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Page added on December 3, 2016
“Economy Shattered, Currency Collapsing”: Venezuelans Wait In 6 ATM Lines For Enough To Buy Rice
A fistful of bolivars buys… well, next to nothing. A sad state of affairs in Venezuela.
Is this how the economic crisis will play out in America? A cash strapped population, forced to the brink and stripped of their dignity?
Unfortunately, it is already underway in Venezuela.
Of course there is a higher standard of living in the United States overall, but tens of millions of people are already on the edge of poverty and tens of millions more can be brought to their knees in a matter of hours.
Some 46 million Americans are already on food stamps, and reliance on digital systems, EBT debit cards and electronic transactions could make Americans more vulnerable than they appear on the surface.
If the system shut down tomorrow, what would you do? How would you feed your family? Unless you are a prepper, the answer could make you uneasy.
Long lines have been the norm in Venezuela for over a year now; shortages and rations just another part of their upended lives. But now, the sheer free fall of their currency’s value has made live even more precarious – forcing many to visit as many as six ATMs just for enough to buy very basic, cheap goods.
via Bloomberg:
“I’ve had to go to six different ATMs just to get 6,000 bolivars,” said [Domingris] Montano… She needed to buy groceries. A package of rice would cost 3,500 bolivars, more than half the daily withdrawal limit, and the automated teller machine might be empty by the time her turn came. Maybe she could hit a few more before dark?
Lines are nothing new in Venezuela, where the economy is shattered, inflation is soaring and the currency fell a staggering 67 percent against the U.S. dollar on the black market last month alone — making 6,000 bolivars worth just $1.30.
[…] It takes almost six minutes for it to spit out, 3,500 bolivars at a shot, and the victor walks away with a 3-inch stack worth $5.32.
“Sometimes I go to five ATMs without getting anything at all,” he said, because the devices are busted or bare.
[…]
“The last time I cashed a check [with a live bank teller], it was for 44,000 bolivars and they gave it to me in bills of 5 and 10,” said Elyn Hernandez, a 27-year-old assistant chef. That many bolivars in notes of 10 would fill a Duffel bag. An ATM delivers in larger denominations.
Most of the people is poor, and cash has long been the only fluid transaction for most vendors, and the wide segment of the population that don’t have bank accounts.
This has proven to be an especially difficult logistical problem – as banks have responded to an accelerating crisis by placing harsh limits on the amount of money that can be withdrawn from ATMs – with the maximum equating a huge fistful of bolivars but only a few U.S. dollars of purchasing power.
That is why President Maduro has ordered a revaluing of the currency, and will issue higher denomination bills sometime early next year. But that will do little to alleviate the problems that everyday people are facing in the meantime.
They have been desperate already, but now things are reaching a point of outright hyperinflation and spiraling collapse.
Pray for these people, and prepare so that it might not happen to you or yours
15 Comments on "“Economy Shattered, Currency Collapsing”: Venezuelans Wait In 6 ATM Lines For Enough To Buy Rice"
Go Speed Racer on Sat, 3rd Dec 2016 12:25 pm
The Venezuelans need to import some color
Xerox machines. They produce double-sided color copies. Then each person could print as much money as they need, at home without going to the ATM.
Then they could buy the loaf of bread, with the bagful of money.
Then
Go Speed Racer on Sat, 3rd Dec 2016 12:26 pm
Then all the Venezuelans would be very happy.
dave thompson on Sat, 3rd Dec 2016 1:34 pm
Venezuela rejected imperial corporate capitalism this is the end result.
Richard Ralph Roehl on Sat, 3rd Dec 2016 3:46 pm
The PC leftist, Millennial loons that support corp-rat globalist puppets like Hillary Clinton, or Communist minded doo-gooder twits like Bernie Sanders, hope to emulate the Venezuelan model for the United States.
Phuck! Phuck! Hooray!
Bob Inget on Sun, 4th Dec 2016 1:00 pm
China ‘loaned’ 2.2 Billion. On condition… Effective December 15th 2016 China takes an additional 2.5 MBBp/d once destined for US delivery.
CARACAS , November 18, 2016 – Venezuela will draw USD 2.2 billion from its credit line with China in an effort to raise production from its projects with China National Petroleum Corporation (CNPC), President Nicolas Maduro said late on on Thursday.
In televised address, the president said CNPC would work with PDVSA to lift output by some 277,000 bopd through increased production from Petrourica, Petrozumano and Sinovensa, all projects that CNPC holds minority stakes in alongside PDVSA. The deal also includes rehabilitation work on 500 light oil wells that –combined – could yield around 42,800 bopd.
“Many thanks for all the support you [China] have given Venezuela in 2014, 2015, and especially 2016,” Maduro said in his address. The USD 2.2 billion is drawn from a USD 9-billion facility. Over the past nine years, the country has borrowed more than USD 50 billion from China, which it partially repays through oil and fuel sales. (30)
Translation… In fewer then 2 weeks overall
US imports will fall 250, per day to under REQUIRED 7.5 MBBp/d.. That, as long as Saudi,
I mean OPEC, exports remain flat. If SAUDI exports drop just 100, per day : shortages.
Even greater shortages will result in Central America and the Caribbean . It remains to be seen, can US Shale exporters fill both gaps?
If Venezuela hits the credit line again, US will show ‘draws’ of over one million per week on a regular basis.
Bob Inget
Bob Inget on Sun, 4th Dec 2016 1:29 pm
The Trump Team dropped a a huge PR bomb that few in the US or Canada picked up on…
http://thehill.com/policy/energy-environment/307866-trump-adviser-conway-to-tour-alberta-oil-sands
Trump knows US producers can’t possibly keep up with US demand in 2017.
(Given situations in South America, Africa and the ME)
1) We can only be sure … “It’s always about oil”. 2) Trump intends to enrich himself wheeling and dealing.
Mash-up with Suncor, Canadian Natural, Exxon,
might keep US gasoline prices under $3 while still screwing non compliant Venezuela, Columbia, and Ecuador. Don’t forget, ‘America First’.
ONLY Canada and Venezuela are cursed with
more then 100 years of oil supply. Since Venezuela is in 50 BILLION in hock to China,
this leaves Canada. No US president can afford to ‘lose Canada’ ..(Mexico in a net oil importer)
Putin needs to get OP (oil prices) over $60 for at least a few months.
Boat on Sun, 4th Dec 2016 2:42 pm
Bob,
The world is in a production glut. Oil is a global commodity. If a shortage occurs those who can afford it will get it. There is also a world over supply built up. As that winds down prices will rise and drilling rigs now idled will spring to life. Relax, all is fine in the oil world.
We will all see if OPEC can cut production and by how much. That’s sap posed to start Jan 1st. We will also see what will happen with Lybia and Nigeria who are adding barrels to the market with the potential to add much more. A lot of moving parts. The Eia will have an update on the glut and storage in a few days.
Boat on Sun, 4th Dec 2016 2:47 pm
Bob,
Mexico is not a net oil importer. They export to the US. Go to the EIA site. In the search box type US imports by country. Then you will know how much the US gets from those who export to the US.
peakyeast on Sun, 4th Dec 2016 3:40 pm
@boat&Bob:
Perhaps this is what is being meant:
Mexico still exports more than a million barrels a day of crude oil, but it imports just about everything else: natural gas, gasoline, diesel, liquefied petroleum gas, and petrochemicals. In the first three months of the year, the country posted a petroleum deficit of about $551 million with the U.S., according to recent Bank of Mexico data.
http://www.wsj.com/articles/SB10001424052702304908304579562400748296622
Boat on Mon, 5th Dec 2016 10:34 am
Peak,
Mexico is a huge nat gas importer. What Mexico enjoys is the same price as US consumers. This price is much cheaper than say Euroup, Asia, China, etc importers. This is a major underpinning of Mexicos economic growth. Bob was suggesting something different. N Americas energy advantage comes from cheap nat gas. For some reason PO doesen’t like to talk about a plethora of nat gas and a N American price advantage. Could it be the anti American tone of the posters? Lol
peakyeast on Mon, 5th Dec 2016 11:13 am
@boat: Re: tone: I have no clue if that is the case and it is not something that I care to spend time speculating about. Personal intrigues and the machinations of them are of no interest to me.
GregT on Mon, 5th Dec 2016 11:47 am
@Boat.
“This is a major underpinning of Mexicos economic growth.”
“A persistent trend of increasing debt-to-GDP for almost a decade now (from 29 percent in 2007 to an estimated 50.5 percent by the end of 2016) in combination with falling oil revenue, a fragile financial situation of the National Oil Company PEMEX as well as disappointing economic growth led rating agencies to put Mexico’s sovereign (investment grade) rating on a negative outlook.”
“The Mexican economic continues to face a complex external environment in which persistently low oil prices, a normalization of U.S. monetary policy, a slowdown in global trade and economic growth and a diversity of geopolitical events may heighten risk aversion and financial volatility posing challenges to the country’s economic and financial stability and growth outlook.”
http://www.worldbank.org/en/country/mexico/overview
GregT on Mon, 5th Dec 2016 12:11 pm
@Kevin,
“N Americas energy advantage comes from cheap nat gas.”
The US has the 11th highest debt to GDP ratio in the world, and Canada ranks 17th. How’s that energy advantage working out for you?
GregT on Mon, 5th Dec 2016 12:14 pm
http://www.tradingeconomics.com/country-list/government-debt-to-gdp
onlooker on Mon, 5th Dec 2016 1:33 pm
They also Boat, speaking of the US, have a mean aggressive military and a long track record of infiltrating and interfering with other countries. I would say that gives them an “advantage” in many things.