The million-dollar canary

In the days before good ventilation, coal miners never entered a mine without a canary in a cage. Canaries sing constantly, and if the canary ceased singing (and passed out), it signaled immediate evacuation of the mine, due to buildup of deadly carbon monoxide and methane gases.

Last weekend, I had the sobering opportunity to examine a unique, official government-minted note from Zimbabwe. The paper note was worth a tremendous amount of money – or so it seemed. Due to corruption and extremely poor fiscal policy, the once well-to-do southern African nation of Zimbabwe is experiencing "hyperinflation."

As of December 22, 2008, the exchange rate of the Zimbabwe dollar (ZWD) to the US dollar was $882,000 ZWD = $1US – approaching 1 million to 1 (finance.yahoo.com, December 22, 2008)! When the Zimbabwe dollar was first introduced in 1980, it was worth $1.47US. In twenty-eight short years, the currency has gone from being worth nearly 50% more than the US dollar, to being worth nearly "one one-millionth" of a US dollar. The World Bank predicts a 100,000% inflation rate in Zimbabwe this year.

But this is southern Africa and a dictator-led nation. Their situation has no bearing on the rest of the world, right? Well – not entirely. God inspired wise King Solomon to pen, "Wisdom cries aloud in the streets" (Proverbs 1:20). Historians have adopted the mantra, "If we fail to learn from the lessons of history, we are doomed to repeat them."

What does the story of Zimbabwe teach us? There are many lessons to be learned about government, greed, failure to plan, etc. However, the fiscal situation in Zimbabwe also gives us a glimpse into our own future.

Hyperinflation, or inflation without a trend toward equilibrium, occurs when there is an "unchecked increase in the money supply … Hyperinflation is often associated with wars (or their aftermath), economic depressions, and political or social upheavals" (Wikipedia, December 22, 2008). In today's world of economic collapse, governments are "bailing out" companies with a history of poor fiscal management and planning that has resulted in their failure.

World governments are loaning or giving money to "prop up" banks and industry in order to "save" their national economies. The United States created a $700 billion "bailout" package, primarily for lending institutions (banks). The incoming Obama White House is considering another $700 billion "economic stimulus package" for US citizens. Where will the money come from? "We will just print more of it," is the reply.

God inspired the apostle John to record an image of society at the end of the age, shortly before Christ's triumphant return. John writes of the tremendous difficulties the world will face at that time. One description is of wide spread famine and corresponding "hyperinflation." John writes of a time when there will be "A quart of wheat for a denarius, and three quarts of barley for a denarius" (Revelation 6:5-6). A "denarius" is one day's wages.

The world cannot go on printing money to "bail out" financial ineptitude based on greed. History demonstrates what can happen when governments just "print money" whenever it is needed. Is it possible that the hyperinflation now occurring in Zimbabwe is just the "canary in the coal mine" for the rest of the world?

Christ will return and set up His perfect, peace-filled kingdom on the earth. But before that happens, perilous times must come first (2 Timothy 3:1). For more detail on God's prophecies for the end of the age, please write for our insightful booklet, Revelation: The Mystery Unveiled.