Zimbabwe - future effects on commodities

0007

0007

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Looks like Mugabe is about to get on his bike. (did you know that "e ba gum" is Mugabe backwards? - apologies to non-Brits or Southerners if this is puzzling!)

This has to have an effect on world markets eventually - eg. this extract
Zimbabwe (02/08)

"ECONOMY
Properly managed, Zimbabwe's wide range of resources should enable it to support sustained economic growth. The country has an important percentage of the world's known reserves of metallurgical-grade chromite. Other commercial mineral deposits include coal, platinum, asbestos, copper, nickel, gold, and iron ore. However, for the country to benefit from these mineral deposits, it must attract foreign direct investment."

Presumably the commodity traders will understand the situation and be making plans?
 
0007,

According to the Wall Street Journal, 28 March, inflation is running at 200,000% (that's not a typing error). Do you think they issue inflation-linked bonds?

Grant.
 
grantx said:
0007,

According to the Wall Street Journal, 28 March, inflation is running at 200,000% (that's not a typing error). Do you think they issue inflation-linked bonds?

Grant.
Click to expand...

That's probably doubled by now!

If Zimbabwe can get itself together (unlikely ?) or accept outside expertise, it surely must have great potential. But then so has South Africa. And it has taken 30 years to reduce Rhodesia to what it is now. I just wondered what those who take the long-term view think - possibly a bit too early yet?
 
0007,

Seems they've got a grip on inflation, Thursday's WSJ reports it at 100,000%. 50% drop is pretty impressive. Maybe they should advise the FED and ECB.

Grant.
 
grantx said:
0007,

Seems they've got a grip on inflation, Thursday's WSJ reports it at 100,000%. 50% drop is pretty impressive. Maybe they should advise the FED and ECB.

Grant.
Click to expand...

:LOL::LOL:

looks like the Greenback's done for then ?
 
0007,

LOL. No, I don't think so. But now Mugabe's on the way out, and Bernanke's future is uncertain, there may be an opening at the Fed. However, I think this would be conditional on attending an anger management course to deal with dissenters.

Until the next episode.

Grant
 
I thinking the biggest joke about the elections was the Western Media rabbiting on about "Corruption and jerrymandering" of Mugabe, as shakespeare wrote: " The lady doe'st Protest too much"

I suppose if you watch the left hand too much you don't see what the right hand has been doing.
 
Aston,

Ain't that the truth. Pure hypocrisy (and this government/Brown is the worst). Just like the controversy re the Chinese olympics - acts as diversion from domestic problems. May be that's why tyrannies are tolerated - always "a good time to bury bad news" (remember that following 9/11?).

Grant.
 
I think the Zim $ is a precursor for the encroaching global hyper inflation. It is like an accelerated US, there is a fractal relationship here with our current global dilemna. The people who still calcualte M3 can see it grows at 20% p.a. interest rates are already very negative.
Nasty situation when food riots are already occuring in the less developed World. This is just the beginning. The World in 5 years will be a very different place. What amazs me is the seeming indifference of most people to the quite alarming situation we are now facing.
 
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