Zimbabwe currency crisis: No cash, no bread, no KFC

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absinthe beginner
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Zimbabwe currency crisis: No cash, no bread, no KFC

Post by absinthe beginner » Sat Oct 13, 2018 10:11 am

I am shocked, shocked! to learn that kleptocracies can't print their way out of a financial crisis.

https://www.bbc.com/news/world-africa-45822166

A deepening unease is settling over Zimbabwe as the country's fragile local currency loses value at an alarming speed, prices soar, local and foreign businesses close their doors, and people wonder whether their savings are about to be wiped out once again, as they were during the economic collapse and spectacular hyperinflation that tore through the country a decade ago.

"We are suffering. Inflation is too much. Every minute, every hour, every day, the prices are just changing," said a wholesale trader who did not want to give his name.

KFC has closed its local outlets citing "these difficult times," while supermarkets have been rationing some items, and mining companies and other key exporters are complaining about a lack of access to foreign exchange reserves.

"I'm very worried. It's going to be just like 2008. Or maybe worse," said Grace Chitambara, a nurse waiting in her car in a mile-long queue for petrol in the capital, Harare.

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by raptor » Sat Oct 13, 2018 10:41 am

The truly sad part about this is that before there was a kleptocracy there was actually a democratically elected government that functioned.

The country was a major food exporter to Africa.

This is not so much a currency crisis as it is simple theft.

If you notice in the the mining companies are having trouble getting hard currency to purchase equipment and all the supplies they need.

Think about that, the mining companies are extracting various minerals. They then export those minerals in return for hard currency; so these these companies actually have cash coming into their bank accounts.

Yep they have trouble accessing this cash. The reason why is simple is because the Central Bank is making them convert hard currency nto local currency and keeping the hard currency.

The hard currency then disappears in expenditures approved by the central bank.

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by Stercutus » Sat Oct 13, 2018 1:08 pm

That got rid of the farmers before they destroyed the mining industry creating food crisis in a country that was a net exporter. The whole regime is pure theft.
You go 'round and around it
You go over and under
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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by w3rdtoyamama » Sat Oct 13, 2018 4:15 pm

No KFC? Where are my free nikes hiding?
Czechnology wrote:Lots of people enjoy saying "Move" when people complain about their local/state laws, but that's a churlish, ignorant thing to say.

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by SRO1911 » Sun Oct 14, 2018 1:03 am

History repeats.
I've got a few hundred Billion (yes with a B) dollars in collapse era (2008) Zimbabwean dollars in a drawer. At that time I think the 50 billion notes were converting at a little over a u.s. quarter. I initially picked up a few trillion- shipping was far more than the total exchange. I've given them out as novelty gifts.
Hyperinflation is truly heartbreaking to watch, it definitely drives home the need to prep - not merely the basic necessities but barter items as well. I have pounds of tobacco (not a smoker) and heavy reserves of feminine hygiene products. ( guys can crack all the jokes you want, I've been married enough times to know happy wife is happy life, in desperate times you cant eat gold but you can trade practical convenience for a helluva good home cooked meal).

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by absinthe beginner » Sun Oct 14, 2018 9:05 am

Raptor said: If you notice in the the mining companies are having trouble getting hard currency to purchase equipment and all the supplies they need.

I've noticed, all right. Most of the world's supply of platinum group metals (PGMs) are mined in South Africa, Zimbabwe, and Russia. All three are dodgy from a geopolitical risk and supply-disruption standpoint. Platinum is 10X more rare than gold and has a much higher industrial usage, yet is currently selling for more than $200 an oz cheaper than gold, which makes it a screaming good buy and solid long-term investment in my book. With the legalized theft being pursued in both South Africa and Zimbabwe, no mining company is going to make the capital investments required to keep digging strategic metals and minerals out of the ground there, meaning supply-demand imbalance could get acute down the road. Just my .02.

My favs: Canadian .9995 fine Platinum Maple Leaf bullion coins.

https://sdbullion.com/platinum/canadian ... -leaf-coin

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by MPMalloy » Mon Oct 15, 2018 11:24 pm

absinthe beginner wrote:
Sun Oct 14, 2018 9:05 am
My favs: Canadian .9995 fine Platinum Maple Leaf bullion coins.
https://sdbullion.com/platinum/canadian ... -leaf-coin
I want everything I saw there. :clownshoes:

Also, I did get a call from U.S. Gold Bureau today. (hmmm) :?:

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Re: Zimbabwe currency crisis: No cash, no bread, no KFC

Post by absinthe beginner » Tue Oct 16, 2018 8:43 am

Black market fuel sales and fear: Zimbabwe faces economic fallout

https://www.aljazeera.com/indepth/featu ... 26079.html

Bulawayo, Zimbabwe - There are snaking queues at Zimbabwe's petrol stations, supermarkets and factories as shoppers and motorists line up for scarce supplies.

With Zimbabwe struggling to find a way to repay its foreign debtors and curb domestic spending, there are fears the country is slipping back into crisis mode.

For days, some shops have closed, with signs on their doors such as "closed for stocktaking". Others are open but their prices are rising.

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