Kiwi Polemicist

December 8, 2008

Inflation in Zimbabwe

The BBC is reporting that the official annual inflation rate in Zimbabwe is 231,000,000%. That is not a typo, and I wouldn’t be surprised if the real inflation rate is higher. If an item has a ticket price of $5 now it will have a ticket price of $11,550,000 in a year’s time. People spend their money as fast as they can because the purchasing power of each bank note drops by 439% per hour or 7% per minute. So, if your bank note can buy a loaf of bread now it can buy 93% of a loaf of bread in a minute’s time. In 15 minutes your bank note won’t even buy a loaf of bread.

That’s an extreme version of the harm that comes from having a state-run economy. If the central banking systems around the world were removed and we had a gold-based dollar again there would only be tiny amounts of inflation or deflation. To put it another way, inflation is almost entirely caused by central banks.

Click here to read about the link between central banking and the Communist Manifesto

mugabe-i-tell-you-i-have-zimbabwes-full-support

Source: www.independent.co.uk

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