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Dec 07 2016

Socialist Venezuela Plunges Into Zimbabwe-Style Hyperinflation

You don’t have to be in Sub-Saharan Africa to turn your country into Zimbabwe. All you have to do is let government grow big enough. The bigger it gets, the more it spends. The more it spends, the bigger it gets. Eventually this vicious cycle leads you somewhere like here:

Venezuela said it will issue higher-denominated bills as triple-digit inflation and a currency meltdown leave the country’s largest note worth just around 2 U.S. cents on the black market.

The central bank said in a statement Saturday that six new bills ranging from 500 to 20,000 Bolivars will begin circulating on Dec. 15. Currently the largest-denominated bill is 100 bolivars, while a 2-liter soft drink bottle can cost 25 times that amount.

Let’s hope Venezuela can afford to have the new bills printed —which has been an issue.

How did one of the most resource-rich countries in the world get into such a state? Government spending:

There is, certainly, a serious macroeconomic problem underlying the bolivar’s collapse: an enormous, unmanageable fiscal deficit nobody in their right mind would finance. That has led an irresponsible government to create huge amounts of new money out of thin air to cover its spending needs.

Speaking of enormous, unmanageable fiscal deficits that nobody in their right mind would finance, the U.S. national debt is quickly closing in on $20,000,000,000,000.00, not counting unfunded liabilities. The incoming administration promises not to reform runaway entitlements, but rather promises a new one. One of its first orders of business will be to blow another $1 trillion that we do not have on infrastructure boondoggles, similar to what Obama did when he took office.

Venezuela won’t be the last country that will have to make room on its currency for more zeroes.

On tips from Torcer and Lyle.

15 Responses to “Socialist Venezuela Plunges Into Zimbabwe-Style Hyperinflation”

  1. TrojanMan says:

    My boss bought a few of those Zimbabwe 100 trillion dollar notes on ebay for a couple of US dollars just to say he was a trillionaire.

  2. DEPLORABLE says:

    “Socialist Venezuela Plunges Into Zimbabwe-Style Hyperinflation”
    —Chavez’s daughter has converted all that worthless socialist money into dollars and euros – so her father’s BILLION$$$$$ stolen from the people of Venezuela are safe.

  3. Torcer says:

    Well, you never know.. she might not have stolen that money… it could have come from drug trafficking..

  4. Torcer says:

    And once again we see another prime example of Socialism’s 500 year reign of death, misery and FAILURE.


  5. TrojanMan says:

    They could use the currency as toilet paper. Problem solved.

  6. GomeznSA says:

    I had the same thought, maybe Venezuela and Zimbabwe could at least make a dent in their financial woes by marketing them…………..;-)

  7. Paul says:

    Are those Hollywood morons Sean Penn and Danny Glover down there helping the people they screwed over when they propped up that Socialist retard Chavez?

  8. TrojanMan says:

    Sad thing is, i did some research and if you go back into the early 80’s i think it was the Zimbabwe dollar was almost 1:1 with the US dollar.

  9. Mr. Freemarket says:

    If only they had leaders as bright at Barack Obama and Hillary Clinton, this might not have happened.

    It could have been worse.

  10. Barbaramdunleavy says:

    Google is paying 97$ per hour! Work for few hours and have longer with friends & family! !sx352c:
    On tuesday I got a great new Land Rover Range Rover from having earned $8752 this last four weeks.. Its the most-financialy rewarding I’ve had.. It sounds unbelievable but you wont forgive yourself if you don’t check it
    ➽➽;➽➽ http://GoogleFinancialJobsCash642ShopTopGetPay$97Hour ★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★✫★★::::::!sx352c:….,……..

  11. 762x51 says:

    In situations like this, which we are inevitably headed for, currency and TP always trade places. Except in the Middle East where, 10,000 centuries after the dawn of human history, they still haven’t managed to grasp the concept of TP.

  12. TrojanMan says:

    First, US currency can be laundered and reused. Second, NEVER touch a moosephlems left hand. My brother-in-law did two tours in i-rack and explained why.

  13. 762x51 says:

    Yep, he has it right. A people who haven’t mastered the use of toiletries, such as soap or TP, should not be in possession of weapons.

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