Sunday, February 26, 2006

Zimbabwe again

You may remember that I recently noted that the gov't of Zimbabwe has introduced a 50k bearer note because the money that they are printing is worthless....imagine showing up at the grocery store with 100,000 dollars to buy a gallon of milk---you had to have some pretty big bills in order to even walk in the door.

Well a couple weeks ago a loaf of bread was 60k. This week, it is 70k. A breeding cow is 15-20 million. Compared to 500-700$ in the US. Everything has collapsed into a black market barter economy, one cannot open an account at a bank or borrow money for business ventures or capital improvements or construction, because think about it: 1000% inflation means that the 10 million you borrow today to buy a cow will only buy a hundredth of a cow in a year.

But don't forget, our economy is in the tanks. Of course, in the US the biggest health risk to the poor is........obesity. That might be a world first.

How to fix? More capitalism, more free markets, less Mugabe, less government. The saddest part is that Zimbabwe was a country that used to actually produce enough food to feed it's people, and export goods to the world, now half the population faces starvation.


Anonymous Anonymous said...

Hey Darin,

Great blog you've got going. Whats your take on the port situation?
Take care,

6:28 PM  

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