MCViewPoint

Opinion from a Libertarian ViewPoint

Swamped in Inflation, Venezuela Will Cut Five Zeros from Currency

Posted by M. C. Fox on August 17, 2018

Socialism or democratic socialism or is there a difference?

https://www.wral.com/swamped-in-inflation-venezuela-will-cut-five-zeros-from-currency/17774600/

By Nicholas Casey

MEDELLÍN, Colombia — Faced with nearly incomprehensible inflation — 32,714 percent as of Wednesday — Venezuelan officials thought they had a solution: They changed the color of the bank notes and increased their denomination. Then they said they would lop off three zeros. And when that didn’t seem enough, they announced they would cut off two more.

The tactics have left Venezuelans like Yosmar Nowak, the owner of a coffee shop in Caracas, convinced that there is no solution in sight and that the government cannot even bring down the price of a cup of coffee, an eye-watering 2 million bolivars.

“I imagine if we keep like this we’re going to have to do the same thing in December,” said Nowak, who has been forced to raise prices in her cafe at least 40 times this year.

Slashing zeros from Venezuela’s inflation-cursed currency, the bolivar, is the tent-pole of a set of economic changes by President Nicolás Maduro as he tries to right his country’s capsized economy. The five-digit inflation has earned Venezuela comparisons to the hyperinflation of Zimbabwe and Weimar Germany from the International Monetary Fund.

Be seeing you

Cortez

She hopes she won’t get a visit from Sean Penn.

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