Venezuela's 4,000% Hyperinflation 'Breaks' Cash-Weighing Scales
Content adapted from this Zerohedge.com article : Source
When things are bad, most countries do not want the world to know. Few leaders are willing to publish bad news although few can avoid it.
Venzuela is one country that can. Since things are so bad there, the government refuses to publish basic statistics.
This led Bloomgberg to create their own guage to measure inflation.
Bloomberg explains that, as the name would suggest, it tracks just one item: a cup of coffee served piping hot at a bakery in eastern Caracas. Its price has jumped to 75,000 bolivars from 1,800 bolivars over the past 12 months, an increase of 4,067%.
Maduro is turning to what most politicians do in times like these; he is printing money. He believes that all the problems stem from the Unites States engaging in economic warfare.
Bremmer Rodrigues, who runs a bakery on the outskirts of Caracas, said his family are at a loss over what to do with their bags of bills. “It’s a mountain of cash, every day more and more.”
The shrinking value of the currency has meant that withdrawing the equivalent of $5 from an ATM produces brickloads of bills. Some ATMs now need to be refilled every few hours, because the machines can only hold so much cash. This means there are often a limited number of functioning ATMs in Caracas, and long queues to withdraw money.
The value of the currency is devalued so much that people do not bother to count the bolivar but weigh it.
One U.S. dollar is now going for 20,000 bolivar on the open market.
Shoppers need to fill bags with money to even buy groceries.
“When they start weighing cash, it’s a sign of runaway inflation,” said Jesus Casique, financial director of Capital Market Finance, a consulting firm.
“But Venezuelans don’t know just how bad it is because the government refuses to publish figures.”
And, as Bloomberg previously concluded, people like Bremmer Rodrigues, 25, who runs a bakery on Caracas’ outskirts, are at a loss over what to do with their bags of bills. Every day his business takes in hundreds of thousands of bolivars, which he hides around his office until packing them up in boxes to deposit at the bank. He says if someone looked in on him, he might be mistaken for a drug dealer..
“I feel like Pablo Escobar,” he said. “It’s a mountain of cash, every day more and more.”
Non-adapted content found at zerohedge.com: Source
I am from Venezuela, and if I tell you the truth, here in Venezuela the inflation is not killing little by little, since the money does not, we have enough to eat well ..
to say so, look at my blog I earn more money in steemit than in my work .. and that only I earn a penny a day
here in venezuela, the value of the dollar is 213,000 bs.f, and here you can not get cash because the banks only give you 30,000bs.f daily that only reaches me for the daily bus ..
without putting the long tail that I have to do to be able to buy the food with the debit card ..
because there is no cash ...
A tough situation down there.
Hit you up with a little something extra to try and help out.
Good to see you on here trying to do other thingss
thanks friend ... as we say the Venezuelan you have to find another form of monetary income ... because who stays at home looks at the ceiling, does not get anything of cash...
With Venezuela's annual inflation rate over 4000%. Imagine, Venezuela sits atop the world's largest oil reserves and they still have this kind of catastrophic problem. This is hard to imagine as a reality. Unfortunately it is. This is perfect example what we should be expecting her in the US in the future. Central bank printing money like a crazy. Eventualy, when they stop propping up by manipulating the dollar, it's going to collapse, and I think that ultimately the Federal Reserve sacrifices the dollar. It's the one thing they don't care about because they want to keep the bond bubble inflated, they want to keep the real estate bubble inflated, they want to keep the stock market bubble inflated. And the only way they can do that is by printing money and trying to postpone the pain. But by doing that they just make the pain that much worse. All these bubbles are going to deflate. The dollar collapsed is inevitable and hyperinflation is inevitable. Just like in Venezuela.
Its a sad state of affairs, we must always remember that while mismanagement is partly to be blame, there has been a continuous economic war against Venezuela since the days of Hugo Chavez, its present problem has been escalated with the continuous sanctions from the United States of America...
So while the narrative may read poor management by the government of the day we must remember the economic setup of our present financial system has equal weight on Venezuela current problems...
Venezuela still remains one of the richest countries on the planet
One can easily laugh it off when told money can be weighed while purchasing items from shops. This makes wallets useless in Venezuela. Moving with money in bags and sacks for shopping is more effective if moving out to buy some stuff for preparing a meal of a family. Counting money now takes too long and no trader is willing to incur that cost. Is this still the country with one of the highest oil refineries? With these massive resources, it's embarrasing to see Venezuela going through an economic recession that has gone this far.
Blaming the Unites States for engaging in economic warfare wouldn't be such a big claim but turning to printing more money is so ill of Maduro. A leader coming into power must be having the slightest of clues on the effect of aimless printing of money. The official currency is getting more devalued each day that passes by and this will continue having a huge impact on the amount of money people have to carry while purchasing items.
And now we get the Petro.
Considering what they did with the Bolivar, what could go wrong?
It is amazing how much a country can screw up its citizens. That is why we need to decentralize governments out of business. The blockchain can do most of what governments do without the corruption and destruction.
Weimar Republic. The paper is worth more than what it represents. Sad situation. War coming?
Woah, now that's a serious problem. The worst part is, they need to print more and more new money because they just run out of it, and this just decreases the value even more! Weighting money instead of counting it? This is really crazy. I wouldn't wanna be in all of that chaos... might we see something similar in the future in more countries? Even in US? I think it's very probable.
The Venezuela is in the same boat of Germany on 20's. They are trying to solve a huge problem using mone print... That will create a huge problem for the financial market.
Bloomberg explains that, as the name would suggest, it tracks just one item: a cup of coffee served piping hot at a bakery in eastern Caracas. Its price has jumped to 75,000 bolivars from 1,800 bolivars o
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