Trump Loses Tax Case In Front Of Second Circuit, Again

(Isaac Brekken/Getty)

Trump has lost his appeal to shield his tax returns from a criminal investigation started by Manhattan District Attorney Cy Vance.

Again.

This time in front of the Second Circuit.

The appeal is from U.S. District Judge Victor Marrero’s ruling that Trump’s argument was: “repugnant to the nation’s governmental structure and constitutional values.” This is the case where Trump lawyer William Consovoy argued in an open appellate hearing that Trump could in fact shoot someone on Fifth Avenue and not be investigated by authorities.

Apparently, that argument was a dud. From Law.com:

The Second Circuit judges noted that their ruling is not a blanket determination of the extent of presidential immunity.

“We have no occasion to decide today the precise contours and limitations of presidential immunity from prosecution, and we express no opinion on the applicability of any such immunity under circumstances not presented here,” the judges wrote.

“Instead, after reviewing historical and legal precedent, we conclude only that presidential immunity does not bar the enforcement of a state grand jury subpoena directing a third party to produce non‐privileged material, even when the subject matter under investigation pertains to the President.”

We’re still waiting for the Second Circuit to post it’s full decision, and will put it up here when they do.

The next steps for Trump will, inevitably, be the Supreme Court appeal. Trump has faced adverse rulings from the D.C. Circuit and the Second Circuit. The most non-political thing the Supreme Court could do would be to let those rulings stand — they are neither controversial nor contradictory — and deny cert on Trump’s appeals.

Instead, I expect the four arch-conservatives on the Supreme Court will take the case and see if they can convince John Roberts to bail out the Republican party, again.


Elie Mystal is the Executive Editor of Above the Law and a contributor at The Nation. He can be reached @ElieNYC on Twitter, or at elie@abovethelaw.com. He will resist.

As Investors Flee, Ken Fisher Launches Bold “Some Of My Best Employees Are Women” Ad Campaign

This is definitely A way to go here.

How About Legal Constraints On Broadcast Interviews?

Corey Lewandowski admitted what we all know:  Lewandowski has “no obligation” to be honest when speaking to the news media.

Okay.  Let’s fix that.

At the beginning of every interview, let’s let the interviewer ask the interviewee whether the interviewee would like to be sworn in, under penalty of perjury, before the interview begins.

The interviewee thus has two choices:  The interviewee can decline to be sworn in and lie with abandon during the interview.  Or the interviewee can plan in advance to accept the oath, study to prepare for the interview, take the interview deadly seriously, and tell the truth during the interview.

Which interview would be more interesting to watch?

You’d think that audiences would have a preference:  Why listen to a person who’s planning to lie to you?  That a silly interview.  Tune in instead to the person who’s going to speak the truth.

Moreover, you’d think that interviewees would play the game differently when subjected to my rules.  Instead of rushing for the cameras, accepting every interview in sight, interviewees would necessarily become selective about the interviews they accepted.  An interview would become a dangerous thing, requiring real time and effort for preparation.  We’d probably have far fewer interviews, but they would be far more meaningful.

While we’re at it, let’s add a character to broadcast interviews:  The instant critic.  This person’s role would be to explain to the audience what the audience was seeing in interviews.

What do I have in mind?

Let me first offend the right:  Asked about whether it’s appropriate to make American military support for a foreign country expressly dependent on interfering with an upcoming election, the interviewee starts to talk about the need to investigate corruption.

The instant critic speaks:  “Unwilling to answer the question, the interviewee is changing the subject to a noncontroversial point.  This is evasive and gutless.  It shows you only that the interviewee is unwilling (or unable) to answer the question.”

Or the interviewee could choose to answer the question:  “I disagree with your underlying premise.  No one made aid dependent on interfering with an election.”  Or:  It’s “absolutely proper” or “absolutely improper” to “make American military support for a foreign country expressly dependent on interfering with an upcoming election.”

The critic could pipe up:  “Remarkable!  That was a responsive answer to the question!  You could agree or disagree with the substance of the response, but that politician showed real guts in choosing to give a responsive answer.”

Now let me offend the left.  The interviewer asks:  “How much would your proposal to provide free health care to everyone cost, and how would you pay for it?”

The interviewee could evade.  But the critic would immediately point out the evasion.

Or the interviewee could answer the question, and immediately win accolades from the critic for having the guts to say something.

(This happened back in 1976.  During the Democratic presidential primary, candidate Mo Udall told a pro-gun control audience at Harvard University that he knew he was going to lose much of the crowd with his answer to a question, but he opposed gun control.  See?  It’s okay.  You can tell the truth.  You lose to Jimmy Carter 28 percent to 22 percent, but at least you told the truth.  That story was legendary among those who worked for Udall in ’76; the closest I could come to finding something in print describing the event was this.)

The instant critic could critique the interviewer, too.  Suppose the interviewee answers a question.  The interviewer says, “Well, I think you’re wrong!  Now this.”  And cuts to a commercial.

The critic should explain:  “An interviewer is supposed to conduct an interview, not express his opinion, give the interviewee no chance to respond, and cut away to a commercial break.  That was both unfair and bad interview technique.”

We could straighten everyone out!

The cat-and-mouse game played by interviewers and interviewees has become unbearably silly.  You don’t hear honest answers to hard questions, and the main issue seems to be whether the politician being interviewed evades the question or lies.

If we cared, we could change all that.


Mark Herrmann spent 17 years as a partner at a leading international law firm and is now deputy general counsel at a large international company. He is the author of The Curmudgeon’s Guide to Practicing Law and Inside Straight: Advice About Lawyering, In-House And Out, That Only The Internet Could Provide (affiliate links). You can reach him by email at inhouse@abovethelaw.com.

Morning Docket: 11.04.19

* An Albuquerque DWI attorney has been arrested for his second DWI this year. His first DWI was dismissed; maybe this is just an advertising ploy… [KRQE Albuquerque]

* Joe Arpaio’s defamation lawsuit against several media outlets has been dismissed. [The Hill]

* Employment in the legal sector is flat even though the U.S. economy continues to add jobs. Still thinking about going to law school? [American Lawyer]

* A PA attorney has been disbarred for continuing to practice law even though his license was suspended 17 years ago. [Patriot News]

* Reed Smith has become the first American law firm to be allowed to raise outside investment and appoint non-lawyer partners in the UK. [Times]

* An Alaskan moose hunter spent $1.5M and 12 years in fighting for the right to hunt moose all the way to the Supreme Court. This guy is an American hero. [Washington Post]


Jordan Rothman is a partner of The Rothman Law Firm, a full-service New York and New Jersey law firm. He is also the founder of Student Debt Diaries, a website discussing how he paid off his student loans. You can reach Jordan through email at jordan@rothmanlawyer.com.

The looting of the central bank RBZ using SAKUNDA – The Zimbabwean

Zimbabwe President Emmerson Mnangagwa attends a rally against Western sanctions in Harare, Zimbabwe October 25, 2019. REUTERS/Philimon Bulawayo

From preachers to teachers, those who stand up to Zimbabwe’s rulers risk being beaten, jailed or worse.

In the past few weeks alone, masked men have abducted and tortured a doctor, a female comedian and a singer whose lyrics were deemed to insult Emmerson Mnangagwa, the president.

A market trader in Harare was beaten so badly that he died.

Now, however, the regime faces a less vulnerable critic: the American ambassador.

His straight-talking upsets the government so much that it is threatening to kick him out.

Brian Nichols has visited victims of violence from state security forces, posting photographs of himself with them.

But what really upsets the regime is a series of tweets in which he has revealed extensive details of its corruption.

The trigger for this was an attempt by Mnangagwa to blame America and the EU for a looming famine that the UN describes as Zimbabwe’s “worst ever hunger crisis”.
Half the population is running out of food.

The real causes are years of mismanagement and a severe regional drought, but Mnangagwa has tried to pin responsibility on American and EU economic sanctions.

Although these apply only to members of his regime and related companies, the president has erected billboards across the country proclaiming “Sanctions — a crime against humanity”.

Nichols, experienced at fighting mafia as a former counter- narcotics expert, hit back, initially with a YouTube interview, pointing out that America is the biggest donor to Zimbabwe and the country’s real problems are corruption and economic mismanagement.

“If you don’t want people to say bad things about you, maybe don’t do bad things,” he suggested.

Nichols wrote, in a column for an independent newspaper, Newsday: “Our targeted sanctions are not responsible for Zimbabwe falling tragically short of its potential.

The fault lies in catastrophic mismanagement by those in power and the government’s abuse of its own citizens.”

The regime ramped up the confrontation nine days ago with an official Anti-Sanctions Day, closing schools and bussing people to a rally attended by Mnangagwa, his wife and the cabinet.

Nichols responded with almost hourly tweets with the hashtag #ItsNotSanctions, detailing corruption he said amounted to $1bn (about £775m) a year. “$2.8bn disappeared from agricultural subsidies,” he wrote.

“$25m from national road administration, $4.9m from the Zim electricity company for transformers never delivered.” Another tweet read: “Diamonds worth $10m would fund water treatment chemicals for Harare for 4 months that Zimbabweans desperately need.

But they were shipped out of the country for ‘training purposes’.” And: “$51m to lease three planes never used.”

The White House then added Owen Ncube, Zimbabwe’s state sunday november 3 2019
security minister, to the list of those sanctioned, banning him from travel to America.

The regime was furious. On Thursday night General Sibusiso Moyo, the foreign minister, wrote to the ambassador, accusing him of “behaving and conducting himself like some kind of opposition member, with complete disregard for all norms of permissible diplomatic protocol”.

He added: “Persistent behaviour of this nature will test the patience of even the most tolerant . . . We have the means to bring all this to an end.”
For Zimbabweans such words would be a clear warning — 17 people were killed in a crackdown this year. But an American envoy is a different matter.

The US State Department said: “Promoting freedom, democracy and transparency and the protection of human rights are central to US foreign policy.”

Zimbabwe ‘national interests’ can’t be defined by ZANU PF alone

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Off-farm work and diversified livelihoods in Zimbabwe’s communal areas – The Zimbabwean

However, the patterns of labour migration have changed significantly over the past decades. Gone are the days of a stable job in town (or in the mines or farms), sending of regular remittances, and later retirement, with a cattle herd built up and enough land to subsist on. Following the retrenchments of the 1990s and the economic collapse of the 2000s, the wider economy is much less reliable. Jobs tend to be short-term and precarious, if they exist at all. Migration out of the country is an option, and has been taken by some, mostly to South Africa, but also to Botswana and the UK. Immigration restrictions and xenophobia are the risks migrants face in these longer migrations, even if the returns are better and more reliable.

Across our sample, we see reliance on migrant labour and remittances highest in Mwenezi. This is where agriculture is most unreliable, despite the study period’s results, and traditions of cross-border migration to South Africa most established. The recent jobs sample households mentioned included: game tracker, game guard, Illala palm products/basket making, Hippo Valley worker, builder, carpenter, well digger and herbalist. Most of these jobs were local, and linked to the economy in the area, including the national parks and the sugar estates near Chirdezi. Working in the estates was a more common feature of the households in Chivi, who included cane cutters, estate workers, security guards, drivers and others. Tour guides in local conservancies were also noted. Building, as in all areas, was a common profession, usually for local contracted work on a self-employed basis. Storekeepers were common too in Chivi.

By contrast to Mwenezi, which is quite remote, in Chivi there were more teachers, police, soldiers and other government workers mentioned. This reflects the more established educational systems in the area, and so access to jobs requiring qualifications. This was definitely the case in the two Gutu sites. In Gutu West there were a large number of teachers and those with government jobs, again reflecting the (mission) education in the area over a long period. There were also bus conductors, security guards and self-employed local builders. In Gutu North, the majority of off-farm work was of this type, with builders, guards, drivers and a variety of business people, including shopkeepers, noted.

Overall, the data show that 25-57% of households had someone employed elsewhere. With the exception of Chivi, half to three-quarters of household heads were either currently employed or had been so in the recent past. Remittances were received by more households in Mwenezi (57%), but only between 11% and 21% of households received regular remittances in the other sites; a figure way lower than recorded in the 1980s and 90s. Again, other than Mwenezi, surprisingly few younger household members (aged 21-30) were in employment elsewhere. Those in Mwenezi joined the border-jumpers to South Africa, sometimes via Mozambique, whereas others were stuck at home, suffering the consequences of the poor state of the economy and lack of jobs. A predicament of many young people in rural areas, as our recent paper showed.

In the communal areas, levels of employment and reliance on remittances has historically been high. Studies in the 1980s put it as high as two-thirds of households receiving a significant proportion of income from remittances. With the decline in the wider economy, this is now much lower and, although we didn’t ask about the figures, the amounts and regularity of remittance income has definitely declined. Nevertheless, reliance on off-farm employment, locally, within Zimbabwe and in other countries, is higher than seen in the nearby A1 resettlements, especially in the wetter areas where agriculture is profitable. In the Gutu and Masvingo district, A1 areas remittances were only received by 7% of households in 2011, for example.

Access to education has historically been essential in gaining better-paid and stable jobs, such as those in government service. Since 1980, the ‘born free’ generation benefited massively, and before that the areas with mission education (such as via the Catholic and Methodist churches in Gutu) have been well educated. But with the decline informal jobs, the collapse of pay in public service and periods of hyperinflation, the benefits of employment have dramatically declined. Better to set up your own business as a shopkeeper or builder than rely on formal employment. That younger household members in the 21-30 age group are barely working (outside the border jumpers of Mwenezi, which of course is dangerous and precarious) is witness to the collapse of the old livelihood strategies in the communal areas.

  Mwenezi Chivi Gutu West Gutu North
Household head in a job, or having had one recently (%) 72 22 49 51
Household member employed elsewhere (%) 57 25 45 43
Remittances received in last year (%) 57 20 11 21
Lead women with non-agricultural independent income (%) 38 nd 5 16
Children aged 21-30 employed elsewhere  45 1.2 5.2 7.3

Off-farm activities: livelihood diversification

Given the limitations of agriculturelivestock keeping and formal employment, people must resort to other activities to earn enough. The table below shows the range of income-earning activities recorded in the year before the 2017-18 interviews. It shows that poultry and vegetable sales are important for a good proportion, along with trading, especially in Mwenezi (near international borders) and Gutu North. Livestock related sales are important in Mwenezi, as discussed in an earlier blog.

Gender differentiation of tasks is evident across these activities, with vegetables and poultry largely the domain of women, as are a range of the other activities noted (including basket weaving, pottery etc.). Livestock sales are led by men, as are other activities such as building, carpentry, brick-making and transport provision. However, gender roles are not fixed and, with lack of jobs elsewhere, men and women are much more flexible about roles. Young men, for example, will garden, trade and sell chickens, unheard of in previous generations.

Natural resource-based activities are important, but these are concentrated in Mwenezi where plentiful resources still exist. Fishing, woodcarving, and wild food harvesting are important. This includes (illegal) hunting and collection of the famous mopane worm, which both are important activities in the Lowveld. None of our areas are serious gold panning areas like other parts of the country, but a few travel to nearby rivers to try their luck. None of this is seriously remunerative: enough to supplement but not survive, and in the case of the Chivi and Gutu sites, relatively few households engaging. Again, this is a sharp change from before when natural resource-based incomes were much more important.

% households Mwenezi Chivi Gutu West Gutu North
Remittances 57 20 11 21
Pensions 38 8 4 3
Maricho local piecework 1 17 15 3
Food/cash for work 51 26 18 18
Land rental nd 0 0 2
House rental 3 2 0 1
Cattle sale 44 2 0 0
Milk sale 24 2 0 0
Poultry sale 63 16 19 23
Goat sale 37 3 1 0
Vegetable sale 43 25 11 21
Dry vegetable sale 23 `4 1 1
Brewing 26 9 3 7
Building and carpentry 43 6 7 5
Brickmaking 25 5 1 0
Wood carving 44 21 2 3
Pottery/baskets 73 1 1 5
Fishing 27 0 2 0
Wild products 26 2 2 0
Gold panning 12 3 5 5
Trading 67 2 3 10
Tailoring 65 0 3 0
Transport hire 5 0 2 1
Grinding mill nd 0 2 4

As the data on off-farm income earning shows, today diversification is all, and many communal area households have multiple streams of income, often with small, infrequent, uncertain amounts. This is much more stark than we see in the A1 resettlement areas, where, for most, agricultural incomes make up the bulk of livelihood support. For a significant group – perhaps 30-40 percent of households – agricultural surpluses generate investments that allow for further income to be made. In contrast to the resettlements, incomes derived from house rentals, shops or transport services are minimal in the communal areas. Instead of new businesses being established on the back of agriculture, people are scraping a living, hiring out labour and using natural resources.

Farm labour: a big contrast with the resettlements

On-farm labour has really taken off in the resettlements. With larger plots of land, the demand for labour is high, and those without resources to invest in their own land often hire out labour. This is often more than the occasional bit of piecework; there are quite a few permanent jobs, often involving a mix of tasks, including herding, housework etc. This is not evident in the communal areas, as the table below shows.

 % households Mwenezi Chivi Gutu West Gutu North
Permanent labour (male) 5 9 3 4
Permanent labour (female) 2 3 2 3
Temporary labour (male) 9 0 0 5
Temporary labour (female) 2 0 1 13
Work party (average 16/17 seasons) 34 13 7 3
Employed on farms elsewhere (%) nd 3 0 1

There is very little agricultural labour employed, beyond some occasional temporary labour from the very few who are able to invest in agriculture (male in Mwenezi and female in Gutu North), but not from many households. This is in contrast to the nearby resettlements where, across our A1 sites, farm employment rates are much higher, with, in 2011, 17% of households employing permanent workers and 12% of households employing temporary workers. In Chivi and Gutu West a certain amount of piecework (maricho) is recorded, but this is very occasional, and not regarded as employment.

Precarious prospects

In other words, the patterns of class differentiation seen in the resettlements – between for example petty commodity producers and worker-peasants and semi-proletarians – is not observed to the same extent in the communal areas. There simply isn’t the productive base for surplus extraction and the formation of a worker-peasant/proletarian class. Unlike the studies from the 1980s that showed such patterns in the communal areas, we see much more of a uniform pauperisation of struggling households, who are mixing diverse forms of ‘work’ (rarely ‘employment’ or ‘jobs’), with limited, low productivity agriculture. This is not a classic self-sufficient peasantry, nor do we even see many emergent petty commodity producers – the hurudza; instead we see what Henry Bernstein describes as the ‘fractured classes of labour’, struggling to make a living.

Life in the communal areas, with limited land and poor job prospects, is increasingly precarious. Reliance on aid is important, and this rises from the drier Mwenezi to the wetter Gutu. NGOs and government programmes exist, but this is always hit and miss and not a way to survive. Making a living in the communal areas, with limited agricultural opportunities, is certainly tough. It is no surprise that, when our research partners in the A1 resettlement areas reflect on their lives, they are certain that they have improved, despite the hard work of getting established. Indeed, it is not only the state and NGOs that provide aid to the communal areas, there are significant flows of food from the resettlements to the communal areas that keep relatives, friends, fellow church members and others going, reflective of a new rural moral economy of the post land reform and economic crisis era.

It is these social relationships – with areas and between them – that are crucial when thinking about how agriculture is practised and economies function. The next blog discusses the social institutions at the heart of communal area life, contrasting this with what is found in the more recently established resettlement areas.

This post is the sixth in a series of nine and was written by Ian Scoones and first appeared on Zimbabweland.

Zimbabwe ‘national interests’ can’t be defined by ZANU PF alone
Prince Harry’s conservation charity African Parks takes on neglected Zimbabwean national park

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Zimbabwe Power Utility Warns of Increased Power Cuts on Sunday – The Zimbabwean

4.11.2019 9:31

Zimbabwe’s power utility warned of increased power cuts on Sunday after it lost 251 mega watts from its Hwange power station.

“Three generator units tripped at Hwange power station this morning,” Zimbabwe Electricity Transmission Distribution Co. said on its Twitter account. “Load shedding has now increased significantly and we are now implementing stage 2” power cuts outside the normal schedule.

Blackouts in Zimbabwe already last as much as 18 hours a day and the country spends $23 million monthly on power imports, according to the energy regulator.

Mnangagwa alienates China – Zimbabwe Vigil Diary

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Mnangagwa alienates China – Zimbabwe Vigil Diary – The Zimbabwean

While he plays with his scarf, the government is desperately trying to repair relations with China after officials seized US$10 million from an escrow account containing funds for the expansion of the Robert Mugabe international airport in Harare.

An escrow account is where funds are held in trust while a transaction is completed. In this case the Zimbabwean officials replaced US dollars with the rapidly depreciating local currency.

China lost patience with their deceit and froze three infrastructure projects it is financing to the tune of US$1.3 billion. The projects are the US$1.1 billion expansion of the Hwange coal-fired power station, the US$153 million extension of the airport and the US$71 million expansion of NetOne Telecoms.

Apparently the Shanghai Construction Group is also complaining that it is unable to access hard currency for the new parliament at Mount Hampden which is being financed by a $100 million free Chinese grant.

Zimbabwean economist John Robertson said: ‘This deception from government is very serious. We don’t deserve economic support when government acts like this.’ (See: https://www.theindependent.co.zw/2019/11/01/raiding-of-funds-erodes-confidence-in-zim-govt/.)

Despite the economic challenges facing the government it has still managed to find $5 million for allowances and accommodation for MPs at the Victoria Falls for a pre-budget seminar. They will no doubt discuss the government’s austerity measures…..

Other points

  • Thanks to those who helped set up the front table and put up the banners on a wet day: Cynthia Chibanda. Evelyn Chigaro. Chido Makawa, Dambudzo Marimira. Esther Munyira, Hazvinei Saili, Sikhumbuzule Sibanda and Ephraim Tapa. Thanks to Hazvinei for looking after the front table, to Patience Chimba for handing out flyers, to Chido, Cynthia and Margaret Munenge for drumming and to Chido for photos.
  • Thanks to those who made further contributions for the gazebo: Evelyn Chigaro, Tendai Chigariro, Chido Makawa, Margaret Munenge and Sikhumbuzule Sibanda.
  • For latest Vigil pictures check: http://www.flickr.com/photos/zimb88abwevigil/. Please note: Vigil photos can only be downloaded from our Flickr website.

FOR THE RECORD: 18 signed the register.

EVENTS AND NOTICES:

  • ROHR general members’ meeting. Saturday 9th November from 11.30 am. Venue: Royal Festival Hall, South Bank Centre, Belvedere Road SE1 8XX. Contact: Ephraim Tapa 07940793090, Patricia Masamba 07708116625, Esther Munyira 07492058109.
  • ROHR fundraising dinner dance. Saturday 7th December from 6 pm till late. Venue tba. ROHR is hosting a dinner dance to raise funds for a Zimbabwe peace building initiative. Tickets £25. Contact: Esther Munyira 07492058109, Hazvinei Saili 07857602830, Margaret Munenge 07384300283, Pamela Chirimuta 07762737339.
  • The Restoration of Human Rights in Zimbabwe (ROHR) is the Vigil’s partner organization based in Zimbabwe. ROHR grew out of the need for the Vigil to have an organization on the ground in Zimbabwe which reflected the Vigil’s mission statement in a practical way. ROHR in the UK actively fundraises through membership subscriptions, events, sales etc to support the activities of ROHR in Zimbabwe. Please note that the official website of ROHR Zimbabwe is http://www.rohrzimbabwe.org/. Any other website claiming to be the official website of ROHR in no way represents us.
  • The Vigil’s book ‘Zimbabwe Emergency’ is based on our weekly diaries. It records how events in Zimbabwe have unfolded as seen by the diaspora in the UK. It chronicles the economic disintegration, violence, growing oppression and political manoeuvring – and the tragic human cost involved. It is available at the Vigil. All proceeds go to the Vigil and our sister organisation the Restoration of Human Rights in Zimbabwe’s work in Zimbabwe. The book is also available from Amazon.
  • Facebook pages:

Vigil: https://www.facebook.com/zimbabwevigil

ROHR: https://www.facebook.com/Restoration-of-Human-Rights-ROHR-Zimbabwe-International-370825706588551/

ZAF: https://www.facebook.com/pages/Zimbabwe-Action-Forum-ZAF/490257051027515

The Vigil, outside the Zimbabwe Embassy, 429 Strand, London, takes place every Saturday from 14.00 to 17.00 to protest against gross violations of human rights in Zimbabwe. The Vigil which started in October 2002 will continue until internationally-monitored, free and fair elections are held in Zimbabwe. http://www.zimvigil.co.uk.

Zimbabwe to fail to meet 2019 gold production target as miners face challenges: official

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Zimbabwe threatens to cut off relations with US – The Zimbabwean

2.11.2019 19:36

The attack came after the US ambassador to Zimbabwe said corruption, not sanctions, are behind the country’s economic crisis

Harare — On Thursday, Zimbabwe’s foreign affairs minister Sibusiso Moyo threatened to cut off diplomatic ties with the US after he sharply criticised US ambassador to Zimbabwe Brian Nichols and called him an “opposition citadel”.

The scathing attack on the US ambassador has left relations between the two countries at a new low, despite efforts by Zimbabwe’s government to re-engage with the US, which has imposed economic sanctions on the country.

Moyo’s attack on Nichols came after the US diplomat rubbished the Sadc campaign to lift sanctions on Zimbabwe and said corruption, not sanctions, are behind the country’s economic crisis.

On October 25, the day Sadc set to support lifting of sanctions on Zimbabwe, the US responded by slapping more sanctions on state security minister Owen Ncube, accusing him of human rights abuses and involvement in a recent series of state-sanctioned abductions against those who oppose the government.

Ncube is a close ally of President Emmerson Mnangagwa and the new sanctions were seen as a slap in the face for the president.

In a strongly worded statement, Moyo, a former army general who announced the military coup to topple former president Robert Mugabe in 2017, said Zimbabwe is ready to ignore the US.

“We genuinely seek dialogue with all well-meaning countries as part of our re-engagement efforts but our openness and the innate generosity of spirit of all Zimbabweans should not be taken for granted and should certainly not be abused,” said Moyo. “We have the means to bring all this to an end, should we deem it necessary or should we be pushed too far.”

Moyo did not specify what had peeved Zimbabwe’s government but angrily accused the US diplomat of backing the opposition.

“The unfortunate statement made by the US ambassador on the occasion of the Sadc anti-sanctions day on October 25 exhibited a clear contravention of acceptable diplomatic etiquette, was grossly partisan in nature, and reflected not only a worrying lack of respect for the host government but was also abusive of the hospitality of the people of Zimbabwe as a whole,” said Moyo.

Zimbabwe has had strained relations with the US since 2002 when Washington imposed sanctions on the country. The sanctions were triggered by a violent land-reform exercise and gross human rights violations that included killings of white former commercial farmers.

As drought hits, Zimbabweans are going hungry
Zimbabwe introduces new currency, but here’s why it won’t help

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Zimbabwe introduces new currency, but here’s why it won’t help – The Zimbabwean

Zimbabwe is introducing a new currency in the next two weeks, according to several media outlets. The new currency targets the liquidity shortages in the Southern African country, giving the central bank monetary policy control after years of using foreign currencies. The yet-to-be-named currency will be denominated in coins and notes, with the maximum value being $0.25.

Speaking to journalists, Reserve Bank of Zimbabwe Governor John Mangudya said the decision to release the new currency was arrived at by the regulator’s monetary policy committee. He stated, “The committee felt there was a need to boost the domestic availability of cash in the economy for transactional purposes through a gradual increase in cash supply over the next six months.”

This is the latest twist in a country that has struggled quite a bit with its currency standards. Zimbabwe abandoned the use of its Zimbabwean dollar a decade ago after recording massive inflation which effectively devalued its currency. It then turned to foreign currencies such as the U.S. dollar, the Australian dollar, the sterling pound and the euro. This gave the country some stability, but it was short-lived, as the use of foreign currency was outlawed earlier this year.

This year, Zimbabwe has had a unique challenge: the lack of physical cash. According to local media outlets, most ATMs in the country no longer dispense cash. This is the problem that the new currency is out to solve.

And if you’re thinking that the printing of money could cause inflation, the governor clarified, “There is a misconception that once you introduce a currency, then inflation is going to increase. We are simply giving people a chance to choose between electronic balances and cash.”

Experts believe that this new currency will fail, just like other previous attempts by the Zimbabwean government. Gift Mugano, an economics professor told Al Jazeera, “The central bank doesn’t have the reserves to back the value of the currency and has only a month’s import cover at best. It’s going to be difficult to maintain the value of the currency.”

Mugano isn’t alone in criticizing the issuance of the new currency. Victor Bhoroma, a Harare-based economist stated, “It is obvious the Zimbabwean dollar will not hold any value because of negative fundamentals in the economy which include key among them confidence deficit and high demand for foreign currency to import commodities [current account deficit].”

One of the key issues that the currency faces is that the government can print it at will, but the economy doesn’t have the capability to sustain it.

Bhoroma explained, “It is also inevitable that the central bank will continue to grow money supply in the economy to fund runaway government expenditure. This will further weaken the local currency.”

As the country struggles with its currency issues, it becomes clearer by the day that there’s one solution that’s designed to fix exactly this kind of challenge: Bitcoin.

Bitcoin faces no such threat as the rate at which new coins are ‘minted’ is pre-determined using mathematics and cryptography. This ensures that nobody, be it the government or private entities can take advantage of the money supply or skew it to favor them.

And with the people of Zimbabwe really struggling to find a way to transact in their everyday economic activities due to lack of liquidity, Bitcoin could really come in handy for this as well. The real Bitcoin offers the cheapest transaction fees, down to just $0.001 currently. This makes it ideal for micropayments. What’s more, the transactions are instant which is crucial for payment solutions.

The people of Zimbabwe have already started using crypto in order to escape the uncertainty that comes with their currency. However, the regulators are yet to put in place policies that can foster the growth of crypto payments in the country. Once they do, and they will, Zimbabwe will be able to break the shackles of inefficient monetary systems that have held the country back for decades.

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Post published in: Business