Sunday, April 06, 2008

And the value of a million is grim

I have always been quite interested in the economics and I have been following the updates in Zimbabwe. Sadly, the situation has gone from worse to worser and I wonder how much the Africans are going to be helped by the world.

Today as we stand by it seems that it is very very easy to become a multi millionaire (atleast if you take the local money worth). Yes, it is sad that the economically depressed country's currency has gone so low that 25 million Zimbabwe dollars = 1 USD ! The official Zimbabwe inflation trebles in one month to 66,000 percent and to top it the cost of a chicken has risen more than 236,000 percent to 15 Million Zimbabwe dollars. How can someone ever EVER live in such situation.

Apparently, the government has not done much in the recent past and the US or other countries have not cried foul. Perhaps it is because they don't have oil there else Mr. President would have occupied Zimbabwe. That seems to be the war cry at this point of time though.
The currency on above was deemed useless because this was worthless on the second day of its issue. The inflation has climbed up to mystery proportion that it seems better that the civil war breaks up anytime now !

It is more interesting to see the news that with Zimbabwe dollars mostly available in bundles of 100,000 and 200,000 notes, one $100 note bought nearly 20 kilograms (40 pounds) of local notes at the new market rate Wednesday.

The above picture is for the cost of a beer !

To combat this situation the government has recently released a new 50-Million Zimbabwean dollar note in a desperate attempt to stabilize the flatering economy. Interestingly, CNN says, the new note is worth about 2 dollars (in the black market) and can buy 3 loaves of bread !
But the super stores are anxious about the present state that they remain empty all the time.

And if this was one side of the ruler who failed to understand that all countries in the past have dealt with the Inflation/Deflation and how to rule at that point of time, India is still in news for some other reason.

It is amazing to read the news that a person who drives Honda City is living below the poverty line ! The government is busy embezzling the money that it does not have any corporate governance in place which would keep track of everything, from an account perspective. They just let everything go and it is quite weird that we are still dealing with such situations. Just sums up how much difficult it is here to rule the country.

If only the people who rule the country are not short sighted(in both the countries!). I wonder how ever would we deal with an inflation situation if ever it became like Zimbabwe. The odds are less considering there are other countries around India which will not be able to survive. So perhaps, at that time the leaders might take a hint. But on a general note, the world is not a very comfortable place to live and how much the print on the paper - Money, rules us all...

It was for no reason, someone sang:

"Money makes the world go around,
the world go around, the world go around,
Money makes the world go around,
it makes the world go round.

A mark, a yen, a buck or a pound,
a buck or a pound, a buck or a pound,
Is all that makes the world go around,
that clinking clanking sound,
Can make the world go round.

If you happen to be rich, and you feel like a night's entertainment,
You can pay for a gay escapade.
If you happen to be rich, and alone and you need a companion,
You can ring ting-a-ling for the maid.
If you happen to be rich and you find you are left by your lover,
Tho you moan and you groan quite a lot,
You can take it on the chin,
call a cab and begin to recover on your fourteen carat yacht.

Money makes the world go around,
the world go around, the world go around,
Money makes the world go around,
of that we both are sure.
(Raspberry) On being poor.

When you haven't any coal in the stove and you freeze in the winter
And you curse to the wind at your fate.
When you haven't any shoes on your feet and your coat's thin as paper
And you look thirty pounds underweight,
When you go to get a word of advice from the fat little pastor,
he will tell you to love evermore.
But when hunger comes to rap, rat-a-tat, rat-a-tat, at the window
See how love flies out the door.

For money makes the world go around, the world go around,
the world go around.
Money makes the world go around,
the clinking, clanking sound
of Money, money, money, money,
Money, money, money, money,
Get a little, get a little,
Money, money, money, money,
Mark, a yen, a buck or a pound,
That clinking, clanking clunking sound
is all that makes the world go round,
It makes the world go round."

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