The sound and the fury in charge in Zimbabwe

AP/CNN:

Zimbabwe's economy veered closer to the brink with no end in sight to chronic shortages of staple foods and gasoline, and predictions of a standstill in routine business within days.

Police and government inspectors continued cracking down on shopkeepers and sales managers accused of defying orders to slash prices by half in a desperate attempt to halt rampant inflation.

Shelves were bare of cornmeal, bread, meat and other staples, and witnesses said many shops and suppliers were cleaned out by convoys of ruling party supporters coming in after police and inspectors began enforcing the price cuts on June 26.

"The crunch can't be far off," said economist John Robertson.

Factories, stores and gas stations have been unable to replace goods sold at below the original cost. The sudden drop in prices has sparked panic buying, stampedes and near-riots by impoverished Zimbabweans.

Fuel stocks have run out, putting an end to the long lines of cars at gas stations. On Monday, the government ordered private commuter buses to cut fares by three-fourths, promising bus owners they would be able to buy subsidized fuel from the state oil procurement agency.

But many ignored the directive and simply abandoned their routes. Businesses reported higher absenteeism, with workers failing to arrive at their jobs.

"We are incurring huge losses. We can't go on like this for much longer," said one industrialist. "We won't be able to pay our VAT [value added tax], which runs into the billions each month.

"We'll have to lay off quite a number of our people very soon," he said. "We've shot ourselves in the foot this time."

He asked not to be identified. President Robert Mugabe warned Friday that the government would target uncooperative managers and seize factories that scaled down their operations.

More than 1,300 businesses have been charged and fined over the past two weeks for defying orders to slash prices in half or hoarding goods, police said.

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What is Mugabe going to do with the businesses he seizes? Zimbabwe is becoming a country ruled by sound and fury and no substance. Mugabe cannot decree a reversal of the laws of basic economics without suffering the consequences.

TigerHawk has more on the Zimbabwe collapse. "The price of a house in 2000 will now purchase... a banana."