one way to handle inflation ....

[RadioPatrol]

Zimbabwe to remove 'zeros' from currency

Sunday, July 27, 2008

By ANGUS SHAW, Associated Press Writer

HARARE, Zimbabwe — Zimbabwe's bank chief plans new currency reforms _ removing "more zeros" from the plummeting Zimbabwe dollar and raising the limit on cash withdrawals _ to tackle the country's runaway inflation and cash shortages, state media reported Sunday.

Previous currency reforms have failed to tame Zimbabwe's inflation _ officially pegged at 2.2 million percent a year but estimated by independent analysts to be closer to 12.5 million percent. It also has become virtually impossible to get access to cash as the country's economic collapse worsens.

Authorities last week released a new 100 billion dollar bank note. By Sunday it was not enough even to buy a scarce loaf of bread in what has become one of the world's most expensive _ and impoverished _ countries.

The Sunday Mail, a government mouthpiece, reported that central bank reserve governor Gideon Gono told an agricultural show Saturday he would introduce the new measures in the coming days to make sure cash shortages are a "thing of the past."

Zimbabwe's government says western sanctions _ tightened last week _ are mainly to blame. Critics blame mismanagement by President Robert Mugabe's government and a land-reform program that slashed the country's agricultural production.

To improve liquidity on the market, Gono was going to remove "more zeros," the paper reported.

"This time, we will make sure that those zeros that would come knocking on the Governor's window will not return. They are going for good," Gono was quoted as saying.

In 2006, the central bank slashed three zeros from the currency when inflation stood at a few hundred percent, already the highest rate in the world then.

When your money is not tied to something of value .... like GOLD, you gobberment can pull this crap ........

[Lenny]

Originally Posted by RadioPatrol

When your money is not tied to something of value .... like GOLD, you gobberment can pull this crap ........

We'll soon see. Once the American currancy is based on HOPE, we'll really see run-away inflation.