Zimbabwe: 2007 till Mugabe resigns

[carl]

They still use the 25th bill to wrap the other 24. The franc seems quite stable now. The two years I was there it stayed around 500 to $1 and now (i just checked) it is 437 to $1.

I talked to pilot once who used to haul money for Mobutu. They would leave Kin empty and go to Brazil non-stop. On the return they had to make a fuel stop because the DC-8 was so heavily loaded with paper money. The next stop was Gbadolite to give the old man his cut, then on to Kin with the rest.

[Tom Odom]

Dying Silently In Zimbabwe By Michael Gerson


...This kind of hyperinflation is rare in history, but we are seeing it once again, in Zimbabwe. Government officials claim an inflation rate of 66,212 percent (most months they refuse to release inflation figures at all). The International Monetary Fund believes the rate is closer to 150,000 percent -- about the level reached by Weimar Germany. By some estimates, about 50 percent of Zimbabwe's government revenue comes from the printing of money. At independence in 1980, the Zimbabwean dollar was worth more than one U.S. dollar. Recently, the state-controlled newspaper raised its cover price to 3 million Zimbabwean dollars. Two pounds of chicken were recently reported to cost about 15 million Zimbabwean dollars.

A Zimbabwean friend who runs a business recently told me, "If you don't get a bill collected in 48 hours, it isn't worth collecting, because it is worthless. Whenever we get money, we must immediately spend it, just go and buy what we can. Our pension was destroyed ages ago. None of us have any savings left." Zimbabwean nationals who work on the U.S. Embassy staff in Harare have seen all their retirement funds wiped out. American government officials in the country carry boxes of money to pay at restaurants and must begin counting out currency at the beginning of the meal to finish by its end.

short but interesting piece; the real currency of power comes from gold and platimum and land sales to the Chinese and Libyans.

Tom

[Tom Odom]

And stretching for good news:

Zimbabwe is rare bright spot for AIDS in southern Africa

HARARE, Zimbabwe — In southern Africa for the past two decades, casual sex helped to fuel the worst epidemics of HIV and AIDS in the world. In Zimbabwe, however, fewer people are taking chances anymore, making this otherwise beleaguered nation an unlikely bright spot in Africa's battle against AIDS...

...Experts suggest that sex has become another casualty of the country's eight-year economic depression, which has shrunk the economy by nearly half. Few men have the money to support extramarital affairs or, for bachelors, the late nights on the town often required to woo a woman.

"You have to spend to get sex," said Richard Chimbiri, who writes a column on HIV for the Financial Gazette, an independent newsweekly. "Some guys would have four or five girlfriends if they could. But the economic situation and the risk of HIV — it's all conspiring to make people change their attitudes."

[Tom Odom]

This is no longer "runaway" inflation--it is Zimbabwe's economy in return to earth orbit without heat shields.

$1 now equals 25,000,000 Zimbabwe dollars

HARARE, Zimbabwe (AP) -- It's easy being a multmillionaire in Zimbabwe these days, at least if you're counting in local dollars.

Money traders in the economically depressed African country say the Zimbabwe currency has tumbled to a record low of 25 million for a single U.S. dollar.

With Zimbabwe dollars mostly available in bundles of 100,000 and 200,000 notes, one $100 note bought nearly 20 kilograms (40 pounds) of local notes at the new market rate Wednesday.

Currency dealers said uncertainties ahead of elections scheduled March 29 and the world's highest inflation of 100,500 percent led holders of hard currency to hang on to their money at the same time as the state central bank pumped more local cash into the market for election costs.

The price of the U.S. currency was also pushed up by central bank buying on the unofficial market to pay for power, gasoline and vehicle imports ahead of the polling, said one black market dealer who could not be identified out of fear of reprisals.

Last week saw Mugabe's 84th Birthday so he threw a party:

Mugabe ready to party in impoverished Zimbabwe


HARARE, Zimbabwe (AP) -- As many as 10,000 people were converging on a town in southern Zimbabwe for President Robert Mugabe's 84th birthday celebrations, state radio reported Friday.

Many were traveling free on commandeered buses and trains, it said.

Organizers of Saturday's ceremonies said they raised about 3 trillion Zimbabwe dollars (or the equivalent of about $250,000 at the dominant black market exchange rate) for the bash amid chronic shortages of hard currency, gasoline, food and most basic goods.

[Tom Odom]

Another great idea....

Zimbabwe: Blacks to control firms
(CNN) -- Zimbabwe's President Robert Mugabe has signed a new law that hands over majority ownership of all businesses to "indigenous" Zimbabweans.


The new law means that foreign- and white-owned companies operating in the country will have to surrender at least 51 percent control of their operations to blacks.

Lawmakers passed the legislation last September. But the presidential "assent" was announced Sunday in the government-controlled newspaper, The Sunday Mail.

It comes just days before Mugabe could face the most serious challenges to his decades-long rule in the March 29 presidential and parliamentary elections.

Under his rule, once-prosperous Zimbabwe has suffered an economic crisis with routine shortages of food, electricity and foreign currency.

Unless the Minister of State for Indigenisation and Empowerment alters the share allotment, the law would mean that several banks, mining companies and phone companies -- among other foreign businesses -- will have to relinquish control.
The bill, when it was put forward last year, described "indigenous Zimbabwean" as "any person who, before the 18th April, 1980, was disadvantaged by unfair discrimination on the grounds of his or her race, and any descendant of such person."

[Tom Odom]

Once again economic comedian President Robert Mugabe does his imitation of Eddy Murphy but no one laughs....

Embattled Mugabe boosts workers' pay


(CNN) -- Zimbabwean President Robert Mugabe, battling skyrocketing inflation and a serious challenge to his decades-long rule, has announced "a huge salary increase" for his nation's government workers.


President Robert Mugabe attends a rally earlier this month ahead of elections set for March 29.

Mugabe made the announcement while stumping for votes for the March 29 general elections, state media reported.

Under his rule, once-prosperous Zimbabwe has suffered an economic crisis with routine shortages of food, electricity and foreign currency. Unemployment is estimated at about 80 percent; the inflation in the nation of 12.5 million people is in excess of 24,000 percent.

Last month, Mugabe offered a massive salary increase to soldiers. And this week, he signed a law that hands over majority control of white and foreign-owned business to blacks.

The opposition has called the latter move a cheap political gimmick.

"Just yesterday (Monday), I was signing a new salary schedule of big salaries for teachers and civil servants," the Herald newspaper quoted Mugabe as telling a campaign rally in southern Zimbabwe. "I hope they will be happy, because we have worked out very good salaries."

[Rhodesian]

The following uses language that one J Edgar Hoover might have approved of, however apart from the excessive use of the word "Communist" ("Marxist" is much more accurate), and one comment (highlighted) which isn`t accurate, many of my tribe will remember the incidents and recognise the sentiment. I.R.

Winds of Change, March 12, 2008 | From theTrumpet.com

As Zimbabwe takes another step toward oblivion, here's a look at how a once-proud nation fell so far. By Richard Palmer

Zimbabwean President Robert Mugabe has signed a new law that gives "indigenous" Zimbabweans majority ownership of all businesses. This new law will make matters even worse for an already impoverished country.

It is hard to see how conditions could get worse for this once prosperous nation. While few official figures are available, estimates put unemployment at 80 percent. Official figures also put the inflation rate at 24,000 percent, though in reality inflation in Zimbabwe is very hard to measure. When there is no food on the shelves, it is hard to tell how much the price has risen.

This new law is not going to fix that. It states that "indigenous Zimbabweans shall own at least 51 percent of the shares of every public company and other businesses." The term "indigenous" refers to "any person who, before the 18th April, 1980, was disadvantaged by unfair discrimination on the grounds of his or her race, and any descendant of such person."

This new legislation brings back memories of the tragic land reforms that took place several years ago. According to Harare-based economist Godfrey Kanyenze, "It will entail the destruction of the economy. We should have learned from the blunders of the land reforms where people who were not properly equipped rushed to grab farms. The result was a disaster in the agricultural sector and we are now importing maize from the countries where the former farmers have migrated to."

The land now known as Zimbabwe was once the breadbasket of Africa. Today it is a den of tyranny, starvation and squalor. In 1960, British Prime Minister Howard Macmillan forecast that "the wind of change" would soon blow over the continent. This is where those winds of change brought Zimbabwe......

....In 1979, majority elections were held. Mugabe did not win. Bishop Abel Muzorewa became president, despite threats and intimidation from Mugabe and Nkomo.
.....

(Edit - Mugabe and Nkomo`s factions were not allowed to participate in this election for numerous reasons, including the refusal to lay down their weapons etc etc. In the next round they did participate, stating plainly that if they did not win, the war continues. A Brit Policeman, a member of the Monitoring Force sent in to keep an eye on us, was quite disgusted, but told me, "the Powers don`t care, they want the Rhodesia problem to go away.")

[Stan]

Once again economic comedian President Robert Mugabe does his imitation of Eddy Murphy but no one laughs....

And just in case this hike in salaries won't get folks to the market, we'll threaten the store owners to reduce prices....all things being equal, even Mobutu didn't conjure up this one

Zimbabwe: Govt to Meet Business Over Prices

GOVERNMENT will meet business today to discuss the reduction of prices of goods and services to February 12 levels when teachers and other civil servants were awarded a salary increment, President Mugabe has said.

Cde Mugabe said he would read the riot act if they ignore the order.

He said officials from the Ministry of Industry and International Trade and the Reserve Bank of Zimbabwe would meet captains of industry in Harare today to slash prices which he said was a deliberate attempt to frustrate Government efforts by those pushing for regime change.

Addressing a star rally at Hwange Colliery Stadium, Cde Mugabe said companies that resisted the order to reduce prices risked being taken over by the Government because they were serving the interests of people who were keen to effect regime change in the country.