Speaking of banana republics, Zimbabwe inflation hits 231 millionpercent


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Even with the credit crunch striking all corners of the globe, few
countries are in as dire financial trouble as Zimbabwe.

The country's annual inflation hit a record 231 million per cent and
prospects for rescuing the ruined economy dimmed yesterday after the
opposition said no progress had been made on forming a power-sharing
cabinet.

Opposition leader Morgan Tsvangirai said he had made compromises on
many issues but both sides remained divided on sharing ministries. He
was nonetheless still hopeful of eventual agreement.

'We are part of this deal and very confident about this deal. There is
nothing wrong with the deal, but in the process of implementing the
deal we have reached an impasse, not on the fundamental points of the
deal,' he told a news conference.

'It's ridiculous to say the deal has broken down because of this
failure to agree on posts. Having a good agreement with a bad guy
(Mugabe) is always something else.'

Tsvangirai, leader of the Movement for Democratic Change, spoke hours
after record inflation figures were issued. The yearly inflation
figure raced to 231 million percent in July from 11.2 million percent
in June.

A loaf of bread which cost 500 Zimbabwean dollars when the central
bank redenominated the Zimbabwe dollar on August 1, now goes for at
least Z$7,000.

Many Zimbabweans have resorted to bartering goods and rely on help
from relatives abroad, mostly in South Africa, for supplies of scant
basic foodstuffs like maize, sugar and cooking oil.

World Food Program spokesman Mustapha Darboe said: 'Millions of
Zimbabweans have already run out of food or are surviving on just one
meal a day and the crisis is going to get much worse in the coming
months.'

Central Statistical Office data showed that on a monthly basis, prices
in July shot up by 2,600 per cent, largely driven by high prices of
bread and cereals.

An outline agreement signed on September 15 has stalled over the most
important cabinet posts, angering Zimbabweans who have had to endure
the world's fastest price rises, shortages of food, foreign currency
and crumbling infrastructure.

Both sides accuse each other of jeopardising the process.

'What is baffling is that the political players seem to take a
cavalier attitude over the political crisis whose resolution is tied
to the economic turnaround,' said Eldred Masunungure, a political
science lecturer at University of Zimbabwe.

'The consequences of such a rate of inflation is absolute desperation,
despair and poverty. The politicians don't seem to realise that what
they do or don't do has an effect on the economy.'

Former South African President Thabo Mbeki will travel to Zimbabwe to
continue his mediation, said Tsvangirai.

Questions were raised over Mbeki's ability to broker a cabinet deal
after South Africa's ruling ANC ousted him.

Tsvangirai said his MDC party had also contacted the African Union
(AU) and regional grouping SADC over the stalemate and expressed
confidence they will seek a speedy resolution.

Kenyan Prime Minister Raila Odinga, a fierce Mugabe critic, accused
the Zimbabwean leader of dragging the continent's name through the mud
and expressed little faith in African mediation.

'We should not be surprised at the AU's failure to stand up for
democracy. Many of our national leaders have skeletons rattling loudly
in their cupboards,' he said in a speech in Lagos.

http://www.dailymail.co.uk/news/worldnews/article-1076144/Speaking-financial-crisis-Zimbabwe-inflation-hits-record-231MILLION-Mbeki-called-in.html
 
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A

Anonymous

Even with the credit crunch striking all corners of the globe, few
countries are in as dire financial trouble as Zimbabwe.

The country's annual inflation hit a record 231 million per cent
What do you think? Would it have been worth it to have Ian Smith's
government continue? To have white people continue to run the country?

Can an ideal of racial equality be set aside if you know that making the
ideal a reality will result in a 231 million percent rate of inflation,
not to mention all the other evils that now exist in Zimbabwe?

Or should we say to hell with it: racial equality is worth any evil, any
hardship?
 
C

Cormac

Zimbabwean economics are being adopted by Central Banks worldwide to
cope with their "toxic assets". They are printing lots of extra money
to buy up shares in the defaulting banks.

Cormac.
 
M

Mike O'Sullivan

Anonymous said:
What do you think? Would it have been worth it to have Ian Smith's
government continue? To have white people continue to run the country?
"White" people haven't done such a great job over here!
 
R

Ronald Raygun

Anonymous said:
On Fri, 10 Oct 2008 14:10:28 -0700, . wrote:

What do you think? Would it have been worth it to have Ian Smith's
government continue? To have white people continue to run the country?

Can an ideal of racial equality be set aside if you know that making the
ideal a reality will result in a 231 million percent rate of inflation,
not to mention all the other evils that now exist in Zimbabwe?

Or should we say to hell with it: racial equality is worth any evil, any
hardship?
Don't be such a plonker. The country's in trouble because Mugabe is
a crook, not because he's black.
 
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J

Jonathan Bryce

Anonymous said:
What do you think? Would it have been worth it to have Ian Smith's
government continue? To have white people continue to run the country?

Can an ideal of racial equality be set aside if you know that making the
ideal a reality will result in a 231 million percent rate of inflation,
not to mention all the other evils that now exist in Zimbabwe?

Or should we say to hell with it: racial equality is worth any evil, any
hardship?
Having tyrants running the country is a bad thing regardless of the colour
of their face. I'm not sure that Robert Mugabe has delivered racial
equality given the way he treats the white minority.
 

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