While we are scared that the global financial crisis is stealing our comfortable lifestyles, people in Zimbabwe have to pan for gold powder from the rivers to exchange for food at an exorbitant rate. So perhaps it isn’t that bad for us. : ) Maybe slightly less comfortable, but not nearly as dramatic.
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What’s “an exorbitant rate?” At current world prices 8.1 gm of gold is “about” $3.50 USC. Until a few months ago it was less, about $2.50 USC. The price of gold probably will bounce between those ranges for a while at least. Assuming it does, that means they are buying a loaf of bread for about $3. That’s really not a bad deal for a loaf of bread in the middle of the jungle/desert/wilderness. They feed a family for about $10 per day in gold (0.3gm) according to the video.
In a way, that alluvial gold is a godsend to the people. The government seems to be trying their best to exterminate them but so long as there are just a few particles of gold they can dig out of the earth there will always be someone ready to bring in some food/bread to trade. So in a sense, its the greed of “free market capitalistism” that is keeping them alive dispite all the efforts of the Marxists to kill them.
oops I meant 0.1 gm not 8.1 gm.
Hmmmm let’s see. “Exorbitant rate” is not used exclusively to refer to monetary values. Working an entire day for a few loaves of bread and destroying the environment in the process is a pretty high price. And they won’t be able to do it for long…
If we talk about the low value of the ~$3USD (for us), we shouldn’t forget that their currency is worth nothing due to inflation (if you convert those $3USD to Zimbabwean dollars).
If you’re wondering how they’re destroying the environment and exactly how bad it is, read this article from Yale Environment 360 that covers the issue.
So it kind of is a bad deal after all, don’t you think?
It’s not a great existance but the fact that they are able to survive by digging holes and living on the dirt (because it contains a tiny amount of gold) is a lot better than just having dirt with no gold in it.
I think they said it takes about a day to mine/dig/pan enough gold dust to “feed the family” about 0.3 gm or about $10 US.
The interesting part is that it doesn’t matter how much the local currency has been devalued the gold retains it’s buying power. It’s sort of like they are creating their own de-facto gold standard.
Yes, you are right. That dirt gives them a chance to live – for now.
About gold retaining its buying power, isn’t it a case of debt claim vs. capital claim?
yes, it really isnt so bad for us… focus on the positive and draw more into our lives. pass it on:):):) pay it forward;););) love and smiles dont cost anything from most people;):)
well written post keep it up
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