Saturday, February 21, 2009
Thursday, February 19, 2009
Deflation warning bells ring louder
Consumer prices may fall on an annual basis for the first time in more than 50 years. Is this the beginning of a deflationary spiral or just a blip?
NEW YORK (CNNMoney.com) -- Prices are falling for just about everything these days.
The government will report its key inflation index Friday morning, the Consumer Price Index, and economists believe the report is likely to show the first year-over-year drop in prices since 1955. (more)
Friday, February 6, 2009
Zimbabwe dollar sheds 12 zeros
Notes valued at millions of Zimbabwe dollars have been virtually worthless
Zimbabwe is revaluing its dollar again, removing twelve zeros from the currency with immediate effect.
The country's central bank is introducing seven new notes in an effort to stave off economic collapse.
The country is in the grip of world-record hyperinflation. The most recent estimate in July 2008 put it at 231m%.
Only last month, a Z$100 trillion note was introduced and the government moved to allow people to use foreign currencies alongside Zimbabwe's dollar.
The announcement will see Z$1 trillion reduced to Z$1.
The denominations of the new notes are Z$1, Z$5, Z$10, Z$20, Z$50, Z$100 and Z$500. (More)
A prediction from CNBCThe US risks being hit by Zimbabwe-style hyperinflation and there are signs that the world's biggest economy risks turning into a banana republic, Marc Faber, author of the Gloom, Doom & Boom report, told CNBC's "Asia Squawk Box."
"In the US, we have a totally new school, and it’s called the Zimbabwe school," Faber said. "And it’s founded by one of the great leaders of this world, Mr Robert Mugabe, that has managed to totally impoverish his own country. And that is the monetary policy the US is pursuing." (more)