Tuesday, November 18, 2008

Competition in the creating money out of thin air.

The Zimbabwe Situation is reporting that Zimbabwe's printing presses cannot keep up with $40 sexillion (hexillion) worth of "fraudlent" checks.

4.1 During the week ended 14 November, 2008, fraudulent bank cheques
valued at $40 hexillion (21 zeros) were intercepted.
4.2 Some of these fictitious cheques had already been deployed on the
Zimbabwe Stock Exchange, whilst others had found their way in the
illicit parallel market.
4.3 Where a total of $40 sexillion (hexillion) is created from
absolute thin air, no Central Bank in the World, even with the best
printing machines can sustain the cash requirements of the market. (more)

Perhaps Reserve Bank of Zimbabwe should listen to their own wisdom. Creating money our of thin air is *harmful* to the economy.

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