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alstry (< 20)

The Death of the Dollar



August 17, 2009 – Comments (3)

HARARE, Zimbabwe – A woman pays her bus fare with 3 trillion in old Zimbabwe dollars — the equivalent of 50 U.S. cents. The collector accepts the brick of neatly folded bundles of a trillion each without bothering to count the notes.

"No one seems to worry, and it works," said the woman, Lucy Denya, a Harare secretary who says she's seen police officers using old notes to board buses.

The Zimbabwe dollar is officially dead. It was killed off in hopes of curbing record world inflation of billions of percentage points, and Zimbabwe has replaced it with the U.S. dollar and the South African rand.

Yet the role of the old Zimdollar, as it is known, remains in flux. It is still used, and has become another point of contention for the divided leadership of the country, now one of the poorest in the world.

President Robert Mugabe has called for the return of the Zimdollar as legal tender, complaining that most Zimbabweans lack the hard currency needed to buy basic goods. The central bank under governor Gideon Gono, a Mugabe loyalist, has acknowledged printing extra local money to fund government spending that fueled inflation.

But Finance Minister Tendai Biti, who joined the government as part of a power-sharing agreement between his Movement for Democratic Change and Mugabe's ZANU-PF party, has declared the local dollar indefinitely obsolete. He has threatened to quit if a return to the local currency is forced upon him.

"We are putting the tombstone on the corpse of the Zimbabwe dollar," Biti told lawmakers in a midyear fiscal policy statement. In a speech to business leaders, he said, "We are no longer printing our own money."

What happens when you simply monetize without tax receipts......sound familiar?

3 Comments – Post Your Own

#1) On August 17, 2009 at 12:51 PM, AdirondackFund (< 20) wrote:

Well, maybe they just didn't know.  I'm not sure what our excuse will be,,,but it should be both eventful and entertaining.  I haven't actually seen a Princeton Professor explain why he has adopted the farsighted economic policies of a Third World Banana Republic as the cure for our Nation's economic woes, but I am sure the 'reasons' for it will be most entertaining. 

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#2) On August 17, 2009 at 2:16 PM, alstry (< 20) wrote:

Zombulator Banks Will Shut America Down

Lockheed Martin unit to cut 4.5% of workforce

Banks still tightening credit policies, Fed says

Credit crunch to persist for year at least year

Banks report weaker demand for most types of loans

No kidding.  As fewer and fewer qualify for loans, pretty soon the banks will stop lending to any American as we continue to give them trillions in bailouts and billions in bonuses.

Amazing, bankers recklessly infect the nation with an unsustainable debt burden, cut it off from lending, watch assets prices crash,  collect trillions in bailouts, and in the end take over the nation's assets by foreclosing on businesses they put out of business.

Now that is one hell of a business plan as the families of America starve and many CAPS members cheer it on.....the joke is many of them are next in line to be cut........

insane time indeed when a nation is complicit of aiding and abetting by feeding those destroying it.....



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#3) On August 17, 2009 at 2:58 PM, alstry (< 20) wrote:


For months, Bernadette Poitier has prayed alongside members of Overtown's St. Francis Xavier, hoping a miracle would spare her Catholic church from closing down.

But in a matter of weeks, her spiritual home of the last 30 years and one of South Florida's oldest churches will be no more as the Archdiocese of Miami continues to make severe financial cuts amid a recession in which it has lost millions of dollars.

Thousands of Catholics across Miami-Dade and Broward counties, some on the verge of tears, listened Sunday as pastors read a letter by Archbishop John C. Favalora announcing plans for the rapid closure of 13 churches by Oct. 1.

Even prayer did not stop the Zombulator before 9.09.

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