The US Air Force recently airlifted nearly 24 tons of cocaine from Costa Rica to Miami, the cocaine capital of the world, in a program described as being â€śshrouded in secrecyâ€ť. Image: Wikimedia Commons According to the Costa Rica Star, a Boeing C-17 Globemaster III out of Dover Air Force Base landed at the Daniel Oduber Quiros International Airport (LIR) on Saturday July 27, loaded almost 24 tons of cocaine ...Read more ›
The country which over the past decade is most synonymous with "financial innovation" of the less than desirable kind, such as hyperinflation, complete currency and economic collapse and wholesale property confiscation, has just taken financial central-planning brilliance to the next level and following dictator Robert Mugabe's "reelection" has announced plans to open a new and "racially exclusive" stock exchange, allowing blacks alone to trade. And not trade just anything, but shares of recently nationalized foreign companies, most of which are South African-owned miners. Or rather were, because following the most recent nationalization round, Zimbabwe would take a 51% stake in all major foreign-owned companies valued at over $7 billion. No compensation will be paid.
The plan to grab mining companies, most of which are South African-owned, follows President Robert Mugabe's landslide re-election last week.
Saviour Kasukawere, the 'indigenisation' minister, said on Tuesday that the government or black Zimbabweans would take 51 per cent of the shares in all major foreign-owned companies, valued at about £4.8 billion. No compensation will be paid.
The regime wants to control mining companies and in particular Zimplats, a major platinum producer which is largely owned by South Africa's Impala Platinum Holdings.
Zimbabwe was kind enough to give foreign companies a choice: hand over 51%, or lose everything.
Mr Kasukawere said that mining companies which do not "cede" 51 per cent of their shares to black Zimbabweans or the state would risk losing their operating licenses. He said the value of the natural resources or underground metals extracted by the companies were sufficient to pay for majority shareholdings. "When it comes to natural resources, Zimbabwe will not pay for her resources," said Mr Kasukuwere in an interview with Bloomberg, a news agency.
And while banana republic nationalizing mines is nothing new and is a big reason for the horrendous performance of the mining complex over the past several years, the fact that Zimbabwe has some of the best-named propaganda actors is worth the price of admission alone.
Psychology Maziwisa, spokesman for the ruling Zanu-PF party, confirmed that Mr Kasukawere's remarks were official policy. "All of this is correct. Its what we told voters we will do," he said.
Obviously, people are stunned by the absolute idiocy developing in Zimbabwe:
John Robertson, an independent economist in Harare, said: "There is no logic in that plan. He is in danger of introducing economic apartheid which is absurd."
Mr Robertson added: "I think this is only politicking and there is no substance to this."
Just wait. Because if anyone is hoping that Zimbabwe's preexisting international agreements...
South Africa has a bilateral trade and protection agreement with Zimbabwe. If the regime presses ahead and seizes a controlling stake in South African mining companies, they could use these agreements to secure compensation or the return of assets via international courts.
Whether Mr Mugabe's regime would respect any such rulings is another question.
Mr Mugabe seized almost all of Zimbabwe's white-owned farms, often in defiance of court orders, and without compensation.
... will do much to hinder the actions of an absolutely insane populist lunatic dictator, we urge them to exhale.
Finally, and speaking of populism, the good thing about the US is that there is little risk of it following in Zimbabwe's footsteps, at least in this regard: after all HFT algos are neither black nor white, so attempting to impose racist qualification on a bunch of vacuum tubes will fail miserably if and when Mugabe's plan crosses the Atlantic.
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Federal Reserve Policy Mainly Benefits Big Foreign Banks Weâ€™ve extensively documented that the Federal Reserve is intentionally locking up bank money so that it is not loaned out to Main Street. Specifically â€“ due to Fed policy â€“ 81.5% of all money created by quantitative easing is sitting there gathering dust in the form of â€śexcess reservesâ€ť â€¦ instead of being loaned out to help Main Street or the American ...Read more ›
When you add maturing debt to the new debt that the federal government is accumulating, the total is quite eye catching.Â You see, the truth is that the U.S. government must not only borrow enough money to fund government spending for this year, it must also "roll over" existing debt that has reached maturity.Â Of course the government never actually pays off any of that debt.Â Instead, it essentially takes ...Read more ›
Federal Reserve Chairman Ben Bernanke said this week that inflation in the United States needs to be higher.Â Yes, he actually came right out and said that.Â It almost seems as if Bernanke is trying to purposely hurt the middle class.Â On Wednesday, Bernanke told the press that "both sides of our mandate are saying we need to be more accommodative".Â Of course he was referring to the Fed's dual mandate to k ...Read more ›
SAN DIEGO (AP) -- The mayor called the case "stupid" and a jury swiftly said it shouldn't stick, taking the eraser to vandalism charges for a man who wrote anti-bank slogans on San Diego sidewalks. A Superior Court jury deliberated for five hours after a four-day trial before acquitting Jeff Olson Monday of the 13 misdemeanor charges that could have brought 13 years in jail and $13,000 in fines. Olson, 40, ...Read more ›
Something tells me that the falling-asleep-on-keyboard mistake will eventually be how the world ends. ViaFRANCE 24: An obviously tired German bank employee fell asleep on his keyboard and accidentally transformed a minor transfer into a 222 million euro ($293 million) order, a court heard Monday. The Hessen labour court heard that the man was supposed to transfer just 62.40 euro from a bank account belongin ...Read more ›