Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency

Tyler Durden's picture

Topping off a weekend of surreal news is the announcement from the Central Bank of Zimbabwe that the country is now evaluating introducing a gold-backed Zimbabwean dollar, and, in keeping with the Salvador Dali feel to the past 48 hours, that the "days of the US dollar as the world's reserve currency are numbered." Yes. Zimbabwe, the same place that two years ago sported a brand new crisp Z$100 trillion bill. What is just as odd is that this news comes less than a week after Iran's President Mahmoud Ahmadinejad criticized US economic policies, saying that the paper currency created by the American government is taking a heavy toll on the global economy. While Zimbabwe, which now transacts almost exclusively in foreign currencies such as the USD and the South African Rand, is actively considering ways to return its own currency into circulation, the man who has up to now served as an inspiration and a role model to Ben Bernanke, Gideon Gono, said the country should consider adopting a gold-backed currency. “There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media... That giant ripping noise you hear is the Chairsatan tearing down each and every 20x10 poster of Gideon Gono, lining the hallways of the Princeton Economics department.

From News Zimbabwe:

THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.

Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.

“We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.”

Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.

We wonder what took Zimbabwe, a country rich in natural resources, so long to figure out that it was nothing but a puppet in the hands of western monetary interests:

“The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.

“Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”

Curiously, the same can be said for Russia, and, soon enough, after it will have bought every last resource and global extraction company, China.

By now it is far too clear that it is an "Onion" world out there. Will it be all that surprising if Zimbabwe is the first country, following its brief and painful detour into hyperinflation, to introduce a gold-backed currency?

h/t Robert

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QQQBall's picture

The near-term bottom may be in for the USD.

in4mayshun's picture

Uh oh, Al Qaeda is about to be discovered in Zimbabwe.

Oracle of Kypseli's picture

"While Zimbabwe, which now transacts almost exclusively in foreign currencies such as the USD and the South African Rand"

This is what works well. Competing currencies. That's what is happening right now in the US. We transition from dollar, for everyday use, to Gold and silver and soon other commodities. Are you listening Bennie and Timmy?

Mesquite's picture

Uh oh, Al Qaeda is about to be discovered in Zimbabwe...

 

Uh huh...

FEDbuster's picture

Or NATO will back a soon to be named rebel force to overthrow the radical hard money government.  Special zero interest US "Military Bonds" will be bought by the FED to fund the overthrow of any government proposing gold backed currencies.  Gold backed currencies will be deemed weapons of mass destruction, and those countries developing such weapons will be dealt with swiftly.

Ben Dover's picture

Sad, yet most likely true. 

Couple that with this piece on extended powers being given any President through the National Defense Authorization Act - found at http://www.aclu.org/blog/national-security/unchecked-executive-war-power-could-slip-through-house - and I think you may well be right. Oh, before dismissing the source ask if it is actually true.

And going into Zimbabwe should put us in closer proximity to the Chinese who are currently exploiting African resources. 

This should be a really interesting century. Too bad i won't be around to enjoy it all. 

baby_BLYTHE's picture

yeah, I also feel suicidal most often. SRS

Al Gorerhythm's picture

If you're serious, then get help. The "black dog" following you around and pissing on your shoes, needs a good kick in the ribs. Send him on his way.

Al Gorerhythm's picture

BB, been down there at times, but when feeling low I always dug this out of the library to get a giggle.

http://www.youtube.com/watch?v=WlBiLNN1NhQ

pvzh's picture

The irony is that in a few years the ending of this clip will have the opposite meaning (banana will be far smarter choice than clip of USD).

Akrunner907's picture

QE3 will be nails in to the coffin on the dollar.  Once that happens, replacement of the dollar as the international standard will happen rather rapidly.  I imagine this has already been in the works since Obama took office.

Harbourcity's picture

http://marcfaberchannel.blogspot.com/2011/05/david-rosenberg-inflation-deflation-or.html

 

David Rosenberg says the deficit is easy to fix - all you need is to remove the loopholes and 2/3 fixed.

 

oh_bama's picture

YES. QE3 PLEASE! QE2 WORKED SO WELL FOR STOCK AND COMMODITIES!!

US should not care about Zimbabwe!

 

Hugh G Rection's picture

Zimbabwe lecturing the US on currency devaluation, o the fun ironies in life.

 

They're just jealous of our president, Mugabe the 2nd.

Manthong's picture

Kinda' like Ponzi telling Madoff how to run a scam.

Arius's picture

i woudnt writte off Gideon Gono...after all he was able to stabilize his country currency...perhaps he might have a good word or two of advice....its up to you to take it but i would listen to him....

RockyRacoon's picture

Oh yeah?  I just read an article in Coin World about Zimbabwe ordering U. S. coinage.   Big disconnect here.   I can't link you to the article (subscribers only) but I found some realted:

U.S. Govt Agrees to Supply Coins

http://allafrica.com/stories/201102250776.html

...and:

FORGET change problems, getting a token or a sweet as change and being stuck with greasy soiled notes. This is because the United States Federal Reserve has agreed to supply coins and replace soiled notes to Zimbabwean banks in a bid to end change problems in the economy, businessdigest has established.

According to sources, representatives Bankers Association of Zimbabwe led by its president and FBC Bank boss John Mushayavanhu met Finance minister Tendai Biti last week to map a way forward in dealing with change problems in the economy.

The sources, said the US Federal Reserve have “formally” agreed that Zimbabwe’s economy is now dollarised and will now supply Zimbabwe with coins and replace notes.

http://www.theindependent.co.zw/business/29989-us-govt-agrees-to-supply-...

Looks like they need to get a story and stick to it.

Manthong's picture

Well, they do have a head start on us with their experience reading all of the zeros on the fiat.

Al Gorerhythm's picture

Gono managed the currency until it was worthless. At that point it stabilized. Mission accomplished with complete success. Fucking brilliant. Yeah, I guess you would listen to him. Meet me in Brooklyn, I've got a prime business venture to sell you. It's a toll collecting venture where traffic can be billed both ways. Involves a bridge.

Derpin USA's picture

Only he who has broken an egg may lecture on the art of omelette creation.

tictawk's picture

Would it not be odd if a FIAT BASED DEBT is converted to GOLD BACKED DEBT?  Are the bankers who used "ponzi" schemes to encumber the masses with fiat, now going to be paid in GOLD backed regime?

How about some honesty and DEFAULT on DEBT and obligations that are unpayable anyway? Yes, some very large and highly levered banks will fail and their minions will be screaming that the sky is falling.  Bankers want indentured servitude and defaults will be a way to teach them prudent risk management.  Cut the gobberment down to size, that means cutting guns and butter programs in favor of what our constitution promised? It is only from the ashes of default and restructuring can we then gravitate to a gold backed currency.

Texas Gunslinger's picture

Exactly!

All those goofy, perma-idiotic libertarians who call for the US dollar to be collateralized by gold have absolutely no idea what they are asking for.

That would, by proxy, collaterilze our ~$14T in treasuries and keep the fruits of the American laborer flowing into bankers' pockets forever.  Wouldn't be hilariously ironic if the anti-Fed libertarians get their gold-backed wishes right as the Federal Reserve becomes our primary creditor with $14T in secured coupons? 

LOL

And for all those libertarian morons who want to tell me that it is illegal to repay fiat debt with anything other than fiat debt, please point to the law that authorizes the US Treasury to collaterilize unpayable swaps at AIG.

Libertarians:  ensuring servitude, one archaic ideology at a time.... 

 

akak's picture

This is definitely Operative #3 speaking.

#1 is at church praying, given that it is Sunday, and #2 does not write at such length.

BigJim's picture

Yes, not a single mention of Jesus, or TG's chief mentor, Satan.

Texas Gunslinger's picture

There is little doubt that you - as a likely libertarian - have full command of all the low-brow, barnyard profanities in the English language.  I've never met a doomer libertarian wingnut who wasn't a maestro of profanity and vulgarity.

The real question, though, is whether or not you're capable of defending your seemingly hypocritical, one-dimensional, rigid ideologies, which, when followed to their inevitable conclusions, are chalked full of contradictions and fallacies.

 Simple question for you: what happens to the ~$14T in US debt if the US dollar is collateralized by gold?

  

 

akak's picture

Statists such as you, utterly unable to attack the philosophically and morally consistent and coherent libertarian position, invariably are forced to resort to puerile and empty ad hominem attacks in the vain attempt to counter that which you rationally cannot.

trav7777's picture

um...it is you whose responses are ad hominem and non sequiturs.  He asked you a clear question.

akak's picture

Nice way to turn the truth on its head, trav.

I used NO ad hominem attack in my post --- unless you are willing to admit that calling Gunslinger a "statist", which he demonstrably is as such is his claim, constitutes an ad hominem attack.

In addition, he added the last line, his question, after I had started replying to his earlier, pre-edited post.

I am not sure in which you are quicker: your always-ready desire to lash out and attack, or your consistent penchant for inserting your foot in your mouth.

Texas Gunslinger's picture

Garbage. 

I made a very clear point in my first post, and I even repeated it in my second post.

All you have is a canned, tired, over-used, overly garbled response that you copy/paste a dozen times a week whenever your archaic doomer ideologies are threatened by reason and logic. 

I shot a clean bullseye straight through your libertarian religion - defend yourself, or STFU.

 

akak's picture

I laugh in the face of your ludicrous, statist trolling!

I fail to see in just exactly what regard you expect that I must "defend" myself.

All you did was launch an ad hominem broadside attacking libertarianism, which you clearly cannot rationally challenge.

Texas Gunslinger's picture

Vacuous. Once again, you didn't answer my question.

You're just a pre-assembled, ready-made, hollowed-out product of libertarian propaganda, straight from the box - no assembly nor thinking required.   

There truly is no meat on your bones, which makes your avatar all the more fitting.

LOL

 

 

 

ColonelCooper's picture

Perhaps if you would quit editing your posts after the fact, ESPECIALLY when you don't fess up to it, you would have a better time getting your questions answered.

akak's picture

Vacuous. Once again, you didn't answer my question.

You're just a pre-assembled, ready-made, hollowed-out product of libertarian propaganda, straight from the box - no assembly nor thinking required.   

There truly is no meat on your bones, which makes your avatar all the more fitting.

LOL

How interesting.

Let's compare the above post, in style and language, to some of his first posts from just two or three weeks ago:

 

by Texas Gunslinger
on Sat, 04/30/2011 - 09:56
#1223726

 

Excuse me Sir...

Can you please tell me what "HFT Quote Stuffing" is?

Also, I went to WalMart today, and there is NO CHANGE IN DOG FOOD PRICES FROM LAST WEEK!  PRICE IS SAME.  COUPONS ARE STILL SAME.  NO INFLATION IN THAT SECTOR THIS WEEK. 

Ok?  I will report again next week, so we can measure the changes week to week. 

Thank you in advance, and God bless us all.

___________________________________

by Texas Gunslinger
on Thu, 04/28/2011 - 13:41
#1216853

 

I BUY DOG FOOD AT WALMART, AND PRICES ARE UP 25% FROM LAST YEAR. 

WHAT SHOULD I DO?

__________________________________________

by Texas Gunslinger
on Thu, 04/28/2011 - 14:19
#1217008


WOW!

THAT IS A GREAT IDEA!

THERE IS A SLAUGHTERHOUSE 40 MILES AWAY, AND I NEVER THOUGHT OF THAT! I KNOW THE SON OF THE OWNER, SO I'M SURE I CAN GET SOME KICKIN' SCRAPS! MAYBE I CAN SELL SOME SCRAPS TO THE LOCAL WALMART TO HELP REDUCE COST-IMPUTS, OR WHATEVER. 

MY DOGS WILL GO CRAZY!!!! 

THANK YOU!

  ___________________________________________________

by Texas Gunslinger
on Thu, 04/28/2011 - 21:01
#1218658


Can someone explain to me what a margin hike is, and why this is relevant to the silver eagles I bought last month? Can I assume that margin means "profit margin" and those people who sell silver are now allowed to make more money?

 

 

____________________________________________

y Texas Gunslinger
on Fri, 04/29/2011 - 11:10
#1220521

I ALREADY HAVE CANNED FOOD!!!!!!  I HAVE MORE CANNED FOOD THAN I WANT!!!!!!!!!!

I thought that maybe I could sell at this price, and buy it back cheaper. Someone near the top of this conversation said gold was going to pop, so I thought that maybe I'd should be safe and sell some gold to lock in my profit margins that I already have! You need to think like a CEO.   

I was just trying to time the market.  That's all. 

 

_______________________________________________

Now, maybe it's just me, but this sounds like two VERY different people posting under the same handle here.

jaffi's picture

Man!  Thanks for digging into the history of things to completely own Gunslinger's ass.  

I guess that he doesn't realize that we can just go into his profile and track what he said yesterday, last week, or last month (maybe not, he's only been around for 3 weeks).  While I certainly don't have the veracity and determination to go into a particular account tracking, I will say that I greatly appreciate the fact that you do.

You have proven that Gunslinger is either:  speaking out of his arse, speaking out of both sides of his mouth, and/or is entirely two different people altogether (either physically or mentally).  In either case, he's a joke, and should be viewed as such. 

Thanks for your work, Akak.

mayhem_korner's picture

You can see below that I wiped my rectum with your last post.

So put the Red Bull down, go back into your sister's closet, and resume snapping the radish until you're relaxed.

Texas Gunslinger's picture

Quite hilariously, you just admitted that you were anal fisting yourself because the rectum is the inner canal.

LOL

It's a bit like saying "after dinner, I used a napkin to clean my esophagus."

!!! LIBTARD !!!!!

LOL

jeff montanye's picture

yeah i thought so too.  but what about the point of two people commenting under one name?  are you married and so one flesh?  or what?

and it's "chock full" not "chalked full".

Hephasteus's picture

Goddamn. I've never met anyone so utterly incapable of keeping up with current fucking events.

Gulf of mexico just gets gang raped by insane corexit dumping psychos. Flood and drought everywhere, christchurch new zealand and Haiti just get fucking devastated with minor hits all over the place and fucking japan is leaking more goddamn radiation than this planet has ever seen outside of a goddamn containment vessel.

And you are going to rip holes in some weak doomer philosphy with some type of sheparding destructive crushing force.

Are YOU FUCKING INSANE? No  I know insane people who look and you and go GODDAMNIT. That guy is insane!!!

http://www.youtube.com/watch?v=G1J6MPsUYwM

StychoKiller's picture

Speaking of canned, don't you have some lamentations to rail at us with, regarding dog-food prices?

Al Gorerhythm's picture

Mighty Christian of you, brother.

LudwigVon's picture

lol What is the question the Fed troll wanted answered again?

fuckin n00b trolls.

mayhem_korner's picture

I took his silly question yard below.

Two latin quips in one "sentence" coupled with your avatar is evidence enough that you're an altar boy who still keeps a stash of rectory-grade KY.