{"id":37363,"date":"2018-09-05T06:11:28","date_gmt":"2018-09-05T11:11:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=37363"},"modified":"2018-09-05T06:13:11","modified_gmt":"2018-09-05T11:13:11","slug":"paper-money-eventually-returns-to-its-intrinsic-value-zero","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=37363","title":{"rendered":"Paper money eventually returns to its intrinsic value \u2013 zero"},"content":{"rendered":"
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Paper money eventually returns to its intrinsic value \u2013 zero<\/a><\/h3>\n<\/div>\n
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In socialist Venezuela, the price of a cup of coffee has doubled every few weeks. The annual inflation rate could hit 1,000,000 percent by years end<\/a>. People can no longer afford food, but that\u2019s okay because there isn\u2019t any food to be found. South America\u2019s once wealthy nation has spiraled from secure and stable into an unimaginable state of hyperinflation. Venezuela is experiencing the results of government mismanagement, corruption, and socialist ideology. President Maduro\u2019s solution to the problem is to proudly lob three zeros off the hyperinflated Bolivar<\/a> and call it a \u201cmiracle solution.\u201d<\/div>\n<\/div>\n<\/header>\n
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View image on Twitter<\/span><\/a><\/p>\n
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Venezuela \"\ud83c\uddfb\ud83c\uddea\"<\/p>\n

Before\u00a0hyperinflation vs NOW!<\/p>\n

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At one time, Venezuela had the largest oil reserves in the world,<\/a> which provided steady revenues for the country and a good living for its citizens. Oil accounted for most of Venezuela\u2019s exports. Life in Venezuela was excellent. Then, in 1998, came President Hugo Chavez. Chavez used the abundant income stream to go on a spending spree as he instituted a large number of entitlement programs using the oil revenues. A strike in 2003 interrupted Chavez\u2019s plans and caused the GDP to crash by 27 percent in just four months. Chavez began nationalizing industries and instituting price controls, which was the beginning on Venezuela\u2019s inflationary spiral as Venezuelans developed a reliance on their government for products and services.<\/p>\n

The price of crude oil plummeted in 2014, and the economy shrank by 30 percent. Oil revenues, in the form of U.S. dollars, were dwindling, and Venezuela was unable to continue importing necessary goods. These days, in 2018, stores are empty as people attempt to survive on dealing through the black market.<\/p>\n

Venezuela is printing currency at the speed of a copy machine. The more money that is injected into circulation, the more it becomes devalued.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Paper money eventually returns to its intrinsic value \u2013 zero In socialist Venezuela, the price of a cup of coffee has doubled every few weeks. The annual inflation rate could hit 1,000,000 percent by years end. People can no longer afford food, but that\u2019s okay because there isn\u2019t any food to be found. South America\u2019s […]<\/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":[18902,18792,413,426,1100,851],"class_list":["post-37363","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alex-deluce","tag-gold-telegraph","tag-hyperinflation","tag-inflation","tag-paper-money","tag-venezuela"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37363","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=37363"}],"version-history":[{"count":3,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37363\/revisions"}],"predecessor-version":[{"id":37366,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/37363\/revisions\/37366"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}