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Hyperinflation of bolivar finishes off Venezuelan economy

For those who are wondering how hyperinflation looks in reality, Venezuela became a good example.

Every day Venezuela is sinking deeper into the deadly abyss of hyperinflation. And before any improvement will come, we can expect a strong deterioration in the economic situation in the country.
The national currency of the South American country continues losing value every day. To buy basic goods and services, the people of Venezuela have to spend piles of cash – many traders now just weigh cash without wasting time trying to count it. Purses of standard sizes became simply useless in the "socialist paradise" of South America. People are transporting cash in bags, backpacks, sometimes even just pull it over with the belts.
It is clear that nothing good can be expected in such a situation. Venezuela continues repeating the mistakes of other failed states such as Zimbabwe and the Weimar Republic, hyperinflation which reached unimaginable sizes.
This year, inflation in Venezuela reaches 720%, the bolivar now costs only five US cents on the black market.

Humberto Gonzalez, owner of the deli store in the city, said that he uses the same scale to weigh the slices of salty white cheese and banknotes from his clients.
"It is sad to realize that the cheese is more expensive. When you have to weigh cash, all the signs of uncontrolled inflation are there. However, Venezuelans cannot assess the real extent of the tragedy, the authorities refuse to publish the numbers," he said.
For several years Maduro has been printing more and more money trying to deal with the oil crisis and falling bolivar. The result? Bolivar now is worth virtually nothing.
The printing press just cannot save the country from a deadly fall. At the same time, Maduro is not going to let go of the reins. He claimed that the Venezuelan problems are caused by the economic war, which the US carry out to overthrow the socialist regime in the country, rich in oil.
Bremmer Rodriguez, who runs a bakery on the outskirts of Caracas, said that his family is in confusion, not knowing what to do with all those bags of cash, "This is a mountain of cash, and every day it becomes bigger and bigger and more."
Falling value of the currency means that you need more than 100 bank notes in order to withdraw the equivalent of £ 5 banknote in the ATM. Some ATMs now we have to be refilled up every three hours. Caracas has a very limited number of ATMs, there are long queues for the withdrawal of the banknotes.
Venezuela plans to re-issue the currency with a higher rating, but it is unclear whether this will solve the problems the country is facing today.
Maduro with iron fist tried to prevent the collapse and avoid the inevitable. As a result, people are forced to stand in crazy queues to buy the necessary goods and products. Everyday life is violated in every possible way, because crime and poverty strike the familiar life.
Food shortages and high prices for meat on the black market are forcing people to catch stray animals for food of despair. Malnutrition is becoming a real problem, the health of society as a whole is in a very sad state.
Life in Venezuela at the moment - it is empty grocery stores, a record high level of crime, lack of everything. The economic and political conditions have been worsening for many years, however, the situation in recent years is shocking. McDonald's cannot get buns for their Big Macs, rolling blackouts are a common phenomenon. The average person spends more than 35 hours standing in line to buy rationed goods, even the issuance of such goods like toilet paper and toothpaste are strictly regulated.
Jason Marczak, director of the Latin America Economic Growth Initiative says about the crisis: "People are literally starving, children die at birth, because the most essential medicines are absent... the most necessary things are not available... people are in a panic."
Source: oko-planet
  • December 14, 2016 5:16 PM MSK