Venezuela Throws In The Towel On Hyperinflation: Will Print 200x Higher-Denominated Bills

Zero Hedge ^ | 10-27-16 | Tyler Durden

[dynachrome]

Venezuela’s government, slammed by hyperinflation has finally thrown in the towel, and is planning to issue new bills in December with larger denominations—up to 200 times higher than the current biggest bill, according to people familiar with the plans. The move marks an implicit acknowledgment by the government that skyrocketing prices have slashed the value of the currency

The new coins and notes will go up to 20,000 bolivars, according to people close to the central bank, the finance ministry, the country’s banks and bill suppliers. This would make the biggest note worth $15 on the black market.

And since by doing so the government will tacitly admit that it has lost control over prices, It will also create a self-fulfilling prophecy of even higher prices, sending the country's hyperinflation into overdrive.

[smokingfrog]

Let's see.... Do I have enough for a loaf of bread?

[VanDeKoik]

Turn the nation to Bitcoin and actual gold.

It isnt like this fiat crap is going to work anyway.

[Don Corleone]

Back in the 1930’ Hitler had to do the same thing as his currency tanked. The overprinted postage stamps for example 5 marks were overprinted as 50 marks etc. It was cheaper to overprint than make new stamps and the overprinting was only a temporary cure. Nothing new under the sun it seems.

[PGR88]

What to do when you paint yourself into a corner?

Destroy the walls!

[SaveFerris]

]This time, it will work!]

Good one.

It will, if one believes Obama and Hillary; which many fools do.

Or they really THINK it will work. Hope. Change. Depression. Global Economic Meltdown. Antichrist.

[hal ogen]

Our corrupt government will just print one trillion dollar bills and give them to the creditors. Good luck getting change.

[M Kehoe]

Feel the Bern.

5.56mm

[LucyT]

Check out article and # 20.

Thanks, SaveFerris.

[ctdonath2]

Print how? They have to outsource manufacturing their currency, and nobody will take the job because the money is worthless.

[Dallas59]

TAKE WHAT IS RIGHTFULLY YOURS! THE OWNERS ARE SELFISH IMPERIALISTS!

[stylin19a]

I’m guessing they could invest in Zimbabwe.

[SaveFerris]

[ Let's see.... Do I have enough for a loaf of bread?

]

We're not at Revelation chapter 6 just yet -- but the world is turning that way (in some places) -- or so it must feel to those poor people. For lurkers, a penny represents a day's wage - IOW, work all day for a loaf of bread to eat - for a day.

Revelation 6:6 King James Version (KJV)

6 And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.

[VTenigma]

They are already obsolete as Venezuela doesn’t have the money to have the new bills printed.

[ptsal]

My first guess is Harvard, Yale, Berkeley, Minnesota....

[SaveFerris]

It’s 1929, 1933 and 1938 all converging.

[PAR35]

Wonder what school of economics their Finance Minister graduated from.

The Robert Mugabe college of Marxist theory.

[Red Badger]

Zimbabwe West................

[PAR35]

No, it was the socialist Weimar Republic guys that caused the hyperinflation. Hitler was the solution to that problem.

[Jack Hammer]

If hillary is elected, it won’t be long before a pay telephone call costs a thousand bucks.

Bet the farm on it.

[Nip]

A bit of history.

What was Zimbabwe before it became Zimbabwe?
That’s right class - Rhodesia!

What was the currency of Rhodesia?
That’s right class - the Krugerrand.

Finally, how much does a 1985 Krugerrand list for on EBay?
$ 1448.
The one hundred trillion dollar Reserve Bank of Zimbabwe list for on E-Bay? 30 cents.

Got to love it when socialist take control of the economy.