{"id":25102,"date":"2017-09-01T11:46:37","date_gmt":"2017-09-01T16:46:37","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25102"},"modified":"2017-09-01T11:46:37","modified_gmt":"2017-09-01T16:46:37","slug":"what-to-do-when-government-money-goes-bad","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25102","title":{"rendered":"What to Do When Government Money Goes Bad"},"content":{"rendered":"

What to Do When Government Money Goes Bad<\/a><\/h3>\n
\"What<\/div>\n
\n

First, they sold their car.<\/p>\n

Then, they downsized from a house to a small apartment.<\/p>\n

Next, they cut meat from their diets. And now, they skip meals to ensure survival.<\/p>\n

This is the story of Vanessa Posada and her husband Adolfo.<\/p>\n

They live in Venezuela. And their money simply doesn\u2019t go that far anymore.<\/p>\n

Falling oil prices have sent the economy into free fall. Per experts, the inflation rate is 720% and rising.<\/p>\n

And today, an estimated 93% of Venezuelans don\u2019t have enough money to buy food.<\/p>\n

It\u2019s a sad story\u2026 especially considering that Vanessa did everything right.<\/p>\n

But that\u2019s not enough to save her from government money gone bad.<\/p>\n

Consider that at the beginning of 2014, one Venezuelan bolivar equaled roughly 16 cents. Today, that bolivar will supposedly get you just 10 cents \u2013 a 38% decrease.<\/p>\n

But that\u2019s the official rate\u2026 the one no one pays attention to.<\/p>\n

Today, one bolivar will actually get you just 0.000625 cents.<\/p>\n

Put another way, at the beginning of 2014, you needed 6.25 bolivars to get $1. Today, using the black-market rate, you need 16,000 bolivars to get that same $1.<\/p>\n

That means Vanessa\u2019s bolivars are worth 99% less than just three years ago.<\/p>\n

This story shows how governments can inflate a currency away. And it can leave those using that currency in a dire situation.<\/p>\n

There\u2019s a way Vanessa could have protected herself from government-driven inflation.<\/p>\n

I\u2019ll show you that in a moment. But first, don\u2019t think it can\u2019t happen to you.<\/p>\n

Government Money: It\u2019s Not Really Your Money<\/strong><\/p>\n

Venezuela is an extreme case. Folks tend to dismiss it. They think it can\u2019t happen in their country.<\/p>\n

But there\u2019s no shortage of extraordinary situations going on in developed economies, too.<\/p>\n

Take Switzerland, for example.<\/p>\n

She completed her university studies. Then she got a job as a schoolteacher. And she later got married and had a child.<\/p><\/div>\n

\n

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

What to Do When Government Money Goes Bad First, they sold their car. Then, they downsized from a house to a small apartment. Next, they cut meat from their diets. And now, they skip meals to ensure survival. This is the story of Vanessa Posada and her husband Adolfo. They live in Venezuela. And their […]<\/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":[2,6,7],"tags":[951,15818,15819,6228,536,851],"class_list":["post-25102","post","type-post","status-publish","format-standard","hentry","category-economics","category-liberty","category-survival-2","tag-currency","tag-government-money","tag-greg-wilson","tag-international-man","tag-money","tag-venezuela"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25102","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=25102"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25102\/revisions"}],"predecessor-version":[{"id":25103,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25102\/revisions\/25103"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25102"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25102"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25102"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}