Cheaper To Wipe With Fiat
Prices in Venezuela have increased more than 4000% over the last year.
Prices are doubling every month...
The monthly inflation rate is estimated to be around 167% right now.
This weekend an election is being held that might possibly determine a change in policies, depending on the results.
The Bolivar is a failing fiat currency like hundreds of other fiat currencies that have failed before it.
The central banking scheme that many countries operate with today is also anti-free market because it violates competition and establishes a government monopoly over money creation. And their current money-making scheme could essentially be described as legalized counterfeiting.
It's also a form of theft, via inflation, though some might justify this by saying the inflation is lawful. However, just because something is lawful doesn't make it moral. Many immoral acts have been committed by the state throughout human history, though they might have been deemed "justified" and "lawful" at the time.
What we have today in the United States, as with in Venezuela, is not a free market, it's interventionism and could be argued that the system has been designed to fail by destroying the middle class and helping to finance some of the worst government endeavors in history.
A reversal on the path of disaster that central banks have been leading us down, would be a turn in the direction of embracing individual liberty and voluntary exchanges. It's time to abandon the interventionist policies. Central banks have eroded a great deal of purchasing power over the years and that isn't within the best interest of the people. Thankfully though, whenever those fiat currencies have failed, it hasn't taken long before the people try to establish a solution of their own and that often means that many resort to peaceful and voluntary bartering, as we've seen in Venezuela and other regions that have suffered economic turmoil.
The election is being held this Sunday in Venezuela. Some groups, such as Human Rights Watch, have already suggested that the election has no credibility and there are many news agencies who've reported that Maduro is expected to win.
Pics:
via caraotadigital.net / EFE
pixabay
freethoughtproject
imgflip
Sources:
http://www.dw.com/en/venezuelas-worthless-currency-turns-into-bags-of-money/a-43833213
http://fortune.com/2018/05/07/venezuela-bolivar-currency-bartering/
https://www.businesstimes.com.sg/government-economy/venezuela-inflation-hits-13779-lawmakers
http://fortune.com/2018/05/07/world-of-warcraft-currency-bolivar-venezuela-inflation/
https://www.theguardian.com/world/2018/may/18/venezuela-election-maduro-ready-for-battle-as-voters-vow-to-flee-if-he-wins
https://www.bloomberg.com/news/videos/2018-05-18/venezuela-election-has-no-credibility-human-rights-watch-video
https://www.nbcnews.com/news/latino/expecting-maduro-win-many-venezuelans-say-they-won-t-vote-n875121
It could also be argued that the system has been a success because it was designed to benefit the ruling class at the peril of everyone else, and it has.
I find it sad that a countries currency is so worthless even though the country has a vast amount of oil. Although this is sad it also helps the crypto market since people believe more in BTC than in the Bolivar and also a lot of crypto mining is happening in Venezuela since the energy is dirt cheap. In the end I believe that Venezuela might help crypto but at the same time if the petro becomes a scam it can hurt crypto aswell
Dear friend, you have fallen short of what is happening in Venezuela. The devaluation exceeds 9000% and as of June 4, 2018, inflation is estimated to be above 12000%. What you may not know is that "El Bolívar" no longer exists in Venezuela for eight years; today it is managed by what is called "El Bolívar Fuerte" and as of June 4 it will be called "Bolívar Soberano", respectively Bs., Bs.F., and Bs.S.
Between each of these denominations, three zeros have been removed to simulate that things have gone down in price, that is 1 Bs.S. = 1,000 Bs.F. = 1,000,000 Bs.. If so, draw your own conclusions.
The living conditions of Venezuelans are so bad that they fear to get sick because you die. People are skinny; it's sad.
In the days leading up to the elections, the atmosphere is one of collective stress.
You know, steemit has been invaded by Venezuelans; I am one of them, and it has been through this platform that this great number of Venezuelans have been able to feed our families. But today, the regime is in a frank intervention of the banks that detect in the processes of change for the benefit of Venezuelans. They have already closed numerous current accounts in Banesco, Mercantil and Provincial for that reason; that is why today, those who are in charge of the change of currency for Venezuelans in steemit, are wary and tread carefully not to be caught.
did you read the related post? :)
Of course, my friend, but I was interested in making it clear that the inflation rates as depicted by the agents of the State do not correspond to reality. A respectable statistic would be to say for certain that inflation in Venezuela is around 100,000.00%.
I have heard fools say, for the first time in my life that I have had two million in my bank account, imbeciles, blindfolded people who, as of June, with the new monetary cone (if it were applied), would be slapped in the face for the ignorance they have accumulated.
It doesn't matter who is in charge of Venezuela. As long as America is engaged in a trade war with them, they will suffer.
Great post as always @doitvoluntarily ! The memes say it all... Its a travesty really! Upped and resteemed !👍👍👍
A financial crisis of this magnitude can be as devastating as a nuke going of in a major city. After spending the last six months in south America I really commend the neighboring countries for taking in hundreds of thousands of financial refugees.
Another great post my friend. Made it back to my hometown in New York. 14 countries on three continents in the past 12 months. Only wish I had more time to see your posts! Thanks for supporting my efforts here....and have a great day my steemit brother!
Uh oh.
The one problem that digital currencies can never solve! They can never be used as toilet paper!
Oh wait, I guess there are such things as paper wallets.
I'm a Venezuelan I want to say that everything you read here, is true.
You are so right saying that that system was designed to fail! The ones who put in the most (work) tend to get the short end for sure!
It is foolishly true everything you say friend, the bolivar is devalued and is worth nothing, the products increase daily is a surprising thing and can not stand it, money does not reach we have relatives outside of Venezuela and they send us money to be able about living, medicines the few that are obtained have a very high price, in a few words we are dealing with the madness and despair
Y lo que, nos falta por ver estimada amiga @glorimarbolivar. De darse mañana el parapeto de elecciones y de seguro ganar el régimen; En Utopía, las condiciones humanas serán mejores que en nuestra amada Venezuela.