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Page added on August 16, 2018
Hyperinflation Has Destroyed Venezuela
Has coffee become an unattainable luxury? It is if you live in Venezuela’s capital of Caracas.
In July, the price of a cup of coffee was 2 million bolivars. In a country where the minimum wage has been raised to 3 million bolivars, coffee has become as unaffordable as food, housing, clothing, and medicine.
Venezuela is in crisis mode. Ninety percent of citizens live in poverty conditions. Most of them have lost up to 25 pounds due to lack of food. Call it the Maduro Quick Weight-Loss Plan. President Maduro, who has blamed everything but his own socialist policies for the economic disaster, points out that he has raised the minimum wage to 3 million bolivars. For Venezuelans, this is utterly meaningless when prices are doubling every 18 days. Economists predict that hyperinflation will hit an unprecedented 1,000,000 percent by the end of the year. The Bolivar can be officially considered without value.
It is easy to forget that just a few decades ago, Venezuela was one of the richest countries in South America. It had the world’s largest oil reserves and plenty of gold.
Along came President Chavez and his populist policies and schemes to redistribute the wealth. Following years of overspending and inflation, his successor, President Maduro, has continued those policies, except there is no more wealth left to distribute. In a recent election many consider rife with fraud, Maduro’s win has ensured six more years of hellish disaster for Venezuela. He has announced that he intends to fight hyperinflation by removing five zeroes from the bolivar. His announcement did not include an explanation of how devaluaing the valueless Bolivar, even more, will help the country.
Venezuela has gone beyond an economic disaster and is now in a humanitarian crisis. Without food or medicine, the country won’t be able to survive. At this time, it is being propped up by Russian and Chinese aid.
Don’t think #Gold is important? 🇻🇪🇻🇪
In Venezuela, an ounce of the yellow metal would have gone for 211 million bolivars—an increase of more than 3.1 million percent from just the beginning of the year.
People with #Gold has successfully preserved purchasing power! pic.twitter.com/6bD2RNJNmo
— Gold Telegraph (@GoldTelegraph_) August 13, 2018
Venezuela has sold off most of its gold reserves to pay off debts. The country barely has any gold left in reserve. Its massive oil supplies were once its largest export. Now, the country has announced that it will export only one million barrels of oil a day next year, down from three million barrels a day in 2011. Where has all the wealth gone? Between government mismanagement and corruption, no one can say. Of course, President Maduro and his massive army, hired to protect him, aren’t starving. They may be the only ones.
Millions of Venezuelans are fleeing the misery, crossing the borders to any country with jobs and food. Families fortunate enough to have family jewelry is selling them. Other are mining for gold illegally. Illegal gold mining, mostly gold dust, constitutes 90 percent of Venezuela’s current gold production. This illegal gold can be sold at a fraction of the going price.
Selling gold, whether legal or illegal, is the only hope any Venezuelans have to obtain food, medicine, or for an escape across the borders. When a currency loses its value, gold can make the difference between life and death. While it is difficult to imagine a scenario more horrendous than present-day Venezuela, it is good to remember that all global fiat currency is losing in value. The price of gold may fluctuate, or sell on the black market of half its price, but gold will never lose its actual value. For many in Venezuela, gold is the last chance for survival.
31 Comments on "Hyperinflation Has Destroyed Venezuela"
Roger on Thu, 16th Aug 2018 9:01 pm
May the Lord have mercy upon us all, and send Christian leadership to Venezuela.
Cloggie on Thu, 16th Aug 2018 10:35 pm
The country was destroyed by Chavez, the self-styled Messiah of the poor, who single-handedly destroyed all capitalist production capacity:
https://www.lewrockwell.com/2017/12/no_author/this-is-socialism/
On this board we have the likes of millimind who would love to do the same to America.
MASTERMIND on Thu, 16th Aug 2018 11:02 pm
clogg
What socialism? Private sector still dominates 2/3 Venezuelan economy despite Chavez crusade -AP
http://www.foxnews.com/world/2010/07/18/socialism-private-sector-dominates-venezuelan-economy-despite-chavez-crusade.html
MASTERMIND on Thu, 16th Aug 2018 11:04 pm
Clogg
Nice source lewrockwell? WTF? You are going down hill from daily mail now..I didn’t know that was possible..
Typical low IQ conservative..
MASTERMIND on Thu, 16th Aug 2018 11:07 pm
Netherlands Economy (GDP) Per Capita
1965 7.1
1973 4.5
1989 3.7
1996 3.0
2016 1.6
2028 0.0 > Economic Collapse
Source: World Bank
https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.ZG?locati&locations=NL
And bonus points for having a second rescission after the great recession back in 2012..
Womp womp
Bob Jones on Fri, 17th Aug 2018 4:54 am
It is funny reading websites like ZeroHedge that love to report its “alternate” facts to explain real events.
ZeroHedge is just another version of the MSM, like Alex Jones, Glenn Beck, and these YouTube “truthers” out there.
I have to admit, the Washington intelligence network is doing it’s job to keep Americans as stupid as possible.
Davy on Fri, 17th Aug 2018 5:14 am
“ZeroHedge is just another version of the MSM, like Alex Jones, Glenn Beck, and these YouTube “truthers” out there.”
Ah, Bob, where do you go to get your info? I think it is more about the person and their ability to digest raw data than worrying about the data. Some of you that whine about MSM or Zero Hedge must not be able to think for yourselves. Try reading something and using your brain to wade through the junk.
Here are the sites Zero Hedge accesses:
Acting Man Alt-Market Benzinga Boom Bust Blog Capitalist Exploits China Financial Markets Chris Martenson’s Blog Contrary Investor Daneric’s Elliott Waves Dr. Housing Bubble ETF Daily News
ETF Digest Financial Revolutionist First Rebuttal ForexLive Fundist Gains Pains & Capital Gefira
Gold Core Guerrilla Capitalism Hedge Accordingly Implode-Explode Investing Contrarian Jesse’s Cafe Americain Letters From Norway Liberty Blitzkrieg Market Montage Max Keiser Mises Institute Mish Talk Naked Capitalism Newsbud Of Two Minds Oil Price Peter Schiff Quoth The Raven Rsrch Rebooting Capitalism Safehaven Shanky’s Tech Blog Slope of Hope SmartKnowledgeU Blog TF Metals Report The Automatic Earth The Burning Platform The Economic Populist The Hammerstone Group The Vineyard Of The Saker Themis Trading True Sinews Value Walk Wolf Street
Zero Hedge also has their own commentary which is very good on financial matters. So Bob, I don’t think your comment is very accurate.
Davy on Fri, 17th Aug 2018 5:15 am
“I have to admit, the Washington intelligence network is doing it’s job to keep Americans as stupid as possible.”
Bob, are you calling me stupid?
Cloggie on Fri, 17th Aug 2018 6:37 am
“Netherlands Economy (GDP) Per Capita
1965 7.1
1973 4.5
1989 3.7
1996 3.0
2016 1.6
2028 0.0 > Economic Collapse”
You fool, Dutch economy currently and coming years at 3% growth, with total employment, low public debt of 50% or so and allencompassing renewable energy strategy in place. Golden years. Never in history was wealth in Holland greater than now and more is in the cards. I earned 100,000 euro last three years with picking my nose as a result of real estate price increase.
Davy on Fri, 17th Aug 2018 6:45 am
“I earned 100,000 euro last three years with picking my nose as a result of real estate price increase.”
You don’t earn shit until you sell, neder. You 3% growth is illusionary also. Europe is full of problems that mask real growth rates. The same is true of China and the US but you don’t see me here bragging about US growth. What is it about you that you always have to hype yourself up. Do you have a self-confidence issue?
Cloggie on Fri, 17th Aug 2018 7:10 am
Davy doesn’t understand the most basic economic principles. Wealth is wealth. Real estate, gold, shares, oil, paper money (Turkey, Venezuela) can ALL lose their value overnight, compared to other valuables. I simply got 100k richer, which I do NOT see as a personal achievement, I just brought it up to counter dumb-as-brick millimind who keeps insisting Holland somehow is “collapsing”.
https://www.ad.nl/economie/huizenprijzen-gaan-dit-jaar-spectaculair-stijgen~a2b42315/
It isn’t, not in a long shot, regardless of how human failures and died-the-wool collapseniks like davy and millimind want to twist the truth, after having bet on the wrong horse since 2005 and are now too deep personally invested into collapse to find a way out of the hole they dug themselves into. Ruined lives, basically. Peak oil as an Excuse for Escapism into anarchy or goats and hay.
JuanP on Fri, 17th Aug 2018 7:30 am
Delusional Davy “What is it about you that you always have to hype yourself up. Do you have a self-confidence issue?”
If you have such a great life in your daddy’s farm, why do you resent so much other people’s achievements? Why do you have such a huge inferiority complex? Is it because you could never make it on your own and you are an old man who is still sucking his parents’ tits?
JuanP on Fri, 17th Aug 2018 7:35 am
Bob “It is funny reading websites like ZeroHedge that love to report its “alternate” facts to explain real events.”
Yes, some people are too biased, ignorant, or stupid to understand that, though. Be careful when using Washington and intelligence in the same sentence, Bob, since there is no evidence whatsoever of intelligence in Washington. If stupid is as stupid does, Washington has the stupidest people on this planet.
JuanP on Fri, 17th Aug 2018 7:40 am
Delusional Davy “So Bob, I don’t think your comment is very accurate.”
The board’s everything, including qualifier, has spoken. The supreme authority thinks that Bob’s comment is not very accurate.
Translation: Davy disagrees with you, Bob. If you post another disagreeable comment the Exceptionalist will label you an extremist anti-American, Bob. Be careful! LOL!
JuanP on Fri, 17th Aug 2018 7:42 am
By the way, Davy is not stupid, he is just unbelievably insane! LOL!
Hello on Fri, 17th Aug 2018 7:48 am
You guys still fighting about the same shit? Mirror, mirror on the wall, who is the stupidest of them all?
It’s FRIDAY, which means it’s BEER time. Yeah baby.
Cheers. Have a nice week-end everyone.
JuanP on Fri, 17th Aug 2018 8:14 am
Hello “You guys still fighting about the same shit?”
Davy is insane and can’t stop and I enjoy fucking with him. I suspect this will last a very, very long time, sock puppet.
fmr-paultard on Fri, 17th Aug 2018 8:22 am
aswange umad bro?
Davy on Fri, 17th Aug 2018 8:27 am
Thanks, hello, glad to hear back from you hope all is well.
Davy on Fri, 17th Aug 2018 8:29 am
Phony Juan, when you try so hard you just look desperate. Looks like I pissed you off good last night. Probably ruined dinner.
Hello on Fri, 17th Aug 2018 8:30 am
Juanp, I forgot to ask. Is there any webpage for finding high tech jobs in Uruguay, you know of? I need a change of tapestry, but not sure where to go next.
Hello on Fri, 17th Aug 2018 8:32 am
Hi Davy, yes all is fine. Hope same with you. I’ve got a friend travelling to the Ozarks for a wedding anniversary. It’s in Arkansas. I was surprised, thought it’s Missouri as you always say. I had to look it up on the map, crosses over state line, it seems.
Davy on Fri, 17th Aug 2018 8:33 am
Ah neder the economist, that was some profound financial wisdumb.! Lol you are as bad as phony Juan trying too hard. “Wealth is wealth” is like saying pussy is pussy. If you are hard up maybe.
Davy on Fri, 17th Aug 2018 8:40 am
Yea, hello, it is a prett place if you stay out of Walmart where the white wales hang out. Lol. The Ozarks actually has been transformed in the last 20 years. There are a lot of people retiring here on farms because land is still cheap. It can’t compare to your country but this is home. Wife is in a northern Italy now. I decline to travel this year. I don’t like leaving the farm. I get bored after a day or two. I prefer working and piddling on projects.
Hello on Fri, 17th Aug 2018 8:45 am
Yes. I know what you mean. You have to be able to stay busy when traveling. That is not always easy, especially when you’re the introverted type. Home is home. Just because Switzerland has a shitload of money and the roads are painted in gold doesn’t make it better. It makes it worse on many counts.
JuanP on Fri, 17th Aug 2018 9:17 am
Hello, I don’t really know any websites like that in English. This is the main employment classified adds in Uruguay, but it is in Spanish. http://trabajo.gallito.com.uy/
I think that expats might be your best source of info so I would look for websites aimed at the expat crowd.
JuanP on Fri, 17th Aug 2018 9:21 am
Delusional Davy “Looks like I pissed you off good last night. Probably ruined dinner.”
I had a great dinner with friends I hadn’t seen in a decade. The only thing you ruin, Exceptionalist, is the board with your constant lying and bullying.
fmr-paultard on Fri, 17th Aug 2018 9:35 am
aswang u guys are so angry bro. same with eurotard he’s shaking with anger and do the untergang routine. he’s like dr strangelove. anyways, you said you love humanity and so is bony juantard. i’m a tard and a former paultard i went through a phase where i hated my mom and loved humanity. i speak trooth bro. you guys are arrested development or something
anyway you said the world gonna destroy america. genius! little do you know that the concept had been spoken before in the form of eurotard’s PBBM “confederation”. it’s just a bunch of wishy washy fuhrer talk. that’s why he doesn’t open his “blog” to public comment.
GregT on Fri, 17th Aug 2018 9:43 am
“i’m a tard and a former paultard i went through a phase where i hated my mom and loved humanity. i speak trooth bro. you guys are arrested development or something”
You just can’t make this stuff up.
LOL!
GetAVasectomyAndLetTheHumanSpecieDieGracefully on Sat, 18th Aug 2018 9:27 am
High gas prices pushed the rate of inflation up to 3.0 per cent in July, which is at the upper range of the Bank of Canada’s inflation target
A 25.4 per cent increase in the price of gasoline and a 28.2 per cent increase in the cost of air transportation compared with a year ago helped push overall prices higher.
https://business.financialpost.com/news/economy/newsalert-consumer-price-index-up-3-per-cent-in-july-from-year-earlier-2?video_autoplay=true
The increase price of gasoline is highly inflationary and can cause rapid inflation.
We are now seeing the beginning of the end where western country are collapsing through hyper inflation like poor country are doing now.
Which western countries will collapsed through hyperinflation first:Canada, Australia or UK.
On top of that Canada wants to bring in more immigrants. Perfect recipe for a fast collapse through hyperinflation and racial war.
https://www.youtube.com/watch?v=apTFgl0AaLs
george on Sat, 18th Aug 2018 6:22 pm
Socialism at its finest.
Madmen at the gates of hell could not be screwing those poor people more.