Government running a Pyramid scheme: Tendai Biti
According to the People’s Democratic Party (PDP) President Tendai Biti, Zimbabwe is in a financial crisis becuase the government is running a pyramid scheme, whereby people transact using fictitious electronic money which does not actually exist in the banks.
Addressing delegates at the National Transitional Authority (NTA) public debate forum, the former minister of finance said:
We have a fiscal crisis, the banking sector is on the verge of collapse, we have been running a ponzi scheme since the beginning of the year because all of you are trading in RTG balances, some of you have debit cards so we are all trading hot air but real money is not there, that is a ponzi scheme, when you trade in fiction makasa.
So if someone were to demand that money then the pyramid will fall, this Government has been running a ponzi scheme, a pyramid scheme and they have created artificial money of over US$2 billion if all of us were to go to the bank and say honour the balances in our banks that money is not there, it’s just hot air, we have been running a ponzi scheme.
And that is a crisis, so great a crisis that they have to return the Zimbabwe dollar, because to many people not returning the Zimbabwe dollar is the difference between Chikurubi and freedom because they have to monetize this gap they have created, there is a huge gap that has been created