Venezuela hyperinflation hits 10 million percent.

[Deplorable Me]

Venezuela hyperinflation hits 10 million percent. 'Shock therapy' may be only chance to undo the economic damage

A coup taking down Venezuelan president Nicolas Maduro would be only the first step in any attempt to get the South American economy back on track. Economic shock therapy will be required to reverse the chaos of a state-run system that wasted its oil riches.

www.cnbc.com

KEY POINTS

• Venezuela’s state-run economic model wasted the world’s largest oil reserves.
• The country owes $100 billion to foreign creditors.
• Its educated, professional class has fled.
• Economic shock therapy, implemented in regions like the former Soviet bloc, could be its only chance.

Venezuela’s crisis has been marked by corruption, hyperinflation, one of the world’s highest homicide rates, food and medicine shortages and the largest exodus “in the recent history of Latin America,” according to the U.N. Refugee Agency.

(I got tears in my eyes, sounds like NY.)





I fear when I read articles like this that the US is on it's way to becoming a Venezuela. NY, CA, and in the near future VA. NY's smoke and mirror budgets. How long before they start taxing (stealing) from savings accounts and pension funds like they did in Greece.

 

[Deplorable Me]

 

[Deplorable Me]

venezuela protest - Google Search

 

[@thewheels]

How long before they start taxing (stealing) from savings accounts and pension funds like they did in Greece.

It's not far off. IMO
They're salivating to get it on already.

 

[GOYABEAN]

Seems to be working well for them

 

[Plater1]

Venezuela hyperinflation hits 10 million percent. 'Shock therapy' may be only chance to undo the economic damage

A coup taking down Venezuelan president Nicolas Maduro would be only the first step in any attempt to get the South American economy back on track. Economic shock therapy will be required to reverse the chaos of a state-run system that wasted its oil riches.

www.cnbc.com

I fear when I read articles like this that the US is on it's way to becoming a Venezuela. NY, CA, and in the near future VA. NY's smoke and mirror budgets. How long before they start taxing (stealing) from savings accounts and pension funds like they did in Greece.

New York, CA, and VA can't cause this type of hyperinflation as they don't print their own money(the #1 cause of hyperinflation). It's true bad management and social welfare spending don't help any either. What most people don't take into account is fixed rate mortgages. If money has less and less value, cost go up. Like $275 for a gallon of milk. What you don't see is the people who still have jobs are getting paid tens of thousand of $$$ a week in funny(?) money. If you have a fixed rate mortgage you can pay it off in a week or two. If your pension fund is worth say $200,000, that's not even going to buy a few weeks worth of food?

 

[Deplorable Me]

New York, CA, and VA can't cause this type of hyperinflation as they don't print their own money(the #1 cause of hyperinflation). It's true bad management and social welfare spending don't help any either. What most people don't take into account is fixed rate mortgages. If money has less and less value, cost go up. Like $275 for a gallon of milk. What you don't see is the people who still have jobs are getting paid tens of thousand of $$$ a week in funny(?) money. If you have a fixed rate mortgage you can pay it off in a week or two. If your pension fund is worth say $200,000, that's not even going to buy a few weeks worth of food?

The socialist US states instead of inflation devalue our earnings by increasing taxes (aka: fees and fines.) They nickle and dime us to death, a slow incremental con job hoping we don't notice. An extra dollar for your driver's license, surcharge on traffic tickets, .25% increase on local sales tax. Bleeding us $.01 penny at a time; it all adds up.

 

[tirwin1]

Hyperinflation is one of the most destructive things human beings can ever experience. In practical terms once inflation gets beyond 1000% it's really impossible to measure because things change so fast.

Inflation at that level really changes a society. Everyone's entire focus is short term in nature as they desperately try to transfer the useless currency into something with value. There have been few books on the hyperinflation in Germany after WW I and many of the individual stories are horrifying. Street corner currency 'barter' shops appear out of nowhere and start to proliferate as people become desperate to exchange money. In many families one person is tasked solely with this function.

In his book "the modern survival manual" a guy nicknamed Ferfal talks about rapid inflation in Argentina. When shopping in a store prices could change not just on a daily basis but multiple time within a day as the store tried to keep up with the rapidly changing prices they were facing.

Inflation in this country has been apparent in food prices for 10 years - I know because I do the weekly grocery shopping. Yet the official inflation statistics have been relatively low because the govt incorporates things like TVs and computers which have declined in price. There is some validity to the argument the official statistics are understating the true level of inflation.

We are insulated somewhat from the insanity of our governing class because the dollar is the world's reserve currency and most international trade is still conducted in dollars. This has the effect of muting the inflationary aspect of our irresponsible budget deficits. There are lots of stories out there that talk about how China and Russia are going to create a new reserve currency backed by gold, or the IMF will create a new world currency. I think these scenarios are unlikely because the GDP of Russia is so small compared to the U.S. and the Chinese will never tolerate the openness required to become a reserve currency. I think this fact has only emboldened our elected officials to continue with massive deficit spending that in ordinary times should have caused a crisis by now.

However, that does not mean that hyperinflation cannot happen here. Given the fact we have a truly awful ruling class anything is possible.

 

[Deplorable Me]

Hyperinflation is one of the most destructive things human beings can ever experience. In practical terms once inflation gets beyond 1000% it's really impossible to measure because things change so fast.

Inflation at that level really changes a society. Everyone's entire focus is short term in nature as they desperately try to transfer the useless currency into something with value. There have been few books on the hyperinflation in Germany after WW I and many of the individual stories are horrifying. Street corner currency 'barter' shops appear out of nowhere and start to proliferate as people become desperate to exchange money. In many families one person is tasked solely with this function.

In his book "the modern survival manual" a guy nicknamed Ferfal talks about rapid inflation in Argentina. When shopping in a store prices could change not just on a daily basis but multiple time within a day as the store tried to keep up with the rapidly changing prices they were facing.

Inflation in this country has been apparent in food prices for 10 years - I know because I do the weekly grocery shopping. Yet the official inflation statistics have been relatively low because the govt incorporates things like TVs and computers which have declined in price. There is some validity to the argument the official statistics are understating the true level of inflation.

We are insulated somewhat from the insanity of our governing class because the dollar is the world's reserve currency and most international trade is still conducted in dollars. This has the effect of muting the inflationary aspect of our irresponsible budget deficits. There are lots of stories out there that talk about how China and Russia are going to create a new reserve currency backed by gold, or the IMF will create a new world currency. I think these scenarios are unlikely because the GDP of Russia is so small compared to the U.S. and the Chinese will never tolerate the openness required to become a reserve currency. I think this fact has only emboldened our elected officials to continue with massive deficit spending that in ordinary times should have caused a crisis by now.

However, that does not mean that hyperinflation cannot happen here. Given the fact we have a truly awful ruling class anything is possible.

All the more reason to hoard ammo my dear.

 

[Bananabandit]

I would love to pay $300 for a pack of gum.

 

[GOPerfect]

Damn shame this is occurring anywhere.

Not that I really care about the people down there or their Country, I do not.

I do not see this ever coming like this to America. At least not to this level.

I horde everything possible. Food, soap and other toiletries, food, everything I can think of.

 

[SmallGameAddict]

Damn shame this is occurring anywhere.

Not that I really care about the people down there or their Country, I do not.

I do not see this ever coming like this to America. At least not to this level.

I horde everything possible. Food, soap and other toiletries, food, everything I can think of.

Don't forget the bottled water

 

[Mosinitis]

Give them back billions of their frozen assets and fuck off.

 

[Plater1]

Hyperinflation is one of the most destructive things human beings can ever experience. In practical terms once inflation gets beyond 1000% it's really impossible to measure because things change so fast.

Inflation at that level really changes a society. Everyone's entire focus is short term in nature as they desperately try to transfer the useless currency into something with value. There have been few books on the hyperinflation in Germany after WW I and many of the individual stories are horrifying. Street corner currency 'barter' shops appear out of nowhere and start to proliferate as people become desperate to exchange money. In many families one person is tasked solely with this function.

In his book "the modern survival manual" a guy nicknamed Ferfal talks about rapid inflation in Argentina. When shopping in a store prices could change not just on a daily basis but multiple time within a day as the store tried to keep up with the rapidly changing prices they were facing.

Inflation in this country has been apparent in food prices for 10 years - I know because I do the weekly grocery shopping. Yet the official inflation statistics have been relatively low because the govt incorporates things like TVs and computers which have declined in price. There is some validity to the argument the official statistics are understating the true level of inflation.

We are insulated somewhat from the insanity of our governing class because the dollar is the world's reserve currency and most international trade is still conducted in dollars. This has the effect of muting the inflationary aspect of our irresponsible budget deficits. There are lots of stories out there that talk about how China and Russia are going to create a new reserve currency backed by gold, or the IMF will create a new world currency. I think these scenarios are unlikely because the GDP of Russia is so small compared to the U.S. and the Chinese will never tolerate the openness required to become a reserve currency. I think this fact has only emboldened our elected officials to continue with massive deficit spending that in ordinary times should have caused a crisis by now.

However, that does not mean that hyperinflation cannot happen here. Given the fact we have a truly awful ruling class anything is possible.

I read Fernando "Ferfal" Aguirres book "Surviving The Economic Collapse" a few years ago. It was quite an eye opener. It also made me feel that our (USA) economy is somewhat insulated from the rest of the world. I think another book; "When Money Dies" by Fergusson sums up how inflation kills an economy.

 

[repete]

I horde everything possible. Food, soap and other toiletries, food, everything I can think of.

Somebody's a prepper! OPSEC!

 

[GOPerfect]

Somebody's a prepper! OPSEC!

Nope, once a Boy Scout, always a Boy Scout. Always be prepared!

 

[kev74]

I would love to pay $300 for a pack of gum.

I would love to sell you a pack of gum for $300.

 

[Mosinitis]

I am stocking up on Seltzer (grabtz wasser).

 

[@thewheels]

There is some validity to the argument the official statistics are understating the true level of inflation.

The "official" numbers are cooked, boiled, fermented and frappe'd to keep the serfs from lighting their torches.

 

[spat]

Damn shame this is occurring anywhere.

Not that I really care about the people down there or their Country, I do not.

I do not see this ever coming like this to America. At least not to this level.

I horde everything possible. Food, soap and other toiletries, food, everything I can think of.

It will hit us much worse and much faster should the world ever decide that the dollar is no longer the preferred reserve currency.

When people talk about a war for oil, *this* is why we fight wars over oil.

 

[BDinPutnam]

I would love to sell you a pack of gum for $300.

Dont forget my 2% broker/dealer commish.

 

[kev74]

Dont forget my 2% broker/dealer commish.

Don't you think 2% is a little steep? What have you done to earn $6?

 

[ProgSpear]

Don't you think 2% is a little steep? What have you done to earn $6?

Its a lot less than the 8.75% sales tax on that $300 pack of gum. Oh, wait... maybe you're getting the gum from Turning Stone...

 

[BDinPutnam]

Don't you think 2% is a little steep? What have you done to earn $6?

"Do"?

"Earn?"

This is NEW YORK. Run your pockets.

 

[HIghlander]

I remember when in the 1970's seeing a picture of a man with a wheel barrel of German Marks from 1920's and the caption stated this is what it takes do buy one loaf of bread.

 

[spat]

I remember when in the 1970's seeing a picture of a man with a wheel barrel of German Marks from 1920's and the caption stated this is what it takes do buy one loaf of bread.

Or as the Venezuelans call it "the good old days"

 

[Acer-m14]

I would love to sell you a pack of gum for $300.

250 .. once chewed .. like once fired brass LOL .. 100 pack lol

 

[Acer-m14]

I remember when in the 1970's seeing a picture of a man with a wheel barrel of German Marks from 1920's and the caption stated this is what it takes do buy one loaf of bread.

sorry were out of bread and water too .. said the govt distributors to the rest in line with a wheel barrel of $$ to pay

 

[spat]

When your pickup truck can't haul enough cash to pay for the gas it takes to drive to the gas station, you might be f*cked.

You really need to abandon money and just barter long before it gets this bad.

 

[beebee]

They voted for socialism, demanded it... They got it- enjoy..

Just a very short time after Venezuela voted for Socialism, individual states in the US were voting to have their guns and the right to own them taken away, We learned nothing.. As a society, we are demanding tyranny.. You receive and deserve the government you ask for ... bob