Sunday, November 29, 2009

After Hyperinflation Disaster, Zimbabwe on Quasi Gold Standard

The only kind of gold standard that will work: It's controlled by the consumer instead of any central authority.
Zimbabwe is now debt free, in fact it's probably the only country in the world to have no debts and is starting with a clean slate. This is because the Central Bank is no longer functioning, the local currency can no longer be produced at will and the politicians, led by the reviled Robert Mugabe are no longer able to cheat the citizens of Zimbabwe.

They are now using gold and U.S. dollars as their currency. Gold provides money that cannot be tampered with by the politicians, so it is trusted by people as a medium of exchange and a store of value. While U.S. dollars (for now) are being used along side gold as currency, there is a quasi-gold standard in full operation, markets are unhindered of government control and the shelves are now stocked with goods for sale.
Full report.