States Visited

Wednesday, January 7, 2009

Exhibit A -

If you want to know what happens when you have a government that 1) doesn't understand economics and 2) tries to print (money) its way out of financial probems (sort of what is happening in the U.S. right now) just take a look at Zimbabwe.

The full story can be found here -

What is believed to be the largest check ever written has been presented for payment in England. It is drawn on MBCA Bank in Zimbabwe. The check is for -

In case you are wondering that is 1 quadrillion, 72 trillion, 3 million dollars. Zimbabwe dollars, that is.

With British experts calculating an annual inflation rate in Zimbabwe of 12,500,000% they deemed it almost impossible to determine the exact value of the check, but estimated it at "no more than a few pounds." If we assume that "a few pounds" is 10 pounds, then it is worth about $15 US.

A few days ago the government began offering $10 billion dollar notes - which isn't enough to buy a loaf of bread.

As a further example of his economic ignorance, President Robert Mugabe, "accuses businesses of unfairly increasing prices as part of a wider plot to incite people against his government and today warned companies that authorities would impose emergency measures if they continued profiteering."

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