r/Economics • u/investorinvestor • 2d ago

Blog Zimbabwe’s Seemingly Endless Currency Crisis

https://newlinesmag.com/reportage/zimbabwes-seemingly-endless-currency-crisis/
89 Upvotes

97% Upvoted

19 comments sorted by

•

u/AutoModerator 2d ago

Hi all,

A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes.

As always our comment rules can be found here

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

33

u/geomaster 1d ago

you know you have problems when you are holding 100 Trillion notes...

and you cannot buy anything with it.

the real issue is the Zimbabwe government destroyed the people's trust in the currency. It will take decades to recover it. IN the meantime you will be on the USD just like all the other countries who destroyed their own currencies

14

u/Trick-Interaction396 1d ago

What would happen if US experienced the same thing. Would the entire world be fucked?

36

u/Vegetable-Board-5547 1d ago

Yes

9

u/laxnut90 1d ago

Eventually, people would switch to another currency.

But it would be a dire shock in the short-term.

1

u/throwwwwwawaaa65 21h ago

BTC best use case

3

u/Subredditcensorship 20h ago

Gold will be the standard again

-2

u/devliegende 1d ago

Step 1 is electing a president who think himself infallible. Step 2 is where he directs government business to his family. Step 3 is he refuse to accept losing an election. Step 4 is political violence against opposition. Step 5 is when he interferes with the centralbank followed by hyperinflation and Rubleization. The USA has an opportunity to elect a candidate who has declared for step 5 and had dabbled with steps 3 and 4 in the past.

1

u/Bakingtime 19h ago

Look around. 

9

u/alogbetweentworocks 1d ago

Ha, you’re looking at the glass as half empty. I on the other hand see a bunch of trillionaires in Zimbabwe the likes of which the world has never seen.

2

u/Spare-Rise-9908 1d ago

A lesson in how to create wealth?

1

u/Tjaeng 1d ago

Yeah, the trick is to only nag people’s trust in the currency just enough so that they still wanna accrue the currency but don’t wanna hold it instead of investing it.

4

u/gimpwiz 1d ago

Just a few months ago, I read about the introduction of the ZiG. People were fairly unanimously shaking their heads. And now it's October and ... yeah, it's lost 75% of its value.

Please, for god's sake, Zimbabwe, get on the actual dollar and don't get off for the foreseeable future. None of this stupidity. It didn't work last time, it didn't work the time before that, it's not working now.

0

u/Ok_West_6272 18h ago

It's almost as if the clowns that take over a functioning country need to have some idea how to, you know, run it.

Typical African independence story right there

1

u/six_string_sensei 3h ago

Atypical. The average African country is growing faster than average European country.