Thursday, June 05, 2008

hyperinflation in zimbabwe

Yes, the nightmare is playing out again.  that ugly beast called hyperinflation has reared its head in an unprecedented scale even in a modern world of globalization and free market capitalism.  So much for the Bush Doctrine of ushering in democracy and economic freedom all over the world.

The classic oft cited hyperinflation story goes back many decades to the story of the Weimar Republic.  Hyperinflation was so rampant that it was cheaper to cove one's walls with currency rather than buy the wall paper.  Times were different then; free market economics dod not rule the roost, Keynesian economics were still untested and the invisible hand of Adam Smith played a very constrained role.  It is great shame that Zimbabwe is facing this even today!  

The article reports the despicable state of affairs - an average worker's one month salary for a 2-liter bottle of Coke (talk of a global brand!). The last time I heard Bush, he was talking about the US's moral stance in the fight against dictatorships and military regimes.  I must be stupid or something, because to me Mugabe is no different from Saddam.. Aaha! Hold on! There is no oil in Zimbabwe.  Yes!  I got it now.  

At this moment, a very memorable quote from a movie comes to my mind.  Danny Archer, a mercenary brilliantly portrayed by Leonardo DeCaprio, in the movie Blood Diamond says, "This is Africa".  He says that to convey the message that the world does not care.  How True!


2 comments:

andrew said...

The fact of the matter is that Mugabe is a terrorist who will steal whatever is needed to keep himself and his cronies in luxury while most people starve. He has looted the currency- next stop shares I think.

The US and UK have said we should not intervene in Afica- why not? If not, aid shoulld immediately stop since that simply buttresses dictatorship

Girish Mallapragada said...

Good Point Andrew. Here's a interesting post I found on the Post Global Panel Blog at the Post.