Situation in Zim ‘tragic’ – IMF

Some more bright news from everyone’s favorite slave-state inducing economists at the IMF:

1200%, people. That means your 50 cent bag of chips in the vending machine would now cost $4; your gas would cost $36/gal. In addition there’s a drought. So the potato field you would plant in response to the prevention of your family’s starvation would be decimated.

I wish I could get some statistics on current worldwide droughts (read my post on the drought in the Amazon), because “modern agriculture” is in response tapping underground water tables and freshwater streams en masse (in addition to multinational corporations like Coke and Pepsi), which is causing rapid decreases of water supplies in many places.

This means:

  • In probably 20-30 years, no more underground water reserves in many areas.
  • Prolonged droughts will become the norm for many areas.
  • Without sufficient transport (oil-powered trucks or boats), many will be forced to immigrate or starve.
  • Due to massive immigration, many countries already above carrying capacity will have to shoulder the load of more illegals as well as feeding their own populations.
  • What will probably happen is point 3.

The Age of Cheap Oil is over. Any suggestions as for what we should do?
http://www.news24.com/News24/Africa/Zimbabwe/0,,2-11-1662_2000057,00.html

Singapore – The economic prospects for Zimbabwe are “grim”, the International Monetary Fund said on Saturday, after data from the southern African nation showed annual inflation rose to a record high above 1 200% in August.

Siddharth Tiwari, deputy director in the IMF’s Africa Department, said there were no bounds on how high inflation could rise and that any changes would depend on corrective policies.

“The country is in a difficult situation and has faced six years of continuous output decline, rising prices, increasing poverty and a decrease in public services … it’s a tragic situation, frankly, and the prospects are grim,” Tiwari told a news conference to discuss the economic outlook for Africa.

Official figures on Friday said annual inflation rose to 1 204.6% compared to 993.6% in the year to July, the highest in the world.

The government has blamed the country’s six-year recession on sky-rocketing inflation but critics blame it on economic mismanagement.

‘First step has to be taken by the authorities’

Tiwari said a foreign financing package for Zimbabwe reported by the media earlier this week would help, but he stressed that without proper policies, the country would not recover.

Zimbabwe unveiled on September 13 a package of foreign loans worth nearly $500m, including a $200m facility from China, to help ease shortages of foreign currency, fuel and food, and unemployment above 70%.

Most of the loans will be directed at the agricultural sector, which has been hardest hit by a drought and President Robert Mugabe’s backing for the seizure of white-owned commercial farms.

The Chinese loan is the first major foreign loan issues to the country since Western donors withdrew after the land seizures.

“There is substantial goodwill on the part of the international community to help Zimbabwe, but the first step has to be taken by the authorities,” Tiwari said.

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