Tuesday, August 18, 2015

Using Money as Napkins

Just imagine if you had been saving money since you got out of college and now that you were 60 years old you had managed to squirrel away a few million dollars?  You were getting ready to kiss your boss goodbye and planned on moving to Florida to spend the rest of your days playing golf, eating at Luby's and laying at the beach!  Ahhhh.....paradise!  : (

Now further imagine that a few months before your planned move to Florida, that your own government had so screwed up the value of your currency that your few million dollars you had worked SO HARD to save....now barely bought enough groceries to last you a week.

Paradise lost!!!

"But Dennis, that could NEVER happen in America!  Our dollar is the most in-demand currency in the entire world!  And for sure it will ALWAYS BE that way!  Our future is certain....because we are Americans!"

Well.....it's happening in Venezuela as we speak.

An image is going round that sums up just how ridiculous Venezuela's economy has become.

A Reddit user uploaded a picture on Monday of a man using a 2 bolivar note to hold an empanada.

According to Venezuela's official bolivar-dollar exchange rate, the man using his money as a napkin is wasting about $0.31 (£0.20).

But on the black market, the reality is completely different. You can get 676.88 bolivars to the dollar, according to dolartoday.com. That means holding food with a 2 bolivar note costs the holder less than a third of one US cent.

This time last year, the bolivar was far more valuable, and even as recently as May this year, you could still get hold of a dollar for less than 300 bolivars. Today, you need more than twice that.

The country has a spiralling inflation rate. Official inflation is high enough, at 68.5%, but like the official exchange rate, that paints a much rosier picture than reality. Professor Steve Hanke, who runs the "Troubled Currencies Project," a joint program between the Cato Institute and Johns Hopkins University, says in reality inflation is more like 808%.

The country is a major oil exporter, and the plunge in prices is a huge part of what's causing the crisis — as a result, the country is pegged as having the riskiest debt in the world, with the highest likelihood of a future default. Food is increasingly hard to get hold of, shop shelves are often empty, and the country's social order is deteriorating.

Here;  http://www.businessinsider.com/venezuelas-currency-is-now-so-worthless-that-people-are-using-it-as-napkins-2015-8

Hmmmmm......what the heck happened to Venezuela?  I know they had a Marxist leader (Hugo Chavez) who was friends with Jew-hater President of Iran, Mahmoud Ahmadinejad a few years ago, but he's dead now.  Is it possible this nation may have brought wrath on itself for cursing the Jews?

If you want the answer, just Google "Venezuela Anti-Semitism" and see what comes up!

Also notice the last sentence of the above article that says, "the country's social order is deteriorating."

Yep!  Just imagine what would happen in America if $100,000 dollars wasn't capable of buying groceries for a week?  You think there would be some unrest?  Do you think the 48 million folks on Food Stamps would have their credits increased enough by the Government to keep them with enough money to buy the free food they have come to expect?  Where would the U.S. government come up with the money necessary to increase the food stamp credits?

"Dennis, you are stupid!  The government would just print enough money to pay for it all!"

Really?  Because they day they do that the value of the dollar will fall in half again....just like is happening in Venezuela.


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