President Bush recently announced that two of the giant US carmakers GM and Chrysler will be provided with US$13.4bn short-term loan from his administration. This money will come from the $700bn Troubled Asset Relief Programme (TARP), which is originally anticipated to provide financial institutions with emergency liquidity.

President Bush has said that the two carmakers will receive $13.4bn financial help to cover immediate liquidity alarm and another $4bn will be provided later. He also added that “The American people want the auto companies to succeed and so do I”.

Bob Nardelli, Chrysler’s chairman and CEO thanked Bush and said “A letter of intent was signed which outlines the specific requirements that must be achieved”. He also thanked the administration and treasury for their confidence in the company in his statement.

On the other hand, General Motor said, “We appreciate the president extending a financial bridge at this most critical time for the US auto industry and our nation’s economy.  This action helps to preserve many jobs, and supports the continued operation of GM and the many suppliers, dealers and small businesses across the country that depends on us. General Motor is already in a big financial crisis as they have only $14bn to launch with 2009.

Can you imagine that the highest denomination note would buy about two loaves of bread? Yes it is true. In this Friday at Harare Zimbabwe’s central bank unveiled a 500 million dollar note, as the African country struggles to manage with the world’s uppermost price rises and crippling money lacks. Finance minister Samuel Mumbengegwi declare the latest bills in a management gazette, bringing to 29 the number of figure of new notes put into flow this year alone.

The inflation problems in Zimbabwe are getting poorer day by day, due to total mismanagement of the present leader Mugabe’s government. In January, Zimbabwean Reserve Bank issued a 10 million dollar note to combat price rises and issued again a quarter of a billion dollar note as recently as 10 days ago. The half billon note, value about 10 US dollars, was launched jointly with a 200 million dollar bill, which the central bank said in a report was introduced for the “convenience” of the public. Just last Thursday, Zimbabwe launched a 100 million dollar bill that at the time was value of 14 US dollars and after passing one week its value is less than 50 cents.

The central bank is struggling to produce money quick enough to stay speed with prices that rise more than a few times in a day. Owing to currency shortages, money can now only be withdrawn one time a week from any banks. Ordinary citizens can pull out 500 million dollars a week as different companies are permissible to take out 50 million dollars.

The Mugabe’s government is fully disabled to keep running the wheel of finance. With no signs of relief, almost 80 percent of the Zimbabwean are living below the poverty threshold and have to suffer harsh shortages even for basic goods. In recent times an election was held in Zimbabwe and Mugabe’s opposition seemed to have won the elections but Mugabe is still dragging the case and hasn’t hand over his power.

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