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Venezuelan Hyperinflation Explodes, Soaring Over 440,000 Percent

76 点作者 sidko超过 7 年前

12 条评论

panarky超过 7 年前
There&#x27;s not much difference between an inflation rate of 440000% and 880000%, it just means that the bolivar doesn&#x27;t work anymore.<p>Money is a purely social construct. It&#x27;s only worth something when people collectively believe and trust that it&#x27;s worth something.<p>It&#x27;s a popular idea that dollars and euros derive their value because taxes are paid in that currency, or because it&#x27;s backed by the state&#x27;s military power.<p>Venezuela shows that neither of these are the source of the currency&#x27;s value.<p>Collective belief is a pretty fragile foundation to build an economy on, hard to build and easy to destroy.<p>Another term for &quot;collective belief&quot; is &quot;consensus&quot;. We&#x27;re witnessing a disintegration of political and economic consensus not only in Venezuela, but also in the US.<p>What happens to the dollar when public consensus, trust and collective belief is weakened?<p>This is why I find the decentralized, trustless consensus of cryptocurrencies to be especially attractive at this moment in history.
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topspin超过 7 年前
Venezuela has been defaulting on debts since November and the last junk debt traders have finally walked away. No more credit. Venezuela has apparently sold off the last of whatever national assets buyers were interested in; they worked through their gold reserves in 2016-2017 and nothing new is on the table aside from a dubious cryptocurrency scheme and some clapped out PDVSA oil rigs. Venezuelan oil production is collapsing for lack of operating capital and Venezuelan tankers are being seized in foreign ports by creditors. This is cutting off the last meaningful source of foreign currency.<p>At some point, probably in the next several weeks, the subsistence diet of the Venezuelan military is going to fail and the &quot;Bolivarian revolution&quot; in Venezuela will finally end. But only after having stunted <i>at least</i> one full generation of children.
rm_-rf_slash超过 7 年前
There was an op-ed in the WaPo yesterday[1] that was as fascinating as it was terrifying:<p><i>Rule No. 1 of surviving hyperinflation is simple: Get rid of your money. Given the speed with which money is shedding its value, holding on to it means you’re losing out. The second you’re paid you run out as fast as you can to buy something – anything – while you can still afford it. It’s better to hold almost any asset than money, because assets hold their value and money doesn’t.<p>Find a can of tuna? Buy it. Even if you hate tuna. Even if you have no intention of eating tuna. You can always trade it for something else later. Tuna holds its value. Money doesn’t.<p>I think this is what’s so hard to wrap your mind around if you’ve never experienced hyperinflation. It sounds like it’s about prices rising fast, but it really isn’t. It’s about money breaking down. Under hyperinflation, money no longer works. It doesn’t store value. It just stops doing the basic things people expect money to do. It stops being something you want to have and turns into something you’ll do anything to avoid having: something so worthless you won’t even bend down and scoop it up off the floor while you’re looting.</i><p>[1] <a href="https:&#x2F;&#x2F;www.washingtonpost.com&#x2F;news&#x2F;democracy-post&#x2F;wp&#x2F;2018&#x2F;01&#x2F;17&#x2F;in-venezuela-money-has-stopped-working&#x2F;?utm_term=.e6223791bb9b" rel="nofollow">https:&#x2F;&#x2F;www.washingtonpost.com&#x2F;news&#x2F;democracy-post&#x2F;wp&#x2F;2018&#x2F;0...</a>
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staplers超过 7 年前
Just a reminder that this is a demonstration of how government-issued fiat currencies are also &quot;not based on physical reality&quot; as many point out for cryptocurrencies.
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technofiend超过 7 年前
So what&#x27;s left? Moving to a commodity-backed currency? Pinning it to another major currency? Bloomberg states the problem but doesn&#x27;t even talk about whether Zimbabwe fixed their problem and if so how so, much less what options are available to Venezuela. I mean sure I can Google it but it&#x27;s surprising for Bloomberg to publish such a weak article. It&#x27;s what I&#x27;d expect from USA Today.
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NaliSauce超过 7 年前
Apparently World of Warcraft gold is more valuable at this point than the Venezuelan bolívar fuerte: <a href="https:&#x2F;&#x2F;twitter.com&#x2F;KalebPrime&#x2F;status&#x2F;952648572729724934" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;KalebPrime&#x2F;status&#x2F;952648572729724934</a>
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mc32超过 7 年前
Borrow huge amounts of money from the banks and buy land... Unless the government is apt to expropriate, then, yeah, just buy anything that stores value.
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qwerty456127超过 7 年前
So where is the new cryptocurrency they promised to issue? They absolutely should switch to cryptocurrency, a highly unstable currency is much better than a currency that is stable in its hyperbolic devaluation and can actually boost the economy. Why don&#x27;t they do?
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cs702超过 7 年前
Nothing new under the sun.<p>As a first-order approximation, all currencies in history have ultimately disappeared or stopped working as currencies, from Roman denarii to Italian Florins to Brazilian Cruzeiros to Rwandan Dollars to Venezuelan Bolivares.[a]<p>Currently there are 190+ countries on earth, most of which have their own currency. Only a fairly small number of those currencies are widely considered stable. The rest are probably destined for the dustbin of history.<p>[a] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;List_of_historical_currencies" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;List_of_historical_currencies</a>
curtis超过 7 年前
Is anybody even using bolivars in Venezuela anymore? I&#x27;ve been assuming people are using dollars and euros as much as possible.
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mustaflex超过 7 年前
shouldn&#x27;t Venezuela be one the richest country in the world? As far as I know they have the biggest oil reserves in the world.
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ctdonath超过 7 年前
Interesting how Venezuela is being touted by both capitalists and socialists as a prime example what&#x27;s wrong with the other.
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