Posted on 08/21/2018 5:03:49 PM PDT by Libloather
Venezuela came to a standstill on Tuesday as the country tried to deal with its newly introduced currency.
Thousands of businesses closed in order to adapt to the "sovereign bolivar", and many workers stayed at home.
President Nicolás Maduro launched the new banknotes on Monday, revaluing and renaming the old bolivar currency.
The government says this will tackle runaway inflation, but critics say it could make the crisis worse. The notes went into circulation on Tuesday.
(Excerpt) Read more at bbc.com ...
Socialists can do that? Almost makes me want to vote for Cortez.
Silly foo. You don’t need money in a Marxist paradise.
It is fiat money. That is colored paper. There is nothing backing it. And, that government has no credible standing to back it, either.
Like rearranging the deck chairs on the Titanic.
Money of any kind is only as good as the people who believe in its value. Here, there is no value.
Actually it is backed by oil.
Backed by more than the dollar.
You can feel sorry for the citizens of some socialist countries because they didn’t ask for socialism.
But the people of Venezuela voted for socialism.
Twice.
They can eat their leaders.
Backed by oil they can’t get out of the ground or transport.
*** “Actually it is backed by oil” ***
Really Crappy Oil that they themselves cannot process or produce for that matter...
Their Fiat $ is backed by nothing but Govt Incompetence and people that vote them in ... let the learning begin.
*** “Backed by more than the dollar” ***
Don’t think so sport
It wouldn’t be the first country to sell oil in the ground.
Trust me. I am no fan of Venezuela. I just wanted to point out they ARE backing the money with something.
The first instinct for dictatorships in economic crises like this is to debase the currency. It never ends well.
CC
The US dollar is backed by the American Economy. There will never be a metal-backed currency again. You use dollars to buy them.
“Venezuela came to a standstill on Tuesday as the country tried to deal with its newly introduced currency. “
exactly as I predicted a few days ago here ...
“Actually it is backed by oil.”
not really ... what’s supposedly “backed” by oil is a fake “cryptocurrency” called the Petro that’s been declared a scam by all the major cryptocurrency rating sites ...
The fact is that it is backed by the guns of the army and police.
For example - I was in Odessa, Ukraine when the banks closed and the credit/debit cards didn’t work. Cash only for a few days. And the desired currency was either the US dollar or the Euro. The shops and stores refused to take the Ukraine Hryvnia because it was falling in value.
Then a funny thing happened that I witnessed personally- an armed cop walked into a store and ordered the manager to take his hryvnia for food.
LESSON - whatever crazy currency the police are paid in will become LEGAL TENDER. Why? Cops have to feed their families and will enforce it.
>
The US dollar is backed by the American Economy. There will never be a metal-backed currency again. You use dollars to buy them.
>
Might as well acknowledge the Constitution is, if not dead, on its last legs of life-support.
The restoration of ACTUAL $$ would be the surest, fastest way to possibly restoring the Republic.
The dollar is backed by the Military Industrial Economy. Fixed it for you.
That is not going to last for much longer.
It’s not backed by anything other than faith in the current Venezuelan government. The holder of a Petro can’t actually convert it into oil; he merely has the word of the government that the currency is somehow pegged to the value of oil, somehow, maybe.
Not even good hind wipe, I imagine.
“They can eat their leaders.”
And might, before this is all over.
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