Fifty Billion Dollars

[rain_gryphon]

Today's conversion rate for Zimbabwean dollars is 20,327,000,000 per US dollar. That's 200 million Z dollars for each dropped penny I find in the parking lot.

The rate's apparently based pretty much solely on Zimbabweans bidding to buy US dollars, as there's not really enough economic activity left in the country to calculate a true rate. I have to wonder how much of the activity is due to collectors trying to keep up as Zimbabwe keeps issuing new and larger notes. I'm halfway tempted to see if my bank can get me a little stack of their new 50 billion dollar notes that I could give away as curiosities.

*****

You've gotta feel sorry for them. The notes are all so hopeful-looking. They've got scenes of hydroelectric dams, grain elevators, village women making bread, etc., all things you might find in a happy and prosperous country. A lot of the imagery seems to centre around the idea of abundant food. I can't help but see these almost as magical talismans picturing the people's most desperate hopes.

*****

Their reserve bank has run out of paper to print more money, and doesn't have the hard cash to buy more. It's like some grim comedy.

Comments

[magnusdiridian.livejournal.com]

I'll gladly pay you tuesday for a hamburger today? lol wonder if post WWI germany ever got that bad.

[xolo.livejournal.com]

The German inflation rate was much higher in the mid-1920s. The Germans had an actual economic base, though - they had farms, factories, and mines, and could produce things of value. Hjalmar Schacht (http://en.wikipedia.org/wiki/Hjalmar_Schacht) eventually broke the German inflationary cycle by redenominating the Reichsmark, and forcing international trades to be done on a barter rather than cash basis, so that the currency markets couldn't devalue the RM. Mugabe can't fall back on that, as he's essentially run his entire country into rust and ruin, spent his reserves, and has nothing left to work with.

[terrycloth.livejournal.com]

All the stories I hear imply that the only industry still going on in Zimbabwe is roving gangs of thugs that murder and rape at will. And they're only still around because the government is subsidizing them.

[xolo.livejournal.com]

Mugabe got his country in this mess to begin with by using the nation's resources to buy followers. He seems to be using what's left to subsidize food baskets for his supporters, so they'll starve last.