While scrolling through a Chicago Tribune paper yesterday, there was an interesting article about a cash crisis in Zimbabwe.
We all suffer a cash crisis at one time in our lives, but this is a whole different thing.
Fidelity Printers and Refiners, the state-owned entity that produces bank notes for Mugabe, ran into a major problem. The German company that supplies the paper was not happy with the government's choices in the recent weeks. It decided to not send them the paper as a way to protest the Mugabe regime.
Without the paper to print they cannot produce money. Inflation has caused bank notes to have denominations like 500 million dollars. Software is now going to be an issue also. The government must use the software to dream up new notes as old ones are worthless because of inflation. What is their software license is pulled because of the Mugabe regime.
Fidelity has propped the Mugabe regime by constantly printing new money. But no more. Those legs are about to fall off....
Showing posts with label Inflation. Show all posts
Showing posts with label Inflation. Show all posts
Wednesday, July 16, 2008
Monday, July 7, 2008
4.1 billion dollars in 2 weeks: The New Rate of Inflation
Ah yes, Zimbabwe takes center stage in my brain. Again....
I got an email from a group working in Zimbabwe and some of the happenings are even more startling that what is being said in the news media.
· The salary level for teachers and principals cannot possibly keep track with inflation. Last month a principal received his salary. It was only enough to buy 4 bananas!! It is very understandable that the staff of schools are not present to teach the children.
· Cornelious was called in the night to take one of the caregivers to the hospital. When he arrived, he found there were no doctors present at this major hospital.
· Two weeks ago (the week we left South Africa for a 5 week trip to the States), the Zimbabwe dollar fell from 2 billion Zim dollars for 1 US dollar, to 6.1 billion Zim dollars for 1 US dollar. And that was within just one week!
· The March presidential election, and the following runoff election of June, has left the country with Mugabe sworn back in as president, but not recognized as legitimate by many of the world’s major leaders, including many in Africa. Some African figures have called for armed intervention. The nation continues in painful limbo.
6.1 billion dollars to 1 U.S. dollar. 4.1 million dollars in inflation in one week. It is understandable that four bananas is not enough to feed a family.
Other than removing Mugabe from power (which I support!), how can we help stabilize the economy and restore aid to Zimbabwe?
I got an email from a group working in Zimbabwe and some of the happenings are even more startling that what is being said in the news media.
· The salary level for teachers and principals cannot possibly keep track with inflation. Last month a principal received his salary. It was only enough to buy 4 bananas!! It is very understandable that the staff of schools are not present to teach the children.
· Cornelious was called in the night to take one of the caregivers to the hospital. When he arrived, he found there were no doctors present at this major hospital.
· Two weeks ago (the week we left South Africa for a 5 week trip to the States), the Zimbabwe dollar fell from 2 billion Zim dollars for 1 US dollar, to 6.1 billion Zim dollars for 1 US dollar. And that was within just one week!
· The March presidential election, and the following runoff election of June, has left the country with Mugabe sworn back in as president, but not recognized as legitimate by many of the world’s major leaders, including many in Africa. Some African figures have called for armed intervention. The nation continues in painful limbo.
6.1 billion dollars to 1 U.S. dollar. 4.1 million dollars in inflation in one week. It is understandable that four bananas is not enough to feed a family.
Other than removing Mugabe from power (which I support!), how can we help stabilize the economy and restore aid to Zimbabwe?
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