Déjà-vu – and it’s not good

9 08 2017

NEVER throw away what might be useful

We have a habit in this country of not throwing things away “just in case they might be useful one day”. It’s not without good reason but it can be taken to extremes.

In the days when Zimbabwe was Rhodesia and the country was under blanket sanctions for it’s persistent colonial ways ingenuity ruled. Getting fuel was difficult and just about everything else close to impossible. Car spares were horded and years after we got rid of an old car I still found spares squirreled away “just in case”.

Now that Rhodesia is Zimbabwe and we still have sanctions (but this time targeted against certain odious individuals) spares are once again becoming difficult.  In this case it’s spares for a Husqvarna hedge trimmer we use to trim tobacco and gum tree seedlings – so of course I feel somewhat smug that I kept the remains of a previous hedge trimmer. Just in case.

The shortages this time around are nothing to do with the sanctions but gross incompetence and greed by the ruling regime; the nation has simply run out of money. The bond notes alluded to in other posts are proving to be exactly what everyone feared them to be – a return to the defunct Zimbabwe dollar under another guise. There was never a bond/loan backing them (the Reserve Bank governor simply lied) and now the government has announced that it wants to release another 300m of  them backed by precisely nothing.

Inflation has also made a return. I priced a gum wooden door last week that has increased 50% over the last 4 months despite being made entirely of local products. It is priced in US$ but I’m almost certain that if I asked I could get a discount for “cash” i.e. real US$ notes of around 20% (most people use debit cards or similar devices to pay for items). A potential customer asked me if he could get a discount for bond notes and was told most definitely no. He did not ask if he could get a discount for real cash – US dollars.

So tomorrow I will start making a plan (something else for which Zimbabweans are notorious) and see if I can assemble the 1½ hedge trimmers in the picture into one functioning one. After all adversity is the mother of invention and we’ve been here before. Once as Rhodesia and again in the years when the Zimbabwe dollar was real if completely useless.  It’s a sense of déjà-vu and I don’t like it one bit.

There is one positive aspect to this. In the carnage of the demise of the Zimbabwe dollar in 2008/9 when inflation was running in six figures per month, people who’d taken out housing mortgages paid them off with one note or less. Yes, that happens when the largest note is 100 trillion Zimbabwean dollars.  Now if the government floods the country with bond notes we should be able to pick them up cheaply enough by paying in real dollars to pay off our mortgage really cheaply. There will of course be collateral damage as they say – territory we visited back in 2008/9. I don’t think I want to go there at any price.

P.S. (a day later). I was called this morning by a company that sells irrigation equipment – a part that I’d ordered had arrived. On asking the cost I was told $78 “… but we are offering a discount of 25% for US$ cash or 10% for bond notes.” So apparently the bond notes, based on nothing, are actually in demand.

 

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One response

10 08 2017
Sybille

I like very much the photo : composition, colors and ambiance made me tought to Cailletbotte Les raboteurs de parquets, don’t ask me why!

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