Can You Afford a 500 Billion Dollar Meal?
Imagine paying $500 billion for your dinner bill or spending $10 trillion for your grocery shopping. Well, it sounds impossible but it’s real and it’s happening in the hyperinflation-ravaged African country - Zimbabwe!
The country has a record breaking 2.2 million percent of inflation where all prices of goods double or triple every other day! The country’s central bank has been printing money of high denomination notes to cope with the skyrocketing prices and higher demand for money! Recently, the central bank just issued a $100 billion note.
Businesses, individuals and machines face a difficulty of dealing with so many zeros! Most calculators can only hold up to 12 digits making it difficult to do arithmetics. Price tags now have a caution sign saying multiply all prices by $1 million!
Inflation occurs when there are shortages in the supply of goods and services which is a rampant problem in Zimbabwe. With too much supply of money competing to buy a very limited supply of goods and services cause prices to go up. Shops and other businesses sometimes accept US dollar note when selling their goods. However, they face arrest when caught as it is illegal to do so.
The root cause of this problem is the political crisis of the country which has been going on for several years when their president started to forcefully confiscate the farms of white people in the country without compensation. The farms were given to the african people who do not have the necessary skills to continue the farming business which resulted to a shortage of food supply.
This fact only means that the political situation of a country has a direct and strong influence on the economy. For instance, statistical data show that unemployment rate in the United States is higher when Bush was the President compared to the time of Clinton!
A head of the government has the control over the economy through the tax policy and goverment spending policy. That is why it is very important to consider economic programs of the candidate during elections!
Zimbabwe has already showed the world a living example of the direct relationship between politics and the economy. With the worsening political and economic situation of the country, I think it is about time for other countries and maybe the United Nations to intervene and remove the current President from office!
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Hey Mr. Wilson,
You talk like you have been there? Have you?
Zimbabwe sure is a mess. But I seriously doubt the United Nations will directly intervene in this situation (given the influence of China and Russia). It’s about time to other African countries got up and did something. Thabo Mbeki form of quiet diplomacy is not working.
Well don’t worry Nigel, Mbeki will be gone soon to be replaced by another upstanding president.
This time one who beleives showers prevent aids and who just got off a charge of rape, so i’m sure he will have some great strategies for solving the problem.
Maybe they could dam Victoria Falls and give the whole of Zimbabwe a shower?
Good post Wilson, zimbabwe used to be known as the Breadbasket of Africa due to it’s prolific food usage. Now that everybody is starving, it’s a tradgedy!
Can you bring me some souvienier from Syd pls?
I went to an underground mine yesterday~ hahaha……..it was okay……..there were quite a few women over there though LOL.
The charter flight was damn scary!!!!
Hey Mr. Wilson, thanks for the pasalubong! hehe
wow, another great and informative post! this could also mean business, inventors should come up with calculators that could accommodate all the zeros… thank God our present country leader is not that worst, we’re luckier pa pala, hehe. b the way, thanks for the chocolates!!! =)
Sori Jo, di ko natanggal ang presyo.. kakahiya..
Thanks majal for comment.
Yes I agree we are still luckier a President Gloria is so much better than President Mugabe. But that would be great too if it happens. All Filipinos will become millionaires or even billionnaires! haha
Great site Wilson!
Very informative! Miraculously life in Zim still carries on as “normal” and the country keeps on ticking. The economic situation there makes everyday interesting. Have you ever heard of people buying cash at a premium? Well, it happens…and like most other things ridiculous, it seems to happen only in Zimbabwe!
Sometimes I don’t know if I should laugh or cry!
Thanks Mits for the comment.
Yes I’ve heard about some people buying Zimbabwean notes more than it’s face value as a collector item! I think they buy it in ebay. It sounds interesting. I might buy one so that I can call myself a billionnaire! Then I can go to Zimbabwe on vacation if the situation of the country improves in the future! Hopefully!
Maybe Zimbabwe needs you back mate! Who knows you maybe able to turn around the country. But I think you need to have a new president first before going back there. Are your family members still over there or they’re all here in Australia now?
Haha….you would be better off with Monopoly money!!!
No guy, besides the souvenir bit, people actually buy the currency at a premium in Zim cos there isn’t enough to go around!
I won’t be going back to Zim in a hurry. You would have to drag me kicking and screaming! It is a very sad situation indeed! Seeing the place in such a state would be rather depressing, so I’d rather not hey. Let me put it into perspective: In 1980 the exchange rate to the USD was ZWD0.50, seventeen years later in 1997 it was ZWD6.00 (not too bad considering), in Feb 2005 it was ZWD11,000, and now it is ZWD150,000,000,000,000 (150Trillion!!!!)
Yes, I do have family left there….Uncles, aunts, cousins, nieces and nephews. My folks are here now. They just abandoned everything and left. Everyone there is living off savings. What can they do? Zimbabweans are passive. They will not fight.
The rest of the world just sits and watches. A wealthy, spectacular country reduced to nothing.
The following picture is a courtesy of Long or Short Capital website which has an interesting blog about Zimbabwe as well!
i dont think there will be any support to oust President Mugabe on the African front. He is considered an idol over there. a revolutionary who fought for the farmers and a liberator who drove away the colonialists!
i’m just wondering how big their wallets are? lol