Venezuela to remove five zeroes from ailing currency
CARACAS (Reuters) – Venezuela will remove five zeroes from the bolivar currency rather than the three zeroes originally planned, President Nicolas Maduro said on Wednesday, in an effort to keep up with inflation projected to reach 1 million percent this year.
The OPEC nation’s economy has been steadily collapsing since the 2014 crash of oil prices left it unable to maintain its socialist economic system that for years provided lavish subsidies while enforcing strict price controls.
Annual inflation in June topped 46,000 percent, according to the opposition-run Congress. The IMF said this week it could hit seven digits this year, putting it on par with the crises of Zimbabwe in the 2000s and Germany in the 1920s.
“The monetary reconversion will start on Aug. 20,” Maduro said in a televised broadcast, showing new bills that are to be released next month.
He said the overhaul would tie the bolivar to the recently launched state-backed cryptocurrency called the petro, without offering details.
Cryptocurrency experts have said the petro suffers from a lack of credibility because of a lack of confidence in Maduro’s government and the mismanagement of the country’s existing national currency.
The government has said it is the victim of an “economic war” led by opposition leaders with the help of Washington, which last year levied several rounds of sanctions against Maduro’s administration and a group of top officials.
The country’s high inflation rate has made it nearly impossible to obtain cash.
Venezuela’s minimum wage is now about the equivalent of $1 a month, which has left citizens across the country unable to eat properly or obtain basic medical care – fueling an exodus of Venezuelans seeking to escape the economic crisis.
The government had been prepared to cut three zeroes off the currency in June but postponed the measure at the request of banking industry leaders who said the financial system was not ready for the measure.
Maduro on Wednesday proposed an overhaul to the currency crimes law in order to improve the flow of foreign investments.
Economists routinely identify the exchange controls as a major hindrance to economic growth. The issue will be taken up by the country’s all-powerful Constituent Assembly, Maduro said.
He also said he was transferring a concession bloc of the vast Orinoco heavy oil belt to the central bank, which he said would help shore up the bank’s international reserves.
“The government has said it is the victim of an “economic war” led by opposition leaders with the help of Washington, which last year levied several rounds of sanctions against Maduro’s administration and a group of top officials.”
That’s bullshit. Everybody knows that the US doesn’t meddle in the affairs of other countries. Only Russia does that.
I wonder if Ron Paul will be doing any fundraising by selling signed Bolivars like he did with the Zimbawe currency?? End the Fed.
[img
[/img]
I have one of those… Chip
I propose a trade between the Canada and Venezuela: all the socialist professors in Canada (i.e., every professor outside of the natural sciences) for a plunger with flaked shit on the handle. We’ll even throw in the NDP caucus (our avowedly socialist party) and Trudeau (our dimwit PM). I don’t think Maduro is stupid enough to go for it, though.
Serious question: why don’t other countries adopt the us consitution?
For example why doesn’t Canada adopt the us consitution?
The blueprint exists.
We can see it works and our version is poor, so why not adopt it?
We can’t seriously believe our “ consitution” functions? (Can you name anything from the charter of rights and freedoms? Anything…
How about Great Britain? When the americans broke away and england watched them get rich and free. Why didn’t they say “ hey, that’s actually a great idea, lets get rich and free too so we can compete.
I know if my neighbour was suddenly getting rich and free I’d follow his lead.
Sure they might be scared or clogged with inertia but, say, a couple of hundred years later, during the 1950’s when the Americans were super rich and lauded, how come no other country just up and went, “hey that constitution fad seems to really work, lets steal the idea and call it ours, there’s a copy in the library , we can start tomorrow.
What is the actual answer?
( I sorta get it for , say, Africa…an I.Q. Of 65 won’t allow it to work, but ..Canada ?)
That is an awesome question. I’d like to know also.
power
you cant give power to the people, then you lose your power.
Ever hear of Liberia? Or that Marcus Garvey fellow?
Somebody, help me out here…
Why doesn’t America adopt the US Constitution?
overthecliff
“Confessions of an economic hitman”.
It’s a book. Getcha some.
The people in Venezuela voted for this socialist Paradise years ago.Now they are reaping the bitter fruit of their stupidity. Fuck them and fuck America if people vote for socialism .
It’s inevitable.
Once again with the “the people voted for this years ago” crap. Did 100% of the people vote this way? Did YOU vote for Obama? Did you vote for the socialist/progressive programs we all live under now? Did you vote in favor of all the wars that have bankrupted this nation and pissed off so many millions around the globe? The majority in America is not even registered to vote. Of those registered, only half generally do vote. In nearly all votes, the results are typically 51-49% or close. That means that ONLY 13% or so actually voted to support the people who won (and that person likely did the exactly OPPOSITE of what they said they were going to do when elected).
Stop with the “they voted for” bullshit. YOU KNOW ITS NOT TRUE!!!
Universal democracy doesn’t work, that’s why the government-corporate-education-media complex holds it as the ideal political system. If voting actually mattered, the powers that be wouldn’t let you do it.
Knocking off a few zeros from their currency should save them money via less ink needed in the printing process. Those zeros need ink, and ink ain’t free. Pure genius!
We need even more Latin Americans in the U.S. to implement their genius here.
“Venezuela’s minimum wage is now about the equivalent of $1 a month,”
Huh!
“which has left citizens across the country unable to eat properly or obtain basic medical care”.
I am just so fucken glad the author added that juicy tidbit. I mean, really. Otherwise, I would have thought those Vennzies were living high on the hog.
So if I went there with $100 US bucks then I could live high on the hog?
For as long as you might live.
About 80% of Cubans work for the Cuban government. Their salary is $25.00 per month. The Colonels and Generals control all the profitable business like tourism. They live like Emirs. Socialism doesn’t start that way, but it sure ends up that way.
Stucky…for 100 bucks you could get laid,fed ( something from the zoo cooked to your order) and perhaps bring home a bride ( you’d have to convert to Mormonism ….I’m sure Mrs Stucky’s not gonna’ like it) .
The trouble with Venezuela is that the Socialist across the planet will say as they always do….well…this wasn’t true Socialism. Bullshit.
Subtract zeros huh?
By the same token,could add a few zeros to my dollars and do well,where the hell is the chisel tipped permanent marker!
I thought this was an Onion article…knock off a few zeroes and voila, problem solved!