I Swear I can't Make this up
The first quarter monetary policy update from Dr. G. Gono, the Governor of the Reserve Bank of Zimbabwe COMMENDS his peers, the world over. Referring to the United States and the United Kingdom. Dated April 30th, 2008. Pages 8 through 12 – Point 1.14 to 1.29. (http://www.rbz.co.zw/pdfs/2008%20MPS/AprilMPS2008.pdf)
Permit to quote. (I especially like his use of bolding – I added bolding where he did).
“1.14 Equally also, our thrust has been founded on our unwavering belief that extraordinary circumstances must be confronted through extraordinary interventions and not through half baked or even wholesale 16th century economic dogmas that have been long discarded in their founding countries.
1.15 As Monetary Authorities, we have been humbled and have taken heart in the realization that some leading Central Banks, including those in the USA and the UK, are now not just talking of, but also actually implementing flexible and pragmatic central bank support programmes where these are deemed necessary in their National interests.
1.16 That is precisely the path that we began over 4 years ago in pursuit of our national interest and we have not wavered on that critical path despite the untold misunderstanding, vilification, and demonization we have endured from across the political divide.
1.22 Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multi-lateral institutions who today are silent when the Central Banks of UK and USA are going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what’s good for goose is not good for the gander.
1.26 As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances.
1.27 Of course, in the short term such interventions are without doubt inflationary but in the medium to long-term they trigger and propel economic growth and development that everyone craves for”.
Later on in the document you learn the unsecured lending rates were raised to 5000% from 4500%. Page 46.
Of the 309 registered microfinance/money lending institutions only 184 are still operational. Page 61.
In other words bank failures and hyperinflation appear to go hand in hand.
Buy all the bullion you can carry. Who do you trust? Do you know who your counterparty is? 1 2 or 3 zeroes.
100% debt free currencies with my preference being gold and silver.
Shorting equities to buy commodities to earn the spread.
May 05, 2008
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