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article imageUltimately, Mugabe Could Be Done In By Zimbabwe's Hyperinflation

By Can Tran     Jul 3, 2008 in World
For the people of Zimbabwe, they are billionaires. However, they are billionaires that can afford next to nothing. Regardless of how many zeros are on the bills, the banknotes aren't worthy anything.
Of all the places in the world, Zimbabwe has the highest rate of inflation. Many have blamed “reelected” president Robert Mugabe for the failing economy in Zimbabwe. Ever since the elections at the end of March up until the runoff election on June 27, the country has been plagued with violence and bloodshed at the hands of Mugabe’s Zanu-PF Party.
Mugabe has made it known to the world that he will do whatever it takes to retain control of the country. That had included hunting down and executing members, supporters, and activists for the Movement for Democratic Change (MDC) party. MDC leader Morgan Tsvangirai had dropped out of the race days prior to the runoff election.
While Mugabe retained power, leaders of the African Union were silent. The United States, Canada, Britain, and France, have called forth for extra sanctions for supporters of Mugabe.
Still, Mugabe has won this round. But, the fight is not over yet. Mugabe was right Zimbabwe did not end up like Kenya. Instead, Zimbabwe ended up like Burma. Tsvangirai could be in the same boat with Aung San Suu Kyi.
However, there is the possibility that Zimbabwe could end up like Afghanistan. One could ask: Why am I making such a comparison?
Not long ago, I had written an article on the Taliban. While US and coalition forces are having a hard time taking out the Taliban, there is something to look forward to. The Taliban has come across a formidable enemy, the wheat market. Opium production is being replaced by wheat production.
The Taliban at the moment does not have the infrastructure to take over Afghanistan’s wheat market. It could be the change in economy that could possibly do the Taliban in soon enough.
While the US, Europe, and the UN seem powerless to remove Mugabe from power, it would seem that the economy might do the job. It could be Zimbabwe’s economy that could do Mugabe and his Zanu-PF party in soon enough.
Zimbabwe is the one place in the world that regardless if you’re making billions, you are still poor. According to Moses Chikomba, the Zimbabwe dollar notes are near worthless. Despite making $50 billion in Zimbabwe dollars, he can only afford two bars of soap. This is why Chikomba hates the “old man.” He’s probably referring to Mugabe as that old man.
Of course the MDC is angry at Mugabe for the violence. As a whole, Zimbabweans are angered and frustrated at the hyperinflation. Only a few months ago, the inflation rate in Zimbabwe was 1,000 percent. Now, the inflation is at 8.5 million percent.
Notice the spike in inflation?
This kind of inflation is unfathomable for the most part. While the thought of a spike in inflation is surreal, it’s happening. Luckily, most of us are not living in Zimbabwe. It has gotten to a point where the people of Zimbabwe are asking for US dollars. Businesses are at the point of only taking US dollars.
Recently, the firm tasked with providing the paper to make the Zimbabwe banknotes have stopped. They are not giving anymore banknote paper to Zimbabwe. That would mean that Zimbabwe’s government will lack the means to create the banknotes.
Though Tsvangirai has dropped out of the election, he may end up getting the last laugh. It is neither Tsvangirai nor the MDC that has to deal with Zimbabwe’s financial crisis. The financial crisis is something that Mugabe must deal with.
While Mugabe has blamed the MDC and the Western nations for the violence and trying to remove him from power, he cannot blame anybody for the hyperinflation of the country’s economy.
This is why I compared Zimbabwe with Afghanistan.
More about Mugabe, Tsvangirai, Zimbabwe
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