Thursday, January 10, 2008

Gonzo Gono

Zimbabwe has a too much "money" problem despite people thinking that it has a not enough "money" problem, which is the same thinking people had in the past during other hyperinflation eras.
Zimbabwe: No Solution Yet to Cash Crisis
> Analysts said the cash shortage ...
> Cash-hungry Zimbabweans are asking why the country continues
> to face acute cash shortages

Soooooooooo, about $57 trillion of cash in circulation is not enough.

No central bank, single human, treasury department or government can take in and properly process the huge amounts of information necessary for smooth makets that the invisable hand of a market can. That is why money and currencies should only be the business of private enterprise.

Naturally when a central bank, single human, treasury department or government is in control of "money" supply, the theft of stored value operation can get out of hand, like in Zimbabwe now.

The official spin by Zimbabwe Reserve Bank governor Gideon Gono:

> He promised the situation would improve at the start of the year,
> accusing what he termed big "money movers" and cash barons for
> the current crisis.

> Gono also accused transport operators, wholesalers and bank
> employees for fueling the crisis.

Zimbabweans and the western world should read F.A. Hayek's classic The Road to Serfdom, at least for starters. It's not as though this whole scene was not basically figured out and understood almost 200 years ago.

Animals (mostly) and plants (totally) are preprogrammed for survival. Humans are the opposite. A dog is preprogramed to smell for too much heat so that it does not touch something that is too hot. A human has to learn, somehow, not to touch something that is too hot, let alone how money, currencies and fiat tokens work (in order for the human to defend itself against central banks, single humans in high places, treasury departments or governments). Strange, how many humans do not learn from the past, costly repeating the mistakes of the past.

"For two hundred years the governments have interfered with the markets choice of the money medium. Even the most bigoted statists do not venture to assert that this interference has proved beneficial." - Ludwig von Mises

More Mises quotes here

For more on the Zimbabwe hyperinflation scene, type "Gono" into the site "Google Search" field at the top of the home page:


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