Currency change a chaos catalyst

By Leila Dougan and Nora-Lee
Wales

Zimbabwe is issuing a new currency by slashing three zeros off its dollar in an effort to salvage the floundering economy, causing national panic.

These changes are an attempt to counteract the effects of runaway inflation, which is currently at just below 1 000% per annum.
Zimbabwe
remains the most indebted country in the world with $5,5 billion in arrears and 80% of the  population living below the poverty threshold.

 The Reserve Bank of
Zimbabwe made the move on July 31 and proceeded to set a 21-day deadline for all
old notes to be exchanged for the new currency. This date had to be extended because masses struggled toexchange their money at banks before the midnight deadline on August 21.  
The critical question at hand is: what effect will this have? 

Even though the change will relieve citizens of carrying around large quantities of money to buy simple groceries, the modification of the Zimbabwean dollar has caused turmoil in the state. There is a shortageof the new currency, especially the lower denominations, preventing retailers from giving the right amountof change to customers. Communication between government and citizens was also woefully ineffective as those in rural areas were not informed of the currency change and therefore were unable to meet the exchange deadline. Many have lost their life savings, because there is no way of changing old currencyfor new after the deadline. As the deadline rushed closer many retailers refused to accept the old money, forcing people to return to the townships, at great expense, where traders were still accepting the old currency. Less than a week before the changeover was complete, reports of circulating counterfeit old notes reached
Harare.
  Counterfeiters appeared to be targeting street vendors and traders on the informal markets. If this wasn’tenough, exchanging more than Z$100 million per week was forbidden, and those attempting to do so risked being accused of fraud. Economists say that even though the change in currency is improving the situation in
Zimbabwe at the moment, it will have to be repeated in two to three years as inflation continues to rise.
 Nominally altering the currency does not address the underlying causes of inflation, and these structural issues have still not been addressed. The effects are not only local, as the continuing collapse of Zimbabwe’s economy is stripping
South Africa of 2% of its annual growth. This is significant for South

Africa, because growth rates of at least 8% a year are required to reduce unemployment. It is a pitiful situation as Zimbabwe used to be
South Africa’s largest trading partner on the continent, and it is doubtful that measures such as this currency devaluation will have any positive effects.
 

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One Response to Currency change a chaos catalyst

  1. Hello Ruactivate and all,

    Here’s some pivotal knowledge (wisdom) so you and others can stop focusing on symptoms and obfuscatory details and home in like a laser on the root causes of and solutions to humanity’s seemingly never-ending struggles.

    Money is the lifeblood of the powerful and the chains and key to human enslavement

    There is a radical and highly effective solution to all of our economic problems that will dramatically simplify, streamline, and revitalize human civilization. It will eliminate all poverty, debt, and the vast majority of crime, material inequality, deception, and injustice. It will also eliminate the underlying causes of most conflicts, while preventing evil scoundrels and their cabals from deceiving, deluding, and bedeviling humanity, ever again. It will likewise eliminate the primary barriers to solving global warming, pollution, and the many evils that result from corporate greed and their control of natural and societal resources. That solution is to simply eliminate money from the human equation, thereby replacing the current system of greed, exploitation, and institutionalized coercion with freewill cooperation, just laws based on verifiable wisdom, and societal goals targeted at benefiting all, not just a self-chosen and abominably greedy few.

    By making everything free and eliminating all of the current barriers and negatives to participating in society, all of the complexities of economics, finance, employment, job creation, and myriad other chronic difficulties will cease to exist. Once we wisely end the existence and requirement of money and decide to simply cooperate to make all things free, then and only then will there be justice for all people. When money is banished from the earth, the primary cause and incentive to harm others for profit or survival will finally cease to exist. Likewise, the exchange for freely participating will be a life where everything is free, where life is dramatically simpler and more rewarding, where crime is practically non-existant, where people don’t die in droves because they are denied access to money, and where it pays untold benefits to simply be helpful and cooperative instead of selfish and competitive. In this societal model, freely sharing knowledge and wisdom will be the key to benefiting everyone and constantly improving life for all.

    We can now thank millennia of political, monetary, and religious leaders for proving, beyond any shadow of a doubt, that top-down, hierarchical governance is absolute folly and foolishness. Even representative democracy, that great promise of the past, was easily and readily subverted to enslave us all, thanks to money and those that secretly control and deceptively manipulate all currencies and economies. Is there any doubt anymore that entrusting politics and money to solve humanity’s problems is delusion of the highest order? Is there any doubt that permitting political and corporate leaders to control the lives of billions has resulted in great evil?

    Here’s a real hot potato! Eat it up, digest it, and then feed it’s bones to the hungry…

    Most people have no idea that the common-denominator math of all the world’s currencies forms an endless loop that generates debt faster than we can ever generate the value to pay for it. This obscured and purposeful math-logic trap at the center of all banking, currencies, and economies is the root cause of poverty. Those who rule this world through fear and deception strive constantly to hide this fact, while pretending to seek solutions to poverty and human struggle. Any who would scoff at this analysis have simply failed to do the math, even though it is based on a simple common-denominator ratio.

    Read more here…

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