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Post-Hyperinflationary Zimbabwe Welcomes The Holidays With 80% Unemployment, Empty ATMs And Paralyzed Transport

Tyler Durden's picture





 

Zimbabwe's hyperinflation, courtesy of one Gideon Gono - the brilliant man behind such grand monetary experiments as QE and its offshoots throughout the developed world - and numerous one hundred trillion dollar Zimbabwe dollar bills, may have come and gone, and the country may no longer have a functioning currency of its own, but it certainly has the aftermath of the most recent episode of modern-era monetary hyperinflation to contend with. And with the holidays here, AP provides a very bleak snapshot of what the country which currently has an 80% unemployment, has to look forward to. Zimbabweans are facing bleak holidays this year amid rising poverty, food and cash shortages and political uncertainty, with some describing it as the worst since the formation of the coalition government in the southern African nation.... Banks have closed, ATMs have run out of cash and transport services have been paralyzed." It gets worse: "Zimbabwe's unemployment is pegged at around 80 percent with many people in Harare, the capital, eking out a living by selling vegetables and fruits on street corners." And all of this is after the massive economic imbalances in Zimbabwe's economy should have been "fixed" (or so conventional economic theory would have one believe) courtesy of hyperinflation, which left any savers in tatters, destroyed the value of the old currency, benefited solely debtors  but also allowed a fresh start to a government, which could only remain in power due to a violent power grab by the democratically elected-turned-dictator Robert Mugabe.

What else do all those countries (all of them) engaged in a wholesale currency destruction have to look forward to? AP explains:

Matthew Kapirima, 60, waits outside a busy supermarket for customers to buy his boxes of weather-beaten peaches and litchis for $10 each.

 

But holiday shoppers go about their business without even giving him a second glance. Kapirima has not sold any fruit in days and with a day left before Christmas, he said has to concede that he won't be able to provide his family with food and new clothes this year.

 

"This is the worst Christmas ever," Kapirima told The Associated Press. Kapirima has four wives and 25 children living in the rural areas, but all he has managed to get them this Christmas is a 40-kilogram (88 pound) bag of maize seed to plant on his small-sized family plot in Mudzi.

 

* * *

 

Food shortages are "worse" this year compared to the last three years due to drought and constrained access to cash to buy seed and fertilizer for rural farmers, said World Food Program Zimbabwe country director Felix Bamezon. Bamezon said the Zimbabwe government for the first time has assisted by providing grain to give to starving communities in rural areas.

 

"This is good because they don't interfere to tell us which people to give the food to," he said.

 

The World Food Program has been donating hampers of 10 kilograms (22 pounds) of cereal, vegetable oil and mixed beans to each person in qualifying households every month since September.

 

For those who live in areas where there are grain traders, WFP gives out $3 per person in a household to buy the grain from traders instead of the food hampers.

 

An average household has five people, making it $15 for a family to spend for Christmas.

 

Bamezon also said their organization helps vulnerable communities by engaging them in "food for work" projects where people work to get food during the time they are not provided food assistance.

"Food for work" projects - remember that...

Naturally, creative solutions to deal with the endless misery have emerged, such as no longer eating, and of course forcing your children into prostitution:

Rural communities have come up with coping mechanisms such as cutting down the number of meals a day from three to one and selling their prized livestock, furniture and household goods. Bamezon said he had heard reports that some young girls are given away to elderly men for early marriages.

 

The U.N.'s childrens agency, UNICEF, has in previous research this year noted that girls and young women have been pressured by destitute families to solicit as prostitutes in bars and shopping areas.

 

In the troubled economy, money is not trickling down from the nation's urban elite, who own luxury cars and mansions, to the urban and rural poor.

Can't they just raise the taxes on the nation's "urban elite?" Problem solved.

In summary: "Life is getting harder in this country," said fruit vendor Kaparima. "There is nothing to celebrate this Christmas."

Truly, there is so much to look forward to when the coordinate global attempt at wholesale currency devaluation finally succeeds.

 


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Mon, 12/24/2012 - 15:51 | Link to Comment Quinvarius
Quinvarius's picture

This is what happens when real money is illegal and ration card coupon currency is given out via the buddy system.

Mon, 12/24/2012 - 19:41 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

Actually, Zimbabwe is in many respects a 'free market paradise' embodying some classic ZH themes

People can use any currency they want ... US dollar, South African rand, gold, silver, diamonds

Just about no regulations for the locals ... e-z to start a business ... for most people no taxes on the land that they own

And it has basically become a place where big thug gangs rule, and steal your sh*t if you have any

Essentially it has become a gang of kleptocrats, Mugabe and buddies and military, running the things that produce foreign currency - mining and diamonds - while they let most people scrabble for whatever scraps they can

Not pretty

Am waiting for Simon Black's 'Sovereign Man' report though ...

Mon, 12/24/2012 - 20:38 | Link to Comment Jam Akin
Jam Akin's picture

Simon will work up a complete report after his shift at the call center.

Tue, 12/25/2012 - 00:53 | Link to Comment Buckaroo Banzai
Buckaroo Banzai's picture

"Free market paradise"???

Are you the biggest fucking idiot whoever walked the earth?

They printed Quadrillions of Zim dollars which obliterated the local currency, forcing everyone to use substitute currencies. How is that good?

"no regulations for the locals". Yeah, there's no regulations on the moon either. Doesn't mean it's a good place to start a business.

Holy fuck are you an asshole.

Tue, 12/25/2012 - 09:04 | Link to Comment Quinvarius
Quinvarius's picture

Just don't pan for gold because they will throw you in prison.

Thu, 12/27/2012 - 13:58 | Link to Comment dvfco
dvfco's picture

Good stuff BGI Brussels.  Thumbs way up.  I had actually read a report that things were looking up since the total collapse of the Z$ since people were actually being paid in Euro, Dollars and Pounds.  This had actually created a new low-cost labor market.  But, I guess it's not quite the workers (or employers) paradise it was made out to be at the time.  They did find the best/only way out of hyper-inflation - shit-can your currency.  We will find out.  It might take another decade, possibly even two (I only say this because of what Japan has managed to do), but it will happen here.  

The United States is not immune from economic reality.  In fact, when we lose the 'currency of choice' status, we're double-screwed.

Mon, 12/24/2012 - 16:06 | Link to Comment news printer
news printer's picture
Food, jobs top PM 2013 agenda in Zimbabwe 

U need to have some faith in progress :p

 

Mon, 12/24/2012 - 16:22 | Link to Comment ZeroAvatar
ZeroAvatar's picture

What???? A BLACK Santa?  (Even the blow up dolls are WHITE).  What next......Jamie Foxx remakes 'Passion of the Christ'?

Mon, 12/24/2012 - 16:28 | Link to Comment Bawneee Fwank
Bawneee Fwank's picture
Mugabe and the white african

https://www.youtube.com/watch?v=ajPJ9OD7OfQ

Mon, 12/24/2012 - 16:28 | Link to Comment JR
JR's picture

The snapshot of California Present is the Ghost of Zimbabwe Yet to Come to America unless the 1965 US Immigration Act is dismantled.

As Third World voters have flooded into California and literally voted themselves the treasury along with public sector employees, taxpayers are fleeing in droves, “running away from Sacramento ‘tax thieves’” who now comprise a two-thirds Democrat majority in the California legislature.

Tony Lee on BreitBart.com on November 12 wrote: “When asked whether California was going to start a ‘tax-increase sweep’ across the nation on CNN's “State of the Union," [Governor] Brown agreed.  

“He said more people nationally will have to ‘share’ more of the wealth they "extracted" to fund "collective" government. (The 2011 census data shows 50.4 percent of births in the US are from ethnic minorities – a direct result of  The 1965 Immigration Act which virtually limits entry into the US to the Third World.)

Californian’s  non-white majority agreed with Brown, approving Proposition 30 on November 6 to give Brown more tax access to  “incomes above $250,000, with those making over $1 million having to pay a top marginal state income tax rate of 13.3%.”  The Democrats also approved a statewide sales-tax increase.

Yet, “a Manhattan Institute study released in September found excessive regulations and high taxes forced business and California residents to flee the state en masse since 1990 to more economically friendly states like Texas.”

Says Lee: “The study found that 225,000 California residents are leaving the state per year, and most of the ‘destination states favored by Californians have lower taxes.’”

 “The Marc Chamot Report concurred on December 14:

 Spectrum Locations Consultants recorded 254 California companies moved some or all of their work and jobs out of state in 2011, 26% more than in 2010 and five times as many as in 2009. 

 According SLC President, Joe Vranich: the “top ten reasons companies are leaving California: 1) Poor rankings in surveys 2) More adversarial toward business 3) Uncontrollable public spending 4) Unfriendly business climate 5) Provable savings elsewhere 6) Most expensive business locations 7) Unfriendly legal environment for business 8) Worst regulatory burden 9) Severe tax treatment 10) Unprecedented energy costs.

Vranich considers California the worst state in the nation to locate a business and Los Angeles is considered the worst city to start a business. Leaving Los Angeles for another surrounding county can save businesses 20% of costs. Leaving the state for Texas can save up to 40% of costs.  

http://marcchamot.blogspot.com/

Mon, 12/24/2012 - 16:43 | Link to Comment dvfco
dvfco's picture

JR- I have 3 quick points to make about your post, which I have thumbed up.  

#1 - I think it's as much the commie/lefty/baby boomers who voted for every possible social service as much as any of the immigrants in Cali.  

#2 - When you wrote the study found 'destinations states favored by Californians have lower taxes' I have to say, are there any destination states with higher taxes?

#3 - While Joe Vranich may say the #1 reason for people leaving California is "Poor rankings in surveys", I'd have to call bullshit on his study.  I can't imagine running a business and sitting down checking out surveys about my state, then deciding to leave.  I could, on the other hand, imagine looking at my company and personal accounting and deciding to move.  This study seems a little biased.  Imagine if someone said the #1 reason they did anything, other than maybe picking a school district to have children educated, was because of a survey?  

Survey says, "Shut up and go buy your wife a Christmas present DVFCO." ---- O.K. - I'm listening.

Have a great Christmas.  Unless, of course, you don't celebrate it and you feel that people wishing other people a 'Merry Christmas' when they don't know them are pricks.  In that case, go shit in your hat.

 

Mon, 12/24/2012 - 19:40 | Link to Comment Yen Cross
Yen Cross's picture

 J.R. I was born and raised in California. Owned several businesses in the State of California. Residents started leaving in the mid 90's. I started relocating overseas around the year 2000. If you live on the coast, or in certain inland pockets of the state, it's a joy.

  It's a misnomer that immigrants have ruined california. Politicians, crony corrupt government "pork barreling", and Unions that allow their members to retire at 55 on obseen pensions have destroyed California. When you have a city like [New Port Beach] going bankrupt, it's a clarion call to get out.

   Immigration was a symptom of corruption, not the cause. Merry Christmas J.R.

Mon, 12/24/2012 - 21:48 | Link to Comment JR
JR's picture

Agreed, Yen.  And it’s a deadly mix.

And it my opinion that all the free rides in the areas of welfare, education, Medicaid, Social Security, cheap housing and all the rest encompassing unprecedented legal and illegal immigration is at the expense of each tax-paying citizen and business, many now facing job loss and foreclosure.

And “as long as the jobs magnet exists, millions of illegal immigrants will come to the United States, take jobs from lawful workers and drain taxpayer-funded resources.”

This is not my conclusion but that of Rep. Lamar Smith, R-Texas, chairman of the House Judiciary Committee and Rep. Elton Gallegly, R-Simi Valley, California, chairman of the Immigration Policy and Enforcement Subcommittee. Together they point out that “while many factors have led to California’s present condition, one glaring element missing from the debate is the economic impact of illegal immigration.”

In a state once the embodiment of the American dream, they note that California now  is not only faced with a monstrous deficit and possible insolvency, but “has the second highest unemployment rate in the United States.

“There are roughly 1.9 million illegal workers in California, which accounts for 10 percent of the state’s entire work force. This means nearly 3 million unemployed Californians have to compete with almost 2 million illegal immigrants for scarce jobs.”

The authors of the March 2011 article entitled “Illegal immigration’s toll on state’s deficit” write that “according to a study conducted by the Federation for American Immigration Reform (FAIR), illegal immigration costs California nearly $22 billion each year. This amounts to $2,724 per California household to pay for the health care, education, welfare and incarceration of illegal immigrants.”

Additionallly, at the time of this writing, the law makers noted that “worksite enforcement under the Obama administration is down more than 70 percent. That means it is easy for illegal immigrants to keep jobs that rightly belong to U.S. citizens.”

Merry Christmas, Yen. And a toast to your happiness this Christmas Eve! May 2013 be a better year for our nation.

Mon, 12/24/2012 - 22:38 | Link to Comment Yen Cross
Yen Cross's picture

  J.R. , My best to you and your Family. 

Let's go make a few bucks in these thin markets. I'll never forget May of 2010! Was that a fun trade or what?

 

    This January looks similar/  God Bless J.R.

Tue, 12/25/2012 - 08:50 | Link to Comment GCT
GCT's picture

Yen and JR I was born and raised in Venice Beach CA.  Left CA a long time ago and still go back to visit my family there.  I was shocked to see my old haunts looking basically like third world countries I lived in during my journey around the world.  I was appalled at seeing a once great state reduced to what it is today. 

I did not vote for moonbeam back in the 70's and was chastized by family and friends as I am conservative. (not republican as they are not conservative either)  I thought at one time voters got their heads out of their asses when they passed the bill for no illegals to get handouts, but knew the state was fucked up when the states supreme court threw the vote out. 

I asked my siblings why they remain.  They replied we have the beach and ocean.  I replied after having gone diving and spear fishing, the ocean was a desert where I used to dive and you cannot eat any of the fish or mollusks as the area was now polluted.  Walking along the beach line, the beach was littered and even needles were visible.  I knew I made the right choice to leave. 

Sooner or later something is going to break.

Merry Christmes to all you hedgies and God Bless you all.

  

Tue, 12/25/2012 - 12:09 | Link to Comment Dingleberry
Dingleberry's picture

I lived in Cali. Twice in fact. I was there when Repubs were running the place and (except for that little bankruptcy of Orange County), the state basically was paradise. High but manageable taxes, illegals in hiding but working and not flooding ERs and prisons. And the school were considered top-notch. No.....this is NOT a fairy tale.  Cali in the 80s was the place to be.

Fast forward to the 2000's.  When I returned, the cities were becoming cesspools, taxes were obscene just like the housing prices, 10 adults were living in each house in my hood (good luck trying to find a parking space), and the electorate would never vote against raising taxes.  The schools are going bankrupt, and shitty to boot.  If you lived on the coast in a gated community, you were ok. Otherwise, make sure your insurances are up to date.  Both parties were beyond corrupt (San Diego got run into the ground by Repubs, and the entire state is being run into the ground by Dems).

Cali deserves what it gets and then some.  Stop blaming politicians.  Those drug-seeking, enlightened liberal clowns did this to themselves. 

Mon, 12/24/2012 - 16:34 | Link to Comment dvfco
dvfco's picture

re: RESONANCE:   Cossack, I don't think you said what it's about - Zimbabwe, HFT, piano sound boards, what?  I'm a little dense, so I feel I'm missing something.

Also, I only read to the part above where the guy said, "Worst Christmas Ever" and then I saw "he has 4 wives."  

No Shit -- Of course it's going to be a bad Christmas.  Don't expect the next one to be any better even if you live on Park Avenue.  Stop getting fucking married.  

I feel like I'd have to yell at this guy like only Sam Kenison could.  Remember his bit about  Africa and Deserts.  "What was it 5,000 years ago - a fucking desert.  What is it going to be in 5,000 years - a FUCKING DESERT.  What grows in deserts - NOTHING.  MOVE."  I'd have to be like, "One wife can make you miserable - you know what 4 wives can do - MAKE YOU FUCKING SUICIDAL - WHAT'S ANOTHER WIFE GOING TO DO . . .MAKE YOU MORE FUCKING SUICIDAL "  I think you get the point. 

 

I've had this discussion with a friend who is a psychologist.  A few years ago the NY Times had a story about a woman in Africa with more than a dozen children who was not only dying AIDS, but was also suffering from depression.  I argued she was suffering from reality, not depression.  I truly don't believe that you can have that much wrong in life and suffer from depression.  Every minute of life must be actual hell on earth, not a potentially treatable mental issue.  (I know, go ahead, say it, "You sure the guy is just a 'friend'? How much do you pay him per hour for those discussions?"  I deserve it.

 

 

Mon, 12/24/2012 - 16:36 | Link to Comment debtor of last ...
debtor of last resort's picture

There's no Mugabe-guts-bbq? Or does he pay his personal guards in gold & silver?

Mon, 12/24/2012 - 16:36 | Link to Comment DavosSherman
DavosSherman's picture

Dickhead Central Banks + QE + Asshole Politicians Overspending = This shit.

Mon, 12/24/2012 - 17:11 | Link to Comment pitz
pitz's picture

4 wives, 25 kids?  If he is a member of the SUKI (tm) RELIGION, The New World Religion (tm) -- motherfucking religion, he obviously took the 'motherfucking' part *way* too seriously.. 

Mon, 12/24/2012 - 17:13 | Link to Comment pitz
pitz's picture

"motherfucking" is clearly targetted at Japs who seem to have a lot of problems in that area, BTW.

Mon, 12/24/2012 - 17:13 | Link to Comment dark pools of soros
dark pools of soros's picture

at least slaves got Food & Shelter for work not just food.. if they can keep workers alive without food that would be next

Mon, 12/24/2012 - 17:33 | Link to Comment NoTTD
NoTTD's picture

For reading in the current Zim situation read "The Last Resort". Forgot the author's name.

Mon, 12/24/2012 - 17:43 | Link to Comment buzzsaw99
buzzsaw99's picture

Matthew Kapirima, 60, waits outside a busy supermarket for customers to buy his boxes of weather-beaten peaches and litchis for $10 each.

 

Oh, I see, they still measure the cost of real things in usa clownbux. So then no hyperinflation in usa clownbux then? god you people are lame.

Mon, 12/24/2012 - 18:39 | Link to Comment Yen Cross
Yen Cross's picture

 What a shame to see a corrupt {maniacal} government destroy it's "Human and Natural" resource efficiencies with such directed precision.

  Their megomaniac warlords have been taught by the best. A few more Christmas Eve { Guilt-fomercials}  will make it all better.

  Fuck off pussy junkster! Show your self!

Mon, 12/24/2012 - 18:42 | Link to Comment TradingTroll
TradingTroll's picture

Re: OT Resonance

I know a brain surgeon at a busy Vancouver, Canada hospital. He told me a year ago his data shows "the impact of wireless phone use and micreowave radiation has had much less of an impact than he thought".

Mon, 12/24/2012 - 19:48 | Link to Comment Yen Cross
Yen Cross's picture

 Lay off the "Isolation Deprivation" ...  Jamaica Man--

  It's 8:46 in Toyko, and the exchange was closed yesterday... Toyko is much more liquid, then Sydney, Wellington... Plus China and Hong Kong are opened!

Mon, 12/24/2012 - 19:56 | Link to Comment knukles
knukles's picture

Now that is nut busting funny.
Kinda like the guy who said he wanted to screw Sharon Osbourne because her squamous carcinoma tumors would be like pleasure ribs.

(There's something wrong here....)

Mon, 12/24/2012 - 20:31 | Link to Comment Yen Cross
Yen Cross's picture

 I want to hear some of Knuckles goals for next year.  This Franchise called Knuckles, is enamoring<>

Mon, 12/24/2012 - 20:37 | Link to Comment StychoKiller
StychoKiller's picture

[quote]

Kapirima has four wives and 25 children living in the rural areas,...[/quote]

Hmm, solution is obvious:  Print more children!

Tue, 12/25/2012 - 03:43 | Link to Comment Matt
Matt's picture

How much land does he have? (access to; ownership is irrelevant). With 29 workers, he should be able to produce all their food, clothes and construction material himself, and he just has to supervise. They could be net exporters by this time next year, provided he doesn't take too many of the women out of production and into reproduction.

Mon, 12/24/2012 - 22:01 | Link to Comment Walt D.
Walt D.'s picture

Zimbabwe's present = our future?

Tue, 12/25/2012 - 02:07 | Link to Comment silverserfer
silverserfer's picture

Zimbabwe= Little Detroit.

Tue, 12/25/2012 - 16:26 | Link to Comment liszt
liszt's picture

No, because we won't have inflation, but deflation

Mon, 12/24/2012 - 22:08 | Link to Comment dolph9
dolph9's picture

Well, you bitchez will work hard to send them aid, and when there's the threat of starvation, you will send them more aid.  And then they'll breed some more, and then you will send them even more aid.

Bono at 70 years old will be holding 50 benefit concerts a year.

Don't they know it's food stamp time at home?

Tue, 12/25/2012 - 03:11 | Link to Comment rustymason
rustymason's picture

Q: What do you get when you feed a million starving Africans?

Tue, 12/25/2012 - 17:03 | Link to Comment Kobe Beef
Kobe Beef's picture

Yet another generation of starving africans. It's called 'r-selection'. Look it up.

Mon, 12/24/2012 - 23:00 | Link to Comment Kreditanstalt
Kreditanstalt's picture

"Cash shortages?"

Print more money!  Bingo!  Problem solved...

And is this guy serious...?  RAISE TAXES??

 

Tue, 12/25/2012 - 00:19 | Link to Comment tekmike13
tekmike13's picture

THINK HOW MUCH WORSE IT WOULD BE IF THEY HADN'T THROWN THE WHITE GUYS OUT....

Wed, 12/26/2012 - 01:53 | Link to Comment Joseph Jones
Joseph Jones's picture

missing obligitory "sarc off"...i hope......

Tue, 12/25/2012 - 02:05 | Link to Comment silverserfer
silverserfer's picture

Aaaaafffrickaaaaaaaaauuuuuaahhhhhhh!

Tue, 12/25/2012 - 02:27 | Link to Comment FubarNation
FubarNation's picture

Remember Rhodesia.

PAMWE CHETE!

Tue, 12/25/2012 - 21:47 | Link to Comment WmMcK
WmMcK's picture

Long zvizvuvhutswa (gold nuggets and whistled sibilants)

Tue, 12/25/2012 - 14:05 | Link to Comment MFLTucson
MFLTucson's picture

Coming to a theather near you.

Tue, 12/25/2012 - 14:40 | Link to Comment liszt
liszt's picture

Tyler Durden you wrote once upon a time that all currencies died the same way, through hyperinflation. Well you will simply learn that this won't happen to the US dollar.

I'm not even sure, right now, that anything or anyone will die. Maybe they manage to go zombi.

Wed, 12/26/2012 - 10:35 | Link to Comment Toolshed
Toolshed's picture

Those are rather bold statements Liszt. Please elaborate.......

Tue, 12/25/2012 - 16:08 | Link to Comment pashley1411
pashley1411's picture

The only difference between African leaders living on socialist fantasies and western leaders doing the same, is that the African leaders get the "you must exit the ride" sign sooner.

Tue, 12/25/2012 - 16:25 | Link to Comment liszt
liszt's picture

Yes, because socialists are capitalists, and capitalism is over, it never works, it's immoral, insane and destroying the world. 

 

Tue, 12/25/2012 - 21:37 | Link to Comment squexx
squexx's picture

Funny thing, but when evil YT was in charge, it was known as "the Breadbasket of Southern Africa." Now they can't even feed themselves. Ditto South Africa, Haiti, Detroit...............

Fri, 12/28/2012 - 10:35 | Link to Comment mantrid
mantrid's picture

"four wives and 25 children" "There is nothing to celebrate this Christmas."

poor Kapirima must have some personality issue: he's either a Muslim celebrating Christmas, a Christian having four wives, or a worse-than-western consumerist three times divorced with alimonies for two dozens kids. certainly had a lot of f*ck before 60.

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