Zimbabwe devalues currency; 10B becomes 1 dollar (now THAT'S a devaluation)

[Tab]

Source: ap

HARARE, Zimbabwe - Zimbabwe will drop 10 zeros from its hyper-inflated currency — turning 10 billion dollars into one — the country's reserve bank said Wednesday. President Robert Mugabe threatened a state of emergency if businesses profiteer from the country's economic and political unraveling.

The longtime ruler issued the warning in a televised address to the nation as South Africa's President Thabo Mbeki flew in to meet with him about stalled power-sharing talks.

Mbeki insisted Tuesday that the talks that started last Thursday were going well and had simply adjourned on Monday.

But several officials said Mugabe's negotiators left for home and opposition leader Morgan Tsvangirai went to South Africa, the venue of the talks, after they deadlocked over who would lead the "inclusive" government under negotiation. The officials spoke on condition of anonymity because all parties agreed to a media blackout surrounding the talks.

Read more: http://news.yahoo.com/s/ap/20080730/ap_on_re_af/zimbabwe

[WriteDown]

1. Damn England and the colonialists!

Obviously a British plot to destabilize Zimbabwe. :sarcasm:

[dipsydoodle]

2. More or less as Germany in 1923

In a successful effort to stop hyperinflation : http://en.wikipedia.org/wiki/Rentenmark

Whether or not Zimbabwe is able to back it may be a different matter.

Currently I doubt that if called upon to do so the USA could back the $'s issued and so maybe if this were to happen there I guess the new currency will be called the M & M.

[Fearless]

3. Melts in your bank account not in your hands!

:rofl:

[dipsydoodle]

10. Very droll

:rofl:

[comtec]

4. this is going to sound horrible....

but now's kind of the time to buy some Zimbys... they literally can only go UP from here.
or whatever the currency is called locally.
Zimbie kind of has a nice ring to it... How many Zimbies for that meal? - more than you make in a year...
this is such a humanitarian disaster, I still can't fathom HOW the UN is not involved yet!!!

[WriteDown]

6. I am sure the U.N...

is forming a committee as we type :evilgrin:

[comtec]

7. Pfft, yeah right

they're forming a committee, to decide if they should form a committee, to form a committee to think about looking into a committee to maybe kinda write a strongly worded email!

I'm not a INWO type, certainly not a UN hater... but instances like this make me re-think that position....

[Critters2]

14. They're officially Zimbabwean dollars. Commonly referred to as Zimdollars.

But Zimby would've been a good idea, too.

[Toucano]

5. Isn't that Bush's plan to eliminate the deficit?

LOL!

:rofl:

[AngryAmish]

8. You joke, but it kinda is

When inflation spikes, the dollars we borrowed in the past are paid back with inflated dollars. The world goes nuts when US inflation goes up - because so many people are holding American paper paybale in dollars and dollars only.

[ooglymoogly]

9. And to make null and void Social Security and all living below

the millionaire category

[Fearless]

11. And the life savings of millions mean nothing...

Minimum wage stays put.

Health care costs rise but insurance doesn't cover them.

Education costs rise but federal loans don't.

The cost of heating oil rises but subsidies don't.

We don't even bother paying off the debt anyways, just continue to borrow more and more.

On the bright side... CO2 emissions will drop as people can't afford to drive anymore. If you can call that the bright side.

[WriteDown]

12. Uh...

I agree with points 2 and 4. But minimum wage just went up 70 cents this month and you can still find many student loans to cover your full education cost (I'm doing it this year).

[Fearless]

13. Yes...

It went up for the first time in a decade and many students are not all students. As prices go higher federal funding of such things are not going to rise comparably.

[Critters2]

15. So, Z$1 is worth Z$10,000,000,000. Oh yeah, that'll solve the problem.

If the problem is "how do I carry around all these Zimdollars?!"

[roamer65]

16. Revaluation generally doesn't work...

unless its backed by some sort of austerity measures.

Brazil went from the "cruzeiro", to the "cruzado", finally to the present day "real". Austerity measures made the "real" finally gain a foothold.

[comtec]

17. The Mexican peso went from.. what 100 to 1? about 15 years back IIRC

Their economy didn't collapse - it was already broken iirc.
I suppose it depends on the situation.
Before the Euro a million lira was like.. 3 dollars US.
Now the Italians have a real currency, less history, but for buying, it's a hell of a lot easier than a dump truck!

[Doctor Cynic]

18. Mugabe needs to keep the printing press going

in order to pay his thugs.

As long as the printing press is on, no amount of lopping zeros will work.

[comtec]

19. VERY true!

God what is STILL going on in Africa is such a fucking disgrace to ALL of humanity!
And no one is lifting a god damned finger to stop it!
For once ti seem we are not fully to blame.
China, Russia, the EU, INDIA!
Anyone of these super power could have gone down there yesterday and stopped this.
So WHAT is Zimbabwe becomes a state of X country, the killing would have stopped, the poor would be taken care of and the fucking country could start down the road to being independent again!

it just disgusts me that we are allowing this to happen... STILL!