Zimbabwe Government Down to $217, America May Be Next

That’s American dollars, not Zimbabwean dollars which generally lack even the value of the paper that they are printed on.

This is what happens when your Debt to GDP ratio is at 220% and your government’s economic plans consists of seizing land from farmers and handing it out to your cronies while trying to borrow even more money to keep the entire disastrous thing going.

Before you get depressed about the state of your finances, spare a thought for the nation of Zimbabwe, which as of Tuesday had exactly $217 in the bank. That’s 217 dollars, not $217 million or $217 billion.

Finance Minister Tendai Biti said Tuesday that that was all that was left in the country’s public accounts after it paid its civil servants last week

But the debt the country built up during those years of nationalist rule by President Robert Mugabe left it with a minimal tax base and few cash reserves

If this kind of economy sounds familiar, it should be. We have one of those too. The only difference is that the United States still has a tax base. Once it loses that the way Zimbabwe did, then we will be Zimbabwe.

That tallies with a comment by deputy premier Arthur Mutambara in July last year that Zimbabwe “is practically broke” with the national debt now outstripping the country’s gross domestic product (GDP).

“If you owe someone US$7 billion and your GDP is US$7 billion then you do not have any money,” said the robotics professor before adding, “We are heavily borrowed and we do not have a GDP to talk about.”

That’s a bit of common sense. Unfortunately the United States owes a trillion more than its GDP. So we don’t have a GDP to talk about either. We just have the massive pile of ObamaDebt (TM).

How far away are we from Zimbabwe’s 220% GDP Debt ratio? Not that far away.

Scheduled spending cuts from the 2011 budget deal, combined with the fiscal cliff agreement, put the debt on track to reach 200 percent of GDP by 2040, five years later than was projected prior to the passage of the two deals.

By 2040, the nanny state may also be down to $217 in the bank.

Where does Zimbabwe’s money go?

the regular wage bill for civil servants — which accounts for 73 percent of the national budget.

73 percent. Think that’s a lot? Try California.

state worker compensation as a percentage of state government revenues (not passed through to local governments and agencies) was actually found to be higher, 84%

Zimbabwe. It’s closer than you think.

  • Ar'nun

    47%. Only 53% more to go!!! I'm excited, aren't you?

  • JacksonPearson

    Yep, what could possibly go wrong!

    • Demetrius M

      O! O! He's our man, if he can't do it, no one can!

  • Robert Slaven

    Why do you call it "ObamaDebt (TM)" when:

    * the vast majority of the debt happened under Republican administrations;
    * especially Bush 43, cutting taxes AND increasing spending via two expensive wars;
    * and the most recent $5T of debt since Obama was elected was mostly due to continued spending on Iraq and Afghanistan and continued lower revenue due to the Bush tax cuts and the economic collapse in 2008.

    Yes, the US debt is a big issue, but make sure your fingers are pointing in the right direction.

    • Daniel Greenfield

      Obama increased the national debt far more than anyone else in the White House.

    • Ezra Marsh

      Yes, Bush 43 cut taxes. However, tax revenues INCREASED as a result of the tax cut and as a result the national debt was shrinking until the Dems took over Congress in 2007. Check it out.

      • objectivefactsmatter

        "Bush 43 cut taxes. However, tax revenues INCREASED as a result of the tax cut and as a result the national debt was shrinking…"

        People are either too stubborn to admit this, or too stupid to understand.

        "…until the Dems took over Congress in 2007. "

        There you go ruining another glorious leftist attack on reality.

    • Veritas

      Robert, were you Baghdad Bob in a prior life?

    • Demetrius M

      Okay, Iraq I will leave alone. The debate can go on forever about Iraq. My issue is the timing of the invasion, not the act itself. But you allude to two expensive wars as if Afghanistan was required. You do know why we invaded Afghanistan don't you? You would have to agree there was a pretty good reason to do so, right?
      Personally, we could save a lot of money by dropping the road and structure construction projects we fund over there, (you know, winning hearts and minds) and save a decent amount. But then individuals like you will blame the US for not supporting the poor Afghan people in their time of need and we deserve to be attacked.
      Cannot win with people like you around.

      • Demetrius M

        Dang, no edit function! In second line, should read "Afghanistan wasn't required".

    • JacksonPearson

      WRONG…Where did you ever get flawed info like that? A democrat controlled congress, coupled with an Obama financial spending train wreck, have put this country on the same path as Greece…:

      Look here: http://i46.tinypic.com/35ioaax.jpg
      and;
      look here; http://i45.tinypic.com/2ajop5v.jpg

  • eric siverson

    Yet I keep hearing more and more about the explosion in Iran's nuclear facilty Fordan , deep under the ground in some mountian . The White house says they do not believe this a crediable story . Yet 2 or 3 days after that anouncement , it was reported 14 N Korean techs were still traped inside the mountion along with a couple hundred other nuclear scientists . Iran has reported that the shafts entering the facilities have been destroyed , and they have secured the whole area a.few miles back becuase of the possible danger from nuclear radation . This is a big story even if it is a false story . But I havent been able to get much of this story on the mainstream news . This explosion story is now over a week old , I have heard nothing of any rescue attempts or even any critisism of spreading false stories

  • teapartydoc

    I lived there when it was paradise. We can thank Jimmy Carter for this.

  • slider 96

    Zimbabwi ? USA ? ….really ! Get a grip !.

  • synik

    Zimbabwe Government Down to $217, America …. attempts to borrow it.