"Bookish economics"
That is how Mugabe has reacted to criticism of his latest act of madness - ordering "that all shop prices be cut by at least half, and sometimes several times more". Source.
This has led to this sort of thing: "Car dealers said officials were trying to force them to sell vehicles at the official exchange rate, effectively meaning that a car costing R212 000 ($30 000) could be had for R425 ($61) by changing money on the black market".
Clearly this will ruin retailers, but there is more to come: "Parliament is expected to pass legislation in the coming weeks that will effectively give a controlling stake in all publicly traded companies to ruling party loyalists and others chosen by the government".
Pity the nation indeed.
This has led to this sort of thing: "Car dealers said officials were trying to force them to sell vehicles at the official exchange rate, effectively meaning that a car costing R212 000 ($30 000) could be had for R425 ($61) by changing money on the black market".
Clearly this will ruin retailers, but there is more to come: "Parliament is expected to pass legislation in the coming weeks that will effectively give a controlling stake in all publicly traded companies to ruling party loyalists and others chosen by the government".
Pity the nation indeed.
Labels: Sane economics, Zimbabwe
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on Monday, July 16, 2007 at 6:36 am.
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Hit squad clearly required to take him out.
It's called a planned economy. There are quite large bits of this kind of thinking permanently lodged in minds and hearts in the UK like splinters of ice: look in the Labour party's black heart (or should I say red heart?)
Many years ago, I used to drive some 400kms to the beautiful jacaranda laden city of Harare just for a pizza. It is tragic that the Marxist loon, ably assisted by his fellow loonies, has finally succeeded in his mission to take what was such a charming and prosperous country back to the stone age. It all started with the theft of the white owned farms and has been downhill all the way ever since. It will take a major international effort to put the country back on its feet once Ebagum has been got shot of, but I wonder whether anybody will be willing to join in this time. Much of the blame also rests with fellow Marxist loons now governing South Africa who have stood by while all this has happened. Pity there is no oil in that part of Africa....
O/T but a message for Verity re a thread of a few days ago: The M'sian Min of Info yesterday told those terribly worried about the Bruce Alighty film to grow up and get a life (only he phrased it rather more diplomatically!). Kudos to him for putting these idiots back in their box. The film goes on general release here on 23 August; I shall let you know if any cinemas get burned to he ground!
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