Posted on 08/21/2018 5:03:49 PM PDT by Libloather
Backed by oil? Isn’t someone repossessing their refinery and stations due to the fact they missed paying off a 1.1 billion note.
You are talking about the same Ukraine where all the farmers were systematically expropriated and starved by Stalin? That Ukraine?You are of course correct in the very short run. But those police came back a second time to find the shelves bare, I make no doubt. Because the merchant has to buy his merchandise, and if forced to sell below cost will promptly stop buying merchandise.
So your experience didn’t happen.
</sarcasm> What must have happened is that the Ukraine somehow got backing for its currency so that people were able to trust its scarcity/value.
If you really think about it, what sustains the value of any currency is advertisements of goods on offer in “barter” for that currency.
But, they aren’t selling their oil. So, the oil is not relevant at this point.
There is no Agriculture?
At any the dollar is backed by the US economy and is valuable as long as people can and do buy things with it.
“Actually it is backed by oil.”
Their oil exports are not enough to even feed the people due to the fact that communism has destroyed the economy of that nation. Thus they have no oil to back their currency. In addition their production of oil has plummeted due to the fact that those that know how to drill and produce the oil left Venezuela and most wise was their leaving.
Venezuela today is just a name place on a map. That once good nation no longer exists as law and order are no more. I would not be the least bit surprised to see Western Venezuela attach itself to Columbia via an armed revolution.
A lot of oil is there.
I worked there a few years pre Chavez. Life there was good then.
I forgot to add this about the Venezuelan Bolivar. When I lived in Venezuela the Bolivar was tied to the USA dollar. It was just as good as a dollar. The exchange rate was 4.3 Bolivars to the dollar when I moved to Venezuela and 4.3 when I left a few years later. In reality it was USA currency.
Today that dollar is worth about 250,000 Bolivars. In effect if all was equal I could buy a very nice apartment for three dollars today. Thus the economics of the nation are wrecked. No one will sell anything based on the local currency. All transactions are on the black market in USA dollars.
A most sad note: I have seen recent pictures of Venezuelans crossing the bridge into Cucata Columbia. I have crossed that bridge often years ago during the good times. Today that bridge has the desperate, both men and women and children. The men will do anything for a job. The women will sell their bodies. They are just trying to feed their children. It is sad.
The Socialist Curse very like a Grimm’s Fairy Tale??? It always sells good to the youthful but ignorant. Chavez followed the script, sold the travel plan, and look where these people traveled as a destination.
“Tax the rich, feed the poor
‘Til there are no rich no more?”
Ten Years After - I’d Love To Change The World
https://www.youtube.com/watch?v=ZyaFeDlJJAk
I keep waiting for the country to explode, but looks like it’s people are just going to crawl up in a fetal position and starve to death instead of turning on the government.
The old constitution of Venezuela was almost a copy of ours with a fatal mistake, no second amendment.
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