There are cash-strapped governments and there are broke governments. And then there's Zimbabwe, which, after paying last week's government salaries, has just $217 left in the bank. No, we didn't forget any zeroes to the end of that figure. Zimbabwe, the country that's home to some of the world's largest platinum and diamond reserves, literally has the same financial standing as a 14-year-old girl after a really good birthday party.
The country's finance minister admitted as much in a press conference on Tuesday. "Last week when we paid civil servants there was $217 left in government coffers."
Lost in the president’s hyperventilation is the fact that under sequestration the federal government will spend just 1.5 percent less this year than it would like to, and still slightly more than it spent in 2012. Indeed, it will spend more than it has in any year in history save one (2011). And even discretionary spending, which takes the brunt of the cuts, will be set at — shock, horror — 2009 levels.
Austerity, this is not.
The rest of today's links.
The True Story Of Why The Govt Printed The $100,000 Bill (Interesting)
FBI Declares War on The Scooter Store (Jon Corzine is still free...)