No credit crunch here

Zimbabwe's central bank is doing all it can to put liquidity into the hands of its citizens... it has been so generous, it has even started printing Z$ 1,000,000 notes (just a month after it introduced its $50,000 note)...

This table shows a condensed history of the foreign exchange rate of the 3 Zimbabwean Dollars to US Dollars:

First Dollar
Month Exchange rate
1983 1
1997 10
2000 100
Jun 2002 1 000
Mar 2005 10 000
Jan 2006 100 000
Jul 2006 500 000+

Second Dollar
Month Exchange rate
Aug 2006 650
Sep 2006 1 000
Dec 2006 3 000
Jan 2007 4 800
Feb 2007 7 500
Mar 2007 26 000
Apr 2007 35 000
May 2007 50 000
Jun 2007 400 000
Jul 2007 300 000
Aug 2007 200 000
Sep 2007 600 000
Oct 2007 1 000 000
Nov 2007 1 500 000
Dec 2007 † 4 000 000
Jan 2008 6 000 000
Feb 2008 ‡ 16 000 000
Mar 2008 70 000 000
Apr 2008 100 000 000
May 2008 777 500 000
Jun 2008 40 928 000 000
Jul 2008 758 530 000 000

Third Dollar
Month Exchange rate
Aug 2008 1 780
Sep 2008 590 000
7 Oct 2008 2 300 000
14 Oct 2008 10 700 000
21 Oct 2008 1.22 Billion
28 Oct 2008 251 Billion
8 Nov 2008 663 Trillion



Now, US monetary base figures....

These are NOT seasonally adjusted.

Date Monetary
base

Month  
 2007-Oct.     828373 
Nov.     833052 
Dec.     836432 
    
 2008-Jan.     831104 
Feb.     828692 
Mar.     832358 
    
Apr.     830494 
May      833974 
June     839085 
    
July     846462 
Aug.     847302 
Sep.     908052 
    
Oct. p   1132799 

Two weeks ending
 2008-Sep. 10  849866 
     24  915072 
    
Oct.  8  988653 
     22  1146416 
    
Nov.  5p 1239747 



Nice growth in the past few months, eh? If the "greedy" banks were not keeping most of that new liquidity on deposit at the Fed, it would be out as cash in our hands. It still may end up there...

J. Thyme Matz