Zimbabwe introduces $50 billion note

Zimbabwe introduces $50 billion note

www.cnn.com

HARARE, Zimbabwe (CNN) -- Zimbabwe's central bank will introduce a $50 billion note -- enough to buy just two loaves of bread -- as a way of fighting cash shortages amid spiraling inflation.

Zimbabwe is grappling with hyperinflation now officially estimated at 231 million percent, and its currency is fast losing its value. As of Friday, one U.S. dollar was trading at around ZW$25 billion.

(visit the link for the full news article)

80% unemployment and 50billion dollars can only buy a loaf of bread?

I cannot even imagine what these people are going through

Makes you wonder doesn't it?

www.cnn.com
(visit the link for the full news article)


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[edit on 11/1/2009 by Mirthful Me]

Let the white farmers back into the country, all their problems will be solved...

oh wait, they will get murdered...

let them suffer, they wanted the whites out...

reply to post by ModernAcademia


Welcom to the US at the end of the first Obama term.

"We will spend our way of of this trouble. It will be hard and long."

Even though the typical recession last 12 to 24 months he has his chance to enact every program that will kick start our hyper infaltion.

Maybe the will put Obamas portrait on it.

I know someone is going to post some sort of witty comment about how this is the future of the US and get lots of stars for it, so before it happens I'd like to point out that while I am NO fan of Obama we are in a DEFLATIONARY period and economists agree we will be in that for some time.

This won't be the US in our lifetime, unless something catastrophic happens that currently no one is aware of.

Edit: To late.

[edit on 11-1-2009 by LowLevelMason]

reply to post by LowLevelMason

Maybe it's time to start stocking up on MRE's. Myabe if inflation gets too high I can become the next Bill Gates...lol. I know...bad joke.(BAD CAPITALIST!)

Originally posted by Hellsing
let them suffer, they wanted the whites out...

I kind of agree.

No one can help them, but themselves. It's patently absurd that a country can function with such a ridiculous financial system, like this. They might as well trade with Monopoly money, which is probably worth more to replace, if it was lost from the board game.

It would be a different story if they had farms of opium poppy plants or massive oil reserves... then the tanks would be rolling in.

Originally posted by LowLevelMason
I know someone is going to post some sort of witty comment about how this is the future of the US and get lots of stars for it, so before it happens I'd like to point out that while I am NO fan of Obama we are in a DEFLATIONARY period and economists agree we will be in that for some time.

This won't be the US in our lifetime, unless something catastrophic happens that currently no one is aware of.

Edit: To late.

[edit on 11-1-2009 by LowLevelMason]

Ahh economists say we are in a deflationary period huh? Now tell me is this the same economists that were fiddling as Rome burned. Are these the same ones while Peter Schiff and Ron Paul were screaming to the top of their lungs about what was going down they laughed at them and called them Anti American? Im sorry but Ill listen to Peter Schiff over any of these goons anyday and Peter says we are in deep crap and Obama is just going to make it worse.

Its just the facts - we are in a deflationary period and will be for probably up to a year:
www.businessweek.com...

Flailing about and screaming about hyperinflation is a ploy gold bugs use to hype up the gold price. The actual numbers don't back it up at all.

Originally posted by LowLevelMason
Its just the facts - we are in a deflationary period and will be for probably up to a year:
www.businessweek.com...

Flailing about and screaming about hyperinflation is a ploy gold bugs use to hype up the gold price. The actual numbers don't back it up at all.

I dont know about business week but I do know this...




Thats doesnt look like deflation to me.

Here is the FEDs balance sheet

www.federalreserve.gov...

which has more than doubled over the past year. That too does not look deflationary to me. You see I dont listen to the talking heads. The talking heads lie so they can make money off of you. People who dont do their own research are the ones who get slaughtered.



[edit on 11-1-2009 by tjeffersonsghost]

Originally posted by Hellsing
Let the white farmers back into the country, all their problems will be solved...

oh wait, they will get murdered...

let them suffer, they wanted the whites out...

It has nothing to do with white farmers its an easy solution really get rid of Robert Mugabe by any means necessary then the biggest problem will be gone and work from there; bread will only cost about a hundred million dollars.


I'm surprised no one has tried to assassinate Robert Mugabe

Surely you must be kidding with me, tj, you are looking at ONE side of the equation. When you look at both supply AND demand, deflation is here and has been here. The assumption that "increase in money supply = inflation" is elementary and wrong.

And this is why I don't respond to these threads, and why I won't after this. Sometimes I can't believe what I read.

I look at all the data, you look at the data that tells you what you already believe. You haven't done research at all because you haven't looked at anything except 1 side of the equation.

[edit on 11-1-2009 by LowLevelMason]

Originally posted by LowLevelMason
Surely you must be kidding with me, tj, you are looking at ONE side of the equation. When you look at both supply AND demand, deflation is here and has been here. The assumption that "increase in money supply = inflation" is elementary and wrong.

And this is why I don't respond to these threads, and why I won't after this. Sometimes I can't believe what I read.

I look at all the data, you look at the data that tells you what you already believe.

[edit on 11-1-2009 by LowLevelMason]

Haha have you looked into the 70s and stagflation? We arent looking at deflation we are looking at the 70s all over again. Money Supply=inflation. The more money you print the higher the inflation. The only thing that mitigates this is if you have people buying your dollars in which we have. That however will end probably sooner than later. China has already come out and said they are getting sick of buying our debt. Couple that with all the spending Obama wants to do we havent seen the beginning of it. When its all said and done we will be lucky to only have inflation.

Oh I found this for you its a doozy....




[edit on 11-1-2009 by tjeffersonsghost]

Originally posted by LowLevelMason
Its just the facts - we are in a deflationary period and will be for probably up to a year:
www.businessweek.com...

Flailing about and screaming about hyperinflation is a ploy gold bugs use to hype up the gold price. The actual numbers don't back it up at all.

currently we are deflationary, but most of that data is from the energy collapse. this is short term though, its impossible to be deflationary while 750 billion bailouts, then 800 billion bailouts.. then obamas 775 billion stimulous, plus all the other "injections" they put into the market before things started getting bad. All this excess money will result in inflation.

im not sure how they think spending their way out of debt will work but they have the college degrees and im just a regular joe.. but i must have done something they havent, read a history book.

reply to post by jatsc


It has everything to do with the white farmers!

As soon as they left the economy collapsed

Agriculture was once the backbone of the Zimbabwean economy. The result of large scale eviction of white farmers and the government's land reform efforts, means this is no longer the case.[6] Reliable crop estimates are not available due to the Zimbabwe government's attempts to hide the realities following the evictions. The ruling party banned maize imports, stating record crops for the year of 2004.[7] The University of Zimbabwe estimates that between 2000 and 2007 agricultural production decreased by 51%. [6]

en.wikipedia.org...


They evicted the white farmers and their economy collapsed, simple as that really...



edited to add wiki link


[edit on 11-1-2009 by Hellsing]

It is not like the country doesn't have resources...

coal, platinum, gold, nickel, copper, iron, chromium, vanadium, lithium, tin

The problem has a name, and that is name is MUGABE

Through his monumental efforts the country is now completely under his control as an unorganized, undereducated, mob of teenagers with children struggling to survive... and he even managed to solve population control through AIDS and poverty.

/Conspiracy Threory Mode

Looks like a test case for developing techniques to control the rest of us through Ghettoization..

/

$50,000,000,000,000 2 loaves of bread!

I have to get my hands on a few of those bad boys! - I'm gonna try the local and online bureau de change's see what the minimum amount to get a few would be - theres an irish themed pub that has notes from all over behind the bar, might see if I can buy a $50bn pint!

That country is seriously up a certain creek right now - there was chatter a while back about the UK going in there, don't think that would be such a bad thing really.

Funny thing is there's still a lot of hype around our currency back here. Well guess what folks?? We don't give a hoot about Zimbabwean dollars any more!

We are now unofficially using British Pounds, American Dollars and South African Rands in most transactions. From supermarkets to fast food outlets to vending stalls Hamilton, Lincoln and Ulysess are a common sight.

There was a time when forex was a last option in terms of payment for services but now it's first option.

Hey we even pay for a taxi ride in US dollars. Not to mention paying the odd electrician/plumber/domestic worker! Everyone loves American Dollars which we affectionately call "greens" or "maUSA" (pronounced ma-U-SA).

Try giving a school kid zim dollars for pocket money. You'll receive the following reply: "Daddy can I have US$2 or R20 (South African)"

I can't rememember stashing a wad of zim dollars in my wallet any more. My wallet is proud to shelter US Dollars and South Africa Rands.

One of my co-workers is Zimbabwean and his parents are still over there living in that hell-hole.

Here's an interesting anecdote for you.

There are apparently a couple of functioning golf clubs left in the country, and when the members play a round, they pay for their after game drinks BEFORE starting play so as to avoid the rise in price that takes effect during their game (average duration 3 hours).

Now THAT'S insane.

i have a friend from zimbabwe, she moved from there (it doesnt matter to you but very hot ! WHoo hoo!) lol. Shes white and ran away to the U.S. with her family because these guys were as yall say murdering them, they would camp on their farms, steal crops and just try to scare you by being there... and after a certain amount of time they would come and kill you. So once the whiteys leave... they land becomes property of the government again. Now that it is it appears the government Mugabe... doesnt know how to make it work anymore. I guess they need all the people they had been scaring off ... tis tis.

I feel bad for the people there. Living in a country with tyrants must be hard, especiialy not having freedoms like we have in the U.S.. Perhaps accepting a democracy might help them? Who knows. Good Luck Zimbabwe