Tuesday, November 18, 2008

Zimbabwe's HyperInflation: Prices Double Every 1.3 Days; Will Set World Record in 6 Weeks

Inflation levels in Zimbabwe are running at 13.2 billion percent a month and could reach an all-time world record within weeks. The latest figures put the country's annual rate at 516 quintillion per cent – 516 followed by 18 zeros – overtaking Yugoslavia in 1994 and putting it behind only Hungary in 1946.

In post Second World War Hungary monthly inflation reached 12,950,000,000,000,000 per cent, with prices doubling every 15.6 hours – Zimbabwean prices are currently doubling every 1.3 days. The most famous hyperinflation, Weimar Germany in 1923, is in a distant fourth place, at 29,525 per cent a month with prices doubling every 3.7 days.

Supermarkets in Harare are accepting only US dollars and South African rands, leaving those Zimbabweans without access to foreign currency in dire straits.

5 Comments:

At 11/18/2008 6:34 PM, Anonymous Anonymous said...

it's about time we help out with a little foreign aid.

time we dropped a big load of laser guided munitions straight up Mugabe's little version of his person Reichstag.

 
At 11/18/2008 8:07 PM, Blogger Peter said...

I had read an article about eight weeks ago that the German company that provided 100% of the paper used for their currency was sick of Mugabe and that they were going to stop selling them the paper. This would lead to a collapse of Mugabe's government as he could no longer pay graft, soldiers, etc...

It was shortly thereafter that the 'power sharing' arrangement was announced. Sounds like there wasn't really much sharing to speak of. We shall see how the paper supplies hold out.

 
At 11/18/2008 9:34 PM, Blogger Lester Hunt said...

Does anybody have any idea why the Zimbabwean government is doing this?

 
At 11/19/2008 12:08 AM, Anonymous Anonymous said...

@ lester hunt

What do you mean by doing this? Printing unbelievable amounts of money? (I've got a 10 billion note right here) The short answer is, Mugabe is an incompetent dictator.

The long answer is, this is what happens when you confiscate the capital producing goods (white farmers land in this case) and give them to people who don't know what to do with them (black, nepotist-benefiting, non-farmers).

For those that need further proof that 'wealth redistribution' doesn't work, look here.

 
At 11/19/2008 5:11 PM, Blogger BlogDog said...

I still say that Mugabe should be recognized for all the billionaires he's creating....

 

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