I'm a millionaire!

On the weekend I met up with my friends Carrie and Khamal. Khamal just got back from Zimbabwe where he had been working on assignment for Al Jazeera. Now in Zimbabwe inflation is going crazy, at one estimate now at 165,000% a year, so prices are doubling on almost a daily basis. This makes it difficult for the government to keep up in terms of the value of currency, they keep reprinting currency with more and more zeros on it to keep up a price inflation. So as a gift Khamal gave me a $10 million Zimbabwe note.

I'm a millionaire!

So what is the note actually worth? Well, the official Zimbabwe government exchange rate is something like $300,000 to one US dollar , which is a rip off considering a can of Coke was $50 million (and that was a couple weeks ago, it's probably something like $125 million now). Kamal is saying that on the black market however the rate is much higher -- 100 US dollars will get you something like 5 1/2 billion dollars (yes, feel free to say it like Dr. Evil). So in reality my $10 million note is probably worth something like $.30, and perhaps $.15 by the end of the day.

Living in a country with such high inflation rate must be absolutely insane. Kamal tells me that in Zimbabwe if you get local currency you spend it immediately since its value is decreasing daily, but if you get foreign currency you hang onto it for as long as possible.

Despite the economic chaos people living in the rural regions are generally supportive of the government. Many of them received parcels of land from the government during the land seizures of a few years ago, for which they are quite grateful. And the rampant inflation does not affect subsistence farmers much since they do not deal with a lot of currency. They grow their food, and they eat it. The odd time that they earn some money they can to spend it immediately on what they need.

As for my $10 million I might get it framed as a souvenir.



As a side note, last Friday at "classic movies night" we watched the Mel Brooks comedy The Producers. Great film. We then briefly watched the more recent version with Nathan Lane and Matthew Broderick. While the modern version is pretty good I will have to say that Matthew Broderick does not hold a candle to Gene Wilder. Try to get hold of both movies and compare for yourself.