Loc: Northern Virginia Zimbabwe Is Down to Its Last $217
Flickr / Bayhaus "Atlantic Wire"
Jan 29, 2013


There are cash-strapped governments and there are broke governments. And then there's Zimbabwe, which, after paying last week's government salaries, has just $217 left in the bank. No, we didn't forget any zeroes to the end of that figure. Zimbabwe, the country that's home to some of the world's largest platinum and diamond reserves, literally has the same financial standing as a 14-year-old girl after a really good birthday party. The country's finance minister admitted as much in a press conference on Tuesday. "Last week when we paid civil servants there was $217 [left] in government coffers," Tendai Biti told reporters. "The government finances are in paralysis state at the present moment. We are failing to meet our targets."

So it seems. However, Zimbabwe is hardly a stranger to financial hyperbole. The economy started to come apart at the seams in 2000, when President Robert Mugabe seized the land of over 4,000 white-owned farmers, effectively dismantling the country's agriculture industry. Over the course of the next decade, the country spiraled into an extended period of hyperinflation, the likes of which the world almost never sees. It peaked in August 2008, when inflation reached 11,200,000 percent and economists around the world started to say that the country's situation was hopeless. Prices were doubling by the day, and the government had to print Z$100 billion notes. The following year, they went ahead and printed Z$100 trillion notes, just before deciding to chop 12 zeroes off of the currency. A new coalition government formed that year and started on the long process of financial recovery, a process that is clearly going to take a little longer.

It's unclear how the Zimbabwean government is going to get itself out this fiscal mess, but whatever it does, it needs to do it quickly. As Quartz's Tim Fernholz points out, Zimbabwe is looking at a $104 million bill for its upcoming election. Its government is also dealing with brand new allegations that government officials have been running a corruption ring around the country's diamond mines. The country obviously desperately needs a major change. "But action against corruption probably won’t come until the end of Mugabe's reign, and a new constitution coming up for a referendum this spring -- presuming the funds can be found -- might set up the aging autocrat for another term in power," writes Fernholz.

Until then, looking for quarters under the couch isn't going to cut it, so Zimbabwe is doing the only thing it can do. "We will be approaching the international community," Biti said. You'll never guess who's most likely to come to the rescue. Hint: They're big fans of rare minerals.

What's the exchange rate, I'm looking for a piece of property?

Zimbabwe, the new terrorist housing country... give us 1 million, live here in safety for good, give us 100 million, we will protect you like Pakistan does...

this aint good...

also, if they sell off mining resources, rich white folks will go there, buy up the property, hire a bunch of slaves, destroy the land, kill off the animals, strip the rest of the resources from the country, and leave them broke, with fvcked up land, no animals, and a bunch of babies because of the jackwagons raping the women...

Uh, thats a lot more than -16,000,000,000,000

So I guess I'm not going to retire on this?






Fish on...

Todd

The good news, if you're Zimbabwanesian...

http://www.gadling.com/2013/01/31/zimbabwe-government-bank-account-had-balance-of-217-last-week/

"According to Finance Minister Tendai Biti, the country reached this unusually low level after paying the wages of its civil servants last Thursday. But he quickly amended the statement by pointing out that the government took in $30 million in revenue the following day, giving them the operating expenses necessary to keep the country running."

Fish on...

Todd

I thought this was about George Zimmerman.

He's gonna need a lot more than $217.00.

Fish on...

Todd

$217 USD? Thats pretty good in their currency

"in 2009, a new coalition government switched the economy to U.S. dollars, bringing a level of stability to the economy, but the nation has continued to struggle ever since."

Maybe they can be like us and run up a $16,439,740,789.985.42 debt if they work on it.