Sunday, May 15, 2011

RBZ urges gold-backed Zim dollar

The world has truly gone bizarro when Zimbabwe, the most recent country to have its domestic currency collapse, resulting in catastrophic hyperinflation, suggests a gold-backed currency since the USDollar is about to experience its own currency collapse.

THE central bank says the country must consider adopting a gold-backed Zimbabwean dollar warning that the US greenback’s days as the world’s reserve currency are numbered.
Government ditched the Zimbabwe dollar in 2009 after it had been rendered worthless by record inflation levels and adopted multiple foreign currencies with the US dollar, the South African Rand and the Botswana being the most widely used.
Gono said the inflationary effects of United States’ deficit financing of its budget was likely to impact other countries to leading to a resistance of the green back as a base currency.

“The events of the 2008 Global Financial Crisis demand a new approach to self reliance and a stable mineral-backed currency and to me, Gold has proven over the years that it is a stable and most desired precious metal,” Gono said.
And for proof of Zimbabwe's recent hyperinflation, here is an image of its currency:  a 100 trillion dollar bill <click here>.

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