{"id":20286,"date":"2016-04-27T19:10:40","date_gmt":"2016-04-28T00:10:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20286"},"modified":"2016-04-27T19:11:12","modified_gmt":"2016-04-28T00:11:12","slug":"this-is-the-end-venezuela-runs-out-of-money-to-print-new-money","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20286","title":{"rendered":"This Is The End: Venezuela Runs Out Of Money To Print New Money"},"content":{"rendered":"

This Is The End: Venezuela Runs Out Of Money To Print New Money<\/a><\/h3>\n
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Back in February,\u00a0when we commented\u00a0<\/a>on the unprecedented hyperinflation about the be unleashed in the Latin American country whose president just announced that he would expand the “weekend” for\u00a0public workers to 5 days<\/a>…<\/p>\n

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… we joked that it is unclear\u00a0just where the country will find all the paper banknotes it needs for all its new physical currency<\/strong>. After all, central-bank data shows Venezuela more than doubled the supply of 100-, 50- and 2-bolivar notes in 2015 as it doubled monetary liquidity including bank deposits. Supply has grown even as Venezuela has fewer U.S. dollars to support new bolivars, a result of falling oil prices.<\/p>\n

This question, as morbidly amusing as it may have been to us if not the local population, became particularly poignant recently when for the first time, one US Dollar could purchase more than 1000 Venezuela Bolivars on the black market (to be exact,\u00a0it buys 1,127 as of today<\/a>).<\/p>\n

And then, as if on cue the\u00a0WSJ responded<\/a>: “millions of pounds of provisions, stuffed into three-dozen 747 cargo planes, arrived here from countries around the world in recent months to service Venezuela\u2019s crippled economy.\u00a0But instead of food and medicine, the planes carried another resource that often runs scarce here: bills of Venezuela\u2019s currency, the bolivar.<\/strong><\/p>\n

The shipments were part of the import of at least five billion bank notes that President Nicol\u00e1s Maduro\u2019s administration authorized over the latter half of 2015 as the government boosts the supply of the country\u2019s increasingly worthless currency, according to seven people familiar with the deals.<\/p><\/blockquote>\n

More planes were coming: in December, the central bank began secret negotiations to order 10 billion more bills which would effectively double the amount of cash in circulation. That order alone is well above the eight billion notes the U.S. Federal Reserve and the European Central Bank each print annually\u2014dollars and euros that unlike bolivars are used world-wide.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This Is The End: Venezuela Runs Out Of Money To Print New Money Back in February,\u00a0when we commented\u00a0on the unprecedented hyperinflation about the be unleashed in the Latin American country whose president just announced that he would expand the “weekend” for\u00a0public workers to 5 days… … we joked that it is unclear\u00a0just where the country […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5752,2026,233,282,305,413,2422,851,4318],"class_list":["post-20286","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg-news","tag-consumer-prices","tag-ecb","tag-european-central-bank","tag-federal-reserve","tag-hyperinflation","tag-nicolas-maduro","tag-venezuela","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20286"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20286\/revisions"}],"predecessor-version":[{"id":20288,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20286\/revisions\/20288"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}