Wednesday, February 18, 2009

Zimbabwe: Where the American Dollar is Worth Something

Zimbabwe's economy plummeted 45% in the last 5 years under the criminal rule of Robert Mugabe. Only 6% of the population is employed and inflation is at 231 million per cent.

While presenting the 66,500,000,000,000,000,000-Zimbabwean dollar (USD 3 billion) government budget in both foreign and local currency in January, acting Finance Minister Patrick Chinamasa announced that the Zimbabwean dollar in not the only legal currency allowed to be used in the poverty stricken country that was once called the "breadbasket of Africa." The South African rand, the United States dollar, Botswana pula, euro, pound sterling among others are now legal tender.

Veteran opposition leader and current Finance Minister Tendai Biti, told reporters today
that some 130,000 soldiers, teachers, civil servants and other government workers will now receive payment in U.S. dollars instead of local currency. The $100 monthly salary will be a raise for most government employees, who had seen their buying power drop to the equivalent of $30 a month because of inflation.
The new government of Prime Minister Morgan Tsvangirai, has also scrapped the licenses required to do business in foreign currencies. Biti said,
"Now that the country has embraced the use of multiple currencies which are relatively stable, the government expects all businesses to act responsibly on pricing ... in order to create the necessary confidence in the economy."
Can you imagine? Allowing business to operate as the the market demands and expecting folks to act responsibly to restore confidence in the economy. What foolish people these Africans are! If these were truly good ideas, Barack Obama would have already instituted them and we would be well on our way to economic recovery. But, since he hasn't done so, they must be bad ideas.

Socialism and central government control is much better. Yep, that's the way to go.

(h/t: Indigo Rose)

The life of Indigo Red is full of adventure. Tune in next time for the Further Adventures of Indigo Red.

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