The world’s greatest living money printer, Zimbabwe’s Gideon Gono, recently commented on the parallels between the Fed’s continued quantitative easing programs and the policy he has pursued while pancaking the Zim dollar over the last decade. From Mises:
These interventions which were exactly in the mould of bail out packages and quantitative easing measures currently instituted in the US and the EU, were geared at evoking a positive supply response and arrest further economic decline.
Gono admitted in hindsight that while things looked better for awhile, the ultimate result was increasingly disastrous:
The value of the local currency declined precipitously as speculative activities intensified. Against this background, transactions were increasingly undertaken in foreign currencies which were more stable and predictable.
Could Bernanke and Draghi be looming larger than they appear in Gono’s rearview mirror?
Hat tip Daily Crux.