Printing money

From the BBC:

Zimbabwe introduces Z$100bn note

Zimbabwe is to introduce a bank-note worth Z$100bn in response to rampant inflation – but the note will barely cover the cost of a loaf of bread.

Some Zimbabweans are already calling for higher denominations in a country where the official annual inflation rate has exceeded 2,200,000%.

Independent economists believe the real rate is many times higher.

Zimbabwe’s meltdown has left at least 80% of the population in poverty, facing mass shortages of basic goods.

The country’s central bank has introduced several new notes already this year in response to the hyperinflation.

In January, a Z$10 million note was issued, followed by a Z$50 million. By June the denominations had reached tens of billions.

Inflation is so bad there that the price of a bottle of beer in a restaurant has been known to more than double between the beginning of lunch and the end of lunch.

Advertisements

5 responses to “Printing money

  1. Interesting book about Zimbabwe, Peter Godwin’s “When a Crocodile Eats the Sun,” covers roughly 1996-2004(?) and shows things going rapidly in this direction — more and more horribly appalling, and not a new story.

  2. 100bn, huh? Assuming bn is short for billion, is that a Brit billion (10^12) or a deflated US billion (10^9)???

  3. I didn’t know there was any difference! I guess it’s a Brit billion, since the BBC is British and Zimbabwe was British…

  4. Never mind. Wikipedia says the Brits have succumbed to American hegemony:

    For most of the 19th and 20th centuries, the United Kingdom uniformly used the long scale, while the United States of America used the short scale, so that usage of the two systems was often referred to as “British” and “American” respectively. In 1974 the government of the UK abandoned the long scale, so that the UK now applies the short scale interpretation exclusively in mass media and official usage. Although some residual long-scale usage still continues, the terms “British” and “American” no longer represent accurate terminology.

    Will the British start driving on the right side of the street soon too?

  5. So once again, America DECIMATES (and then some) all obstacles in its path…

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s