Bolivars on a plane!

Actually, according to the WSJ, 36 cargo planes of the Venezuelan currency has been shipped to Venezeula in recent months.

See, when your inflation rate is somewhere between 300 and 700%, the domestic printing industry (like most other industries in Venezeula) cannot meet the government’s demands.

“The 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, the people familiar with the matter said. Their difficulties stem from the same dollar shortages that have plagued Venezuela’s centralized economy, as the Maduro administration struggles to pay for imports of everything”

And, as is customary in these Latin-American inflationary spirals, things are heating up even more.

“In December, the central bank began secret negotiations to order 10 billion more bills”

You may ask yourself, didn’t the opposition win a super-majority in the legislature? How come these Chavista shenanigans are still going on?

Well……

“The president in late December changed a law to give himself full control over the central bank, stripping congressional oversight just as his political opponents took control of the National Assembly for the first time in 17 years. “

Here is a snapshot from the WJS about the evolution of prices of consumer staples in Chavezlandia over the past year:

 

Screenshot 2016-02-04 07.27.41

People, repeat after Angus, “The rule of law is mighty #@$% thin reed”

 

 

 

 

One thought on “Bolivars on a plane!

  1. Adding to this (according to The Economist) is that the largest bill printed is something like 50 Bolivares. The government appears to assume that inflation can’t get too high if it doesn’t print large bills.

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