(STICKY) (MRK) ZIMBABWE DOLLAR COLLAPSE - CHART
This is the final proof that the collapse of the Zimbabwean Dollar, the start of hyperinflation in Zimbabwe, occurred in the very same year and time that the Zimbabwe Democracy and Economic Recovery act of 2001 came into effect and put the Zimbabwean government on a credit freeze. To underline the point, it was the Bush Administration that caused the collapse of the Zimbabwean Dollar.
Finally, I have the data for the Zimbabwean currency. Notice what happens in the year 2002, the year that the Zimbabwe Democracy and Economic Recovery Act of 2001 put the Zimbabwean government on a credit freeze. I have already demonstrated the collapse of the 2001 trade surplus in the year 2002. Case closed. It were the Bush Administration sanctions.
UPDATE 28/03/2012: Correction - George W. Bush signed ZDERA into law on December 21st, 2001, not December 31st 2001, as mentioned on the chart.
Notice the SUDDEN collapse of the Zimbabwean Dollar against the US Dollar in the year 2002.
UPDATE
The precise nature of this credit freeze, illegally put on the Zimbabwean government (and people) by the Bush Administration, aided by the African diamond interest driven, corporatist Neo Democrat wing of the Democratic Party - Hillary Clinton, Russ Feingold and Joe Biden:
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SEC. 4. SUPPORT FOR DEMOCRATIC TRANSITION AND ECONOMIC RECOVERY.
(c) MULTILATERAL FINANCING RESTRICTION- ... the Secretary of the Treasury shall instruct the United States executive director to each international financial institution to oppose and vote against--
(1) any extension by the respective institution of any loan, credit, or guarantee to the Government of Zimbabwe; or
(2) any cancellation or reduction of indebtedness owed by the Government of Zimbabwe to the United States or any international financial institution.
****
These are the financial sanctions that put the country of Zimbabwe on a credit freeze in the year 2002, the year the Zimbabwe Democracy and Economic Recovery Act of 2001 came into force.
The banks which are directly mentioned and to which this credit freeze applies:
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SEC. 3. DEFINITIONS.
In this Act:
(1) INTERNATIONAL FINANCIAL INSTITUTIONS- The term `international financial institutions' means the
multilateral development banks and the
International Monetary Fund.
(2) MULTILATERAL DEVELOPMENT BANKS- The term `multilateral development banks' means the
International Bank for Reconstruction and Development, the
International Development Association, the
International Finance Corporation, the
Inter-American Development Bank, the
Asian Development Bank, the
Inter-American Investment Corporation, the
African Development Bank, the
African Development Fund, the
European Bank for Reconstruction and Development, and the
Multilateral Investment Guaranty Agency.
****
The effects of this 2002 credit freeze on the trade surplus:
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Table 1: Zimbabwe - Key economic indicators, 2001–2008
Trade Deficit in million USD (negative deficit is a surplus)
2000* 2001 2002 2003 2004 2005 2006
-295.6 -323 18 108 305 388 467
****
Notice the collapse of the 2001 trade surplus in the year 2002.
The Zimbabwe Dollar was deliberately sunk by the Bush Administration, with the help of the MDC, in order to prevent the success of the Fast Track land reform program, and to ready Zimbabwe for a neoliberal takeover by the MDC - privatisation of parasdtatals and mines, deregulation of labour and environmental laws, and free markets for corporate capital - unlimited expatriation of profits and no taxes for corporations.
This is the treasonous role played by the MDC, for which, as the cowards they are, tried to blame President Mugabe and the ZANU-PF.
In the words of Chester Crocker: In order to separate the people of Zimbabwe from the ZANU-PF, we have to make their economy scream, and I hope you senators have the stomach for what you have to do.
In contrast, these are the words of then Democratic congresswoman Cynthia McKinney on the introduction of ZDERA in 2001 on December 4th 2001, 3 weeks before the Act was signed into law by President Bush:
SPEECH OF HON. CYNTHIA A. McKINNEY OF GEORGIA IN THE HOUSE OF REPRESENTATIVES
Tuesday, December 4, 2001
* Ms. McKINNEY. Mr. Speaker, at the international Relations Committee meeting of November 28, 2001, which considered the Zimbabwe Democracy and Economic Recovery Act of 2001, I asked a question of my colleagues who were vociferously supporting this misdirected piece of legislation: ``Can anyone explain how the people in question who now have the land in question in Zimbabwe got title to the land?''
* My query was met with a deafening silence. Those who knew did not want to admit the truth and those who didn't know should have known--that the land was stolen from its indigenous peoples through the British South Africa Company and any ``titles'' to it were illegal and invalid. Whatever the reason for their silence, the answer to this question is the unspoken but real reason for why the United States Congress is now concentrating its time and resources on squeezing an economically-devastated African state under the hypocritical guise of providing a ``transition to democracy.''
* Zimbabwe is Africa's second-longest stable democracy. It is multi-party. It had elections last year where the opposition, Movement for Democratic Change, won over 50 seats in the parliament. It has an opposition press which vigorously criticizes the government and governing party. It has an independent judiciary which issues decisions contrary to the wishes of the governing party. Zimbabwe is not without troubles, but neither is the United States. I have not heard anyone proposing a United States Democracy Act following last year's Presidential electoral debacle. And if a foreign country were to pass legislation calling for a United States Democracy Act which provided funding for United States opposition parties under the fig leaf of ``Voter Education,'' this body and this country would not stand for it.
* There are many de jure and de facto one-party states in the world which are the recipients of support of the United States government. They are not the subject of Congressional legislative sanctions. To any honest observer, Zimbabwe's sin is that it has taken the position to right a wrong, whose resolution has been too long overdue--to return its land to its people. The Zimbabwean government has said that a situation where 2 percent of the population owns 85 percent of the best land is untenable. Those who presently own more than one farm will no longer be able to do so.
* When we get right down to it, this legislation is nothing more than a formal declaration of United States complicity in a program to maintain white-skin privilege. We can call it an ``incentives'' bill, but that does not change its essential ``sanctions'' nature. It is racist and against the interests of the masses of Zimbabweans. In the long-run the Zimbabwe Democracy Act will work against the United States having a mutually beneficial relationship with Africa.
Labels: GEORGE BUSH, NEOCOLONIALISM, SANCTIONS, ZDERA, ZIMBABWE DOLLAR
posted by MrK @ 1:02 AM
9 Comments:
Correction to the chart listed above:
The Zimbabwe Democracy and Economic Recovery Act of 2001 was signed into law on December 21st 2001 (not 31st), and went into effect on January 1st 2002.
World record hyperinflation seems to stem from legislation.
In the case of the Weimar Republic, it was the Treaty of Versailles that was the single product of the Paris Peace Conference of 1919. It diverted goods and out of the German republic and to France, devaluing the currency. A currency which had been amply printed in order to fund WWI.
In the case of Zimbabwe, hyperinflation comes after the introduction of a law that ordered the veto of taking on new loans or rescheduling existing debt at a slew of financial institutions, starting in the year 2002, when ZDERA came into effect.
* The FAO's 2007 report is here:
http://www.fao.org/docrep/010/10127e/10127e00.HTM
Trade Deficit (US$ m)
2000 -295.6
2001 -322.5
2002 18.2
2003 108.3
2004 305.2
2005 387.9
2006 231.3
Tobacco (US$ m)
2000 548.8
2001 594.1
2002 434.6
2003 321.3
2004 226.7
2005 203.8
2006 206.9
Rex Tillerson boasts of how economic sanctions are causing food shortages in North Korea.
https://globalnews.ca/video/3972026/tillerson-evidence-sanctions-really-starting-to-hurt-north-korea
Now the MDC can explain how the destruction of the Zimbabwe Dollar in the year 2002 by ZDERA 2001 didn't hurt the people of Zimbabwe.
Germany's high inflation turned into world record hyperinflation in 1922, after the signging of the U.S. Peace Treaty with Germany on 25th August 1921. The treaty ratified the US's joining of the Treaty of Versailles of 1919, which the US Congress had not ratified.
"This treaty followed the earlier Treaty of Versailles signed by the Allies and Germany in June 1919 but which was not ratified by the U.S. Congress."
What the treaty does - it confiscates German property.
"Sec. 5. All property of the Imperial German Government ... shall be retained by the United States of America ..."
Source:
https://www.firstworldwar.com/source/uspeacetreaty_germany.htm
Weimar paper marks vs gold mark. Notice the acceleration of inflation mid-1922.
https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic#/media/File:Germany_Hyperinflation.svg
The MDC finally admits
- the existence of economic sanctions
- the damage done by economic sanctions to ordinary Zimbabweans
- their own role in the creation of these economic sanctions
- ZDERA 2001 became law 17 years ago
https://www.herald.co.zw/sanctions-must-go-gutu/
(HERALD ZW) Sanctions must go — Gutu
Felex Share Senior Reporter
Former MDC-T spokesperson Mr Obert Gutu has admitted that the sanctions imposed on Zimbabwe by the West are toxic and hinder socio-economic development.
Calling for the removal of the embargo in toto, Mr Gutu — who is now the vice president of the MDC led by Dr Thokozani Khupe — said he was “misguided” in actively supporting the imposition of sanctions.
He added that all along he “naively” believed that the embargo would lead to the democratisation of Zimbabwe.
Mr Gutu in an editorial we publish in this paper today said the fact that he had seen the light on the contentious issue did not mean that he was now supporting the ruling Zanu-PF party .
“Where the overall interests of Zimbabwe supersede and overtake my own private and personal interests, I don’t hesitate to sacrifice my personal interests for the common good of my beloved country and continent,” he said.
Continued...
“This is the major reason that informed how I reached my Damascus (sic) moment regarding the issue of sanctions against Zimbabwe. Here and now, I will fully admit that at one time, I was thoroughly misguided in actively supporting and actually calling for the imposition of sanctions against Zimbabwe.
“At that juncture, I rather stupidly and naively believed that the imposition of sanctions would naturally lead to the full and total democratisation of Zimbabwe. I was wrong; totally wrong. The reality is that sanctions actually cause more harm, political suffering and socio-economic agony to the majority of innocent Zimbabweans, most of whom are not even political activists.”
He said sanctions did not hurt political leaders as much as they hurt “the ordinary man and woman in the street and in the village or township.”
“After undertaking a thorough and deep study and introspection on the effects of sanctions on the generality of the people of Zimbabwe, I then reached my Damascus (sic) moment and began to appreciate how evil, toxic and retrogressive sanctions are against the welfare of the majority of my Zimbabwean compatriots.
“Thus, I’m unashamedly and passionately calling for the lifting of all forms of sanctions that were imposed against Zimbabwe by the major Western powers such as the United Kingdom, the United States and the European Union,” he said.
SADC stands behind Zimbabwe and against the economic sanctions that destroyed it's currency.
"The declaration of October 25 as the Sadc Day of Solidarity against Sanctions on Zimbabwe is a sign that Africans have come of age and can determine their own destiny."
https://www.herald.co.zw/sadc-sanctions-stance-shows-africa-has-come-of-age-mp/
“This is why we now have the Africa Continental Free Trade Area (AfCTA)and we have ratified that and it’s going to be implemented. As a united Africa we are a powerhouse, we are richer than any other continent in terms of resources, we have human resources, we have natural resources, we have everything.
“Most of these countries are getting their resources from Africa and now time has come to say Africa, we do our own things and this is a precursor to it. So it’s a message to the world that Africa has come of age, Africa now wants to deal with its own issues. At continental level, the AU is going to move with what Sadc has started.”
"“Sadc has come together and said let’s deal with the situation of Zimbabwe once and for all as a bloc,” he said. “They are now seized with the matter. It’s no longer a Zimbabwean issue, but a Sadc issue, Sadc is going to push on behalf of Zimbabwe."
(VOA) Zimbabwe Says It Lost in Excess of $150 Billion to Sanctions
October 25, 2023
https://voanews.com/a/zimbabwe-says-it-lost-in-excess-of-150-billion-to-sanctions/7326421.html
Vice President Constantino Chiwenga:
"Since 2001, we estimate that Zimbabwe has lost or missed over $150 billion through frozen assets, trade embargos, export and investment restrictions from potential bilateral support, development loans, IMF and World Bank balance of payments support and commercial loans,” Chiwenga said, calling the sanctions “heinous and illegal.”
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