Venezuela: Christmas with Hyperinflation
HAVANA TIMES – This Christmas season most Venezuelans aren’t thinking much about sprucing up the home, buying gifts and special meals as they are preoccupied with how to put the bear basics on the table today and then tomorrow.
With supermarket shelves sparsely stocked and prices rising by the day on what does exist, even traditional holiday spirits are out of reach for many citizens.
The Bolivar, which faces near daily devaluation, is now pegged at 103,000 to 1 US dollar.
The population in the oil rich country is habitually faced with a shortage of currency at banks and change for businesses, further complicating their reduced purchasing power.
Also see: Venezuelan Pensioners Ordeal at the Banks
Now let me see, with a huge deficit, soon to be greatly enhanced by the Trump tax cuts, the days of the dollar as the world’s reserve currency are numbered. When the Chinese and others finally pull the plug, we may be looking at the same situation as Venezuela. When this happens, more than likely, the prices in our supermarkets will double and treble. Perhaps folks should begin switching to bitcoin, though given previous boom-and-bust histories this is risky. Instead, maybe time to look into some survivalists options!
Castro-style socialism on Full display.