Yes, that’s 20,000%. Unofficially, of course.

It’s been an absolutely shocking few weeks in Zimbabwe. And the last few days on the news wire has revealed a country not in desperation but in complete chaos. It started when President Robert Mugabe decided to force retailers, grocery stores, gas stations — every person or business that sells something — to cut their prices back to levels found a month before. In nearly every case, this meant slashing prices by as much as 75% forcing business owners to take tremendous losses on their products.

Inflation in June reached 10,000%. Now the middle of July inflation is reported to have reached 20,000%. Mugabe doesn’t practice “bookish economics” — instead his own version which employs new tactics to stave off inflation. Of course, it’s having the reverse effect. In light of recent economic changes (to put it mildly), Mugabe has stated his government will no longer be releasing economic data to stave off embarrassment.

I read this morning widescreen HDTVs at Makro (think Sam’s Club or Costco) which were selling for $800 million Zimbabwean previously could be had for as little as Z$1 million.

Car dealerships are getting hit the hardest. A US$30,000 car was selling for US$60 (if you’re exchanging money on the black market).

Just a few weeks ago, simple purchases like a bus fare across Harare (the capital city) cost riders more than they could earn in a week. People waiting in queues to buy goods held their breath hoping the price wouldn’t change dramatically by the time they reached register. A tire salesman could only quote in 30-minute intervals; the value of the money was changing too quickly.

Anyone trying to turn a profit — or sell their goods at a break-even price — during the indefinite price cuts imposed by Mugabe’s government is arrested. Hundreds were jailed last week alone. Police line the aisles at grocery stores enforcing — in some cases with brute force — Mugabe’s orders.

Just when we think it’s impossible for the country to slip further into the world’s deepest economic recession — ever — Zimbabwe’s Mugabe pulls another rabbit out of his hat and shocks the world with his stupidity and callous treatment of humankind.

I hate to see children suffer, but in the hope of spreading some good news, try this: U.S. to Expel Zanu PF Chiefs’ Children

I wonder what will happen next. And, when people will start caring enough to actually step in and save this magical country and it’s starving people.

This entry was posted on Monday, July 16th, 2007 at 11 am and is filed under africa, family, gov, news, politics.