Africa: I've got good news and bad news
Good news, Zimbabwe: You've decided to switch from paying your civil servants and military with the "pariah" Zimbabwe dollar (which most consider "worthless") to using foreign currencies, which could also help stave off inflation.
From the UK's Guardian:
Bad news: You picked the U.S. dollar. Seriously? While still home to the world's largest economy and the top producer of American agrandissement, the U.S. of A. is also in the grips of the worst economic crisis since the Great Depression. And despite recent highs against the Euro, I don't think it's too far-fetched to say the U.S. dollar is primed to burst like the once-booming housing market."Although relatively low compared to what Zimbabwean professionals used to earn, $100 is a small fortune against the near worthless wages they had been receiving. Teachers were paid several trillion Zimbabwe dollars a month but inflation, which is above 10 sextillion (10 billion trillion) percent, wiped out the currency's value. Almost all shops in Zimbabwe now accept payment only in US dollars or South African rand."
Hopefully President Obama's new stimulus plan will have a positive effect on jobs, credit, etc., because it almost assuredly will take its toll on either the dollar (by printing new money and raising inflation) and/or future generations of workers (who will pay for the plan's price tag PLUS interest).
Verdict: I love my country, and it's great to see parts of the world still seeing value in our currency, but I wouldn't mind being paid in precious metals at this point. Plus, Euro coins are so neat looking compared to the ole greenback.
1 comments:
Good piece, very well thought.
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