Venezuela Orders Bank Notes by the Planeload
Source: MSN
CARACASMillions of pounds of provisions, stuffed into three-dozen 747 cargo planes, arrived here from countries around the world in recent months to service Venezuelas crippled economy, but instead of food and medicine, the planes carried another resource that often runs scarce here: bills of Venezuelas currency, the bolivar.
The shipments were part of the import of at least five billion bank notes that President Nicolás Maduros administration authorized over the latter half of 2015 as the government boosts the supply of the countrys increasingly worthless currency, according to seven people familiar with the deals.
And the Venezuelan government isnt finished. In December, the central bank began secret negotiations to order 10 billion more bills, five of these people said, 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 annuallydollars and euros that unlike bolivars are used world-wide.
Economists say the purchases could exacerbate Venezuelas economic meltdown: injecting large numbers of freshly printed notes is likely to stoke inflation, which the International Monetary Fund estimates will this year hit 720%, the worlds highest rate.
Read more: http://www.msn.com/en-us/money/markets/venezuela-orders-bank-notes-by-the-planeload/ar-BBp6pM9?li=BBnbfcN&ocid=HPCDHP
I've never seen such an incompetent leader of an economy as Maduro, maybe besides Mugabe in Zimbabwe.
From the article: A color photocopy of a 100-bolivar bill costs more than the note. In an image that went viral on social media, a diner is shown using a 2-bolivar note to hold a greasy fried turnover because it is cheaper than a napkin.
brooklynite
(94,700 posts)Just print a couple extra?
COLGATE4
(14,732 posts)with cold, hard cash. US Dollars.
cstanleytech
(26,317 posts)Republicans have their way.
FLPanhandle
(7,107 posts)and I doubt even the republicans are as incompetent as the current Venezuelan leaders.
cstanleytech
(26,317 posts)FLPanhandle
(7,107 posts)Bernardo de La Paz
(49,032 posts)I have a 5,000,000 Boliviano note (from Bolivia in the 1980s). That's five million Bolivianos. It was worth about $2 at the time, I think.
PoliticAverse
(26,366 posts)packman
(16,296 posts)was when I tipped a valet for carrying my bags to a rental car. I gave him a coin - 500 pesos - and still remember the look of disgust on his face. Later I found out that the going rate (this was way back when) was something like 1,000 pesos to a dollar. Later , at the hotel, I exchanged a hundred dollars for a bundle of pesos and was surprised at the amount the clerk handed over - and a few days later learned I got shortchanged.
TipTok
(2,474 posts)Children use notes of German money as building blocks during inflation...
joshcryer
(62,276 posts)But Maduro lives on the myth of Chavez and so can't risk it.
brooklynite
(94,700 posts)FrodosPet
(5,169 posts)Perhaps a palette of 500,000,000 Bolívar notes and 4 palettes of 100,000,000 Bolívar notes?
I need some TP and a loaf of bread.
Little Tich
(6,171 posts)Yo_Mama
(8,303 posts)I feel so sorry for the people.
"Not worth the paper it is printed on" is not a joke.