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Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency
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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I junked you for being a whiny douchebag. It never ceases to amaze me how people project their utopian expectations onto the back of ZH. If your a lefty, this place is WAAay too far to the right. If you're a Hannity fan, this place is farther left than HuffPo.
Why don't all of you whiny fucks grow the Hell up, and accept this place for what it is. Insanely cynical bloggers who do a better job of getting you information than most any other place, brought to you from the spectrum of the writer. AAAnnd let us spout off relatively uncensored. Bias may or may not be included. It is what it fucking is. Most of the time, it's funny. Now lighten up.
In a time of universal deceit, telling the truth is a revolutionary act
Orwell
Start your own blog then
Hear hear..
I thought they were bombing Q'daf and want to bomb Iran cause they are talking gold. Probably the surest way to get some 2000 pounders dropped on ya is to start talking gold. The PTB don't like that shit.
For some reason I don't get the Dali and 48 hour reference, can someone explain?
Surrealism. Though Dali's not the best example, in my opinion
Speaking from a connoisseurs sense, or a populists?
Thanks for the answer Caviar Emptor!
God only knows...
I think therefore there is god. Descarte came so close....
Hey, they have plenty of experience going down the hyperinflation path, so they ought to know what it looks like. Thanks Mugabe, for showing us the way! Get your gold and silver, not to mention food, while there is still time!
you know shit is going sideways when the crackhead is calling out the crack dealer!
No surprise Zimbabwe does a 180 and goes to a hyper inflation defense policy. Its hyperinflation was engineered deliberately by Mugabe as a tool to oppress the majority who wanted him out. Nothing like obliteratation of all economic tools combined with mass starvation for wiping out ones enemies. Now the situations changed and managing their economy back to health is the key plan, Bennie boys dollar ponzi scheme has got no takers in the land of Zim...
cool i have $100 trillion zimbabwe bucks, i hope to redeem them for gold real soon
im in the money, im in the money,.
do do do doooddy dooody do,
Zimbabwe bitches.
God but ZH posters are getting slow.
I blame the servers. They need to upgrade.
Olympic committee has yet to decide site of WWIII, but not a bad guess.
(Bernank's "role model" - good stuff!)
Scheduled for next Bilderberg subcommittee on International Global Crisis Planning meeting to be held at the next Bohemian Grove conference and day camp center if they can provide enough underage gay eunuchs.
PS Unfortunately, DSK is not able to attend due to scheduling conflicts.
Claude can take his place.
It's bad when Zimbabwe says your currency is flawed.
They will probably get a good deal from China on the gold bars to back it.
http://www.exohuman.com/wordpress/2011/02/fake-gold-bars-sold-to-china/
A lot of idiots who post here voted for Mugabe 2. I knew he was going to be Mugabe 2. I was hoping I was going to be wrong but the islamic is just like Mugabe.
Imagine that. A Gold backed currency rises from the ashes of a country who's name is synonymous with hyperinflation. This will no doubt irritate the other central bank cocksuckers to no end, as the world watches the currency of none other than ZIMBABWE stabalize and swiftly grow in value and global demand Gold is their chance. Gold is everymans opportunity.
LOL
Ben, it's Lloyd. Did you see the wires? We gotta do something about HBSC, JP and this sliver shit with Blythe real quick. Now listen, I got a plan....
You know it's bad when not even Zimbabwe wants dollars. Is this the Change we were promised? I'm still looking for the Hope......
Wow, now this is just sad that Zimbabwe is talking more sense than the FED. We are moving to a Gold standard, this in inevitable. Gold is King!
http://goldisking.blogspot.com/
Gold For Bread - Zimbabwe
http://www.youtube.com/watch?v=7ubJp6rmUYM
uh.
Zimbabwe?
I'd rather own used toilet paper from a Taco Bell in the ghetto of Chula Vista than own a Zimbabwe currency backed by gold.
...better off with physical gold.
The word of Gono isnt good as gold??
Not fucking good enough, eh?
Just you wait for Goldman to be the sole, fair and impartial distrubutor/market maker in the new currency with their exclusive Cambio Booth and the end of the smoke shop in the Harare airport.
You clearly don't understand what "gold backing" means.
If you don't like the paper (understandable), take it down to the bank, or treasury window, and trade the paper for gold.
asl?
In a shocking development the China and the IMF have recognised Zimbabwe's gold backed currency as the new international reserve currency.
I would pay a thousand bucks to see that as reality. And a video of Bernanke's and Obama's faces when they read it in the newspaper.
It would be the videos of the century.
indeed
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.
I figured it was either that, or Bernanke's Princeton interns tearing up the fiat they use to stoke up the fireplace in the Student Union Building.
That line was funnier than shit.
DSK for Zimbabwe's Prez!
The U.S. has become the Lindsay Lohan of economies.
Maybe we want to get caught. A cry for help.
Won't be long now before Zimbabwe gets invaded by the UN/NATO to ``free`` the Zimbabwe people from the evil dictator Mugabe.
You can bet on it.
Poor Gideon: anyone who strays from the agenda of the Global Banking Cartel doesn't survive. Witness Ghadaffi who made no secret that he was going to form a Pan-African Union with a currency backed by gold; a real no-no to the money printers. Most people don't realize that Libya has (or had) an exceptional standard of living; free health care, housing, and a highly educated populace. Mayer "redshield" and his cronies tried to get Andrew Jackson (3 attempts failed), were successful with Lincoln and JFK.
+ for those that stood up to TPTB. watch the secret of oz on youtube my people
http://www.zerohedge.com/article/secret-oz-truth-behind-modern-financial-system-and-money-political-complex
I posted it many many many moons ago.. but take a ride back and enjoy the show!
2011 - we're not even halfway through and it's turning out to be something not even the most creative and imaginative Hollywood screenwriters could have dreamt up...yeah - buddy!
+1000000000000000000 2011 is my favorite year so far. Great stuff going on.
Just fucking wait for 2012, it's billed to be a doozie!
Very few good sequels out there. They just add more bullets and bombs to the ongoing story.
"billed" pun intended of course?
With you on that. The times are a changin'
Or did they?
http://www.youtube.com/watch?v=6butfe1f9Hg
Zimbabwe has been a trend leader in economics.
Besides, all this talk of a gold standard lately from Forbes and others is just laying the mental groundwork for a decision already made. This guy just could not keep his yapper shut.
Through the fog of absurdity there is one ray of light in this: emerging countries are getting crushed under the weight of dollar printing, especially the smaller ones and frontier economies. That wouldn't normally be a problem or even news except that in a world of diminishing natural resources and an import-dependent developed world it's suddenly relevant. Especially if we can't negotiate price through ruthless dictators like in the good old days.
World's major economies (outside US) have been bombed three rounds to make DOLLAR looks 'strong':
MidEast:
Round1: Dubai debts
Round2: Iran protest
Round3: Libya/BinLadin
Euro:
1: Greek Protest
2: PIS debts
3: Greek current.
FarEast:
1: Toyota pedal/Google China
2: Korean sank ship/Jap-Chi small island
3: Japan quake
But the highest points DXY bounced back to, got lower and lower.
Yep. They have a few other cards to play... worldwide markets collapse, one big US bank collapse ala Lehman, euro collapse/break up, no ``dollar alternative as world currency``, big war with fears of world war (taiwan, Korea, Iran, Pakistan), middle-east clusterfark leading oil to skyrocket (Saudi Arabia-Iran war)
They can still pull a lot of crap to keep the dollar strong as ``refuge when people fear instability worldwide``... until people man up and buy gold/silver/food instead of crappy US dollars.
We will probably have a dxy in the mid to low sixties when this is over. If the descent can be managed we will come out of this ok, but poorer and more employed.
Yes we can. Change is what we can believe in. The change in our pocket.
Yes We Kahn !
A new coin shop in our town "Change you can believe in."
That's it. I can no longer keep up with the news.
@ejhickey Thank you for saying exactly what I wanted to say! And thank you to Tyler for introducing this Zimbabwe story with the comment about how surreal the news of this past weekend has been, how it has a Salvador Dali feel to it! Last night, when the Strass-Kahn arrest crossed the wires, I pushed my notebook away the way you push away your dinner plate when you're full. I told my online friend, "That's it. I've had it. I have just crossed my Crazy Limit for the day."
Well DSK was fighting to protect the third world. Thats why he had organized a special meeting in NY with a high level third world representative in a highly secret location now known to the world. In fact, the third world representative got high jacked and replaced by a first world planted agent who did a belly dance in front of a naked DSK and voodooed him into submission. That's why we are where we are today. Its a tragedy for the third world that this belly dance of Puertorican origin occurred. It will put back the third world ten light years and allow Benocide to print away to their detriment.
This is so funny and with irony for Zimbabwe to call the end of the dollar.
To ever allow this to happen is sad.
Zimbabwean dollar not likely to be backed by any volume of Gold. Maybe they meant Goats.
libya has been secretly exporting golden camels to zimbabwe via Chad...Nato has been had...as chad is worse than bad for the west, its the Ho chi Minh trail of africa. All the gold of Tripoli heads for Zimbabwe via Chad, then central africa, on camel back. Each clad camel wont be had be these mad bad from nato . The frogs can flog their goats in Benghazi, they wont drip an ounce of gold to their masters. The guys from Nato say to express their frustrate : Who would trust a frog who loves to do it on the bog with a maid whose not been paid? Not a goat, not a red blooded toad from a nuclear boat. Is this a conspiracy where the Joker pulls the strings?
Goats can produce milk and can be eaten. What do you do with zero value currency notes ? Remember also Zimbabwe WAS the bread basket of Africa and relatively prosperous. I believe they have mineral deposits also. Their economy was deliberately destroyed for political purposes only, not due to financial incompetance.
no; Rhodesia was the breadbasket of Africa. Zimbabwe has been a complete and utter failure, just like it was before being Rhodesia.
Listen, the government came in and what farmers/landowners that weren't slaughtered by the indigenous population saw their forefathers' sweat and toil handed over to indigenous peoples who sat on their asses and let the crops rot. They sold the equipment as scrap.
We see a similar phenomenon here when public housing projects are built like Cabrini Green. At its construction it was an astoundingly fine facility. The population that lived there destroyed it systematically over decades, oftentimes pissing in their own hallways, tearing out their own toilets to sell as scrap and then shitting into the holes.
It's high time the world woke up and just stopped LYING to itself about what is versus what we wish would be.
The indigenous population of Zimbabwe is still of the same competencies and attributes as they were prior to colonialism. They are merely reverting back to the state of affairs prior to foreign settlement.
Yeah, if only it had been a white government stealing the land. If those thugs had been white, all would have been fine, because whites have higher IQs, amirite? Or is there no such thing as a white thug in your mind?
Good job pretending that big government wielding unlimited power is ok so long as it is whites that do it.
At every turn, you insidiously defend big government. Literally EVERY TURN. You make up excuses for them, like IQ bell curves and peak oil, and you claim that things never could have turned out differently, as if the form of government employed had no effect on anything. When things go bad in white countries, it is inevitably da jooz. No higher level of analysis required.
You are such an utter shit. Your new name is Golgothan.
you must be replying to some other comment. Trav didn't say any of that.......
I resent that
Resent what ? a) the deliberate destruction of the Zimbabwe economy or b) Goats can be eaten. Personally I hope you resent a), as I find BBQ goat meat very tasty...
Quit pussy footing about the topic.
Goats are lovers, too.
Did the cops find a goat costume in DSK's room?
why must people like you substitute sinister conspiracy for what is NATURALLY occurring as a result of the PEOPLE who now run Zimbabwe?
Look, a population that built stuff was displaced by force by a population that does not. WTF do you EXPECT to happen?
Do you really honestly believe that the colonists possessed some magic incantations that made the land yield to them and built all those farms and machinery and that the natives lack this spell but in all other respects are their equals?
The reality is that the competencies and attributes of the two populations were and remain MILES apart. Zimbabwe is merely reverting to a condition consistent with its population. There is no mfing conspiracy, jfc...if such existed, it would have been in FAVOR of the colonists. You would believe that the "powers" of the West destroyed Zimbabwe? WHY? The WEST was in control of Zimbabwe as a result of colonization!
The west is who decided it was time to have "diversity" reimposed on African states successfully run by non-majority, non-indigenous peoples. The colonists fled or were slaughtered with State assent and assistance. Now, the indigenous are firmly in control and the entire economic system is reverting to what is achievable with their abilities- the SAME state it was in prior to colonists.
Just say what you REALLY mean: it's all the niggers' fault! Right?
that simply isn't what I said and your racist epithet serves nobody well
Africa has more than its share of Klepocrats. Is this just a Black (or African) phenomenon?
"Zimbabwe Says Days Of The US Dollar Are Numbered"
in other words... the U.S. hit a new low.
Those $100 trillion notes are fun to hand out at the office. Most people have never seen anything with so many zeros, and I get to tell them some history about hyperinflation (my father's family lived in Germany during that period of hyperinflation). I usually get mine from ebay - I figure I need an entertaining gift, and some zim-person gets some "real" money.
It takes one to know one.
Gideon is a scumbag. Him coming out now claiming he got religion is ludicrous.
From one to a trillion and back again. Didn't take too long for the fiat ponzi system to fully capitulate. Gold to open limit up?
Sighs. Some folks never type to dig deeper.
UPDATED: IMF to withhold portion of Zimbabwe SDR allocation -2009
http://www.zimbabwemetro.com/finance/imf-to-withhold-portion-of-zimbabwe-sdr-allocation/
The Fund's Overdue Obligations
SDR August 2009
USD 1.563900
SDR May 2011
USD 1.623210
Initial weight share
http://www.imf.org/external/np/tre/sdr/sdrbasket.htm
SDR Interest Rate, Rate of Remuneration, Rate of Charge and Burden Sharing Adjustments
August 31, 2009
http://www.imf.org/external/np/tre/sdr/burden/2009/083109.htm
SDR Interest Rate, Rate of Remuneration, Rate of Charge and Burden Sharing Adjustments
May 02, 2011
http://www.imf.org/external/np/tre/sdr/burden/2011/050911.htm
Can you see the picture?
"In the Lord's hands, I commit this Monetary Policy Framework for our economic turnaround."
Forget "gold backed currency".
The only thing that is honest is real physical gold. The only reason for anyone to propose a "currency" is to lie, cheat, steal, defraud and enslave others. If they were honest, they would simply mint gold coins.
Non braindamaged beings don't want backing, they want the real, physical valuable goods... like gold coins.
Quite likely, when the world of fiat currencies collapses, the predators-that-be will promote a so-called "gold backed currency". SAY NO. Only accept real, physical gold. And every time they attempt to convince you to take some paper substitute, you know you are dealing with a predatory scam artist.
Exactly.
Gold backed currencies are a ridiculous exercise to scam people one last time.
If it is not freely and immediately convertible it is just another brand of fiat.
I am strongly inclined to agree.
If we had NEVER been lazy enough to willingly be sucked into the scam of banker-issued paper currency, then NONE of the financial and monetary collapses, artificial boom-bust cycles, massive world wars, or society-wide taxations-by-stealth via inflation would have ever been possible. We would live in a vastly more stable, more prosperous, freer, and healthier world.
God damned right!
Richard Miltown Nixon took us off the "partially gold backed" fiat giggle giggle snort snort currency system and look where it got us.
Zimbabwe cannot float a gold backed currency.
If it were not freely convertible no one would believe it were backed by an equivalent amount of gold.
If it were convertible the first thing anybody would do if they had a few zimbabwe dollars would be to instantly exchange it for gold.
Exactly TCtroll. Just because a Gov't member (Zimbabwe of all places) floats the "gold standard" idea implementation is very difficult, and in a country of 50 to 60 year 1 party facsist/socilaist rule...virutally impossible. Actually definitely impossible.
Hey! I've got a drawer full of 100 Trillion Dollars Zimbabwe notes that I've been handing out to friends as gags. I'd be happy to sell them back to Mugabe!!
Soon some reason will be conjured to invade Zimbabwe ... such as .. well ... terrorists live there
We are all so looking forward to the collapse of your banana republic ... it cannot come soon enough
Samantha Power and Susan Rice to call special session on Human Rights "Emergency" in Zimbabwe in 3....2...1...
read carefuly
reverse currency
valueless....
backed by debt
right on! someone who GETS IT.
Ron Paul harps on about the gold and silver backed currency, but he is SOLELY saying in the constitution the GOVERNMENT can only issue gold or silver backed currency.
All the anti-gold bugs never hear the other part of his argument, which is, PRIVATE companies can issue currency (competing currencies) in whatever the heck they want (plastic coins anyone)? But the government is restricted to gold and silver.
Then the PEOPLE get to choose which currency they wish to use.
Legalising competing currencies will actually counter Greshams law, and instead of good money 'disappearing' from circulaton, 'bad' money won't be used by people.
All right, put the brain down and back away slowly with your hands up. No one gets hurt...:>D
After paper money fails governments have to go back to the gold standard. Their is really no other viable option. It will happen in the U.S. and rest of the world eventually. Not that surprising really. It happens 100% of the time. The people ripping us off don't want us to know this and pretend that gold is an ancient relic and not money. As long as the masses are getting "something for nothing" and the poor are to weak and ignorant to fight it they will accept the "bargain." Once it all falls apart we have to go back to gold. If I was a millionaire in this day and age I would be very nervous of if a large percentage of my wealth was not in gold. There's going to be alot of millionaires that will become poor overnight some day.
Right on GONZO! They keep shakin the tree and the masses let their PM's fall to the ground. Too bad HST isn't around to comment on Timmy and Benny.
Der. From the mouths of experience. Just like Madoff pegging wall st. and the federal gov't.
But I wonder if the PM markets are pricing this in. I doubt the new backed currency will be pegged as high as the current spot.
One thing is for certain - the day the U.S. converts back to a metal standard, I am making a pilgrimage to piss on Nixon's grave.
I agree. The bottom is in on USDX.
Now it is time for gold to start rallying in every other currency but the USD.
Junked because .... well, just because it is RoboTard.
this is my expectation as well...been watching the BRL a lot because it is indicative of a lot of things.
The POG will likely climb in EUR/BRL/AUD and stay flattish in USD.
King Dolare! to the moon...
rod serling will arise from his grave for this....
Stand fucking by for peace-keeping aerial bombardment followed by invasion. Clearly Zimbabwe has joined the axis of evil... ahem, I mean, of course, they've always been part of the axis of evil and we've always been at war with them.
This is top priority, black ops mission that will have none other than Benny himself in the lead copter dumping $100T FRN's to soften the landing zone for Timmy's assault on the financial terrorist known as Gono.
291,666.67 Tons of gold it would take if the US wanted to shore up its 14 trillion $ debt. Oh yeah, and the total amount of gold mined throughout history sits at ~165,000 tons(according to Wikipedia)..with the US Govt supposedly holding about 9000 tons between Ft. Knox, The Philly & Denver Mints, and the San Fran depository. Regardless of whatever outcome, chances are our dollar will lose.
Yeah, some sock puppet was going on about using gold to 'collateralize the dollar' and the $14T debt earlier.
The dollar is done. Creditors will get worthless paper. There won't be a 'gold backed dollar' and no serious person I read is suggesting that.
You need to find a more convincing strawman.
A billion dollars isn't cool. You know what's cool? Two HUNDRED TRILLION dollars, the size of total U.S. debt or the value of an ounce of gold at some point in the future.
I may have to relo to Zim to avoid fiat. Go fucking figure.
"When the going gets weird, the weird turn pro."
Hunter S. Thompson
AKA: Dr. Gonzo (not Dr. Gono)
...Zimbabwe Ben......
Has a nice ring.
Another contrarian indicator for USD and GOLD:
' Zimbabwe Says Days Of The US Dollar Are Numbered, Pushes For Gold-Backed Local Currency '
EURUSD downtrend is gaining momentum as overdue USD rally I forecast develops.
It took longer than expected but we got there eventually.
Stocks and GOLD/SILVER will fall imo.
http://stockmarket618.wordpress.com
For a currency to be gold-backed it must be redeemable for gold.
Saying a currency is gold-backed but not redeemable for gold is meaningless.
FRNs will never be gold-backed. Doing so would reveal a true exchange rate like $100,000 per ounce and the dollar would collapse instantly.
It would also collapse the banking system. Banks couldn't create money out of thin air and lend it out anymore.