"This should be enough for a down payment on a taco."
Posted on 03/23/2018 10:30:37 AM PDT by rktman
Venezuela's hyperinflation is driving the government loony-tunes. That's the only explanation I can think of for why the government of Nicolás Maduro has decided to lop off three zeroes from its currency, the bolivar, to fight, he says, "economic persecution" from Columbia.
Business Standard:
"I have decided to reduce three zeros of the currency and take out of circulation the current bills and put into circulation new bills," Maduro said on Thursday during a broadcast on state channel VTV.
The President said that this new monetary denomination, which replaces the one he established in January 2017, will help the government fight the "economic war of financial persecution", which he claimed was masterminded by Colombian President Juan Manuel Santos with the help of Venezuelan opposition leader Julio Borges, Efe news reported.
(Excerpt) Read more at americanthinker.com ...
That is a great question. Currently Venezuela can’t print bank notes fast enough so cash sells at a premium in the country. Pretty easy to eliminate zeroes electronically.
Unbelievable, no wonder the people are starving
There are cases where the gov’t does overprint old notes either to add or eliminate zeros. Google Transnistrian ruble or Bosnian Dinar.
It’s never a good thing when they print “new money”.
"This should be enough for a down payment on a taco."
“Or is that countrypeople now.”
Countrybeings.
Only way to take into account the Baskin-Robbins plethora of genders these days.
I miss sanity.
Mexico did it in the early 1990s. One new peso equaled 1,000 old pesos.
“That 100 trillion note goes for $100 US on ebay”
I bought 10 for $10 US on Ebay years ago. Was a quadrillionaire but gave it all away.
Just changes billions to millions. With his government-generated hyperinflation, he’ll be doing it again in a year or so.
Inflation: the gift that never stops giving, to the government. The ruling elite has protected itself from rising prices by giving themselves “Cost of living adjustments” in their salaries and pensions. Rising prices allow the economists to crow about how the economy is “growing”, when all that is happening is that the numbers are increasing due to the decreased purchasing power of currency. The constantly decreasing value of savings tends to reduce a lifetime’s work effort to zero value. This makes the elderly, who are not allowed to work, more dependent on the fucking government.
The Mexicans took 3 zeros off of their currency some time ago. For a long time the Mexican peso was stable at, I think 12 to the dollar. Then inflation came and the exchange rate went nuts thousands of pesos to the dollar. So they took 3 zeros off so that 10,000 pesos became 10 ‘new’ pesos. Now the new pesos are worth about a nickel. My mom had a bunch of old Mexican money. Three or four pounds of change (Mexico still honors the old pesos) was worth maybe 3 cents. The large (half dollar size) old 20 centavo piece is worth about 1/1000 ¢. I’m sure it will work just as well, or even better for Venezuela.
Outside of Zim, I believe the worst inflation occurred in Yugoslavia in 1992; so, not that long ago.
Of course, by the time you are wiping out three zeroes, everything is pretty much a rounding error
Every prince must go to King school. He must take a course called Inflation 101. In that course, essentially unchanged for hundreds of years, the student leader learns how to salvage the economy by devaluing the currency.
Maduro being a rather common clod stole the text book and looked up the problem answers in the back
BTW...... that will happen here sooner or later
Hyperinflation in Yugoslavia:
“Between October 1, 1993 and January 24, 1995 prices increased by 5 quadrillion percent. That’s a 5 with 15 zeroes after it.”
Geez, lop off 5 zeros and the problem will be completely solved.
If Maduro had any sense, he would have the new money printed on toilet paper, providing at least some value and utility.
Adding his face to the new currency virtually guarantees immediate wide spread acceptance. Locally at least.
I think the highest on record is Hungary after WW II hitting a peak monthly rate of 41.9 quadrillion percent. In the course of a year the Hungarian Pengo went from 1,350 pengo = $1 US to 4.6 X 10^29 (460,000,000,000,000,000,000,000,000,000) pengo = $ 1 US. The largest denomination issued was 10^21 pengo note (10,000,000,000,000,000,000,000). The highest monthly rate in Yugoslavia was 313 million percent. Zimbabwe easily beat that with a peak rate of almost 80 billion percent.
“Governments are the only entity on Earth that can take a valuable commodity like paper and make it worthless just by adding ink.” Milton Friedman.
L
That reminds me of the story of a German farmer, who, during the German hyperinflation of the early 1920’s, came into town with a wheelbarrow filled with cash. Thieves robbed him. They dumped the cash and stole the wheelbarrow.
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