Zimbabwe submits to popular pressure: foreign currencies now legal tender
Posted by
,
No Comments
">
Thursday, January 29, 2009
Zimbabwe has decided to abandon its currency, the Zimbabwean dollar, in favour of other currencies.
Acting Finance Minister Patrick Chinamasa announced today that Zimbabweans will be allowed to make transactions in other currencies along with the local currency. “In line with the prevailing practices by the general public, [the] government is therefore allowing the use of multiple foreign currencies for business transactions alongside the Zimbabwean dollar,” he said, adding that the Zimbabwean dollar will not be removed from circulation and would be used alongside other currencies.
This decision comes during the current period of hyperinflation, which has massively devalued the Zimbabwean dollar. Banknotes up to $100 trillion have been printed, despite the removal of ten zeroes from the currency last summer to try to make transactions easier. The official inflation rate, last updated in July 2008, was 231,000,000% a year, although independent estimates place the number as high as 6.5×10108, or 6.5 quindecillion novemdecillion, percent.
Up to now, only vendors with licenses were legally able to accept foreign currencies, although the practice was widespread — private businesses altogether refuse to accept the unstable Zimbabwean dollar.
Large sections of the workforce, including teachers and doctors, have gone on strike because hyperinflation rapidly renders their wages worthless. Representative groups said salaries, now measured in trillions of dollars, are insufficient to pay for even the bus fare to work.
Zimbabwe also faces other crises, including a cholera epidemic that has claimed the lives of over 3,000 people, according to statistics from the World Health Organisation.
[edit]
No Comments
">
U.S. Senate approves revised bailout package after controversial additions
Posted by
,
No Comments
Saturday, October 4, 2008
The U.S. Senate passed a revised bailout bill designed to help the struggling U.S. financial economy, which has measures nearly identical to the bill rejected by the U.S. House of Representatives on Monday.
“Senate Democrats and Republicans believe it is essential that we work quickly on this important legislation to restore confidence to our financial system and strengthen the economy,” said Senate Majority Leader Harry Reid.
The new revisions include raising the FDIC insurance cap to $250,000, a move designed to please progressives. However, the $110 billion in tax breaks, earmarks and what has been called pork barrel spending is not offset by any increases in revenues and has added opposition to the bill from some Representatives in the House.
Earmarks added into the bailout bill included $192 million in tax rebates for the Virgin Islands rum industry, $148 million in tax cuts for the wool industry, $100 million tax cuts to the auto racing industry, and $48 million in Hollywood tax incentives.
Vice President of Taxpayers for Common Sense, Steve Ellis, offered his explanation for the pork and earmarks added in. “People who support some of these provisions will forget about the $700 billion and concerns they may have on that, and say, ‘If you give me a few million in tax breaks for my constituents, I’ll go along'”.
The tactic seems to have worked, however, managing to flip enough votes to pass the bill.
“The inclusion of parity, tax extenders and the FDIC increases has caused me to reconsider my position,” said Representative Jim Ramstad (R Minnesota), who voted against the previous bill on Monday. “All three additions have greatly improved the bill.”
But Representative Marcy Kaptur (D Ohio) was not changing her no vote. “I will not support this legislation because it’s the wrong medicine,” she said.
|
HAVE YOUR SAY
|
|
|
Do you think the bailout bill will help the US economy, hurt it, or be a waste of money?
|
|
|
Add or view comments
|
|
The Senate took H.R.1424, a bill originating in the House concerning “equity in the provision of mental health and substance-related disorder benefits under group health plans, to prohibit discrimination on the basis of genetic information with respect to health insurance and employment,” and extended it with the bailout provisions.
H.R.1424 was introduced on March 9, 2007, by Rep. Patrick Kennedy (RI-1) and had the support of First Lady Rosalind Carter. It is noted on the Congressional Website that “On 10/1/2008, the Senate passed H.R.1424 as the vehicle for the economic rescue legislation. In the EAS version of the bill (Engrossed Amendment as Agreed to by the Senate), Division A (pp.1-110) is referred to as the Emergency Economic Stabilization Act of 2008; Division B (pp. 110-255) is referred to as the Energy Improvement and Extension Act of 2008; and Division C (pp. 255-441) is referred to as the Tax Extenders and Alternative Minimum Tax Relief Act of 2008.” It was not treated as an appropriations bill in the House.
There were two votes in the Senate. The first was to amend H.R.1424, which required 3/5 to be accepted, which it was. The second was a vote on the bill. Passage of the Bill required only a 1/2 majority. It was passed with 74 yeas and 25 nays. Senator Kennedy did not vote.