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.
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.