As ignorant American youth worships at the feet of socialists like Bernie Sanders and communist idiots like Alexandria Ocasio-Cortez are promoted as serious candidates after “winning” an uncontested primary (the incumbent retired and no one else ran but her) – countries where socialism has been implemented continue to collapse. I amuse myself imagining a college assignment to write an essay on the economic success of Soviet Russia, or Socialist Venezuela…
Zerohedge.com noted: “As previewed yesterday, on Monday Venezuela officially slashed five zeros from prices and its currency as part of what has been dubbed one of the greatest currency devaluations in history which slashed the value of the official bolivar by 95%, an overhaul that President Nicolas Maduro
said would tame hyperinflation, and which everyone else called the latest desperate failed socialist policy that will push the chaotic country deeper into crisis and unleash even higher hyperinflation (impossible as that may sound: as a reminder the collapse of Venezuela’s currency recently surpassed the Weimar republic).”
“As part of the devaluation, the official rate for the currency will go from about 285,000 per dollar to 6 million and together with salaries and prices, will be pegged to the Petro cryptocurrency which is reportedly backed by crude oil and is valued by the government at $60, or 3,600 sovereign bolivars. The Petro will fluctuate and be used to set prices for goods.
Government officials tried to partly mask the shock by raising the minimum wage 3,500% so instead of the new minimum wage being 1.8 million strong bolivars, it will be 1,800 sovereign bolivars: the equivalent of $30 a month. Banks were closed and busy trying to adopt ATMs and online platforms to the new currency rules; they will likely fail.”
“A 2.4 kg chicken is pictured next to 14,600,000 bolivars, its price and the equivalent of 2.22 USD, at a mini-market in Caracas. It was the going price at an informal market in the low-income neighborhood of Catia. Photo: REUTERS ”
One Venezuelan said the obvious: “You buy what you can because you don’t know if there will be anything tomorrow.”
“The International Monetary Fund has estimated [Venezuelan currency] will have 1 million percent inflation by year end.”
When confidence in a currency collapses, things get bad fast. Remember kids, American dollars are just paper I.O.U.s – if the world loses faith in Uncle Sam’s financial stability, they won’t be worth their weight in toilet paper either. Social unrest, martial law, civil war, WWIII, and worse could easily follow. Watch for signs of global economic collapse before war. We already see tariffs – in preparation for world war. Tariffs will increase domestic production needed for wartime. Just keep paying attention…
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