2008 July 16 Wednesday
Zimbabwe Inflation 2.2 Million Percent

In February 2008 the inflation rate on the Zimbabwean dollar was only a very sedate 165,000%. But now the inflation rate has finally taken a turn for the worse.

After months of silence on the inflation rate, central bank governor Gideon Gono let slip it was well into seven figures as he rejected suggestions by a leading economist that it was in reality many times higher.

"Statistics provided by the CSO (central statistical office) indicate that it is now at 2.2 (million percent)," Gono said in a brief address in Harare ahead of a speech by Mugabe, the country's 84-year-old president.

If humanitarians sincerely want to help Africa they should donate to create a prize for any group that overthrows Robert Mugabe's government.

The Zimbabwean government tortures and kills whites who try to keep their farms.

It was a frigid June night at Pickstone Mine in Zimbabwe when 67-year-old Angela Campbell -- soaking wet, her arm broken and a gun to her head -- signed a document vowing to give up the fight for her family's farm.

The kidnappers demanding her signature at gunpoint were "war veterans" from President Robert Mugabe's heyday as a liberation hero, and they made it clear that her refusal would mean more beatings.

Zimbabwe signed a treaty that gives these white farmers standing to try to get their farms back by appealing to a multi-national court that meets in Namibia. Some farmers are trying to get this court to order the return of their farms.

Jeffrey Gauntlett, who represented the Zimbabwean farmers at the hearing in the Namibian capital Windhoek, told the five judges of the Southern African Development Community tribunal the expropriations were unconstitutional, discriminatory and contravened the 14-nation bloc's founding treaty.

But the Zimbabwean government could ignore this court's decision or just pretend to respect it. If the farmers return they could easily be killed and the Zimbabwean government could not lift a finger to identify who did it.

Update: It turns out to be hard to measure such a high inflation rate because of sampling problems. One needs to measure many prices at the same moment or at least to measure the exact second when a price is recorded in a transaction. The report above looks already obsolete. The inflation rate in June was probably 10 to 15 million percent. By the end of July Robertson thinks it could hit 50 million percent.

One of Zimbabwe's most respected economists, John Robertson, said that while inflation was probably about 2m% in May, it soared again last month. "I think the June figure is more likely to be 10m% and it could turn out 15m%," he said.

Can the Zimbabwean currency hit a bilion percent inflation? I see a real problem where business will need to migrate to be next to the printing presses in order to get the highest prices possible.

Share |      By Randall Parker at 2008 July 16 08:45 PM  Civilizations Decay


Comments
Rob said at July 16, 2008 9:58 PM:

Zimbabwe may be the first country to use scientific notation on currency. It is a shame the whites couldn't hang on until after the AIDS die-off gets in full swing.

Hal K said at July 17, 2008 11:58 AM:

From the second article:

"Mike Campbell moved in and out of consciousness, as Ben and Angela prayed -- not for their lives, but for their captors. Freeth said he had never understood Luke 6:28 -- "Bless those who curse you" -- until that moment, and a "supernatural" peace came over him."

There is something wrong with this.

Suntar said at July 18, 2008 5:19 PM:

http://www.americanthinker.com/2008/07/the_550_tons_of_yellowcake.html

You have almost a religious belief there were no wmd. Hmmm

Mensarefugee said at July 21, 2008 7:53 AM:

A country with a currency of 10000+% inflation, is a country without a currency.

Sideways said at July 21, 2008 2:50 PM:

"Zimbabwe may be the first country to use scientific notation on currency."

That would make it worthy of collection, I'd think. Probably become their biggest export.

Randall Parker said at July 21, 2008 5:47 PM:

But scientific notation will not be enough. Zimbabwe will need to go to 2 levels of exponents since compounded inflation will make the prices far too large even for the first level of exponents.

Think about it. 15 million% inflation one year followed by 15 million percent a few more years becomes far too large.

Mensarefugee said at July 21, 2008 9:01 PM:

It would be nice to get some Zimbabwe dollars right now. Think of the quirky off-beat prestige of wallpapering your entire house with $1000 dollar bills.

Randall Parker said at July 21, 2008 10:03 PM:

Zimbabwe does not have $1000 bills any more. Too small. The picture I saw was for a $500 million dollar bill.

mensarefugee said at July 22, 2008 9:33 AM:

http://zahell.blogspot.com/2008/07/viva-mugabe-we-are-free-we-are-all.html

and the funniest picture of the month award goes to: - http://bp1.blogger.com/_XkVVlIk7VTA/SH4dtA212gI/AAAAAAAACck/cPYEDep2gHI/s1600-h/New-Currency.jpg


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