Opinion: Mugabe’s failing reputation has now even gotten stained by Botswana!

There are often many signs when someone has been in power for too long, their age and their will to serve. That is why the Mugabe family are riding new Rolls Royce’s down the streets of Harare, while the citizens are struggling to afford gasoline and possible hyper-inflation again. So, the Zimbabwean

President, the Head of State have the audacity to insult Botswana. Even if his own state is in tatters and self-indulgent of his cronies and ZANU-PF. A man like that should more careful with his words, but his use of power and His Excellence are used to be chauffeured and have enough “yes men” filling brigades. Therefore, they will not stop him or disagree with him.

That’s why these sort of acts and words comes from his mouth. President Mugabe wants to act like the wise, but comes off as the ignorant. Blaming Botswana for not sticking-up for itself. Would he have respected if someone said the same about himself, which was a fellow Statesmen? I doubt it, he would say other foreign forces had allied against him and wanted to invade his precious Republic. Because, then Mugabe become defensive.

Now, lets look at the quotes from recent events!

Mugabe publicly spatting about Botswana candidate:

Speaking at a meeting with his South African counterpart, Jacob Zuma, Mugabe said everyone in the region had tried to support Venson-Moitoi, except Khama. “We worked hard, they worked hard, sweated. They sweated, you sweated, we sweated, but one man did not sweat. He sat at home and expected miracles to happen, but that did not happen. Everybody just said you (Venson-Moitoi), we have not seen your President here, he does not attend meetings. What will happen if we placed the organization (AU) in his hands. She had worked hard and we were sorry that she lost. But we knew in advance that we were trying the impossible one,” Mugabe said, drawing laughter from both the Zimbabwe and South African delegation attending a binational commission, aimed at strengthening trade relations between the two neighbors” (Mhaladi, 2017).

Botswana retort to Mugabe:

The Ministry of International Affairs and Cooperation wishes to respond to the recent media reports in which His Excellency, Mr. Robert G. Mugabe, President of the Republic of Zimbabwe blamed the loss of the candidature bid of Botswana’s Foreign Minister, Dr. Pelonomi Venson-Moitoi for the position of the Chairperson of the African Union Commission, on the lack of support by His Excellency, Lieutenant General Dr. Seretse Khama Ian Khama, President of the Republic of Botswana. In this connection, the Government of Botswana has taken note of the comments and regrets these inaccurate and unfortunate remarks. However, the Ministry chooses not to comment any further out of respect for President Mugabe’s advanced age and as such, understands that allowances need to be made” (The Observer, 2017).

That President Mugabe has some age, that is true the President is now currently 93 years old and has been running the government since 1980. It’s high time for changes in Zimbabwe since the government is rotting on its roots. Therefore, political activists are detained on phony charges and no-sense policies are put on the people. The economy is fragile and weak, the reputation of the Bond-Notes is as low as it should be, considering it came with beautiful idea, let’s borrow money to print money. Could think they key economic adviser came from bankrupt banks and maybe it did!

So President Mugabe should be more careful, its been years since his last success, unless seeing his wife fleeing from the law in South Africa on possible assault with battery charges on a South African model. The rampant injustice of the system and total control that put the whole state into abysmal performance because of constant oversight. Clearly, the Mugabe regime and ZANU-PF has not thought of letting it go, even if it means making the situation worse, than it already is.

So that he critique the Botswana government for their African Union position and blamed them for the way it went. Shows the lack of tact the man has now. Instead of concealing defeat and discussing it with the Botswanian counterparts, he bluntly speaks ill of them with South African President Zuma. So use others misfortune to bond with important neighbor. That just how Mugabe, the supposed elder Statesman is acting and not supposed to be.

That President Khama should take is offense is natural, but Mugabe can offend anyone because of his age and get away it. Still, he deserves to be rebuked for his words. If he continues he will has less friends on the continent. Not that the Zimbabwean Republic is strong friend for them in need either. Not at this point. Peace.

Reference:

Mhaladi, Bakang – ‘Botswana mum after Mugabe jibe on Khama’ (03.10.2017) link: https://southernafrican.news/2017/10/03/botswana-mum-after-mugabe-jibe-on-khama/

The Observer – ‘“Mugabe’s comments are inaccurate and unfortunate”: Botswana responds to Mugabe’s attack on Ian Khama’ (05.10.2017) link: http://theobserver.co.zw/mugabes-comments-are-inaccurate-and-unfortunate-botswana-responds-to-mugabes-attack-on-ian-khama/

Zimbabwe: Hyper-inflation hit the republic yet again, this time it’s the fault of launching the Bond-Notes!

(We have got the Judas Iscariots amongst us); they are manipulating the currency so that they trigger inflation” – President Robert Mugabe on Thursday this week (Chibamu, 2017).

When they launched the Bond-Notes in 2016, the borrowed money from China to launch a new currency. Like that sounds like fresh and sound financial policy. Not like Zimbabwean African National Union – Patriotic Front (ZANU-PF) and President Robert Mugabe unleashed this for the supposed benefit of the citizens. Since the former currency we’re put into death-bed and was total worthless by 2009.

So now that its gone some time, the reports of a black-market with currency exchange, the lack of petrol and others springing bad news. It is international ones that are also looking at the signs. Even if the ZANU-PF Ministers and loyalists to Mugabe, is saying it is only smoke, but no fire. Clearly, there are more into it, than they want to admit. Because, we all who followed the launch and the misuse of funds from the cronies close to Mugabe, knew that a uncontrolled inflation might hit the republic again. Mugabe will blame anyone, like he didn’t create this issue himself. If not his wife who spends fortunes in South Africa, buy luxurious cars like Rolls Royce and the sons of family spends time on lavish hotels there. They are acting like Zimbabwean Royal Family, the perks of diving into the state reserves.

Well, the Zimbabweans are in long lines getting petrol, while the Bond Notes values are getting to level, that they are worthless. That the Bond Notes are far from being One to One exchange with United States Dollars. That ship has sailed and the unfortunate citizens of Zimbabwe, who has to again see the Bond Notes, second crypto-currency in a decade fall to pieces. The destruction of the economy is evident. The statistics of the inflation should worry anyone. Just take a look!

This hard budget constraint became too onerous for the free spending government to abide by. In consequence, Zimbabwe’s government has employed Harry Houdini’s magic and circumvented the hard budget constraint imposed by dollarization. It has done so by creating a new fake dollar, which is referred to as the “New Zim Dollar.” Not surprisingly, this new Houdini creation is rapidly becoming worthless. This makes the methodology that I employed to measure inflation during Zimbabwe’s hyperinflation episode relevant again. Since Old Mutual’s price on the Zimbabwe Stock Exchange is denominated in “New Zim Dollars” and Old Mutual’s price on the London Stock Exchange is denominated in British pound sterling, we can create a “New Zim Dollar”/sterling implied exchange rate. This exchange rate can be transformed using PPP to accurately measure Zimbabwe’s inflation. At present (09/29/17), Zimbabwe’s annual inflation rate has soared to 242.72%” (Hanke, 2017).

More ominously, from the perspective of Zanu-PF, is that, as coffers dry up once again, Robert Mugabe’s government will struggle to pay some of the institutions so crucial to it remaining in power, such as the civil service, the military and the police. Bond notes were the government’s short-term answer to its long-term economic problems. But instead of providing the solution, they are proving to be an expensive mistake” (Allison, 2017).

RM: Do you foresee Zimbabwe sliding into the 2008 inflationary trap? What is your comment on this? Chris Mugaga: We might not necessarily slide into a hyper-inflationary trap, but we need to guard against it. The money changers have started causing havoc and the informal market players have been creating artificial shortages. All that must stop and this will assist in managing the inflationary threat. Last, but not least, fiscal spending also has to be managed as funding a fiscal deficit can lead to inflation” (Muzavazi, 2017).

Markoni, who once served as an economic adviser in the regional block, SADC, said Mugabe’s decision to introduce bond notes – a surrogate currency meant to alleviate the cash crisis – set in motion trial of events that led to the total collapse of the country’s financial services sector. “Bond Notes are not the solution and we have always said this. The price increases are just symptoms reflecting the situation on the ground and Mugabe can order the Zambezei River to flow back to Angola but it just won’t because of the forces of nature” said the former Finance minister. “Such forces of nature also apply to the value of currencies and that is why you see that the bond notes have not mitigated the cash crisis and collapsing economy, it has worsened it instead”. He added”(Tarenyika, 2017).

If you thought this would be sunshine story, your wrong. The reality is that the plan for the Bond Notes was flawed from the outset. I am far from surprised by the output of the currency. The whole borrowing to print the currency was made for a disaster. It was just a matter of time, when the state and cronies would print to much and make sure their we’re lacking amounts of cash in the system. As well as the foreign exchanges lacking funds to change between the United States Dollars and the Zimbabwean Bond Notes. There are enough profound evidence of trouble that could occur and which did.

The economy and financial policy was not made for the benefit of the citizen, but a short term gain for the ZANU-PF. But you can wonder who really earned on it before the inflation hit this time. As the usual suspects would be able to comply, but won’t since they will stay silent since they earned on the scheme. The crones like Mugaga will make it seem like normal and under control, while it is not. Because they know that the numbers are terrible and a doctor in the United States publishing it in Forbes, wouldn’t all of sudden find the numbers on a random spread-sheet. Therefore, the reality should hit the fan. Even if Mugabe never will take the blame. There will be someone falling on the sword, neither will be Rolls Royce driving Grace Mugabe, neither Bob, but someone who is easily gotten rid of in the cabinet. Peace.

Reference:

Allison, Simon – ‘Can Zanu-PF afford another currency crash?’ (29.09.2017) link: https://mg.co.za/article/2017-09-29-00-can-zanu-pf-afford-another-currency-crash

Chibamu, Anna – ‘Zimbabwe: President Mugabe Stays Put, Scorns ‘Judas Iscariots’ (29.09.2017) link: http://allafrica.com/stories/201709290092.html

Hanke, Steve – ‘Zimbabwe Inflates… Again’ (30.09.2017) link: https://www.forbes.com/sites/stevehanke/2017/09/30/zimbabwe-inflates-again/#221257d10d68

Muzavazi, Runyararo – ‘Let’s guard against the hyper-inflationary trap’ (30.09.2017) link: http://www.herald.co.zw/lets-guard-against-the-hyper-inflationary-trap/

Tafirenyika, Mugove – ‘Former Finance Ministers speak on the economic rot’ (29.09.2017) link: https://www.dailynews.co.zw/articles/2017/10/01/former-finance-ministers-speak-on-economic-rot

#ThisFlag: Pastor Evan Mawarire has been released after being detained for 48 hours!

After holding him for over 48 Hours, the #ThisFlag founder and Civil Activist Pastor Evan Mawarire has been released. Magistrate: “The 48 hour window has expired, therefore the accused is entitled to immediate release” (Doug Coltart, 26.09.2017). This because the time of arrest started on Sunday and the legislation together with the hearing should have already started. That is why they could release him.

Clearly, every time the Mawarire speaks out his mind and drops his knowledge of the fragile economy, lacking petrol and the failing Bond Notes. There will be issues as the Zimbabwean African National Union – Patriotic Front (ZANU-PF) government trying to subscribe to their leader and his vision, if that is only to print more cash for his lavish lifestyle and his Zanu-PF elite. Therefore, this is not the last a Civil Activist, someone who is saying “Mugabe Must Go” will be in court.

Mawarire is the leader and the man who stands on his principles and is the one who has the voice. This today was a bail-hearing and he was free after the trial. But expect that he might be back to court on Thursday. Still, that one changed as his hearing happen today and got released. Clearly, the Constitutional Rights of bail-hearing and trial before 48 hours happen today. The release happen at the High Court and Row 6 as the judge actually freed him. He followed the code, even as the Pastor was arrested at his Church, that was on the 24th September 2017.

This might easily happen again. That the Police of Zimbabwe will arrest and detain the Pastor on forged charges, on bat-shit crazy charges that doesn’t belong anywhere, except for in B-Movies. Not in reality, but in a poorly written fiction. Still, the ZANU-PF will continue to strangle and humiliate the activists, the ones who wants a peaceful change for the better. As the economy and the rights of people is stripped away. Nothing is right about this situation. Peace.

Insane-Breaking-News: Pastor Evans Mawarire arrested during Church-Service today!

I’m just about to finish preaching and I’m told the police are waiting for me outside” – Evans Mawarire (24.09.2017).

Because of yesterday on Social Media while being in a que, the #ThisFlag founder and Opposition activist Evans Mawarire was discussing and showing the Bond Notes crisis and the lack of Petrol in Zimbabwe. Clearly, that didn’t run well with the authorities. The Zimbabwean African National Union – Patriotic Front (ZANU-PF), the ruling regime with President Robert Mugabe got a whiff of this and not strange. Since, even I watched the clip on Facebook yesterday.

This with the knowledge of the cost of 50 Cents bond-notes from the South African Mint that was ordered on the 20th September 2017, cost about $3 Million US Dollars. Therefore, before the money hit the streets and towns, the cost is huge for the state. This should worry anyone, this is just one order and one type that has been revealed. We can just wonder how much the Zimbabwean government has paid for other bond-notes from South African Mint. As the debt created by creation and the funds loaned by the Afreximbank. Therefore, the loans that has to repaid on the weak currency, that is now failing. Just like the bearers notes given in 2008. That is what Pastor Mawarire was discussing yesterday. The reason why he was detained while preaching today.

The Zimbabwe Republic Police has really overstepped, we know they have a grudge against the pastor and his civil activism. But taking him during a service is just out of order. Its shocking and insane. It’s like taking an MP while in the Parliament during a plenary session. How can you barge in to the church and arrest the fellow preacher? Are there no honour within the ZRP? Has not the double or triple doctorate of Mugabe any common sense?

Certainly, the Mugabe family is not that common anymore, since they are riding in expensive rides, while the public are in ques for petrol. That the people are on the black-market for the imported goods, while the industries and the exchange are growing. The running inflation of the currency, while the state trying spin-control it. Like it isn’t happening and the world doesn’t know.

If you want proof of impunity and nonsense. Just follow the trail of the civil activist in Zimbabwe, how they are threaten, treated and detained. Where else can a pastor be arrested while leading his church service with his congregation? Where else can a civil activist without court order or even a court ruling be detained for months upon end and released suddenly, that has happen to several activists. That proves how little Mugabe cares, except getting his wife pardoned for violence in South Africa. It is two classes of people in Zimbabwe, the ZANU-PF elite and the rest! Peace.

Opinion: Donald J. Trump VS. Ri Yong Ho made UNGA General Debates into a spectacle!

In New York this week the United Nations General Assembly of the 72nd Session. We can clearly see that the world has changed. Not to the better, but a grim state of affairs. Where the greatest nation and former superpower United States of America (USA) having their President on direct war-talk at the General Assembly. This is not something that is normal, I can never recollect anyone talking like this at this venue. That the United Nations are used in this way is flabbergasting, but Trump never cares about audience or how it affects them. As long as he get PR and becomes the megalomaniac as he always is. Someone, should have learned him this, but the flawed education and obvious indifference of the world. Has been transpired to world long time ago.

I will look first at the most striking words President Donald J. Trump has against the North Korea, than do the same from North Korea Foreign Minister Ri Yong Ho. This will be interesting, before discussing their approach from the General Debate at the UNGA. Look!

President Donald Trump on the 19th September:

If the righteous many do not confront the wicked few, then evil will triumph. When decent people and nations become bystanders to history, the forces of destruction only gather power and strength. No one has shown more contempt for other nations and for the well being of their own people than the depraved regime in North Korea. It is responsible for the starvation deaths of millions of North Koreans, and for the imprisonment, torture, killing, and oppression of countless more. We were all witness to the regime’s deadly abuse when an innocent American college student, Otto Warmbier, was returned to America only to die a few days later. We saw it in the assassination of the dictator’s brother using banned nerve agents in an international airport. We know it kidnapped a sweet 13-year-old Japanese girl from a beach in her own country to enslave her as a language tutor for North Korea’s spies. If this is not twisted enough, now North Korea’s reckless pursuit of nuclear weapons and ballistic missiles threatens the entire world with unthinkable loss of human life. It is an outrage that some nations would not only trade with such a regime, but would arm, supply, and financially support a country that imperils the world with nuclear conflict. No nation on earth has an interest in seeing this band of criminals arm itself with nuclear weapons and missiles. The United States has great strength and patience, but if it is forced to defend itself or its allies, we will have no choice but to totally destroy North Korea. Rocket Man is on a suicide mission for himself and for his regime. The United States is ready, willing and able, but hopefully this will not be necessary. That’s what the United Nations is all about; that’s what the United Nations is for. Let’s see how they do. It is time for North Korea to realize that the denuclearization is its only acceptable future. The United Nations Security Council recently held two unanimous 15-0 votes adopting hard-hitting resolutions against North Korea, and I want to thank China and Russia for joining the vote to impose sanctions, along with all of the other members of the Security Council. Thank you to all involved. But we must do much more. It is time for all nations to work together to isolate the Kim regime until it ceases its hostile behavior” (Donald J. Trump, 19.09.2017).

Foreign Minister Ri Yong Ho on the 23rd September:

Since Trump uttered such reckless and violent words provoking the supreme dignity of the Democratic People’s Republic of Korea (DPRK) at this very platform, I think it is fair enough for me to make a response in the corresponding tone. During his 8 months in power, he has turned the White House into a noisy marketing place full of crackling sounds of abacus beads and now he has tried to turn the UN arena into a gangsters’ nest where money is respected and bloodshed is the order of the

day. The absurd reality that the person like Trump, a mentally deranged person full of megalomania and complacency, the person who is chastised even by American people as “Commander in Grief, “Lyin King”, “President Evil” is holding the seat of the U.S. President, and the dangerous reality that the gambler who grew old using threats, frauds and all other schemes to acquire a patch of land holds the nuclear button; these are what constitute the gravest threat to the international peace and security today. Due to his lacking of basic common knowledge and proper sentiment, he tried to insult the supreme dignity of my country by referring it to a rocket. By doing so, however, he committed an irreversible mistake of making our rockets’ visit to the entire U.S. mainland inevitable all the more. None other than Trump himself is on a suicide mission. In case innocent lives of the U.S. are lost because of this suicide attack. Trump will be held totally responsible. The respected supreme leader Comrade Kim Jong Un stated: as a man representing the DPRK and on behalf of the dignity and honor of my state and people and on my own, I will make the man holding the prerogative of the supreme command in the U.S. pay dearly for his speech calling for totally destroying the DPRK. Trump might not have been aware what is uttered from his mouth but we will make sure that he bears consequences far beyond his words, far beyond the scope of what he can handle even if he is ready to do so” (Ri Yong Ho, 23.09.2017).

The words are really out of bound. It is not the ordinary, it is no code, no brief statement that could been for many issues or many nations. In this particular event both gentleman and representatives of their nations went in for the kill. First Trump went on his way to offend and endanger the situation. The special thing is that both Yong Ho and Trump claims they are on a suicide mission, either its the American President or the North Korean one. There both of them are saying it. If this is true, than them both are possibly killing themselves and their nations for some brownie-points. That has clearly not sunk in at any of the parties.

The second thing you see, is how they both are envisions the United Nations and their role. That Trump think its a tool for his use and that the powers inside UN are for his causes and favors. He will see in the future that he is wrong. Since that is a consensus and majority vote in favors of sanctions and change of protocol towards a state. Nothing that happens on just a popularity contest. North Korea on the other hand, is worried about the vision Trump has and his agenda to destroy them. That is natural defense from them, as they have the worries of the rest world blowing them to bits. Trump doesn’t understand that others has self-defense and natural reactions to threats. Neither understanding the consequences of his actions. Which makes it ironic, that the North Korean counterpart see the same.

This here will not end here with these statements from either parties. The tide has not turned. And that is sad since the conflict and warfare will hurt someone in the end. Just like the United States Sanctions against North Korea and sudden move by China to stop selling Petrol. Not that anyone want another state with Atomic Bombs, but clearly it is hard to trust Trump with it either. He is not the stable world-leader, its hard to know if his fit to it. Since, he attacks without thinking consequence of his actions.

We will see how this goes, but these sort acts and statement cannot become the new normal. This sort of diplomacy and risk-taking shouldn’t be played on the grand-stage like this. It is not the place and neither is the possible result. United States should know better, they have been involved in conflicts for decades and are vital part in plenty. North Korea, who knows the Americans has interests in the South-East China Sea, should be careful, but they have to answer to not lose face. That is natural in the circumstance. They are squeezed by sanctions and further pressure, the United States knows this. United Nations should be used for peaceful means and possible place for debate for a better future. Not create war… Peace.

United States: Yoho and Sherman letter to Sec. Tillerson and Sec. Mnuchin on North Korean Sanctions (02.08.2017)

Opinion: North Korea continue to test missiles, the world needs to react with diplomatic means before someone is hurt!

Yesterday, the North Koreans sent up another rocket to the sky, again the Japanese sent people into shelters and made sure they we’re safe. The rockets could have hit one of their islands. The South Koreans are getting more worried as the Democratic People’s Republic of Korea (DPRK) and their President Kim Jung-Un continues with missiles and launches. The extensive works and promotions of their arms development should worry.

This is just as the KCNA today issued this news:

Pyongyang, September 16 (KCNA) — Trump announced that they would sell off weapons worth billions of U.S. dollars to south Korea. And he allowed Japan and south Korea to increase the quantity for buying U.S.-made military equipment. Timed to coincide with this, a spokesman for the White House at a press conference said that now is not the time to focus on the dialogue with north Korea. Minju Joson Saturday in a commentary says that Trump’s behavior goes to clearly prove that he has neither will nor ability to defuse tension on the Korean peninsula but he has only merchant-like calculation to use the aggravated situation as a golden opportunity for making money” (KCNA, 16.09.2017).

So the state propaganda is in full-effect. The North Korean are ready to blame everyone else for their activity. Not looking within itself and wondering, if they we’re shooting up less missiles, the United Nations Security Council wouldn’t have reasons for sanctioning it. Neither would United States has to sell and help Japan and South Korea with missiles defense like THAAD System.

The acts of North Korea is the reasons for the tensions, also the words of President Trump. Because he has sounded like warmonger, who is ready to send battleships and make another Korea-War. Since it went so smoothly during the last Korean war. President Donald Trump needs a repeat of that, this time hire his friend Eric Prince and his company to send mercenaries to the Korean Peninsula. That would be nightmare, not only for President Kim Jung-Un, but for all parties in the South East Asia. Nothing good would come out of it.

But North Korea if it shoots down a boat or hit land. Actually kills someone with a missiles, even if it was an exercise and just trying new technology. It might spark something unheard of. As long as life is not lost and the heads of South Korea and Japan, are keeping their cool. The warfare will not start. The loss of life will not happen. But the more you play with fire, the more likely someone is actually going to get burnt. At this rate, its just a matter of time.

President Kim Jung-Un does this to spread to fear and awe. But it is not working outside of North Korea. Even if China is peaceful and want to continue with cordial relationship. Even if South Korean government don’t want war, they still wants their citizens safe without fear of tomorrow, the same can be said by Japanese. The United States are there to support allies, but if they are really hit. Will the US put troops and bigger guns on the ground?

We can hope for dialogue, for debate and for negotiations, so that the North Korean doesn’t continue to shoot. That they hopefully doesn’t suddenly hit Seoul, Tokyo or any other place where millions of innocent people lives. North Koreans can with the right type of hydrogen bomb or other device really do lots of damage and hurt. The world doesn’t want to see that. Just like the rest of the world, this part of the world don’t need a war. No place needs a war. The Korean peninsula needs diplomacy and possible aid. So that the North Koreans and the rest of world can engage in possible solution to the stalemate. As the DPRK President is fearing for livelihood and life. Therefore he is using fear and missiles to get respect. Peace.

Zimbabwe: Letter from Ministry of Rural Development, Promotion and Preservation of National Culture and Heritage – “Appeal for Contributions towards Mash Central Presidential Youth Interference” (03.09.2017)

Zimbabwe: The Bond-Notes are creating higher prices on goods and a big black-market for currency exchange!

The launch of the Bond Notes has been hectic and been untrustworthy. Zimbabwe has been hit with economic difficulties, as to the policies and thieving of the state reserves. That is why the inflation and value of the currency dwindles. As well, as the lack of trust of the currency and the central reserves issued notes, are the reason for the troubling issues with the monetary policies. The Zanu-PF government have been more preoccupied with serving themselves, than the people who are spending the notes.

The questions in the beginning of the of the current value of a note issued on a loan through Afrieximbank, this means the state was taking on debt. This is was to issue a new currency, a temporary note that was gaining new debt to the state. Just take a look!

Chakravarti, a University of Zimbabwe economics professor, said keeping the peg is only depreciating the value of the Real-Time Gross Settlement system (RTGS). He noted that the Confederation of Zimbabwe Industries had revealed that the RTGS premium to real money is now at 30%, meaning if one had US$1 000 in RTGS, they only have US$700 in real money. He added that it was “pointless” to have the Afrieximbank facility, which the central bank said backs the bond notes, if it is not convertible.” Chakravarti said it was unhealthy for the economy to have government crowding out funding for the private sector. He noted that the country has the highest tax-to-GDP in Africa which is 30% against the continental average of 22%, a situation he described as unviable. Chakravarti predicted that by December this year bond notes will constitute 50 to 60% of the currency in circulation which will qualify it as a local currency” (Ndebele & Kuwaza, 2017).

Dollarisation has two forms, namely, official/de jure and unofficial/de facto. BMI Research found that an increase in bond notes was actually de-dollarising the economy. BMI Research warned last week that increasing money supply would contribute to an accelerated growth of inflation from 1,4% by year-end to 8,5% in 2018 — making the steepest growth since 2009. “The Reserve Bank of Zimbabwe’s (RBZ) decision to more than double the size of its bond-note programme — to $500m from $200m previously — confirms our view that the country is headed towards de jure de-dollarisation,” it said” (Zwinoira, 2017).

Because Zimbabwe imports more than it exports, the black market is now influencing pricing trends. As such, a transfer now attracts a 48 percent premium, while cash transactions for smaller denominations range between eight and 9,5 percent, depending on the currency involved. For larger notes such as US$50 and $100, it can cost the buyer up to 10 percent. The majority of companies, whose payments fall outside the Reserve Bank of Zimbabwe (RBZ) priority list for accessing the elusive US dollars in banks, rely on bank transfers to get the coveted currency on the parallel market. As a result, prices for all basic consumer goods have gone up by between 20 and 50 percent as companies and retailers pass on the costs to the ordinary consumer” (Bulawayo24, 2017).

We can easily see that the trustworthy levels of Bond-Notes isn’t there, as the businesses not connected with Reserve Bank of Zimbabwe payment system makes the exchange of currency more expensive. The trust was already bad before the issue of the bond-notes before June 2016. It haven’t got better, it is worse as the percentage cost is 10%.

Therefore, the value of the Bond-Notes has made ordinary life harder. The prices on ordinary goods has gone up. This because of the issue of the Bond-Notes and the whole fiscal policy, that is clearly not working. Peace.

Reference:

Bulawayo24 – ‘Value of Bond Notes Tumbles’ (05.09.2017) link: http://bulawayo24.com/index-id-business-sc-economy-byo-117175.html

Ndebele, Hazel & Kuwaza, Kudzai – ‘Officialise bond notes, govt told’ (01.09.2017) link: https://www.theindependent.co.zw/2017/09/01/officialise-bond-notes-govt-told/

Zwinoira, Tatira – ‘‘Zim heading towards de-dollarisation’ (04.09.2017) link:https://www.newsday.co.zw/2017/09/04/zim-heading-towards-de-dollarisation/

Opinion: North Korea creates more uncertainty in the South-East Asia as it develops the H-Bomb!

This is not the news you wants to wake-up to on a Sunday morning. You want your tea and coffee, while sipping it, without worry of another giant war. But the Democratic People’s Republic of Korea (DPRK) or the North Korea government clearly trying to push their military capacity. They have been shooting more missiles lately. This has not created a peaceful atmosphere, as Donald Trump as throwing shades of warnings, without any policy or plan. The Japanese has had their warnings and even had a missile over their territory. South Korea has also taken precautions, as they have more anti-missile system, the THAAD-System that they got from the United States. Therefore, the pressure from the nations around the United Nations, clearly has not worked.

Since the DPRK are evolving their missiles and now had made the H-Bomb, this is the news reports from the Korean peninsula and the countries around. Take a look!

Official Statement from DPRK on the H-Bomb:

Pyongyang, September 3 (KCNA) — Respected Supreme Leader Kim Jong Un guided the work for nuclear weaponization on the spot. He was greeted by senior officials of the Department of Munitions Industry of the Central Committee of the Workers’ Party of Korea (WPK) and scientists of the Nuclear Weapons Institute before being briefed on the details of nuclear weaponization. The institute recently succeeded in making a more developed nuke, true to the strategic intention of the WPK for bringing about a signal turn in nuclear weaponization. He watched an H-bomb to be loaded into new ICBM. Saying that he felt the pride of indomitably bolstering up the nuclear forces at a great price while seeing the Juche-oriented thermonuclear weapon with super explosive power made by our own efforts and technology, he expressed great satisfaction over the fact that our scientists do anything without fail if the party is determined to do. He was acquainted himself with technical specifications and structural and operational characters of the H-bomb. The scientists further upgraded its technical performance at a higher ultra-modern level on the basis of precious successes made in the first H-bomb test” (KCNA, 2017).

CCUK statement on anti-DPRK news:

A spokesman for the Central Committee of the Journalists Union of Korea in a statement on September 1 said this clearly proves that the puppet conservative media are made up of hack writers, servants of bellicose forces at home and abroad and group of traitors with whom we cannot live together” (…) “1. We will sharpen the just writing brushes to defend our leader, our Party and our social system and win a final victory in the confrontation with the US.” (…) “2. We will track down the puppet conservative reptile writers fostering discord within the nation under the auspices and at the instigation of the anti-reunification forces at home and abroad, and throw overboard all of them” (…) “ 3. Our grime and merciless pen will sight the bases which commit hideous crimes against the DPRK by spreading misinformation about it, and beat them to pieces” (…) “The puppet conservative media escalating confrontation with the DPRK while daring challenge the annihilating spirit of the army and people of the DPRK will never be able to evade the shower of retaliatory blows” (Uriminzokkiri, 2017).

China Statement on the DPRK H-Bomb:

BEIJING, Sept. 3 (Xinhua) — China’s Foreign Ministry issued a statement on Sunday, expressing firm opposition to and strong condemnation of a nuclear test undertaken by the Democratic People’s Republic of Korea (DPRK). The DPRK Sunday successfully detonated an H-bomb, a hydrogen bomb that can be carried by an intercontinental ballistic missile (ICBM), DPRK’s Central Television announced. This was the sixth nuclear test the DPRK has undertaken. “Today, the Democratic People’s Republic of Korea, despite universal opposition from the international community, conducted another nuclear test. The Chinese government expresses firm opposition to and strong condemnation of the test,” said the statement of China’s Ministry of Foreign Affairs” (Yamai, 2017).

Phone-Call between Japanese and South Korean diplomats:

SEOUL, Sept. 3 (Yonhap) — Top diplomats of South Korea and Japan held a phone conversation on Sunday to discuss countermeasures against North Korea’s sixth nuclear test, a foreign ministry official here said. Foreign Minister Kang Kyung-wha spoke with her Japanese counterpart Taro Kono via phone, the official said. They were expected to share their concerns about the North’s escalating threats and discuss responses including the pursuit of a new, tougher U.N. Security Council resolution against its regime” (Yonhap, 2017).

The United Nations Security Council sanctions and the ample pressure from China has not worked. If the international community doesn’t start a clear dialogue with DPRK. The Association of Southeast Asian Nations (ASEAN) has to make sure their nations isn’t in the firing line. The Chinese clearly has to make sure their trading partner and neighbor acts righteously. Since they are now making more advanced weapons. This is more worrying since they can damage the nations around it.

The H-Bomb production and test, the DPRK are really forcefully pushing their agenda. That even the North Korean are preparing to retaliate for the words of the United States. This is really not making the situation better. The DPRK are able to develop better weapons, while the nations around has to react to the ascending missiles from Pyongyang government. This is not peaceful measures, this is not something just to make statements. It is time to for real diplomats to travel there and discuss the future.

This is now needed, the Korean peninsula needs it and it is dire. The experiments of new weapons, the tests and the messages sent from North Korea. Their actions are causing troubles even in Japan, South Korea and should do so for China. But the ASEAN, should come out with a protocol and trying to fix things with the DPRK. Because, if the world doesn’t act swift upon it. They might continue with their weapons progression. Not only to strike fear, but to create a big enough arsenal to actually shoot a major city into oblivion. Therefore, the DPRK needs a peaceful resolution and a diplomatic one. This one needs that and the international organization together with partners of the DPRK, needs to do it now. Peace.

Reference:

Korean Central News Agency (KCNA) – ‘Kim Jong Un Gives Guidance to Nuclear Weaponization’ (03.09.2017) link: https://kcnawatch.co/newstream/1504389746-780050885/kim-jong-un-gives-guidance-to-nuclear-weaponization/

Uriminzokkiri – ‘Anti-DPRK Campaign of S. Korean Puppet Reptile Writers Will Be Foiled’ (03.09.2017) link: https://kcnawatch.co/newstream/1504432832-868481910/anti-dprk-campaign-of-s-korean-puppet-reptile-writers-will-be-foiled/

Yamai – ‘China firmly opposes and strongly condemns DPRK nuclear test’ (03.09.2017) link: http://news.xinhuanet.com/english/2017-09/03/c_136579629.htm

Yonhap – ‘Top diplomats of S. Korea, Japan hold phone discussion on N.K. nuke test’ (03.09.2017) link: http://english.yonhapnews.co.kr/news/2017/09/03/0200000000AEN20170903005300315.html?utm_content=buffer22a2d&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer