Via the AFP: Zimbabwe introduces 100-billion-dollar note

Zimbabwe, grappling with a record 2.2 million percent inflation, has introduced a new 100-billion-dollar bank note in a bid to tackle rampant cash shortages, the central bank said Saturday.

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In January, a 10-million-dollar note was issued, then a 50-million-dollar note in April. In May, notes for 100 million and 250 million dollars were issued, swiftly followed by those for five billion, 25 billion and 50 billion.

But, will they have enough paper to print the new bills?

Via the NYT we see that US inflation is on the rise: Consumer Prices, Driven by Fuel, Surge 1.1% in June

A crucial measure of inflation rose at its fastest rate in 17 years, the government said on Wednesday, just a day after the chairman of the Federal Reserve warned that inflation poses a significant risk to the nation’s economic outlook.

The Consumer Price Index, which measures prices of a batch of common household products, rose 1.1 percent in June, the Labor Department said.

Meanwhile, the BBC notes Eurozone inflation at record 4%

A 16% year-on-year rise in energy costs as oil prices headed above $140 a barrel was to blame, Eurostat said.

But, if all of that gets you down, just remember: you could be living in Zimbabwe. Via the BBC: Zimbabwe inflation at 2,200,000%

The LAT explains the functioning of the Zimbabwean “economy” in recent years (Lack of bank note paper threatens Zimbabwe economy):

Zimbabwe’s economic meltdown harks back to the collapse of its major export industry, commercial farming, after Mugabe’s controversial land reform program early in the decade. That left the nation starved of foreign exchange, but government spending went on.

How did it do that? It printed money. But printing more and more money without an increase in productivity fueled rampant hyperinflation.

As hyperinflation spiraled last year, Fidelity printed million-dollar notes, then 5-million, 10-million, 25-million, 50-million. This year, it has been forced to print 100-million, 250-million and 500-million notes in rapid succession, all now practically worthless. The highest denomination is now 50 billion Zimbabwean dollars (worth a U.S. dollar on the street).

And now?

It has come to this: Zimbabwe is about to run out of the paper to print money on.

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Fidelity Printers is Mugabe’s lifeline. It prints the money to pay the police, soldiers and intelligence organs that keep the regime in power. Lately, the money has been used to set up a network of command bases around the country staffed by liberation war veterans and youth militias, hired muscle to terrify the population into voting for Mugabe in the June 27 presidential runoff election.

If the regime can’t pay the security forces on which it relies, it would face economic paralysis — and potential collapse.

And, to add insult to injury, as they may lose the license to he software needed to design new bank notes, which they need to do to keep up with hyperinflation. While on the face of it, one would think that the regime would have no problem using unlicensed software, the story suggests that somehow the loss of the license would mean loss of functionality.

So, if you were wondering how the situation in Zimbabwe could get even worse, now you know.

(The whole LAT piece is worth a read, btw.)

Via the BBC: Film of Zimbabwe ‘vote-rigging’.

Via the BBC: Video shows daring Colombian raid

Via the Times of London: Robert Mugabe’s thugs shout: ‘Let’s kill the baby’.

Beyond the hideous tale that makes up the headline, the whole piece is worth reading as it discusses organization of systemic violence against the opposition.

Via the BBC: Mugabe claims ’sweeping victory’blockquote>”The returns show that we are winning convincingly, that we have won in all the 26 constituencies in Harare, an MDC stronghold where we won in only one constituency in March. That is the trend,” Mr Mugabe said in footage broadcast on state television.

A shocking turn of events! I mean, who would have expected such an outcome given that his opponent had withdrawn from the race and given all the violence launched against the opposition?

All snark aside, the political battles in Zimbabwe are far from over:

In interviews published in British newspapers on Sunday, Mr Tsvangirai said he would push for negotiations with Mr Mugabe on a new constitution and fresh elections.

“We have the power to control parliament, and that is recognised even by Mugabe’s Zanu-PF… We must force a transitional agreement for a set time-frame and work towards a new constitution for Zimbabwe,” he told the Mail on Sunday.

“I am confident we can achieve that if international pressure keeps up,” he added.

Given the way Mugabe and his thugs have behaved over the run-off, I would say that is all rather optimistic (to put it mildly).

Via the LAT: Zimbabwe presidential election a farce, many say

“Many” meaning everyone except Mugabe and members of ZANU-PF, yes?

Via the BBC: UN ‘regrets’ Zimbabwe election

Early turnout low in Zimbabwe’s one-man vote | U.S. | Reuters

Early turnout was low in Zimbabwe’s one-candidate election on Friday after President Robert Mugabe went ahead with the vote despite a wave of international condemnation.

Mugabe, in power for 28 years, stood alone after opposition leader Morgan Tsvangirai withdrew six days ago saying state-backed violence and intimidation meant his supporters risked their lives by voting.

It is, of course, shocking that in the midst of an economic disaster and election-related violence that a one-person race wouldn’t garner much participation.

Although the AP reports that the government had been sending out thugs to intimidate citizens into voting.

Meanwhile, at least one organization has called the election.

Nelson Mandela condemns Zimbabwe’s leadership - Los Angeles Times

Addressing a dinner in London, the iconic Mandela, who now rarely comments on politics, broke his silence to decry the “tragic failure of leadership” in Zimbabwe.

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“Nearer to home,” Mandela continued, “we had seen the outbreak of violence against fellow Africans in our own country and the tragic failure of leadership in our neighboring Zimbabwe.”

Another South African Nobel laureate and apartheid struggle figure, the Anglican Archbishop Desmond Tutu, spoke out in stronger terms, telling Australian television that Mugabe had “mutated into something quite unbelievable. He has really turned into a kind of Frankenstein for his people.

It is good to see both Mandela and Tutu decry the situation in Zimbabwe. However, it is noteworthy that it isn’t exactly the case that Mugabe only recent went off the deep end. His economic policies have been ruinous for some time now and he has systematically used violence to political ends for years. There is little doubt that Mugabe’s anti-imperialism bona fides has created some selective blindness on the part of leaders in the region.

Regardless of all of that, however, it should be no surprise that (via the BBC): Zimbabwe rejects Mandela rebuke

Zimbabwe’s ruling party has rejected criticism of its leadership by former South African President Nelson Mandela.

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“I don’t see the merit in that kind of statement… [It's] totally unacceptable… the judgement that he has made,” Jerome MacDonald Gumbo said.