Chavez: New currency to be introduced (drops 3 zeros from bolivar)

yahoo ^ | Thu Feb 15,2007

[staytrue]

<>And then there's the plan to reduce unemployment using the very unique two-hour workweek and mandatory 51 week vacations. More jobs to go around!

I think his next move will be to cure poverty by raising the minimum wage in Venezula.

[Enterprise]

"Chavez: New currency to be introduced"

[motorola7]

on his newly revamped TV show, "Hello, President."
soon to be renamed "Goodbye, President."

[Recon Dad]

It's a real house of cards.

[Kirkwood]

"Chavez takes an Economics 101 class from Mugabe!"

This idea sounds like it came from his pal Jimmah Carter.

[Popman]

The new currency would simplify transactions, improve efficiency, generate confidence and rein in inflation, he said.

So, Monkey boy does understand economics. of course, it is far too late for this to be meaningfull

The Venezuelan leader also announced a gradual 5 percentage point reduction in the value-added tax, currently 14 percent, by July 1 to help combat inflation.

If your inflation rate last year was 17 percent and most certainly going to be a lot more this year, a 5 percent reduction in the value added tax will only stop the flow of blood like a bandage on a 6 inch knife wound

[BenLurkin]

Two words for Hugo:

clue

less

[Eastbound]

Not sure if this is called 'coloring up' or 'coloring down?' Perhaps a poker player can explain it.

[Chode]

Chavez: "You are a devil, you smell like sulfur, you are a drunk, you are the demon, you are a dictator, you are an assassin Mr. Devil, you are..."

Bush: "YEAH, Yeah, yeah, WHATever... just fill'er up MonkeyBoy!"

[seowulf]

The bullet with his name on it has already been made.

And it costs only one US dollar! A bargain.

[IllumiNaughtyByNature]

walks like a duck, talks like a duck...Typical socialist/Communist/RAT/Liberal maneuver, just outlaw inflation and move the decimal point.

[NorthernTraveler]

Well, the first time I went to Turkey - March 2001, the biggest note they had was 5,000,000 Turkish lira - about $5.00 US at the time.

By 2002 they had a 20,000,000 note... by then only worth about $15.00. The largest denomination note in the world at the time.

Howard Stern made this famous by offering women on his TV show 1,000,000 Turkish Lira to take their tops off on national TV. Many did so... not realizing it was only worth a buck.

I used to go into high schools as a guest lecturer to talk about Turkey... I always took some Turkish currency to talk about the relative value of money. The kids LOVED the million notes....

In 2005 (or 2006) they dropped SIX zero's off their money... it is now called 'New Turkish Lira'.

Wonder how that's worked out for them!!!

[M-cubed]

This is exactly what would happen if our leaders told us that that $100 bill in your wallet is now a dime.<<<

Shusssh..nobody knows yet....... http://www.westegg.com/inflation/

[hosepipe]

Hugo Chavez knows less about economics than Jessica Simpson..
This will be interesting to watch..

[M-cubed]

In fact, not a single nation on earth has any hard asset that underpins its currency.<<

true!...a race to -0- throughout history...ALL fiat goes to zero.....no exceptions

Wonder why Greenspan changed his mind? http://www.321gold.com/fed/greenspan/1966.html

[spinestein]

Good post!

[spinestein]

[President Hugo Chavez announced Thursday that a new currency will be introduced into Venezuela next year in order to combat inflation. Chavez said three zeros will be stripped from the bolivar, and banknotes and coins for the "new bolivar" would enter into circulation in early 2008.]


It would be easier and take less effort for Chavez to just tell his boys in the legislature to repeal the law of Supply and Demand.

[Ole Okie]

It would be easier and take less effort for Chavez to just tell his boys in the legislature to repeal the law of Supply and Demand.

How about having them repeal the law of gravity at the same time?

I was just looking at M-cubed's reference to an inflation counter. It tells me that the nickel I used to buy a loaf of bread or a lot of candy in 1930 is now worth less than a half cent. Or, to put it another way, what cost $87 in 1930 now costs $1000. Inflation is a bitch.

[mware]

Let me guess whos face is going to be on the currency

[theBuckwheat]

In 1933, Roosevelt devalued gold from its statutorily-defined value of $20/oz to $35/oz. Today, it is just shy of $670/oz.

If you think that money is not gold and gold is not money, we could compare the cost of any other market basket. I remember gasoline in the 1960's selling for 19.9/gallon. In these terms, the dollar has declined in value by about a factor of 10. By almost any other measure the dollar buys less today by a large factor. (By the measure of hard disk drive capacity, it is just the opposite)

Over the years, the US government has totally cut the dollar free of gold and to day there is no legal definition of the value of the dollar. Its value fluctuates according to supply and demand. Since the supply is so easy to come by (it is borrowed into circulation at the press of the mouse button), the direction of the trend of its value is clear.

People should not confuse wealth with money. Because nothing stops governments from inflating-away their currency, keep your wealth in assets that will tend to respond positively to inflation.