joether
Posts: 5195
Joined: 7/24/2005
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quote:
ORIGINAL: Sanity
At least they can use their bolivars for toilet paper
(Which they have trouble keeping on the shelves)
(Along with many other basic goods)
quote:
Currency tumbles as Venezuelans look to unload bolivars
CARACAS, Venezuela (AP) — Venezuelans are dumping their rapidly depreciating currency at an ever quicker pace as the crisis-plagued economy edges dangerously close to an outbreak of hyperinflation.
DolarToday, a widely followed website that tracks exchanges made near the Colombian border, reported Friday that the bolivar had lost a quarter of its value over the last seven days.
Everyone in smartphone-obsessed Caracas seemed to learn of the crash at the same time as the DolarToday app, a ubiquitous tool in the South American country, sent out a series of messages announcing the new rates under the headline "hyperinflation!"
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DolarToday is openly hostile to the socialist government and frequently picks up articles attacking the administration. But the site insists its exchange-rate reports are based on actual trades at the border and are not manipulated to undercut the government.
In April, Maduro repeated his assertion that the site's shadowy managers, whose identities are not public, are collaborating with the speculators and opposition leaders he blames for the country's problems. He accused them of purposely sowing chaos and promised to have them arrested.
"We're going to put those people at DolarToday who are waging an economic war against Venezuela behind bars sooner rather than later" he said.
The site, which is sometimes blocked within Venezuela, responded with a cheeky video documenting its popularity set to the club hit "Turn Down for What."
If they were smart, they would embrace capitalism again 
Hyperinflation can hit....*ANYONE*.....including the United States of America. Which is why it takes a number of mathematicians and economists to put in a heavy amount of work to make adjustments to an economy. Consider it like a giganitc box that is three hundred feet on a side (a metaphor). On each side are thousands of nobs, gauges, and buttons. During normal times, its easy to just walk around and make adjustments here and there; the whole thing flows nicely. When things get out of control, people are running every wich way to make corrections. Unfortunately no one is checking with each other; so somethings do two opposite processes and create five new problems. No one wants to shut the machine down for a reset because that is bad. So the question becomes: At what point is it better to shut the whole machine done, rather than let it spiral out of control (i.e at one point is it doing more damage than a shutdown would?)?
Recessions, Depressions, and 'bad times' world in similar ways to that metaphor.
That you want to harp on a socialistic country is nothing new either. You view that capitalism is the only economic system to have in a nation. Yet, you too have no come up with an effective way to handle the fatal flaw of capitalism: Greed.
Sounds to me that the culprit to all of this is some app produce by DolarToday. Its not unheard of, of a group using technology to undermine economic prices in a geographical area. Unless DOlarToday is make a political bid to undermine a whole nation; they are in major trouble. Not from a pesky lawsuit either. That country will want some 'payback' in the form of blood. Anyone associated with DolarToday better make themselves as scarce as possible for the next fifty years!
While your happily trashing the nation Sanity, don't let anyone point out the obvious to you. That's of the oil market. Venezuela is the second largest supplier of oil in the world. Their economy gets fucked up; it does effect things down the road to other groups and nations that depend on that oil. Their markets could get screwed up, which could effect other groups and nations. In your glee to hate on some socialistic nation, you really didn't stop to consider the ramifications of possible events that could unfold over the next few days, weeks, months and possibility years. Hard to say, but this could even effect the United States (whom last I checked was a regulated form of capitalism).
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Stand back folks - Marxism at work - 
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