Zimbabwe Update

The collapse predicted by the end of the year seems to be happening far sooner than predicted.

From The Guardian:

Shops emptied as panic grips Zimbabwe
By Andrew Meldrum, July 5

Pretoria - Panic buying swept through the streets of Zimbabwe yesterday, as stores ran out of basic goods and shopkeepers complained that they were selling goods at a loss after the government ordered prices to be halved in a last-ditch effort to tackle hyper-inflation.

Shoppers desperate to restock in a country ravaged by shortages cleared out supermarkets in the capital, Harare, and Bulawayo, where shelves were bare of essential items such as maize meal, cooking oil, sugar, milk, soap, bread, chicken, beef and other items.

"I am selling goods at less than what I paid for them. I am selling bread at less than what it costs to bake it," a distraught Harare shopowner said, pleading for anonymity so as to avoid government retribution. "I am following the government's orders. Army soldiers came here this morning to check prices. Mugabe has threatened to seize any business that does not do what he says. I don't know how long this can continue."

Inflation is currently estimated at 10,000% and rising. Armed soldiers and the youth militia are patrolling shops and open-air markets to enforce President Robert Mugabe's price controls. More than 200 retailers have been charged with crimes of charging more than the official prices, police confirmed yesterday.