Hyperinflation

"This Is Total Chaos" - Venezuela Shuts Colombia Border To Stop "Mafia" Currency Smuggling

As if things were not already chaotic enough in the socialist utopia of Venezuela, following President Nicolas Maduro's decision to follow Indian PM Modi's playbook and announce that the nation's largest denomination bill (100-Bolivars - worth around 3c) will be pulled from circulation in 72 hours, he has tonight closed the border to Colombia to crackdown on currency smuggling by so-called "mafias".

Here's What Happens When A Currency Completely Breaks Down

But regardless of the form, money is only credible as long as everyone agrees that it has value, i.e. there’s a large enough market size of people willing to use it. This fundamentally comes down to trust and confidence. But Venezuela’s example shows how quickly that very thin veneer of trust and confidence can shatter, plunging a country into chaotic hyperinflation.

Mugabe's "Last Gamble" - Zimbabwe Unleashes Newly-Printed 'Bond Notes' Pegged To The Dollar

One might think that after 92 years, some wisdom may have leaked into the brain of Zimbabwean president Robert Mugabe. But no. As the world's oldest head of state, he has overseen the demise from a post-colonial success to a pariah state wrecked by hyperinflation. However, having apparently learned no lesson from his prior experiences, The Reserve Bank of Zimbabwe has decided to print a new national currency for the first time since 2009.

As Maduro Seeks "Best Relations" With Trump, Meet Venezuela's Currency Crisis' Arch-Nemesis

The value of the Venezuelan Bolivar has crashed by 50% in the last two months, breaking above 2000/$ on the black market today for the first time ever. We know this thanks to Gustavo Díaz, a Home Depot employee in central Alabama, who runs one of Venezuela’s most popular and insurgent websites, DolarToday.com, which provides a benchmark exchange rate used by his compatriots to buy and sell black-market dollars.