

Of course, it's value goes up a bit more when there are 15 armed men on the doorstep wanting you to pay them $14 squadrillion Zim in order to leave.

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Whatever way you look at it, their currency is now more expensive to produce than it can be worth, no matter how any 0s you print on it.

It's horrible to think about.

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Whatever way you look at it, their currency is now more expensive to produce than it can be worth, no matter how any 0s you print on it.

It's horrible to think about.

So is ours, that's why we are in such trouble.

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Whatever way you look at it, their currency is now more expensive to produce than it can be worth, no matter how any 0s you print on it.

It's horrible to think about.

it's quite a 'head fukc' the more you think on it isn't it? :blink:

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I wonder how much cash [m0 money] is in circulation compared to all deposits [m3 money]?

in a real hyper-inflationary situation like this, I think all lending and deposits tend to just stop, and you almost end up totally cash based.

the goal ends up being to spend the money as fast as you can before it loses value and loans are too hard to compute for any long term period of time.

Edited by Mr Nice

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in a real hyper-inflationary situation like this, I think all lending and deposits tend to just stop, and you almost end up totally cash based.

the goal ends up being to spend the money as fast as you can before it loses value and loans are too hard to compute for and long term period of time.

I'm sure this has been asked before, but what are house prices like over there atm :lol: Shouldn't laugh I know, all deeply troubling for the population :(

Edited by Converted Lurker

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I'm sure this has been asked before, but what are house prices like over there atm :lol: Shouldn't laugh I know, all deeply troubling for the population :(

Zimbabwe house prices

jesus, I've never seen quadrillion actually used in economics before.

the article says that prices get quoted in the US dollar since the Zimbabwe whatever is so unstable, so maybe a lot of the banking/lending etc is done in foreign currency as well.

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I suspect its already got to the stage where the currency "value" of the note is worth less than the cost of the paper and the printing... someone said the new 100bn was worth about 7p (probably 3p as I write) and I'll bet when you factor in the cost of buying the paper, shipping it, printing it, the wages involved etc.... the cost of printing that note is way above its actual "value".

Meanhwile I suppose the regimes key henchmen have millions locked away abroad and it wouldn't surprise me if many of their extended families are not enjoying orivate or university education in the good old UK.. so much for clamping down.

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if the printing presses stop rampant inflation will stop, and the government will have no control :) But it will hurt the common Zimbabwean who is struggling to survive :(

1. Forex is flooding into Zimbabwe from Friends and Families in the US/UK/Europe. (100 quid a month per person who is still in zim would mean 200->300 million pounds a month flooding in)

2. Mugabe prints more money and gives it to his men.

3. His men exchange it on the black market for forex and the men in power get rich, nice house, nice car, lots of eat and private foreign schools

4. Everyone in power demand bribes they buy foreign property, gold, islands and get very very very rich

If you stop sending paper to zim and you ban Uk/Us/european countries from operating (ie dhl, money transfer companies), the flood of forex stops, and mugabe cant print toilet paper and collect forex. If only you could get china to pull out....

Edited by moosetea

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I'm sure this has been asked before, but what are house prices like over there atm :lol: Shouldn't laugh I know, all deeply troubling for the population :(

3 years ago, 10k GBP for a nice/reasonable house in the capital. But property/cars/fridges anything is better than money so 'things' are in demand, you can sell it later...

Edited by moosetea

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