Tag Archives: inflation

Zimbabwe Limps Back To Reality–Barely!

On her recent visit to Africa, Secretary of State Clinton, urged African leaders to assume a pro-active role in assisting the people of Zimbabwe to get a return to the semblance of a nation. The basic policy of the African Union is if oppression is being carried out by an African leader it is none of their business, but if Europeans do anything within a country to violate its sovereignty then action must be taken. Under the rule of Senior Thug President Robert Mugabe Zimbabwe has been economically, socially and politically crushed. A power sharing agreement several months ago allowed opposition leader Morgan Tsvangirai to assume leadership and under his direction, inflation has been handled and goods once again can be found in stores.

The latest example of his success is the announced return to use of “checks” by banks and individuals. When inflation was over two million percent, banks could not honor checks since their worth changed literally on an hourly basis. Zimbabwe has a long way to go, but under Tsvangirai is it moving ahead. Now, how about the African Union exerting pressure to force Mugabe to cease harassing the opposition and preparing for free elections?

Iran Feels Pain Of Falling Oil Prices

America’s economic crisis has been the subject of glee among Iranian leaders who regard the downfall of Wall Street as some sort of thunder belt hurled by God at the unbelievers. The laughter is now being replaced by grim faces as Iranian clerics suddenly realize economic troubles in the West reduce demand for oil and move those nations in the direction of finding alternative fuels. As gas prices drop, President Mahmoud Ahmadinejad is compelled to confront the reality his administration squandered billions of dollars on supporting fuel or food prices or supplying militants with arms rather than investing in developing the Iranian economy. Mohsen Safari Farahani, a former lawmaker and economist, noted: “The Iranian people got a golden opportunity in history. But it was buried under this government’s wrong policies.”

The government discovered it only had $9 billion left in the rainy day fund which is used to bolster the currency, import food, and pay off debt. Economists estimate Iran received over $200 billion during the past three years due to dramatic rise in oil prices, but little of that money was used to develop a modern diversified economy or rebuild the nation’s infrastructure. Inflation is now at a 27% rate and the stock market declined by 12%.

Perhaps, if Ahmadinejad spent less time denouncing the American imperialists and more time working on the Iranian economy, employment figures would be higher. Iran needs a reform president who can work with the west and help the country develop a modern economy.

Zimbabwe Rivals Seek Mediation

The people of South Africa have been wondering what it would take to persuade their long time leader, Robert Mugabe, to finally agree on the importance of sharing power. Inflation in Zimbabwe hit a 231,000,000 percent the past week and President Mugabe finally agreed there was need to ask former president Mbeki of South Africa to renew his efforts to find some way out of the disaster that is now Zimbabwe. Reports are people are down to one meal a day due to the disastrous economic policies of Mugabe and his fellow thugs who run the nation.

Justice Minister Patrick Chinamasa announced, “the three leaders agreed to call in the facilitator to assist in resolving the outsanding issues. An appeal was made to the facilitator for him to travel to Zimbabwe.” The issues are quite clear and easy to resolve. Morgan Tsvangirai of the Movement for Democratic Change(MDC) must be given power to restore economic health and this means Mugabe’s thugs will have to surrender some of the property they have stolen.

EU Promises Tough Talk To Mugabe

The African-European Union Summit meeting next month is still wracked with arguments from many EU members who are opposed to the presence of Robert Mugabe, leader of Zimbabwe. He is accused of gross violations of human rights, of destroying his nation’s economy, and hostility toward those who oppose him. According to a spokesperson for Prime Minister Gordon Brown of England, “the message from the prime minister is clear, neither he nor any senior official will attend if Mugabe does.” EU leaders have promised to make clear to Mugabe their concern over violations of human rights. Zimbabwe has an inflation rate of about 15,000% and its economy is in ruin after Mugabe drove out productive white farmers and gave their land to his cronies who had no interest or experience in farming. About 75% of people are unemployed and at least a million have left the country seeking work elsewhere. Mugabe insists he has done nothing wrong and all problems stem from western hostility. Perhaps, he could explain why opponents are beaten or denied access to food supplies brought in by outside relief agencies?

President Mugabe Continues Dismantling of Zimbabwe

President Robert Mugabe of Zimbabwe continues his disastrous policies of wrecking what was once among the most highly developed economies in Africa. He has announced his government will seize control of foreign mining and business interests by assuming a 51% control of those assets. If foreigners don’t like the arrangement, he told them to “ship out” because he intended to give those assets to the people of Zimbabwe. UN economists estimate the current 25,000% inflation rate in Zimbabwe will reach 100,000% by the end of the year.

Mugabe illustrates what happens when well meaning anti-colonialists get caught up in rhetoric rather than confront economic reality. Mugabe tries to capture the high ground of protecting African rights by ranting and raving against “colonialism,” but most studies indicate after seizing farms or businesses once controlled by people of European background, the assets are turned over to his friends, family, and henchmen. His claims to benefit “the people of Zimbabwe” are merely words designed to cover up his kleptomania which only enriches the favored few around the president. As this thug continues to brutalize his nation, South Africa and other African nations stand idly by fearing to be branded as favoring European interests. In this case, Zimbabwe has all to gain by drawing upon talents of Europeans and all to lose by allowing the African Mugabe crowd to steal from their own people.