10-06-2018, 10:16 PM
*** 7-Oct-18 World View -- Zimbabweans on panic buying spree as 'bond notes' crash
This morning's key headlines from GenerationalDynamics.com
****
**** Shops in Zimbabwe have bare shelves after panic buying
****
![[Image: g181006b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g181006b.jpg)
Zimbabwe Bond Note
Shops in Zimbabwe have bare shelves as people, fearing a new round of
hyperinflation like the one in the 2000s decade, are panic buying
beer, bread, cooking oil, and other essentials.
Pharmacies have run out of medication for diabetic patients, high
blood pressure patients. There are long queues of cars at petrol
stations, with drivers hoping to get petrol before the station runs
out.
The panic was triggered when Zimbabwe's "bond note" currency crashed
to 2.5 bond notes to the dollar, at the end of a week when the
government imposed a new 2% tax on all electronic transactions. The
result all week was protests and panic over the price increases and
shortages of goods.
Zimbabwe's central bank governor on Saturday John Mangudya blamed
himself for the panic:
<QUOTE>"The problem is that we did not explain things. This
economy is a sentiment driven economy so we need to communicate
more with the society."<END QUOTE>
Mangudya, told reporters that people should not be worried and that he
expected an improvement in the next 48 hours.
At the same time, there is a new cholera epidemic in Zimbabwe, and 49
people have died so far. Independent Online (South Africa) and Reuters and Eyewitness News (South Africa
****
**** Bond note currently on the path to inflation or hyperinflation
****
Readers may recall that in 2016 then-president Robert Mugabe
introduced a new currency called the "bond note." Each bond note
would be worth exactly one US dollar. This was necessary because
Zimbabwe's banks were running out of US dollars with with to purchase
imports.
In the 1990s, Zimbabwe used to be the breadbasket of southern Africa,
growing much more food than the country needed and exporting the rest.
Then in 1999 Robert Mugabe instituted a "land reform" plan just like
the one that South Africa and Namibia are planning are now planning
confiscating white-owned farms and giving them to his cronies in the
Shona tribe who knew nothing about farming. Within ten years,
Zimbabwe was an economic disaster, with mass starvation, a worthless
currency, and massive million percent inflation.
By 2009 the Zimbabwe currency was more worthless than toilet paper,
and so the US dollar became the official currency. But Mugabe
continued with his destructive racist policies, and by December 2016,
Zimbabwe was running out of US dollars. So Mugabe introduced the bond note,
with each bond note worth
$1.00.
This cause large street demonstrations by Zimbabwe's public, because
they knew that the bond notes would suffer the same inflation or
hyperinflation that Zimbabwe's original currency did. But Mugabe
promised that wouldn't happen, since no more than $200 million in bond
notes would ever be printed, so hyperinflation was impossible.
During 2017, Zimbabwe's central bank printed more and more bond notes,
and by August 2017, the value of the bond note fell 50% compared to
the US dollar. The central bank announced that it would print another
$300 million in bond notes, bringing the bond note total up to $500
million, or half a billion.
Since then, Robert Mugabe has been ousted, and has been sent to his
palatial farm, where he has plenty of money at his disposal. Zimbabwe
now has a new president, Emmerson Mnangagwa, who is left to clean up
the 40-year mess that Mugabe left behind. So far, things have only
gotten worse. Maybe the Chinese will give him some money if he sells
them a part of the country. Daily News (Zimbabwe) and Bulawayo24 (Zimbabwe) and News24 (South Africa, 3-Aug-2017) and eNews Channel Africa
Related Articles:
KEYS: Generational Dynamics, Zimbabwe, bond notes,
John Mangudya, Robert Mugabe, Shona, Emmerson Mnangagwa
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Shops in Zimbabwe have bare shelves after panic buying
- Bond note currently on the path to inflation or hyperinflation
****
**** Shops in Zimbabwe have bare shelves after panic buying
****
Zimbabwe Bond Note
Shops in Zimbabwe have bare shelves as people, fearing a new round of
hyperinflation like the one in the 2000s decade, are panic buying
beer, bread, cooking oil, and other essentials.
Pharmacies have run out of medication for diabetic patients, high
blood pressure patients. There are long queues of cars at petrol
stations, with drivers hoping to get petrol before the station runs
out.
The panic was triggered when Zimbabwe's "bond note" currency crashed
to 2.5 bond notes to the dollar, at the end of a week when the
government imposed a new 2% tax on all electronic transactions. The
result all week was protests and panic over the price increases and
shortages of goods.
Zimbabwe's central bank governor on Saturday John Mangudya blamed
himself for the panic:
<QUOTE>"The problem is that we did not explain things. This
economy is a sentiment driven economy so we need to communicate
more with the society."<END QUOTE>
Mangudya, told reporters that people should not be worried and that he
expected an improvement in the next 48 hours.
At the same time, there is a new cholera epidemic in Zimbabwe, and 49
people have died so far. Independent Online (South Africa) and Reuters and Eyewitness News (South Africa
****
**** Bond note currently on the path to inflation or hyperinflation
****
Readers may recall that in 2016 then-president Robert Mugabe
introduced a new currency called the "bond note." Each bond note
would be worth exactly one US dollar. This was necessary because
Zimbabwe's banks were running out of US dollars with with to purchase
imports.
In the 1990s, Zimbabwe used to be the breadbasket of southern Africa,
growing much more food than the country needed and exporting the rest.
Then in 1999 Robert Mugabe instituted a "land reform" plan just like
the one that South Africa and Namibia are planning are now planning
confiscating white-owned farms and giving them to his cronies in the
Shona tribe who knew nothing about farming. Within ten years,
Zimbabwe was an economic disaster, with mass starvation, a worthless
currency, and massive million percent inflation.
By 2009 the Zimbabwe currency was more worthless than toilet paper,
and so the US dollar became the official currency. But Mugabe
continued with his destructive racist policies, and by December 2016,
Zimbabwe was running out of US dollars. So Mugabe introduced the bond note,
with each bond note worth
$1.00.
This cause large street demonstrations by Zimbabwe's public, because
they knew that the bond notes would suffer the same inflation or
hyperinflation that Zimbabwe's original currency did. But Mugabe
promised that wouldn't happen, since no more than $200 million in bond
notes would ever be printed, so hyperinflation was impossible.
During 2017, Zimbabwe's central bank printed more and more bond notes,
and by August 2017, the value of the bond note fell 50% compared to
the US dollar. The central bank announced that it would print another
$300 million in bond notes, bringing the bond note total up to $500
million, or half a billion.
Since then, Robert Mugabe has been ousted, and has been sent to his
palatial farm, where he has plenty of money at his disposal. Zimbabwe
now has a new president, Emmerson Mnangagwa, who is left to clean up
the 40-year mess that Mugabe left behind. So far, things have only
gotten worse. Maybe the Chinese will give him some money if he sells
them a part of the country. Daily News (Zimbabwe) and Bulawayo24 (Zimbabwe) and News24 (South Africa, 3-Aug-2017) and eNews Channel Africa
Related Articles:
- Zimbabwe's post-election violence raises concerns about economy (04-Aug-2018)
- Zimbabwe bans food imports as new 'bond note' currency crashes (21-Oct-2017)
- Venezuela's currency becomes worthless, as Zimbabwe introduces new currency (08-Dec-2016)
- Zimbabwe launching a Soviet style command agriculture program (20-Aug-2016)
- Zimbabwe, Venezuela, Puerto Rico - three amigos in Marxist economic destruction (01-Jul-2016)
- 'Liberation Hero' Robert Mugabe now destroys Zimbabwe with cholera (08-Dec-2008)
KEYS: Generational Dynamics, Zimbabwe, bond notes,
John Mangudya, Robert Mugabe, Shona, Emmerson Mnangagwa
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
