Original Article:
Poor Billionaires
In a nation with rampant hyperinflation, bread is a bargain at just $10 million. Inside Zimbabwe's collapsing economy.
By Scott Johnson | Newsweek Web Exclusive
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Have you ever studied U.S. Histroy and have seen a picture of Germans after
WWII, using cash money as wall papers for their home?
Well, that is happening in the 21century in the country of Zimbabwe. Can you imagine?
According to Newsweek "The bill, released for the first time last month, is actually not a proper currency note at all but rather a "bearer check."
Last week in Zimbabwe 10 million dollars could buy exactly two rolls of toilet paper. By now it probably won't get quite that much.
Surprisingly, during this chaos Tomorrow, that is 29th of March 2008 is their
Presidential election date! Rober Mugabe, the 28 year long president of Zimbabwe was
blamed for such a economic catastrophe, people blame the legacy of sanctions and British Imperialism. His challenger, Simba Makoni says:" simply removing Mugabe will do wonders for the economy by restoring a modicum of confidence in the markets."
Officially, one U.S dollar is worth about 30,000 Zimbabwean dollars. As of last week the real price on the black market was about 35 million dollars, or 1,166 times the official rate.
The average wage for a farm worker is 30 million dollars per month. A domestic worker makes about five times that amount, and a laborer in one of Zimbabwe's decrepit factories can expect to earn as much as 300 million per month.If you're a government worker you'll earn a monthly pension of 60,000 (yes, thousand) a month. But an empty potato sack alone costs 2 million, or 33 times your monthly pension.
The most problematic factor is fluctuating price of oil.
Every Single price of a product depends on the change price of oil, so the price of oil controls basically everything there.
Say you've bought a side of beef that costs 20 million, and transport was a million, now you sell the beef for 22 million. Then the price of fuel rises, but you've already sold your beef, so it'll cost you 24 million in the end.
Right now, in Zimbabwe, one really knows where to start. "We just don't have people here who have dealt with this kind of hyperinflation," says David Coltart.
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