In a worthless attempt to halt hyperinflation, Venezuela Deletes Three Zeros From Its Failing Currency.

Socialist Venezuela is going through a crisis that has left people struggling to pay for food and find medicines. Prices are being influenced by a black-market exchange rate that rises by the day and is currently five times the nearly inaccessible official rate.

President Nicolás Maduro late Thursday briefly outlined his monetary rescue plan. In a country where a dozen eggs can cost 250,000 bolivars ($5) amid worsening inflation, he would chop three zeros off the currency — arguably bringing the price for those eggs down to 250.

By June 2, under Maduro’s plan, new bolivars with lower denominations would be circulated — but old ones, with denominations as high as 100,000, would remain valid. It would leave vendors charging two prices — one for old bills, the other for the redenominated bolivar.

Empty Shelves

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Merchants are arrested if they charge too much for food. The result is no food.

Loot or Die

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The Guardian reports 'We loot or we die of hunger': food shortages fuel unrest in Venezuela.

  • During the first 11 days of January the Venezuelan Observatory for Social Conflict, a Caracas rights group, recorded 107 episodes of looting and several deaths in 19 of Venezuela’s 23 states.
  • On Margarita Island dozens of people waded into the ocean and forced their way aboard a fishing boat, making off with its catch of sardines
  • In the city of Maracay, just west of Caracas, thieves broke into a veterinary school, stole two pregnant thoroughbred horses and slaughtered them for meat.
  • A recent video from the western state of Mérida shows a group of people cornering a cow before stoning it to death as bystanders yell: “The people are hungry!”
  • Price controls designed to make food more widely available to poorer people have had the opposite effect: many prices have been set below the cost of production, forcing food producers out of business.
  • in the western city of Maracaibo, residents recently swarmed into the streets, stopped two trucks filled with flour and candy, and emptied them.
  • “We either loot or we die of hunger,” one of the looters, Maryoli Corniele, told Diario la Verdad, the local newspaper.

Meaningless Zeros

Here's the Zimbabwe 10 trillion dollar note.

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Taking zeros off or adding them as Zimbabwe did will not stop hyperinflation.

Venezuela is a prime example of socialism carried to the logical conclusion.

Mike "Mish" Shedlock

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