Galt's Gulch

When not even money can buy money...

Posted by $ blarman 7 years, 11 months ago to Economics
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I found this one intriguing and certainly a lesson here is to be learned: inflation is bad, but inflation teamed with government is way worse.

It's too bad the American system is just a short step away from this nightmare.

(And as a side note, I didn't realize that US Notes weren't printed here in the US... That's scary as well.)
SOURCE URL: http://www.bloomberg.com/news/articles/2016-04-27/venezuela-faces-its-strangest-shortage-yet-as-inflation-explodes?cmpid=BBD042716_BIZ

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  • Posted by $ jbrenner 7 years, 11 months ago
    The paper currency in Venezuela would have more value as toilet paper. Only 25 years ago, they might have been the most advanced society in South America. How things have changed. One Venezuelan young lady is working for me this summer to avoid returning home.
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    • Posted by $ blarman 7 years, 11 months ago
      My brother spent time in Venezuela some years back just before everything started getting taken over by the government. Even back then things weren't pretty, but this is like a roller-coaster straight to the bottom.
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  • Posted by Lucky 7 years, 11 months ago
    Well I do feel for the people of Venezuela but it is still quite amusing.
    How did Zimbabwe manage? They had currency denominated in billions.
    This could have a good outcome as they will find something else for trading instead of those government worthless dockets.

    Side note- whether your paper currency is produced at home or abroad makes no difference, you do it for another country, or they do it for you, trading value for value.
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  • Posted by $ MikeMarotta 7 years, 11 months ago
    What makes you think that FRNs are not printed in the USA? The Bureau of Engraving and Printing (www.moneyfactory.com) has a different narrative. Look at your FRNs. Some have a little FW in the lower right: Fort Worth, the second BEP facility, long a major provider.
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    • Posted by $ blarman 7 years, 11 months ago
      There was just a comment in the article that the US also sourced money from the same company who was refusing to do business with Venezuela. It surprised me that the US would consider having any outside entity print their money.

      Thanks for the note about FW.
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  • Posted by $ Olduglycarl 7 years, 11 months ago
    They don't even tally the total votes in presidential elections in America any more...last I heard some company in France does it...WTF

    Haven't checked that recently.
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