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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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Wed, 04/23/2014 - 19:40 | 4688496 HedgeAccordingly
HedgeAccordingly's picture

El-Erian is all gravey now..  http://hedge.ly/1f7X4fl

Wed, 04/23/2014 - 19:42 | 4688505 SilverDoctors
SilverDoctors's picture

Zimbabwe hyperinflation...Jim Willie is now claiming that hyperinflation of the US DOLLAR is on the doorstep. 
http://www.silverdoctors.com/jim-willie-us-on-the-brink-of-hyperinflatio...

Wed, 04/23/2014 - 19:51 | 4688536 Arius
Arius's picture

"claiming" is the key word !!!

Wed, 04/23/2014 - 19:55 | 4688544 Four chan
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.

Wed, 04/23/2014 - 20:09 | 4688583 mjcOH1
mjcOH1's picture

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

Wed, 04/23/2014 - 20:30 | 4688648 Vampyroteuthis ...
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.

Wed, 04/23/2014 - 20:34 | 4688656 MeMadMax
MeMadMax's picture

OH OH.....

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

 

"HOW DARE THEY ABANDON THE PETRO DOLLAR!!!!

 

ROAR!!!!

Wed, 04/23/2014 - 20:58 | 4688743 wintermute
wintermute's picture

"285,000 government workers."

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

 

Wed, 04/23/2014 - 21:08 | 4688780 optimator
optimator's picture

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

Thu, 04/24/2014 - 02:12 | 4689416 spdrdr
spdrdr's picture

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

Get with the program!

Thu, 04/24/2014 - 03:02 | 4689454 Tengri Temujin
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....

Wed, 04/23/2014 - 20:40 | 4688686 rubiconsolutions
rubiconsolutions's picture

Long wheelbarrows

Wed, 04/23/2014 - 19:57 | 4688552 Slave
Slave's picture

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

Wed, 04/23/2014 - 21:13 | 4688809 GOSPLAN HERO
GOSPLAN HERO's picture

Nice picture of Obama holding your tax dollars.

Wed, 04/23/2014 - 20:19 | 4688608 Gringo Viejo
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......

Wed, 04/23/2014 - 21:55 | 4688906 mjcOH1
mjcOH1's picture

http://en.wikipedia.org/wiki/File:GDP_per_capita_%28current%29,_%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.

Wed, 04/23/2014 - 23:41 | 4689227 UselessEater
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.

Thu, 04/24/2014 - 05:09 | 4689538 SAT 800
SAT 800's picture

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

Wed, 04/23/2014 - 19:45 | 4688516 JoeSexPack
JoeSexPack's picture

I keep $100 trillion Zim note in wallet.

 

Fun to buy beers & get laughs.

 

Wakes up public to fiat scam.

Wed, 04/23/2014 - 19:59 | 4688560 tom a taxpayer
tom a taxpayer's picture

Is Bernake now the Zim Central Banker?

Wed, 04/23/2014 - 20:00 | 4688562 Slave
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.

Wed, 04/23/2014 - 20:49 | 4688716 FEDbuster
FEDbuster's picture

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

Wed, 04/23/2014 - 19:40 | 4688498 alphamentalist
alphamentalist's picture

coming soon to obama's post colonial america

Wed, 04/23/2014 - 19:41 | 4688499 Save_America1st
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

Wed, 04/23/2014 - 19:45 | 4688517 SilverDoctors
SilverDoctors's picture

Bernanke  Yellen could make that exact statement today...

Thu, 04/24/2014 - 03:05 | 4689457 Tengri Temujin
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?

Wed, 04/23/2014 - 19:42 | 4688504 kchrisc
kchrisc's picture

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

 

“End the cycle with guillotines.”

Wed, 04/23/2014 - 19:43 | 4688510 Stockmonger
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.

Wed, 04/23/2014 - 20:04 | 4688571 cougar_w
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:

http://fedtoatiger.blogspot.com/2014/04/dr-paul-krugman-is-fed-to-tiger....

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

Thu, 04/24/2014 - 03:30 | 4689477 StychoKiller
StychoKiller's picture

Reid is about 185lbs, bon appetit!

Thu, 04/24/2014 - 05:11 | 4689539 SAT 800
SAT 800's picture

Touche' !!

Thu, 04/24/2014 - 07:47 | 4689822 N2OJoe
N2OJoe's picture

That old bone bag can't be over 125lbs

Wed, 04/23/2014 - 19:44 | 4688514 i_call_you_my_base
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.

Wed, 04/23/2014 - 19:51 | 4688535 Zero Point
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....

Wed, 04/23/2014 - 20:21 | 4688616 infinity8
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!

Thu, 04/24/2014 - 05:13 | 4689540 SAT 800
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.

Wed, 04/23/2014 - 19:50 | 4688528 McMolotov
McMolotov's picture

1. Kill Mugabe

2. Kill the bankers

3. ????

4. PROFIT!!!

Wed, 04/23/2014 - 19:52 | 4688538 Zero Point
Zero Point's picture

3. Mulch bodies, and add to compost?

Wed, 04/23/2014 - 19:51 | 4688533 saulysw
saulysw's picture

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

Wed, 04/23/2014 - 19:51 | 4688534 navy62802
navy62802's picture

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

Wed, 04/23/2014 - 19:59 | 4688558 lotsoffun
lotsoffun's picture

i wonder which people, more that how many.

Wed, 04/23/2014 - 20:49 | 4688541 socalbeach
socalbeach's picture

Worth less than Monopoly Money? 237 monopoly bills.

.

Price: $9.95

http://www.amazon.com/Hasbro-28852-Monopoly-Money/dp/B00000IWCW

-----

I guess not

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

http://www.amazon.com/Zimbabwe-Trillion-Dollar-Bank-Uncirculated/dp/B002...

Wed, 04/23/2014 - 19:55 | 4688545 falconflight
falconflight's picture

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

Wed, 04/23/2014 - 19:56 | 4688548 WMM II
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?

 

:)

Wed, 04/23/2014 - 19:59 | 4688556 Kiss My Iceland...
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

Wed, 04/23/2014 - 20:02 | 4688566 Yen Cross
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.

Wed, 04/23/2014 - 23:58 | 4689250 Matt
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.

Thu, 04/24/2014 - 00:32 | 4689304 UselessEater
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.

Thu, 04/24/2014 - 05:15 | 4689542 SAT 800
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.

Wed, 04/23/2014 - 20:10 | 4688580 tom a taxpayer
tom a taxpayer's picture

Is one fiat paper intrinsically worse than another? No. All it takes is a good PR campaign to instill trust in your fiat paper. Maybe Mugabe has hired a Madison Ave ad agency for a "Trust Zim$" ad campaign. Kinda of catchy isn't it ..."Trust Zim$".

 I'm liking it, and will invest big time in the Zim$ IPO.

Wed, 04/23/2014 - 21:22 | 4688838 Zero Point
Zero Point's picture

Iraq has a pretty good campaign running for their Dinar.

There are little companies selling their paper all over the globe.

Wed, 04/23/2014 - 21:40 | 4688896 bjfish
bjfish's picture

He hired David Axelrod.  Soon the Zim people will be beggin for more 100 trillion notes.

Wed, 04/23/2014 - 20:17 | 4688604 Its_the_economy...
Its_the_economy_stupid's picture

Zim is dead. Long live Zim!

Wed, 04/23/2014 - 20:24 | 4688624 Joebloinvestor
Joebloinvestor's picture

HAHAHAHAHA

Detroit on steroids.

Wed, 04/23/2014 - 20:25 | 4688628 fasTTcar
fasTTcar's picture

If they were smart, they could save a bunch of steps, sign over some farmland and adopt the Yuan.

Why delay the inevitable?

(I knew my avatar would start getting more and more relevant as we move forward)

Wed, 04/23/2014 - 20:55 | 4688732 DirkDiggler11
DirkDiggler11's picture

I still have stamps in my collection from back in the day when the country was Rhodesia. Funny, one of the stamps showed how Rhodesia was the "breadbasket of Africa", and on the other stamp was a picture of Gold nuggets found in Rhodesia.

The citizens of Zimbabwe could certainly use both Gold to back their currency and food right about know. Rhodesia has performed so well and the citizens have certainly prospered under their new tribal leadership since 1980 ..

Wed, 04/23/2014 - 20:34 | 4688659 deeply indebted
deeply indebted's picture

How exciting. Last time around I picked up a few of those 1 Trillion dollar bills as novelty items. Maybe this time around we can get our hands on some even cooler 1 Quadrillion dollar bills?

Thu, 04/24/2014 - 00:02 | 4689257 Matt
Matt's picture

The Hungarians set the record at quintillions, lets see if we can beat them. What comes after Quintillion? Sextillion?

Wed, 04/23/2014 - 21:00 | 4688671 PGR88
PGR88's picture

Perhaps the only country in the world that truly is worthy of " regime change" is Zimbabwe.  No oil, no strategic conflict with the Russians, no nation-building.  Just go in, shoot Mugabe and his top advisors in the head, and leave.

In an instant, it would make the country 10X better.

Wed, 04/23/2014 - 21:02 | 4688757 optimator
optimator's picture

But Henry Kissinger approved of him back in the 1980s.

Thu, 04/24/2014 - 03:33 | 4689480 StychoKiller
StychoKiller's picture

Um, I don't think that's a good thing!

Wed, 04/23/2014 - 21:34 | 4688878 SumTing Wong
SumTing Wong's picture

Couldn't the same thing be said about the 537 idiots in the US? (House, Senate, Prez, and Veep)

Wed, 04/23/2014 - 23:27 | 4689205 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

.."go in, shoot Mugabe and his top advisors in the head, and leave"..

I like it, not only that but it would improve our foreign policy image.

win/win.

Wed, 04/23/2014 - 20:49 | 4688712 yogibear
yogibear's picture

Superimpose the photo so it looks like US dollars.

Wed, 04/23/2014 - 20:52 | 4688723 FiatFapper
FiatFapper's picture

Check out this from Thom Hartmann show: http://youtu.be/L3ynqdWpcD8?t=23m6s

He states: "Printing money is not what causes inflation" and he's allowed a platform to spew his diatribe.

Wed, 04/23/2014 - 21:12 | 4688805 robertocarlos
robertocarlos's picture

There is a documentary on Al Jazeera about a young woman who returns to Zimbabwe and the farms that were white onwed and run by her manager father. Beautiful farms and houses with swimming pools and they were given to govt toadies and are now run down. Not even broken windows are fixed even though the house is a mansion. Production is way down and in one busy town most of the vehicle traffic is farm tractors. They use tractors instead of cars.  Where is the fuel coming from?

Wed, 04/23/2014 - 21:25 | 4688851 Aussiekiwi
Aussiekiwi's picture

Yep, stole all the farmland from the white farmers who actually knew what they were doing and then stood around with their fingers up their arses and wondered who was going to feed them.

Wed, 04/23/2014 - 23:51 | 4689238 UselessEater
UselessEater's picture

Not even a brick was left of a relatives formerly productive farm. The 'war vets' freeing the farms weren't even born when the war was on; its was merely another form of terrorism designed to weaken the majority population and break yet another nation to serve TPTB vested interests...much like what is arising in the west.

Thu, 04/24/2014 - 02:39 | 4689437 Serenity Now
Serenity Now's picture

Do you live there?  It's rare to gain an insight from someone who has lived through it.  Thanks for your posts.

Thu, 04/24/2014 - 03:47 | 4689479 UselessEater
UselessEater's picture

Rhodesian Chicken family - yep, we physically fought and then left after M. won when the world was very anti Rhodesian so then fought again a different sort of war; the fear of insecurity of temporary visas, hostility, international rejection and the anger of those that stayed, then who later tried to follow with varying degrees of success.

I shall be a chicken family again - if my neighbours can't even muster the knowledge, let alone the will to fight.

No one wants the actual reality of war. Tough men will vomit from the actual stories of savagery, why wish the reality?

Men = scared

Women = scared

Kids = scared

No experience with civil war by a raggedy mercenary group sponsored by elite money = stupid statements from some posters

You probably will not be invaded by an army of family men; just drug messed with and fucked loser men turned into pitbulls which makes 'war' really scary for everyone. That why there are big prosion break outs on occasion.

You survive the mess and leave = years worrying about those who can't leave, not those who won't leave

Colour is second to tribalism. Beware of positive and counter-media claims; everyone wants their piece of the pie no matter who suffers and dies.

Don't hook into and live in the old stories of what happened, they're just too much, move forward protect your families future.

Take a step back examine yourself your nation and your politics as best you can; look for objective fault and blame and be responsible where you can in retrospect, accept fault do not make anyone or thing an angel!!!!!!!!!!

Accept our individual emotional make up differs and many stayed and survived, and did what they could - help them when they identify people suffering, send a few quid back - but stay awake, undertand TPTB and their next move that may threaten you.

Forget assholes who it see it as white/black - for all Rhodesia's imperfections and there were a good share (Sth Africa apartied was not one of them) what the assholes "fixed" through propoganda and sanctions and arms, cruxified vs helped the black population that were of the wrong tribe. Those who dug gold for bread were not white...fuck Stevie Wonder.

 

 

 

Wed, 04/23/2014 - 21:56 | 4688874 mjcOH1
mjcOH1's picture

"Production is way down and in one busy town most of the vehicle traffic is farm tractors. They use tractors instead of cars.  Where is the fuel coming from?"

 

AIDS money....

 

http://en.wikipedia.org/wiki/Zimbabwe

"In November 2008, the government of Zimbabwe spent $7.3 million donated by the Global Fund to Fight AIDS, Tuberculosis and Malaria. A representative of the organisation declined to speculate on how the money was spent, except that it was not for the intended purpose, and the government has failed to honour requests to return the money.[79]"

Wed, 04/23/2014 - 21:18 | 4688823 user2011
user2011's picture

If I were the locals, I will try to buy as much silver as possible.  Gold may be too costly for them, at least they may be able to afford a silver or two.

 

Wed, 04/23/2014 - 21:22 | 4688840 Aussiekiwi
Aussiekiwi's picture

Sweet, I will be in line to convert my 100 trillion dollar Zimbabwee banknote I bought online to remind me of the perils of inflation, hopefully they will issue the new currency at 1 to 1 with the US dollar.....dreaming.

Wed, 04/23/2014 - 21:55 | 4688941 Took Red Pill
Took Red Pill's picture

Yeah, I have some of those, too! We'll be trillionaires!

Wed, 04/23/2014 - 23:56 | 4689246 UselessEater
UselessEater's picture

Some buy gold to stack, others dig it up to buy bread!

Wed, 04/23/2014 - 22:36 | 4689087 teslaberry
teslaberry's picture

funny i thought bernank and yellen stopped vacationing with mugabe a while ago. i guess theyre rubbing off on him again. 

Wed, 04/23/2014 - 23:21 | 4689192 e_goldstein
e_goldstein's picture

Okay, here's a surefire plan. Fire Gideon Gono and replace him with Ben Bernanke.

What could possibly go wrong?

Thu, 04/24/2014 - 01:03 | 4689332 Emergency Ward
Emergency Ward's picture

No wonder little kids from Zimbabwe are so good with numbers.

 

Thu, 04/24/2014 - 01:11 | 4689364 Skateboarder
Skateboarder's picture

Zimbabwe aint got nothin' on Japan:

https://www.youtube.com/watch?v=6m6s-ulE6LY

Thu, 04/24/2014 - 02:41 | 4689438 pcrs
pcrs's picture

It's not a 'mistake' if some people get a monopoly on printing money and going on a shopping spree for souls

Thu, 04/24/2014 - 05:45 | 4689558 22winmag
22winmag's picture

That asshole is still alive?

 

If Obama had an evil twin, he could look like R.M.

Thu, 04/24/2014 - 05:48 | 4689561 Baby Eating Dingo22
Baby Eating Dingo22's picture

Is there really one fiat that's better than the other?

We've got Obambe, they've got Mugambe

6 of this, half dozen of the other

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