This is what focusing on Core inflation gets you!
Zimbabwe’s $100bn note:
“Some Zimbabweans are already calling for higher denominations in a country where the official annual inflation rate has exceeded 2,200,000%. Independent economists believe the real rate is many times higher.
Zimbabwe’s meltdown has left at least 80% of the population in poverty, facing mass shortages of basic goods.
The country’s central bank has introduced several new notes already this year in response to the hyperinflation. In January, a Z$10 million note was issued, followed by a Z$50 million. By June the denominations had reached tens of billions.”
Here’s the most recent currency addition, the Z$10,000,000 note:
The tough thing about the Z$100B Note is getting a cabbie to break one. They rarely have change for anything larger than a Z$50,000,000 note !
Zimbabwe introduces Z$100bn note
21:54 GMT, Saturday, 19 July 2008 22:54 UK
"The political establishment is embracing a time-honored response to the nation’s economic turmoil. It’s going on a witch hunt.Politicians of all stripes worry that improper trading by short sellers has contributed to turmoil in the stock markets. And "excessive" oil traders have replaced oil-company executives — themselves twice keelhauled by congressional committees this year — as the bogeymen behind the run-up in gas prices. For Washington veterans, the sharpened attacks are the incarnation of a standard political trope, one found especially in election years"
Economic Woes Get a Fix: Witch Hunt
WSJ, July 19, 2008; Page A3
Bailout of Mortgage Firms Could Set Risky Precedent (Transcript)
July 18, 2008
I did three segments Tuesday on Yahoo Tech Ticker at the Nasdaq:
Here is the last, on Bailouts, Fannie & Freddie:
Click for video
Bailout Nation: Paulson, Cox, Shorts Weigh in On Fannie, Freddie
Yahoo Tech Ticker, Jul 15, 2008 07:00am EDT