Zimbabwe, Is there anything we can learn?

Discussion in 'Economy' started by wayne, Sep 17, 2008.

  1. wayne
    Offline

    wayne Member

    Joined:
    Nov 4, 2006
    Messages:
    161
    Thanks Received:
    9
    Trophy Points:
    16
    Ratings:
    +9
    Don't screw with the economy, I think is the lesson to be learned.

    Unity agreement doesn't slow exodus of Zimbabweans - Yahoo! News

    Zimbabweans Unity agreement doesn't slow exodus
    By DONNA BRYSON, Associated Press Writer Tue Sep 16, 1:44 PM ET
    MUSINA, South Africa - A power-sharing deal has not stopped the flow of Zimbabweans streaming into South Africa to escape the hunger of and poverty wrought by runaway inflation in their homeland.

    About 1,000 Zimbabweans seeking asylum formed a line that snaked across a packed-dirt parking lot in this South African border town Tuesday. Many had been waiting for days to file their applications.
    Some said they feared President Robert Mugabe was still in a position to unleash violence on his enemies. Others said that while they found hope in the agreement signed Monday, they did not expect Zimbabwe's economic crisis to be quickly resolved.
    Under the pact, Mugabe remains president and head of government. Morgan Tsvangirai is prime minister-designate and will head a new Council of Ministers responsible for forming government policies.
    Observers worry that rather than resolution, the agreement heralds government paralysis.
    In Musina, asylum seekers waited restlessly in a lot dotted with ash left over from the previous night's fires and lengths of cardboard used as mattresses. Children gathered around a blackened paint pot balanced over a fire to await a breakfast of corn meal porridge and milk.
    Robin Mucheana reached South Africa on Saturday and was still waiting Tuesday to have his application processed.
    For 15 years, Mucheana grew oranges, guavas, avocados and vegetables on a small farm in Chitungwiza, south of Harare. This year, with official inflation the highest in the world at 11 million percent, he could not afford seedlings, seeds or fertilizer. He and his wife resorted to selling vegetables on the streets, but were barely making enough to feed themselves and their three children.
    "In the morning, you wake up with bread selling at 8 trillion (Zimbabwe dollars), at 5 in the evening you get it at 10 trillion. And tomorrow, again, new prices," he said. "The hunger is the main issue. Some people are even dying."
    The International Red Cross estimates more than 2 million people are hungry in Zimbabwe, and that the number is going to rise to 5 million, about half the country's population, by year's end.
    Some aid groups estimate that in recent weeks as many as 6,000 Zimbabweans have been crossing into South Africa every day. Many go back within a few days carrying groceries and other essentials that are scarce at home.
    But there has also been a spike in those seeking refugee status.
    While most are men, more and more women and children were coming, said Alexis Moens, an official with Medecins Sans Frontieres, which has been providing medical care for Zimbabweans and other immigrants in Musina.
    "My feeling is that now more women and children are coming than before (because) the situation is getting a bit more desperate," she said.
    High prices aren't the only reason Zimbabweans are struggling. The last harvest was poor, and Mugabe's government restricted the work of aid agencies in June, accusing them of siding with the opposition before a presidential runoff. The ban was lifted last month, but aid agencies say it takes time to gear up.
    "People are eating berries, people are eating roots, people are eating anything they can get their hands on," said James McGee, the U.S. ambassador to Zimbabwe. "We're seeing it all over the country."
    McGee added the political violence that followed elections in March and sent many Zimbabweans fleeing across the border has subsided, but not completely disappeared. He said there were signs of tension in areas where the deaths of parliamentary candidates or other issues meant new votes would have to be held.
    Tsvangirai defeated Mugabe in March presidential elections and his party also out-polled Mugabe's in parliamentary voting. But Tsvangirai did not win the simple majority needed to avoid a runoff. An onslaught of state-sponsored violence forced Tsvangirai to withdraw from the second election, and Mugabe was declared the winner in a vote widely denounced as a sham.
    More than 100 Tsvangirai supporters were killed, thousands were beaten, and tens of thousands were forced from their homes.
    Richard Zuza, a pastor in Zimbabwe's capital of Harare, said the agreement was a start. But he was also in line for asylum Tuesday, as he had been for four days. He was fearful of returning because he said new elections were being held in his area and he had been counseling his congregation not to vote for Mugabe's party.
    He said he wanted details on the agreement, such as whether Tsvangirai's party or Mugabe's would get the ministries overseeing police and the army, two institutions accused of fomenting violence against Mugabe's opponents.
    "If they don't give Mr. Tsvangirai those soldiers, I don't think anything can change," he said. "Mugabe must resign. Then everything will be all right."
     
  2. Diuretic
    Offline

    Diuretic Permanently confused

    Joined:
    Apr 26, 2006
    Messages:
    12,653
    Thanks Received:
    1,397
    Trophy Points:
    48
    Location:
    South Australia est 1836
    Ratings:
    +1,397
    Mugabe has been destroying his country for years. The recent power-sharging agreement may eventually work but it won't be without massive foreign aid.
     
  3. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Yes, the lesson we can learn is that power corrupts.
     
  4. wayne
    Offline

    wayne Member

    Joined:
    Nov 4, 2006
    Messages:
    161
    Thanks Received:
    9
    Trophy Points:
    16
    Ratings:
    +9
    To me messing with the economy means interfering with a productive sector that is making money and contributing to prosperity of the nation. On the other hand when things are not doing well it may be necessary for the government to attempt to make repairs.

    In order to save our economy I don’t mind our government buying up industries, but if we are going take financial risk I demand a reasonable profit for the treasure. I know I am dreaming, we will fortunate to get the money back.

    Mugaby, very well could continue to be a corrupt dictator if he had just left economic golden goose that was the white industrial farmers alone, Zimbabwe would not be anywhere near as bad off as it is now.

    official inflation the highest in the world at 11 million percent: Is that some kind record?
     
  5. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,470
    Thanks Received:
    4,838
    Trophy Points:
    1,130
    Ratings:
    +15,249
    Buying up industries is not saving the economy. It's saving share holders. It's buying time so that the burden can be passed on to the next generation, while the ones RESPONSIBLE get to live blame-free, and loss-free.

    I'd say Americans are probably the easiest in the world to trick into thinking it's "saving" the economy. It's saving YOU, for now. It's certainly not saving our CHILDREN'S future economy.
     
  6. wayne
    Offline

    wayne Member

    Joined:
    Nov 4, 2006
    Messages:
    161
    Thanks Received:
    9
    Trophy Points:
    16
    Ratings:
    +9
    We remember from history the Great Depression and are determined to never see it again.
     
  7. gonegolfin
    Offline

    gonegolfin Member

    Joined:
    Jul 8, 2005
    Messages:
    412
    Thanks Received:
    36
    Trophy Points:
    16
    Location:
    Austin, TX
    Ratings:
    +36
    What you will eventually see if this nonsense continues (meaning the excesses are not properly allowed to correct and the capital structure is not allowed to heal) is a hyperinflation followed by a depression (hyperinflationary depression) like no leader nation has ever experienced. This hyperinflation will be triggered when the US Dollar loses reserve currency status. And when it comes, it will come suddenly.

    Brian
     
  8. Baruch Menachem
    Offline

    Baruch Menachem '

    Joined:
    Sep 12, 2008
    Messages:
    14,204
    Thanks Received:
    3,235
    Trophy Points:
    185
    Ratings:
    +3,305
    Don't put empty suits with anger issues and no real respect for the democratic process in positions of power.

    Amazing how fast that place has sunk, and how much. It used to be very wealthy.
     
  9. Charles_Main
    Offline

    Charles_Main AR15 Owner

    Joined:
    Jun 23, 2008
    Messages:
    16,692
    Thanks Received:
    2,238
    Trophy Points:
    88
    Location:
    Michigan, USA
    Ratings:
    +2,251

    I keep saying this, and people like RAVI keep telling me I don't know what I am talking about.

    They will see.
     
  10. Paulie
    Offline

    Paulie Platinum Member

    Joined:
    May 19, 2007
    Messages:
    31,470
    Thanks Received:
    4,838
    Trophy Points:
    1,130
    Ratings:
    +15,249
    Remember only a few months ago when I was concerned about possible hyperinflation coming? Even you said it was doubtful.

    There's only 3 people I listen to when it comes to economics. Peter Schiff, Jim Rogers, and Ron Paul. They've been saying it for YEARS.

    Doesn't look quite as doubtful these days.
     

Share This Page