News / National
Mugabe launches bond notes financial Armageddon - PDP
01 Nov 2016 at 17:24hrs | Views
President Robert Mugabe has set in motion a financial Armageddon with bond notes, People's Democratic Party has said.
Mugabe gazetted Statutory Instrument 133 of 2016, which provides a legal framework for the introduction of bond notes as acceptable legal tender.
PDP said the controversial bond notes will boost the black market and multiple exchange rates will be introduced in the streets as people trade in the US dollar, it said in a statement.
Below is the full statement :
The People's Democratic Party (PDP) notes with concern and outrage the madness and total disregard of the law and basic principles of economics by President Mugabe in gazetting statutory instrument 133 of 2016 (SI 133 of 2016) which has served to imposed a phony currency on the Zimbabwean public with immediate effect.
The use of the Presidential powers temporary measures act in passing SI133 of 2016 is dangerous and a violation of the constitution.
The constitution provides for separation of powers among the executive, the judiciary and the legislature.
The legislature is the estate charged with promulgating laws. Thus the President in his individual capacity has no power to make laws and let alone amend a law duly enacted by parliament.
However, the presidential declaration confirms the fact that the bond note is money with an exchange rate of 1:1 with the US dollar.
Now, any currency must be backed by reserves and so the Zimbabwean government is creating fiction which fiction is creating liabilities which are not backed by reserves.
It is apparent that by taking this path Mugabe and his cronies are taking us down again back to the dark period of 2008 where the twin evils of hyper inflation and shortages of basic commodities haunted people daily.
Indeed the bond note is the Zimbabwean dollar that has simply returned with its full wrath.
Once gain the black market will thrive, multiple exchange rates will be introduced in the streets as people trade in the US dollar.
The few companies which were operating and banks will collapse amid unconstitutional compulsory acquisition of their assets via the bond note route. Already the market is reacting and shortages have started with fuel being the first commodity to go scarce on the market.
In short, Mugabe and his minions have set in motion a financial Armageddon which will destroy whatever has been left of people's livelihoods and the economy. It is indeed proof of Mugabe's ruthless reign in Zimbabwe.
The recent maneuverings by Mugabe's regime prove again beyond any doubt that he has no concern for his people's economic well being. In fact it is something he is incapable of imagining. In short Mugabe has asserted that he was, is and will remain a tin pot dictator for as long as he is alive much to the detriment of the country.
In this environment, it is foolhardy for anyone to talk about Zimbabwe transforming into a democracy and let alone to trust to invest in such an environment of uncertainty and illegality. In short the bond notes will chase away good money.
Who in their normal sense would invest their hard currency only to be paid in a surrogate fictitious currency with no value except in the minds of its creators?
The question which then begs for answers is that, if Mugabe can use such crude arbitrariness on a matter of bond notes what more would they do to retain presidency in a national election? The answer is self defining and proves again that Zimbabwe is heading towards a catastrophe and urgent action to stop this slide must be done.
In this light the PDP, as guided by its Mendel resolutions of 2014, has been at the fore front of calling for the National Transitional Authority (NTA). The financial and economic meltdown which Mugabe is about to precipitate must be stopped as it will once again bleed the economy and ruin ordinary people's investments and earnings.
The NTA must come in place to, among other things, level the political environment by aligning laws to the new constitution and reforming the institutional framework of state institutions so that they serve the best interests of the people.
Secondly, the NTA must undertake economic recovery programmes under the Zimbabwe Emergency Recovery Strategy (ZERST) which is well enunciated in our policy blue-print HOPE. Such an economic programme will save the economy from total collapse which Mugabe and his henchmen are engineering, it will further stop the continued condemnation of 90% of the population to pauperization and absolute poverty.
Lastly, the NTA will embark on a programme on national healing and transitional justice which will seek to resolve and provide lasting peace to our communities which have been ravaged by bouts of violence since independence.
This is a programme that can take the nation forward and on 4 November 2016 the PDP President, Tendai Biti, will be touching on this and other issues at a public dialogue seminar at Dutch Reformed church at 25 Samora Machel Avenue.
Another Zimbabwe is possible!
Released by;
PDP Spokesperson
Jacob Mafume
Mugabe gazetted Statutory Instrument 133 of 2016, which provides a legal framework for the introduction of bond notes as acceptable legal tender.
PDP said the controversial bond notes will boost the black market and multiple exchange rates will be introduced in the streets as people trade in the US dollar, it said in a statement.
Below is the full statement :
The People's Democratic Party (PDP) notes with concern and outrage the madness and total disregard of the law and basic principles of economics by President Mugabe in gazetting statutory instrument 133 of 2016 (SI 133 of 2016) which has served to imposed a phony currency on the Zimbabwean public with immediate effect.
The use of the Presidential powers temporary measures act in passing SI133 of 2016 is dangerous and a violation of the constitution.
The constitution provides for separation of powers among the executive, the judiciary and the legislature.
The legislature is the estate charged with promulgating laws. Thus the President in his individual capacity has no power to make laws and let alone amend a law duly enacted by parliament.
However, the presidential declaration confirms the fact that the bond note is money with an exchange rate of 1:1 with the US dollar.
Now, any currency must be backed by reserves and so the Zimbabwean government is creating fiction which fiction is creating liabilities which are not backed by reserves.
It is apparent that by taking this path Mugabe and his cronies are taking us down again back to the dark period of 2008 where the twin evils of hyper inflation and shortages of basic commodities haunted people daily.
Indeed the bond note is the Zimbabwean dollar that has simply returned with its full wrath.
Once gain the black market will thrive, multiple exchange rates will be introduced in the streets as people trade in the US dollar.
In short, Mugabe and his minions have set in motion a financial Armageddon which will destroy whatever has been left of people's livelihoods and the economy. It is indeed proof of Mugabe's ruthless reign in Zimbabwe.
The recent maneuverings by Mugabe's regime prove again beyond any doubt that he has no concern for his people's economic well being. In fact it is something he is incapable of imagining. In short Mugabe has asserted that he was, is and will remain a tin pot dictator for as long as he is alive much to the detriment of the country.
In this environment, it is foolhardy for anyone to talk about Zimbabwe transforming into a democracy and let alone to trust to invest in such an environment of uncertainty and illegality. In short the bond notes will chase away good money.
Who in their normal sense would invest their hard currency only to be paid in a surrogate fictitious currency with no value except in the minds of its creators?
The question which then begs for answers is that, if Mugabe can use such crude arbitrariness on a matter of bond notes what more would they do to retain presidency in a national election? The answer is self defining and proves again that Zimbabwe is heading towards a catastrophe and urgent action to stop this slide must be done.
In this light the PDP, as guided by its Mendel resolutions of 2014, has been at the fore front of calling for the National Transitional Authority (NTA). The financial and economic meltdown which Mugabe is about to precipitate must be stopped as it will once again bleed the economy and ruin ordinary people's investments and earnings.
The NTA must come in place to, among other things, level the political environment by aligning laws to the new constitution and reforming the institutional framework of state institutions so that they serve the best interests of the people.
Secondly, the NTA must undertake economic recovery programmes under the Zimbabwe Emergency Recovery Strategy (ZERST) which is well enunciated in our policy blue-print HOPE. Such an economic programme will save the economy from total collapse which Mugabe and his henchmen are engineering, it will further stop the continued condemnation of 90% of the population to pauperization and absolute poverty.
Lastly, the NTA will embark on a programme on national healing and transitional justice which will seek to resolve and provide lasting peace to our communities which have been ravaged by bouts of violence since independence.
This is a programme that can take the nation forward and on 4 November 2016 the PDP President, Tendai Biti, will be touching on this and other issues at a public dialogue seminar at Dutch Reformed church at 25 Samora Machel Avenue.
Another Zimbabwe is possible!
Released by;
PDP Spokesperson
Jacob Mafume
Source - Byo24News
