What's a crisis! If you think that the current economic crisis is gloomy.
Digest this!
After the collapse of the agriculture sector in Zimbabwe in 2000, the inflation in that country skyrocketed to 231 million % annually. Just think about it, 231 000 000%! Unemployment went up to 80% and a third of country's population had left the country. Zimbabwe is still under President Robert Mugabe, who had rule the country since the 1980s but recently there is tremendous pressure for him to hand over power to his long-time rival Morgan Tsvangirai whose Movement for Democratic Change Party had won the March 2008 elections. Source -
http://www.themalaysianinsider.com.my/index.php/world/18147-mugabe-swears-in-rival-as-zimbabwe-prime-ministerLet`s look at the photos that you may not see elsewhere.
Here is a boy getting change in 200 000 dollar notes!
One 200 000 dollar note has less value than US 0.10!
December 22nd, 2006, a new note of 500 000 dollars was introduced to the market!
Next - 750 000 dollars note, a few days later.
January, 2007 - new 10 million dollars note!
The US $10 dollars note is worth 10 times more than the Zimbabwe 10 million dollars note.
A case of 65 billion Zimbabwe dollars which equals to US $2000.
This guy is going to a supermarket.
The exchange rate is 25 million Zimbabwe dollars for 1 US dollar.
This mountain of cash is worth US $100.
February, 2007, the 50 Million dollars note is introduced!
Next is 250 million dollars note!
Excuse, how much is this T-Shirt? It's cheap, the discount price is only 3 billion dollars.
May, 2007 - a note of 500 million dollars was introduced!
June, 2007 - notes worth 25 & 50 billion dollars were printed.
September, 2007 - And finally 100 billion dollars note.
What can you buy with it? You can buy 3 eggs.
That's how the people went to restaurants!
And the bills:
In August 2007, the government devalued the Zimbabwe dollars by removing 10 zeros from the notes.
But, inflation kept increasing and in September 2007, for this amount of cash, you can only buy 4 tomatoes or some bread.
And then the currency value slide began again and by September 2008, the 20 000 dollars note was reintroduced.
Followed by the 50 000 dollars note a few weeks later.
In no time, the Zimbabwean economy would see the billion dollars notes again if no concrete solution is found.
And if you think that you are facing a tough financial crisis, think Zimbabwean and you'll feel much better! Source -
http://www.nidokidos.org/funny-financial-crisis-t27710.htmlAccording to Gilbert Muponda, a Zimbabwean entrepreneur living in exile, Zimbabwe’s hyper-Inflation is a result of the monetary authority irresponsibly borrowing money to pay all its expenses and funding quasi-fiscal activities (which are normally left to Central Government). In Neoliberalism, hyperinflation is considered to be the result of a crisis of confidence. The monetary base of the country flees, producing widespread fear that individuals will not be able to convert local currency to some more transportable form, such as gold or an internationally recognised hard currency. Source -
http://www.newzimbabwe.com/pages/inflation180.17386.html
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