Zimbabwe Inflation Triples in December; Ron Paul fighting to Avoid same fate in US
Lessons to be learned by FED cheerleaders and the reason for Ron Paul success in the election:
Inflation and debasement of a currency is a tax primarily on the poor and middle class, wealthy typically have assets that appreciate with the rise in inflation. Inflation can be very high tax as those who have not fled Zimbabwe are learning.
When you debase a currency those in power are able to acquire assets of the poor and middle class, who are forced to sell their assets in order to buy food or escape. The problem arises for the government when the people become violent and fight to overthrow the regime (French Revolution etc). That is why the best policy for the government is to try and keep the undetectable to the average citizen.
“This currency, as we manage it, is a wonderful machine. It performs its office when we issue it. And when we are obligated to issue an excessive quantity, it pays itself off by depreciation.”
"Independent analysts estimate the real annual rate of inflation is closer to 150,000 percent. They cite supermarket receipts showing the price of chicken rose more than 236,000 percent to 15 million Zimbabwe dollars, or about $2.15 for 2.2 pounds between January 2007 and January 2008."
Zimbabwe, a former regional breadbasket, is facing acute shortages of food, hard currency, gasoline and most basic goods in an economic meltdown blamed on disruptions in the agriculture-based economy after the often-violent seizures of thousands of white-owned commercial farms began in 2000.
Ron Paul in Sept 07