Friday, September 30, 2011 on Lessons for Obama from Zimbabwe

Things can improve rapidly if you free an economy and maintain a conservative monetary policy. explains:

Hard to imagine it was just four years ago that pundits across the globe were slinging harsh and vilifying attacks against Zimbabwe’s President Robert Mugabe. They asserted that Mugabe under the banner of populism and black sovereignty had run and was continuing to run the country’s economy into the ground. Inflation’s was at an unimaginable rate of 100,000 percent which eventually grew to 231 million percent.The shelves of many stores were almost empty much of the time, and prices were constantly increasing due to hyperinflation. For the general population, it was estimated that four out of five people were unemployed and that the situation was so bad that about 3,000 people a day were reported to be crossing Zimbabwe’s borders into neighboring countries.

This is no longer the case, thanks namely to policies put in place and established by the same supposedly villainous Robert Mugabe. No longer does the African nation suffer with the highest rate of inflation in the world. Now just a few years’ latter goods are back on the shelves of local stores. Why, because of the government’s decision to replace the Zimbabwe dollar with the South African rand and the US dollar.

Zimbabwe’s economy has produced economic growth for two successive years due to positive policies and strong commodity prices, and this according to the International Monetary Fund. Although this southern African country’s economy was beaten down by hyperinflation which reached 500 billion percent in 2008, it grew 5.7 percent in 2009. Now as it stands, Zimbabwe has a budget surplus and demonstrates additional signs of improvement. The economy of Zimbabwe grew close to 8 percent in 2010 is expected to grow near 10 percent this year...

I often wonder why these occurrences in Zimbabwe and imposed by President Mugabe have received vapid coverage in mainstream western media and not openly discussed and acknowledged by President Obama. After all it was just last year when the nation‘s central bank introduced a $50 billion note (at the time enough to buy just two loaves of bread). It was implemented to avoid cash shortages because at the time, like our dollar, theirs was virtually worthless. The simple lesson for the President should be to learn from what transpired in Zimbabwe, but he will not. Some economists have suggested that with the Federal Reserve Bank incessant use of quantitative easing (printing fiat money willy nily), that the U.S. economy will enter “hyperinflation” similar to what we saw in Zimbabwe. Why? Because no matter what, the artificiality of the US economy will be subjected to the reluctance of the Federal Reserve to raise interest rates. We are already seeing large increases in everything from commodities to basic goods and with government debt growing so much, inflation has to start to accelerate at a dangerous rate.

...politicians figure the best way to grow (which isn’t growth) our economy is by printing new money to pay its debts, and borrow hundreds of billions more abroad in the form of Treasury obligations that someday must be paid...

From what has been said and written, it is pellucid that Dr. Ron Paul understands this as well as Robert Mugabe. The query is does or can President Obama and can he learn from them both?


  1. The obligations won't get paid...Where do you get this? The debts are NEVER paid...They are rolled over and made worth less by INFLATION!

    Do you even understand the dynamics of a money counterfeit racket? Study the Zimbabwe experience a little harder.

  2. Unfortunately, "can" Obama learn from them and "does" Obama want to learn from them are two very different propositions.....Obama doesn't strike me as the type that would want to learn; to arrogant and full of himself and his foolish pride, black or white.

  3. Don't know, Bob. Same reason my comments about Barak Hussein Mugabe in '08 were unapproved on this site.