Think American inflation is bad?

[burnthebeautiful]

Zimbabwe's inflation rate could hit 100,000 per cent by the end of the year, the International Monetary Fund predicted yesterday.

The forecast came as the country introduced its latest banknote: for 200,000 dollars, just enough to buy a small bag of onions.

The new bill is worth £400 at Zimbabwe's official rate of exchange, set by the Reserve Bank of Zimbabwe. On the widely used black market, it is worth a measly 75p.
[...]
With spectacular disregard for the rules of economics, Mr Mugabe has vowed to print even more money for underfunded municipal projects.

"Where money for projects has not been found, we will print it," the former guerrilla leader told town councillors on Friday, apparently ignoring the generally accepted view that printing money is a recipe for inflation.

Ironically, the jaunty new red and grey 200,000 bearer cheques carry their own glaring picture of failure and mismanagement.

They're decorated with an image of the twin cooling towers of Hwange Power Station, which was Africa's largest thermal power station north of the Limpopo River when it was completed in 1987.

Reports say the power station has now fallen into disrepair and is operating at less than 60 per cent capacity, leaving many Zimbabweans in the dark for hours each day. Here's a current price-list taken from the article in The Scotsman, which is probably inaccurate by the time you read this:

• Small bag of onions: Z$200,000

• Bar of Dove soap: Z$140,000

• One kg of rice: Z$230,000

• One litre of fuel, where available: Z$300,000

• 200g local cheese: Z$230,000

• 500g washing powder: Z$750,000

• Box of Bran Flakes: Z$260,000

• White loaf with sesame seeds: Z$90,000 (standard loaves are officially Z$22,000 but are not available)

• Small pot of jam: Z$150,000

• Packet of biscuits: Z$140,000

• One litre enamel paint: Z$1.9 million

• Pack of four disposable nappies: Z$1.2 million

• Tin of tuna: Z$290,000

• Tin of baked beans: Z$65,000

• 500ml sterilised milk - where available - Z$32,500

• One egg - where available - Z$15,000

• No chicken, beef, pork, sausages, cooking oil, sugar, flour, margarine, fruit cordial, matches.

[error]

The new bill is worth £400 at Zimbabwe's official rate of exchange, set by the Reserve Bank of Zimbabwe. On the widely used black market, it is worth a measly 75p.

Of course, the bank will gleefully take your £400 and give you one of those worthless notes, but they sure as hell won't give you £400 if you give the note back!