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Venezuelan hyper-inflation

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Venezuelan hyper-inflation

Post by Manu on Wed Feb 14, 2018 6:37 am

If there was any doubt socialism is any good for anyone but the politicians in power, this is where Venezuela stands now:

https://www.express.co.uk/news/world/918564/venezuela-economy-weak-currency-inflation-banknotes-value-latest


Venezuela's economy so weak locals weave bags from CURRENCY as they are worth more

VENEZUELAN street sellers are making baskets out of banknotes after massive 13,000 percent inflation made them practically worthless.

The Latin American nation’s currency has spiralled out of control after losing 87 percent of its value against the euro.

Bolivar notes are often seen littering the streets, due to it low value.

And now 25-year-old street vendor Wilmer Rojas is making and selling origami-inspired handbags, baskets, hats and purses out of the cash.

Father-of-three Mr Rojas said: "People throw them away because they are no good to buy anything. No one even accepts them anymore."

“You can use magazine paper or newspaper pulp, but currency notes are better because they are not worth anything.”

Mr Rojas would rather use money to avoid spending time cutting them. 

He said: “These things are no good for buying anything. At least I am putting them to good use rather than throwing them away.”

The Bolivar is worth so little that “you can’t even buy a piece of candy” with two, five and 10 Bolivar notes, according to Mr Rojas.

A hat made of hundreds of Bolivar notes, is only worth the cost of a packet of cigarettes.

Mr Rojas sells some of his designs for 300,000 bolivars, which can buy a kilo of meat.

Jose Leon, 26, takes a different creative approach.

He draws Star Wars character faces over the picture of Simon Bolivar and other well-known Venezuelans who feature on the notes. 

Tourists pay him up to £14 for a single piece of “money art,” almost a 5,000 per cent increase of the note’s value, according to the designer.

Thousands from Venezuela are trying to flee to Colombia in an attempt to get away from the poverty and increasing crime rate triggered by the nation’s economic crisis.

Colombia, along with its neighbour Brazil, has deployed extra soldiers to secure their border after they took over half a million migrants in the second half of 2017.

Border tightening controls are also being implemented in a bid to control the crisis.

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Re: Venezuelan hyper-inflation

Post by Micheal on Wed Feb 14, 2018 7:48 am

Thank you for sharing that.  It's amazing how rapidly it degenerated.  I remember Venezuela being a thriving economy.

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Re: Venezuelan hyper-inflation

Post by Manu on Wed Feb 14, 2018 8:17 am

As do I.

About maybe 17 years ago, I was shortly living in the US, and had a close friend from Venezuela. They were always boastful and proud of their country, and they were living in the US because big business required his father to travel back and forth. Lots of money going around.

Now I have more than a few Venezuelan acquaintances, and they have shared how horrible it has become. The whole system is corrupt and twisted, and most of them have come to Ecuador because it is the nearest country that does not demand much paperwork.

Socialism is ideal for systematic corruption and the escape of both monetary and human capital from the country. I get the appeal of it, to try to even the playing field for everyone... but it is unsustainable.

The story I shared reminded me of when my History teacher told us about the German mark lost so much of its value before World War II, that people would carry all their notes in a cart to buy a piece of bread. Sometimes, if you got distracted, they would steal from you... not the money... the cart! That's how low the mark had fallen.

Military action in Venezuela is inevitable. It will be the only thing that can change the country at this point.

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Re: Venezuelan hyper-inflation

Post by Micheal on Wed Feb 14, 2018 8:25 am

Sadly I think you are right and just hope it is contained to just the country.  The US no longer (if ever) holds to the Monroe doctrine, but if it does we might very well interfere.  I do not think Trump is a country maker like Bush Jr. was, but if he sees an angle which he thinks benefits the USQ, we just might... I hope not.  But given our current negotiations going on over immigration, he might.

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Re: Venezuelan hyper-inflation

Post by Micheal on Wed Feb 14, 2018 2:18 pm

as it pertains to my statement:

https://www.realcleardefense.com/articles/2018/02/14/the_monroe_doctrine_revival_113058.html

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Re: Venezuelan hyper-inflation

Post by Manu on Thu Feb 15, 2018 6:24 am

I would be willing to bet that the US has already had a hand in Venezuela (and other countries).

Economic warfare has become a subtle art form the US is good at, and ensuring countries are economically dependent (or at least compliant to US interest) has been normal procedure for the US over the past century.

The "end" of the Monroe doctrine was most likely a political statement, and as such as sincere as most political statements are.

I have never been a nationalist, but many here are, and politicians here are very good at playing the "anti-imperialism" sentiment that serves as a scapegoat for what is really bad economic policy and money lost due to corruption. Chavez especially and now Maduro have played the "imperialist pig" card to pitch people against anything that might seem US-related in Venezuela... and it worked.

Our previous president did something similar here, and the result was crippling our exports to the US and declining low-interest debt, in favor of signing higher-interest debt with China (no doubt with part of the pie being taken by politicians at play), and flooding our markets with Chinese imports.

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Re: Venezuelan hyper-inflation

Post by Micheal on Thu Feb 15, 2018 7:40 am

Trump in particular seems uniquely adept at doing this very thing.  Where past presidents have given money due to a perceived need.  Trump makes no bone about giving money with an expressed intent in mind.

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