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Paper currency becomes worthless in Venezuela
Venezuelans have begun to feel as if the cash they carry in their wallets is as valuable as Monopoly money.
The local currency, the bolivar, tumbled even further this week, falling through the threshold of 400 bolivars per dollar, which is double as low as the value of the so-called Marginal System.
That threshold had been established three months ago by the government in an effort to stop the unstoppable rise of the dollar on the black market.
On Thursday, the greenback rose 40 bolivars in a single day and has climbed nearly 130 bolivars in a month. In the crazy Venezuelan exchange rate system, which keeps track of changes since February 2003, two elements calculate every dollar in exchange for 6.30 bolivars, a rate that is reserved for the importation of basic foodstuffs, and 12 bolivars per dollar, for others lower priority items.
Meanwhile, the dollar that circulates in the black market, which is the marker of the replacement cost of items that are not regulated by the government, is followed by Venezuelans over the internet. In an effort to hide the real value of the dollar with respect to the bolivar, the National Telecommunications Commission has blocked some internet domains, but their creators open profiles on social networks to make it known.
President Nicolas Maduro has accused bloggers and other Venezuelans who publish the real value of the currencies as inciters of an “economic war” who seek to distort the rigid price controls established.
The price seems less responsive to a diabolical creation and more likely responds to the inexorable rules of supply and demand, which no government or set of controls can manipulate for too long, because the market always dictates the real price of products, services and even currency value.
The bolivar has depreciated so fast that there are very few people who can deny the coming collapse of the Chavez economic model. Caracas needs a high price of a barrel of oil to continue financing its operation.
In the past, 96% of foreign exchange to the national treasury was accounted for by the commercialization of crude oil, whose revenue paid for the high public expenditures that were the basis for the strong popular support seen during the Chavez era.
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Source: http://real-agenda.com/paper-currency-becomes-worthless-in-venezuela/
No seor, the green money hiss no good.sic
https://www.youtube.com/watch?v=3KndYcoWoSo
So the price of imports keeps rising, however it is the price of goods and services in the internal economy which is all important unless you are totally dependent on imports.
The sensible thing here is to transfer your dollars to Bolivars at a high exchange rate, and SPEND, SPEND, SPEND on property, such as hotels, and small factories which could make the goods and services the stupid communist government and sheepie decided not to make for themselves because they had oil cheque welfare.
Then the internal economy would balance the import economy.
But sheep do not think and it is dangerous to promote them above their competence level.
“SPEND, SPEND, SPEND on property”
No you are wrong, wrong , wrong
The state can seize property at will if needs be or tax the hell out of the land and when you buy property you are realy only buying a lease on the land and set yourself up as a controlled target who will do as you are told because they have you by the balls.
Owe a penny on the property and the banks also have you by the balls and i was once forced to sell a second property that was rented out having never missing a payment in the early 1990′s recession by Nation-Wide