Venezuela: This Is What Hyperinflation Looks Like

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Venezuela Orders Currency Notes…and its people learn a valuable lesson.  An over-printed currency that is backed by assets of lesser value will create hyperinflation.

It’s not going to be pretty and it’s a fate that awaits all countries one day if things continue on the path they are heading.  After years of currency scarcity, the Venezuelan government answered the cries of its people and printed three 747 plane loads of its currency.  And I’m sure there is more to come as the citizens of Venezuela grab that currency and attempt to spend it immediately before it loses more of its value each month.
In some reports the inflation rate is over 200%.  This comes even after the country repatriated its gold from the United States.  The biggest culprit of the weakening “Bolivar” is the price of oil which is a major asset backing the Venezuela currency.  With oil dropping below $30 USD a barrel, when it was once over $130 means the currency value of Bolivar requires a stimulus.
This is what hyperinflation looks like.

Wall Street Journal reported that Venezuela’s central bank’s own printing presses in the industrial city of Maracay don’t have enough security paper and metal to print more than a small portion of the country’s bills.

This is what happens when massive amounts of new money are printed, the desire to hold cash balances shrinks to near zero.

Here is a fairly decent video explaining what is happening.

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Leslie Michael Jr. was born and raised on the Westcoast of British Columbia, Canada. He is a lecturer of Money Uncensored, a series of presentations designed for North Americans and people from around the globe to better understand the financial direction this world is headed and what they can do to protect themselves financially.

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