Zimbabwe Bashes Bernanke—On Inflation!
Senior Editor, CNBC.com
The central banker of the country most famous for hyperinflation, Zimbabwe, is warning that the US may be on the wrong path and urging his country to adopt the Chinese yuan as its currency.
Reserve Bank governor Gideon Gono has warned that Zimbabwe’s nascent economic recovery is at the mercy of the United States dollar, which is facing new pressures from the Euro-zone debt crisis.
Gono says Zimbabwe should in fact be looking to the Chinese yuan as its main currency, while urgently seeking to restore its own currency which was abandoned in 2009 after a dramatic loss of its value.
Speaking in Gweru last Saturday, Gono said: “The extraordinary happenings in Europe where economic power houses in the euro zone have been hit by a debt crisis deserves extraordinary measures, especially here in Zimbabwe where we have adopted the US dollar as the major currency in our multi-currency regime.
"With the continuous firming of the Chinese yuan, the US dollar is fast ceasing to be the world's reserve currency and the Euro-Zone debt crisis.
Zero Hedge reads this as a warning for the US. Even Zimbabwe sees we're headed toward inflation!
I think that anything Zimbabwe advises should be avoided. What's more, the Chinese have a far worse inflation problem than we do. It's simply ridiculous to even propose that dollars are inflating faster than yuan.
Questions? Comments? Email us atNetNet@cnbc.com
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC