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Venezuela Solves Toilet Paper Shortage As Inflation Surpasses 100%
zerohedge.com / by Tyler Durden on 05/27/2015 14:01
There are no longer words to summarize the utter devastation taking place in Venezuela’s ‘socialist paradise’ economy, but one can try.
Unfortunately for residents of the Latin American country, what had been predicted on these pages for the past several years is finally coming to pass, as is Venezuela’s official currency: the bolivar fell 25 percent on the black market last week to 423 per dollar. As the unofficial Venezuela currency has weakened 80% in street markets in the past year, it is now worth about 66 times less than the primary official rate of 6.3 bolivars per dollar.
According to Bloomberg, the bolivar’s dwindling value leaves many Venezuelans stuffing their pockets with wads of cash, since stacks of bills are often required for a routine trip to a restaurant or supermarket.
Asdrubal Oliveros, director of the Caracas-based consultancy Econanalitica, put it rather succinctly: “You want to buy a car? There aren’t any. You want to buy an apartment? You can’t afford one. Basic products aren’t available,” he said. “The only refuge that people have is buying dollars, and because of that, the demand doesn’t stop.”
Since unlike the “developed” world where the debt slaves are misled to believe they too can experience the “wealth effect” by dumping their disposable income in the stock market, people here are buying dollars because of a scarcity of hard goods that could serve as a store of value, according to Oliveros.
And what hard goods can be found can no longer be afforded by anyone.
The post Venezuela Solves Toilet Paper Shortage As Inflation Surpasses 100% appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/05/27/venezuela-solves-toilet-paper-shortage-as-inflation-surpasses-100-2/
