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| Africa Subsaharan |
| Zimbabwe Bashes US Dollar, Alligns With Yuan |
| 2011-12-01 |
| It was three short years ago that the small former British colony of Zimbabwe was spewing forth 100 trillion dollar bills. Since then, courtesy of a few trillion extra percent of inflationary RDA, the country had given up on its currency and replaced it with US Dollars. Now, the country's cult central banker Gideon Gono has made it clear he wishes to avoid another episode of transplant currency hyperinflation courtesy of his counterpart in the Marriner Eccles building and "has warned that Zimbabwe's nascent economic recovery is at the mercy of the United States dollar, which is facing new pressures from the Euro-zone debt crisis." Yet the screaming sarcasm is the following: "Gono says Zimbabwe should in fact be looking to the Chinese yuan as its main currency, while urgently seeking to restore its own currency which was abandoned in 2009 after a dramatic loss of its value. With the continuous firming of the Chinese yuan, the US dollar is fast ceasing to be the world's reserve currency and the Euro-Zone debt crisis has made things even worse." And the terminal slap in the face of all that is American: "As a country, we still have the opportunity to avoid being caught napping by adopting the Chinese yuan as part of consolidating the country's look East policy." Well, if recently hyperinflating Zimbabwe is complaining about the US as being on the same path as itself, and instead wants to become a Chinese FX vassal state, perhaps alarm bells should go off somewhere. So the next time Tim Geithner is up on stage somewhere, it may be prudent for a question to be be asked: how and why is it that the world's (formerly) de facto banana republic is complaining that the next up and coming B-Rep is about to replace it in the annals of idiotic monetary policy? From New Zimbabwe: |
| Posted by:tipper |
| #4 Zim-Bob has trading partners, EH - major or otherwise? What the hell do they have to trade? Seems to me the other countries that would deal with them already have enough abject misery. What else can Zim-Bob export? |
| Posted by: Barbara 2011-12-01 20:57 |
| #3 Look at who are Zimbabwe's major trading partners. It isn't the US. |
| Posted by: Eohippus Phater7165 2011-12-01 18:22 |
| #2 "Zimbabwe Bashes US Dollar, Aligns With Yuan" Works for me. They deserve each other. |
| Posted by: Barbara 2011-12-01 17:48 |
| #1 FWIW, the unofficial estimates of Chinese inflation, with the Chinese government pretending everything is hunky-dory, is some 17% per annum. This suggests that they're as yentzed as we are. |
| Posted by: Thing From Snowy Mountain 2011-12-01 17:39 |