Friday, January 19, 2018

In Venezuela, money has stopped working


Fernando,
I saw this article today, and it really made an impact on me regarding the hyperinflation occurring in Venezuela.
- How 20-bolivar bills are left behind by looters because they are worthless.
- How the official exchange rate has nothing to do with real world costs.
- That prices are roughly doubling every month, and wages can't keep up.
- that, "Tuna holds its value. Money doesn’t."
I remember the school lessons on the crash of the Deutschmark after W.W. II, but this is much more real because it is happening now. In the aftermath of war, there is reconstruction; what can be done about the devastation caused by governmental corruption and mismanagement on a massive scale? This is tragic.
Best regards,
Deen
.
Hello Deen,
The situation in Venezuela is just terrible.
Very similar to Weimar Republic or Zimbabwe where paper currency pretty much lost all its value and you needed carts full of the stuff to buy a loaf of bread.
I can sure relate to the value of a can of tuna. In countries like Venezuela, and even in Argentina during the worst period after 2001, a can of tuna is something pretty special.
No, hold on, don’t laugh! ;-)
You have to go through it to understand it. Do you have any idea what it means to buy something that you know will go up in price %500 or more before it expires?
That little can of tuna is practically magic.
It’s meat you can store meat without refrigeration. Something very important with rolling blackouts.
It lasts for years.
It’s precious meat protein.
It goes very well along with most other staples like rice or pasta.
It may not be available next time you’re at the grocery store…
You end up treasuring those things. Believe me.
FerFAL
Fernando “FerFAL” Aguirre is the author of “The Modern Survival Manual: Surviving the Economic Collapse” and “Bugging Out and Relocating: When Staying is not an Option”

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