Zimbabwe Update


Pablo at PSD points to a NYT article reminding us what a hellhole Zimbabwe is:

“Zimbabwe has been tormented this entire decade by both deep recession and high inflation, but in recent months the economy seems to have abandoned whatever moorings it had left. The national budget for 2006 has already been largely spent. Government services have started to crumble… In February, the government admitted that it had printed at least $21 trillion in currency — and probably much more, critics say — to buy the American dollars with which the debt was paid. By March, inflation had touched 914 percent a year, at which rate prices would rise more than tenfold in 12 months. Experts agree that quadruple-digit inflation is now a certainty.”

Not everything is awful: neighborhoods and households financed by American dollars from foreign aid, charities, and remittances are suffering far less. And Robert Mugabe just completed a 25-bedroom mansion.