Mugabe Considers Revival Of "Hyperinflated" Zimbabwe Dollar

Tyler Durden's picture

It seems every bubble is coming back. 5 Years after Zimbabwe abandoned the Zim Dollar (in favor of the US Dollar) after inflation surged to 500 billion percent the year before (according to the IMF), Bloomberg reports that Robert Mugabe's ruling party is considering reintroducing the local currency as it struggles to meet its monthly wage bill. "If they bring back the [Zim] dollar it will quickly deteriorate to worse than then, we’ll have nothing," warns one businessman as the appeal of reviving the Zimbabwe Dollar - allowing the government to print money to meet its needs - is surely outweighed by the lessons of the past. "We'll just die - we can't go back to 2008," but it seems governments never learn and memories are short. Get long wheel-barrows.



As Bloomberg reports, Zimbabwe is weighing the reintroduction of the national currency it abandoned in 2009 in favor of the U.S. dollar as it struggles to meet its monthly wage bill, three members of the ruling party’s decision-making body said.

While the revival of the Zimbabwe dollar would allow the government to print money to meet its needs it could damage the popularity of President Robert Mugabe’s Zimbabwe African National Union-Patriotic Front, said the people, who asked not be identified because the discussions are private. Patrick Chinamasa, the country’s finance minister, didn’t answer calls made to his mobile phone.


Zimbabwe abolished its national currency in 2009 after inflation surged to 500 billion percent the year earlier, according to International Monetary Fund estimates, and the party lost its parliamentary majority in elections while retaining the presidency.




The party’s politburo is trying to decide whether it will do more harm to its image by reintroducing the currency and meeting its wage commitments or continuing to use foreign exchange, protecting the country’s citizens against inflation, the people said. A majority of politburo members are currently against its reintroduction, they said.




"We’ll just die, we can’t go back to 2008,” said Jehosephat Dambadza, a furniture-maker in Harare, the capital, said in a telephone interview. “If they bring back the dollar it will quickly deteriorate to worse than then, we’ll have nothing.”


This year the economy has slowed with sales of consumer goods falling as much as 30 percent in February and revenue collection declining by a 10th, according to the Treasury. Consumer prices fell for a second month in March, while wages accounted for 58 percent of government expenditure in February. Pay increases agreed to by the government earlier this year were delayed.


Together with soldiers and police Zimbabwe has about 285,000 government workers.




“Zimbabwe has big economic problems. They have a huge current account-deficit and a fiscal shortfall,” Viljoen said. “They need money from somewhere and they’re running out of options. Reintroducing the Zimbabwe dollar could be an option.”

Is that really an option? It seems governments never learn or care to learn...

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SilverDoctors's picture

Zimbabwe hyperinflation...Jim Willie is now claiming that hyperinflation of the US DOLLAR is on the doorstep.

Arius's picture

"claiming" is the key word !!!

Four chan's picture

boot the jewish system of banking=prepare for a war brought to your shores.

its not easy to slip the noose, america couldnt. look what happened to kennedy.

mjcOH1's picture

Sweet....I'll be handing out trillion dollar bills again for Christmas in no time.

Vampyroteuthis infernalis's picture

What!? The gubbiment in Zimmie land could not pay the bills without printing money? Kind of hard using USD unless you are the Fed.

MeMadMax's picture

OH OH.....

Guess we are going to war in zim zim land then...





wintermute's picture

"285,000 government workers."

For a speck of a country? They could manage with 10% of that number.


optimator's picture

They're mostly armed and needed by Mugabe to protect him in his palace.

spdrdr's picture

Please, "palaces", not "palace" singular.

Get with the program!

Tengri Temujin's picture

Mugabe considers revival of Hyperinflated Zimbabwe Dollar....

Why change, we already have a hyperinflated USA dollar, why reinvent the wheel again Mugabe, stay with the US dollar and you wont have to do any work to get to hyperinflation again....

Slave's picture

The Zimbabweans only did 500 billion percent? I bet our Kenyan can top that!

GOSPLAN HERO's picture

Nice picture of Obama holding your tax dollars.

Gringo Viejo's picture

Shades of BRA. (Black Run America). Show me a municipality, (a Nation?), run by an african-american majority.....
I'll show you a shithole. Over & Out. That Is All......

mjcOH1's picture,_%25_of_w...

GDP per-capita, inflation adjusted, is roughly half of what it was during the Rhodesian Bush War....when the country was considered 'crippled' economically by UN economic sanctions. 

Luckily, Comrade General Secretary First Executive President Knight Grand Cross of the Order of the Bath Robert Mugabe LLD is on the job. The 10 year 'struggle for freedom' succeeded.   The people got the government they deserved.

UselessEater's picture

No we fought hard. We just couldn't beat the sanctions plus flow of arms etc from US/Anglo/China/Russian flooding a 360 degree border we had to protect, nor Aussie etc retard propoganda. The whites and blacks (its tribal not colour) who fought together did not get the government they deserved, just the government that suited resource grabbers. Once a bread basket, it was a slow burn tragedy over a couple of decades tolerated by almost every other nation.

SAT 800's picture

As it struggles to meet it's monthly wage bill. Outstanding. Governments are just great.

JoeSexPack's picture

I keep $100 trillion Zim note in wallet.


Fun to buy beers & get laughs.


Wakes up public to fiat scam.

tom a taxpayer's picture

Is Bernake now the Zim Central Banker?

Slave's picture

I did the same thing, but it was too wide for my wallet and was getting crinkled. I should get another one for preservation and carry the other. I mean why not? They're not even worth a couple dollars and there are like a billion of em. Fucking retards.

FEDbuster's picture

Hot damn I am a multi-trillionaire again !!  Cecil Rhodes is smiling somewhere.

alphamentalist's picture

coming soon to obama's post colonial america

Save_America1st's picture

"Give me control of a nation's money and I care not who makes it's laws" — Mayer Amschel Bauer Rothschild

SilverDoctors's picture

Bernanke  Yellen could make that exact statement today...

Tengri Temujin's picture

Who would downvote you for that Rothschild quote???

Or does the charity system not want you messing around with its primary source of income?

kchrisc's picture

See, history doesn't repeat, the criminality of government does.


“End the cycle with guillotines.”

Stockmonger's picture

Zimbabwe is at the zero-bound.  They can print at will as long as they have their own currency.  Read Krugman's column for more info, knaves and fools.

cougar_w's picture

And after you read that you can feel better reading about how I subsequently fed the arrogant cunt to a tiger:

Someone want's Harry Reid fed to Kali. Anyone have an angle on that? What's Reid about?

StychoKiller's picture

Reid is about 185lbs, bon appetit!

N2OJoe's picture

That old bone bag can't be over 125lbs

i_call_you_my_base's picture

"to 500 billion percent"

You can probably just say it was worth the paper. Saying "500 billion percent" is measuring infinity.

Zero Point's picture

I hope they make it nice and soft and absorbant.

Actually.... That could solve a few problems in Venezuela as well....

infinity8's picture

Exactly! This is the shit that just makes my brain bleed. I cannot believe that people are that Fucking Stupid. So, I must be naive. THIS is what scares the shit out of me, the stuff that makes me acknowledge just how low the bar has dropped - on a GLOBAL level!

SAT 800's picture

Dude, it's Africa. They're Natives, you know ? The bar didn't drop; it's always been like this. The joke is letting them pretend to run their own countries.

McMolotov's picture

1. Kill Mugabe

2. Kill the bankers

3. ????

4. PROFIT!!!

Zero Point's picture

3. Mulch bodies, and add to compost?

saulysw's picture

I like my 100 Trillion Dollar note. The balancing rocks sure make it look like a stable currency.

navy62802's picture

I wonder how many people we have whispering in his ear.

lotsoffun's picture

i wonder which people, more that how many.

socalbeach's picture

Worth less than Monopoly Money? 237 monopoly bills.


Price: $9.95


I guess not

Zimbabwe 50 Trillion Dollars Bank Note 2008 Uncirculated
Buy new: $1.28
11 Used & new from $1.25

falconflight's picture

Great, another article about the need for MOAR Das Kapital.

WMM II's picture

people would buy the bondsl at 7%.

you know.

high yield.

forget the underlying.

just like the rest of the paper world.

what me worry?



Kiss My Icelandic Ass's picture

Well, Mugabe is an economic genius as well as a humanitarian. I am sure it will all work out

Yen Cross's picture

  Mugabe and his merry band of thugs just want to force the serfs to exchange their usd for zim dollars, so they can plunder what's left of any value out of their country... hang em all.

Matt's picture

Zimbabwe is rich with natural resources, if they ran things competantly, they could skim a much smaller percent while netting much more for themselves.

UselessEater's picture

Correct Matt. The nation was set up to fail decades ago by installing vested criminal interests to destroy not enhance the nations wealth and opportunities for all people... you're watching history repeating itself more slowly in the west. It serves as a warning, the puppet masters are still at work.

SAT 800's picture

Dude; if they ran things competantly, it would be less profitable for the foreign corporations to rip off their resources; get a grip please.