Saturday, November 24, 2007
We probably won't know until he's gone how Zimbabwe president Robert Mugabe has managed to hold onto power so long while presiding over his country's fiscal collapse.
Inflation has become so bad that the country's central bank it is knocking three zeroes from its currency notes. In other words, a thousand Zimbabwe dollars is now one new Zimbabwe dollar. If that sounds radical, bear in mind this is the second time the country has pulled this stunt this year.
The central bank governor, Gideon Gono, said holders of cash needed to urgently deposit it into the banking system "before it turns to useless manure".
Actually it sounds like he's asking Zimbabweans to turn last month's crap into next month's crap. The official rate of inflation is about 14,800%. Independent assessments come in closer to 40,000%.