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.
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|