Pictures From Zimbabwe

Tyler Durden's picture




 

Just because "Spanish banks are fine" 12 days before they got a full-blown bailout, and global hyperinflation can never happen in this world, where every central planner is now preparing to hold the CTRL and P buttons until the bitter end, here are some pictures from Zimbabwe.

 

And some charts:

 

And the chart most familiar to Americans as at least when it comes to government debt, Zimbabwe is America.

But don't worry. The USD will never lose its reserve status. Oh wait...

Finally, a timeline:

  • April 1980
    • The (first) Zimbabwean dollar replaces the Rhodesian dollar at par, which buys US$1.54. A series of bank notes is issued, ranging from Z$2 to Z$20.
  • From 1994 to 2006
    • The Reserve Bank issues a new series of notes, from Z$2 to Z$100. As inflation rises and erodes the currency’s purchasing power, Z$500 and Z$1,000 banknotes are issued from 2001 to 2005. In the first half of 2006, new Z$50,000 and Z$100,000 denominations debut.
  • Aug. 1, 2006
    • The first currency reform is implemented in an effort to contain spiraling inflation. The Zimbabwean dollar is redenominated by lopping off three zeros from the old currency. The new (second) Zimbabwean dollar is revalued at one new dollar = 1,000 old
      dollars.
  • July 1, 2007
    • The Z$500,000 note is introduced, valued at about US$16 at the official exchange rate.
  • Dec. 31, 2007
    • The Z$750,000 (US$25) note begins circulation.
  • Jan 1, 2008
    • The Z$1 million, Z$5 million and Z$10 million denominations debut.
  • April 2, 2008
    • Z$25 million and Z$50 million bills are introduced. Prices of basic goods are in millions—a T-shirt costs Z$276.5 million, pants Z$2.75 billion. Tomatoes and other local produce are priced in millions.
  • At a restaurant, two beers and water cost Z$1.24 billion.
  • May 2, 2008
    • The Z$100 million, Z$250 million and Z$500 million notes debut. Annual inflation reaches more than 100,000 percent.
  • May 15, 2008
    • Z$5 billion, Z$25 billion and Z$50 billion notes are printed.
  • July 1, 2008
    • A Z$100 billion note is issued, about the price of three eggs at the time.
  • Aug. 1, 2008
    • Another round of currency reforms is implemented. The government slashes 10 zeros from each second Zimbabwean dollar bill and the third Zimbabwean dollar is valued at 10 billion old dollars (second Zimbabwean dollars). Inflation continues rising.
  • Sept. 29, 2008
    • New Z$10,000 and Z$20,000 notes are introduced.
  • Oct. 13, 2008
    • The new Z$50,000 bill is printed.
  • Nov. 5, 2008
    • Z$100,000 and Z$500,000 notes are issued.
  • Dec. 4, 2008
    • The Z$1 million, Z$10 million, Z$50 million and Z$100 million bills appear. Ten days later, the Z$200 million and Z$500 million banknotes debut, followed by the Z$1 billion, Z$5 billion and Z$10 billion notes issued on Dec. 19, 2008.
  • Jan. 12, 2009
    • The government issues two new denominations: Z$20 billion and Z$50 billion bills.
  • Jan. 16, 2009
    • Even higher denominations are issued: Z$10 trillion, Z$20 trillion, Z$50 trillion bills and the largest banknote ever—the Z$100 trillion bill.
  • Feb. 3, 2009
    • The Reserve Bank of Zimbabwe introduces the fourth Zimbabwean dollar, with 12 zeros removed from old bills, making 1 trillion old dollars equal to one new dollar. Denominations of the new currency are the Z$1, 5, 10, 20, 50, 100 and 500 notes. However, loss of confidence quickly leads to abandonment of the Zimbabwean dollar in favor of foreign currencies, primarily the U.S. dollar and the South African rand.

Source: Dallas Fed

 

 

 

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Fri, 06/15/2012 - 16:01 | 2530548 sitenine
sitenine's picture

Are you sure those pictures aren't from Detroit?

Fri, 06/15/2012 - 16:39 | 2530678 PeterLemonJello
PeterLemonJello's picture

Damn honky, that hurts.  Didn't you bitchez hear we're getting a new bridge

Fri, 06/15/2012 - 18:35 | 2530945 Umh
Umh's picture

So that people can move out faster?

Fri, 06/15/2012 - 20:45 | 2531127 Uncle Remus
Uncle Remus's picture

To nowhere?

Fri, 06/15/2012 - 18:13 | 2530901 akak
akak's picture

Zimbabwe, Detroit, Philadelphia --- you know they all look the same to me!

Fri, 06/15/2012 - 21:53 | 2531185 francis_sawyer
francis_sawyer's picture

Hiroshima vs. Detroit (64 years later)

~~~

http://www.freerepublic.com/focus/chat/2349112/posts

Fri, 06/15/2012 - 16:03 | 2530557 BlandJoe24
BlandJoe24's picture

There was a loud silence today at 3:59-4:00pm EDT, as if millions of people's minds dropped into their  guts

Fri, 06/15/2012 - 16:04 | 2530559 fuu
fuu's picture

Totally bullish!

Fri, 06/15/2012 - 16:17 | 2530617 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bullish toilet paper

Fri, 06/15/2012 - 16:05 | 2530562 Jason T
Jason T's picture

Great post.  Martin Armstrong says system will collapse before hyperinflation could set in.  

Fri, 06/15/2012 - 16:10 | 2530578 optimator
optimator's picture

The FED knows that and is limiting inflation to 22% a year.

Fri, 06/15/2012 - 16:18 | 2530620 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I thought Ben was targeting 2%.  Is he smoking that hopium again?

Fri, 06/15/2012 - 16:07 | 2530569 killallthefiat
killallthefiat's picture

The US is not Zimbabwe.  We have normal futball

Fri, 06/15/2012 - 16:08 | 2530572 Soda Popinski
Soda Popinski's picture

Thats the trouble with trillions

Fri, 06/15/2012 - 16:40 | 2530682 superbroker1
superbroker1's picture

More money, more problems  - Puff Daddy

Fri, 06/15/2012 - 16:08 | 2530573 Peter Pan
Peter Pan's picture

Is using Zimbabwe dollars at the toilet an example of "channel stuffing"?

Fri, 06/15/2012 - 16:09 | 2530577 debtor of last ...
debtor of last resort's picture

When, just when is the moment that i have to switch from stacking pm to stacking food. And how do i atack a guy carrying an ak47 with a knife so i can take over his ak47. Just wondering what my next question will be. Access to ZH?

Fri, 06/15/2012 - 16:25 | 2530625 SemperFord
SemperFord's picture

the guy with the AK will not have any food or pms so either bribe him or slay him after you entice him with a meal, WINNING!!!

Fri, 06/15/2012 - 16:27 | 2530645 Poetic injustice
Poetic injustice's picture

Add sleep agent to food and then conveniently drop food near him.

Fri, 06/15/2012 - 16:35 | 2530669 debtor of last ...
debtor of last resort's picture

No thanks, i've had enough of sleeping agents in this fucking EU.

Fri, 06/15/2012 - 16:20 | 2530627 Matt
Matt's picture

1. You should always have a decent supply of non-perishable food items, unless you want to depend on FEMA in case of an emergency.

2. from behind

Fri, 06/15/2012 - 16:39 | 2530676 debtor of last ...
debtor of last resort's picture

1. agree
2. agree

Fri, 06/15/2012 - 16:39 | 2530680 ffart
ffart's picture

Or just hire him to guard your estate with his AK in exchange for some food.

Fri, 06/15/2012 - 18:08 | 2530891 Marginal Call
Marginal Call's picture

This is the optimal solution.  Get extra food and let somebody else do the dying.   Enough food and you can be a fuedal warlord like the old days.

Fri, 06/15/2012 - 19:29 | 2531023 ffart
ffart's picture

Hey even feudal warlords had to keep their subjects happy, because they couldn't just print more money out of thin air.

Fri, 06/15/2012 - 16:11 | 2530582 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

"Starving Billionaire"

I love the smile, they know more than most Americans.

Fri, 06/15/2012 - 16:11 | 2530585 drink or die
drink or die's picture

Don't blame me, I voted for Obomney.

Fri, 06/15/2012 - 16:12 | 2530588 farmerjohn2112
farmerjohn2112's picture

Jeezus, bitchez...

Fri, 06/15/2012 - 16:12 | 2530589 Floordawg
Floordawg's picture

Will the USD be able to stave off a similar style exponential curve into oblivion?

This is going to be interesting.

Fri, 06/15/2012 - 16:26 | 2530643 Matt
Matt's picture

You see, lack of food stamp programs seems to be the main reason these countries collapse, whether it be revolution or hyper-inflation. The key to maintaining your grasp on society is to ensure everyone has food. 

As long as the farmers produce food, Wal-Mart sells it, and people can buy it with their JPM EBT Card, the game will keep going.

Fri, 06/15/2012 - 16:43 | 2530691 Floordawg
Floordawg's picture

To ensure everyone has food, they're going to have to be pretty creative to keep the balance sheets "low"...

Like maybe using cost reducing methods like cattle containment. Cheap, unhealthy feed that basically kills the cattle that can't move enough to burn any of the dead calories they take in.

Yeah, that sounds about par for course with our government.

Fri, 06/15/2012 - 20:53 | 2531136 jumbo maverick
jumbo maverick's picture

Don't forget the plastic rice for all

Sat, 06/16/2012 - 08:42 | 2531784 Calmyourself
Calmyourself's picture

However the cost curve is maintained he is right.  The food keeps flowing, Hollywood commies keep producing circuses and this country grinds into one large FEMA camp the wire will just be a bit harder to see.  Of course for many ZH'ers the wire is already blinking neon, but what to do?

Fri, 06/15/2012 - 17:22 | 2530775 Agent P
Agent P's picture

Speaking of keeping the people fed, take a look at the OK Quik-E-Mart photo above...shelves are totally empty except for one loaf of bread at the end of the aisle...that thing must have a huge turd baked into it or something. 

Fri, 06/15/2012 - 17:25 | 2530811 Floordawg
Floordawg's picture

No food at the Quik-E-Marts, but plenty of GMO corn based slop at the cattle containment FEMA camps. At first they will be voluntary, enticing the sheeple with plenty of "sustenance," then mandatory.

Mmm, turd bread (packed with GMO corn)!

Fri, 06/15/2012 - 19:01 | 2530984 Lucky Guesst
Lucky Guesst's picture

Thats really funny :-)

Fri, 06/15/2012 - 16:13 | 2530592 Mark123
Mark123's picture

Get me a f'ing ticket out of this place....

Fri, 06/15/2012 - 16:14 | 2530599 lolmao500
lolmao500's picture

Bullish... they've reached the bottom, it's only up from now!

Fri, 06/15/2012 - 16:16 | 2530600 optimator
optimator's picture

Those real Rhodesians, before the U.N. administered elections, were saying, "One man, one vote, one time".  Mugabe was the man. 

Fri, 06/15/2012 - 16:38 | 2530674 Azannoth
Azannoth's picture

Because in a country of 10% white and 90% black having democracy was such a good idea

Fri, 06/15/2012 - 16:15 | 2530601 rosiescenario
rosiescenario's picture

OT....what happens if Hong Kong buys out the LME? Will that crimp the CME's stepping on silver?

Fri, 06/15/2012 - 16:15 | 2530602 Morrotzo
Morrotzo's picture

Look what happens when the Whites get shafted, killed and ruled by a black Communist.

Man, it is a good thing America doesn't have a black...

Oh. Ohhhh. Ohhhhhhhh. FUCK.

Fri, 06/15/2012 - 16:19 | 2530621 CommunityStandard
CommunityStandard's picture

Don't worry, Mittens will get in and make it all better.

 

 

 

/sarc

Sat, 06/16/2012 - 23:12 | 2533099 ZeroAvatar
ZeroAvatar's picture

Your break's over, CommunistStandard, time to log back in to Huffpo.

Fri, 06/15/2012 - 16:15 | 2530603 debtor of last ...
debtor of last resort's picture

I will never forget my teacher German language who brought one of those German 'Weimar' bills to school. It was a beautiful woman.

Fri, 06/15/2012 - 16:17 | 2530613 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Source: Dallas Fed

Yes, but they didn't include the, "Reserve Currency Status does not last forever" graph.

Fri, 06/15/2012 - 16:17 | 2530614 Bastiat009
Bastiat009's picture

Do they have gold in Zimbabwe??

Not exactly related to this story but gold actually went down when priced in euros today. It is puzzling.

Fri, 06/15/2012 - 16:22 | 2530629 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

There were parts in Zimbabwe where you could not get food without trading it for gold during the peak of the collapse of the financial structure.

And the likely reason why gold went down when priced in euros is because the European Banks were likely leasing the shit out of their gold reservees to find capital for their insane debt rolls they will be doing for the next six weeks.

Fri, 06/15/2012 - 16:33 | 2530663 JohnG
JohnG's picture

I watched a documentary about Zimbabwe a few years ago.  here were some vendors that would trade in US dollars, most only gold.

Many, many people literally mining thier own gold out of riverbanks.

One woman stated "If you cannot get 1/3 gram of gold per day, you will die."

Fri, 06/15/2012 - 16:30 | 2530654 DosZap
DosZap's picture

Do they have gold in Zimbabwe??

Yes, and during the worst of their mess, to eat they panned the local streams and rivers to get enough to live ONE more day.

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