– One Scary Chart: Venezuela’s Currency Disintegrates:
It was just this past Monday when we were reported that the Venezuela currency, the Bolivar, had crashed below 3,000 for the first time ever, losing 15% of its value in just one day as the Venezuela hyperinflation had entered its terminal phase.
Today, the DolarToday.com website, maintained by a person the WSJ dubbed “Public Enemy No. 1 of Venezuela’s revolutionary government, Gustavo Díaz, a Home Depot Inc. employee in central Alabama” reports that having crossed the psychological 2,000 level ten days ago, and taking out the 3000 barrier earlier this week, the Bolivar has now plunged to a new all time low of 4,609.37 on the black market, dropping by 15% from its latest print of 2,972 reported on Friday of last week, and has lost 60% in its value just in the past month.
So for anyone still unsure what real-time hyperinflation looks like, here is the updated visual answer.
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Deja-vu.
I recall when Mugabe took Zibabwe over by a mixture of popularity and force, the currency became worthless, with food shortages and a barrowload of paper money for a loaf.
As one economist I met used to say, equilibrium will prevail. And it did.
The problem is, left to their own devices, people will sort things out using basic principles of logic. But when big government has encouraged or forced a society of support and benefits, the people learn to rely on that, which can only result in oppression, chaos, social unrest and a police state.
The economic hardship and associated hyperinflation in Venezuela looks to be a PTB co-ordinated precursor for the rest of us, all the signs are there….it is in fact a quite organised chaos and I apologise for the pun, but that’s what it is.