Thursday, August 02, 2007

"We Are At War"

As human tragedy, the situation in Zimbabwe is depressing. As living history, it's fascinating. This sort of situation, thankfully, doesn't happen very often, and it's rare that students of the financial markets get the opportunity to see hypothetical extremes become reality. NYT:
Robert G. Mugabe has ruled over this battered nation, his every wish endorsed by Parliament and enforced by the police and soldiers, for more than 27 years. It appears, however, that not even an unchallenged autocrat can repeal the laws of supply and demand.

One month after Mr. Mugabe decreed just that, commanding merchants nationwide to counter 10,000-percent-a-year hyperinflation by slashing prices in half and more, Zimbabwe’s economy is at a halt.
Click through to find out what happened after Mugabe ordered all stores to cut prices by half.

If you haven't seen it before, here's how Zim's stock market has been doing. Is there a Kudlow clone in Harare calling it the "greatest story never told"?


Anonymous Anonymous said...

sounds like a goldilocks economy to me. Just look at their stock market, it keeps hitting new highs day after day after day.

8/02/2007 2:56 AM  
Blogger Dave S. said...

Look for Glassman's forthcoming "ZSE 36 Million Billion Trillion" piece.

I don't have an economics background, but do I understand correctly that when the currency printing presses stop, the party's over? (REALLY over.)

8/02/2007 9:09 AM  

Post a Comment

<< Home