Tuesday, November 29, 2016

Printing Money

Venezuelan Hyperinflation Means Money No Longer Fits Wallets
Excerpt: The crashing Venezuelan economy has put consumers between a rock and a hard place. Shortages have caused prices to increase dramatically while, at the same time, the value of the Venezuelan currency has plummeted. The result is that wallets are no longer large enough to contain the wad of banknotes that are necessary to buy even small, everyday items. According to the Washington Post, the exchange rate is so bad that the largest Venezuelan banknote, a 100 bolivar bill, is worth only about 5 US cents on the black market, far less than the official exchange rate of 10 bolivars to the dollar. That means that common items are increasingly out of reach for Venezuelans. A pack of cigarettes currently sells for about 2,000 bolivars, the current equivalent of $1 US. This transaction alone would require the exchange of 20 of the 100 bolivar bills. (The end result of statism--the government prints money, destroying any wealth left in the country. ~Bob)

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