Adrian Burridge reports,
(paraphrased)…The Governor of the Reserve Bank of Zimbabwe, Dr. G. Gono, is commending the Central Bankers of the United States and the United Kingdom for following in Zimbabwe’s monetary policy footsteps…
Gono’s first quarter monetary update(PDF), can be found here…
A few quotes:
“1.14 Equally also, our thrust has been founded on our unwavering belief
that extraordinary circumstances must be confronted through extraordinary
interventions and not through half baked or even wholesale 16th century economic
dogmas that have been long discarded in their founding countries.
1.15 As Monetary Authorities, we have been humbled and have taken heart
in the realization that some leading Central Banks, including those in the
USA and the UK, are now not just talking of, but also actually implementing
flexible and pragmatic central bank support programmes where these are deemed
necessary in their National interests.
1.16 That is precisely the path that we began over 4 years ago in pursuit
of our national interest and we have not wavered on that critical path
despite the untold misunderstanding, vilification, and demonization we
have endured from across the political divide.
1.22 Here in Zimbabwe we had our near-bank failures a few years ago and
we responded by providing the affected Banks with the Troubled Bank Fund
(TBF) for which we were heavily criticized even by some multi-lateral institutions
who today are silent when the Central Banks of UK and USA are going the same
way and doing the same thing under very similar circumstances thereby continuing
the unfortunate hypocrisy that what’s good for goose is not good for the
1.26 As Monetary Authorities, we commend those of our peers, the world over,
who have now seen the light on the need for the adoption of flexible and
practical interventions and support to key sectors of the economy when faced
with unusual circumstances.
1.27 Of course, in the short term such interventions are without doubt inflationary
but in the medium to long-term they trigger and propel economic growth and
development that everyone craves for”.
I’ll remind (or inform) my readers that Zimbabwe is currently experiencing hyper-inflation of more than 100,000%, sustained power outages, food and fuel shortages, and mass terror by the leading governmental faction. According to Adrian, “Later on in the document you learn the unsecured lending rates were raised to 5000% from 4500%. Page 46. Of the 309 registered microfinance/money lending institutions only 184 are still operational. Page 61.”
While I agree with Dr. Gono that the US and the UK have, indeed, embarked down this same path, I cannot agree that “in the medium to long-term they trigger and propel economic growth and development that everyone craves for”. But propaganda is a Reserve Bank Governor’s main tool…
Get ready for similar results here in the “developed world”…
Oh ye’ suckers…
“Find out just what people will submit to, and you have found out the exact amount of injustice and wrong which will be imposed upon them; …. The limits of tyrants are prescribed by the endurance of those whom they oppress.” — Frederick Douglass