July 19, 2008

  • Good grief, THIS certainly puts our nation's economic problems in perspective.

    Zimbabwe introduces $100 billion banknotes

    Zimbabwe's troubled central bank introduced $100 billion banknotes
    Saturday in a desperate bid to ease the recurrent cash shortages
    plaguing the inflation-ravaged economy.

    The bills officially come into circulation Monday, although they were on the foreign currency dealers market Saturday.

    As high as they are, though, the bills still aren't enough to buy a loaf of bread. They can buy only four oranges.

    The new note is equal to just one U.S. dollar.

    Once-prosperous Zimbabwe has seen an unprecedented economic meltdown
    since it gained independence in 1980, with the official inflation rate
    now at 2.2 million percent.

    One. Hundred. BILLION. dollars!  e-faint

    And one of 'em won't even buy a loaf of bread. 

    How does any nation have an inflation rate of 2,200,000%e-Eeeeeek

Comments (1)

  • It's because 2.2 million is of course pretty much the same as infinite in practical terms, and people there seriously don't know whether their money will be worth ANYTHING 24 hours later. That's what happens when you have no security from either economic collapse, total societal chaos due to looming civil war, or government appropriation of what little you've got left, because somebody decides he doesn't like your looks. Of course, if it were a communist country, they wouldn't have the inflation issue because there wouldn't be private ownership of property. But anywhere that the flow of money isn't absolutely government controlled, and the value isn't theoretically fixed, but you mix it with the kind of instability (and evil stupidity) that Zimbabwe has these days, it's a race to see how worthless money can get. A few months back some blogger I was reading posted a million-whatever-it-was note from Yugoslavia in the early 90s, when things were falling apart there, which was also worth next to nothing. A hundred billion is definitely something new, though. Takes a real gem of a government to produce THAT.

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