|Even Zimbabwe Can See This in Our Future?
We Really Are F*@#*d!
Will Zimbabwe be the first country to lose the chains of fiat currency? Zimbabwe’s central bank head Gideon Gono (no relation to Gordon Gekko of Hollywood/Wall Street fame) today called for the country to “urgently” consider adopting a gold-backed Zimbabwean dollar and dropping the country’s use of the US dollar.
While Russia, China, and the Arab nations have all been speculated as the first nation to remove themselves from the US dollar ponzi- could Zimbabwe, a country with VERY recent hyperinflation experience end up being the first nation to call the US dollar a duck? (If it walks like a duck, and talks like a duck….)
From New Zimbabwe:
THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.
Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.
Finance minister Tendai Biti says the country needs at least six months import cover and a sustainable track-record of economic growth, inflation stability and above 60 percent capacity utilisation in industry before the Zim dollar can be brought back into circulation.
“There is a need for us to begin thinking seriously and urgently about introducing a Gold-backed Zimbabwe currency which will not only stable but internationally acceptable,” he said in an interview with state media.
“We need to re-think our gold-mining strategy, our gold-liberalisation and marketing strategies as a country. The world needs to and will most certainly move to a gold standard and Zimbabwe must lead the way.”
Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.
“The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.
“Zimbabwe is sitting on trillions worth of gold-reserves and it is time we start thinking outside the box, for our survival and prosperity.”