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Picturing Venezuela's Surreal Prices
Venezuela's economic crisis has led to some shocking and surreal price distortions that hit people's buying power dramatically. While the government of President Nicolas Maduro calls the country's minimum wage of Bs. 4,252 the highest in the region when converted to $675 using the official exchange rate, the galloping black market for currency considers it as just $42.50 when converted at the street rate of Bs. 100 per US dollar, the rate which many importers and retail outlets must use to acquire hard currency. Venezuela's annual inflation rate of more than 63 percent is the highest in the Americas, according to official statistics.
A box of 36 coloured pencils as photographed in a studio with an illustrative price tag of $115 (US dollars), equivalent to the Bs. 725 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A Goodyear brand automobile tyre as photographed in a studio with an illustrative price tag of $753 (US dollars), equivalent to the Bs. 4,750 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
An aluminium pressure cooker as photographed in a studio with an illustrative price tag of $507 (US dollars), equivalent to the Bs. 3,200 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A five-gallon bucket of house paint as photographed in a studio with an illustrative price tag of $528 (US dollars), equivalent to the Bs. 3,329 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A can of Coca-Cola as photographed in a studio with an illustrative price tag of $5.56 (US dollars), equivalent to the Bs. 35 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A pair of Stanley brand household pliers as photographed in a studio with an illustrative price tag of $121 (US dollars), equivalent to the Bs. 765 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A Samsung 32" plasma TV as photographed in a studio with an illustrative price tag of $5,476 (US dollars), equivalent to the Bs. 34,500 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A kilogram (2.2 lbs) of raw carrots as photographed in a studio with an illustrative price tag of $19.05 (US dollars), equivalent to the Bs. 120 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
An Adidas Adipure Crazy running shoe as photographed in a studio with an illustrative price tag of $1,198 (US dollars), equivalent to the Bs. 7,547 (bolivars) a pair of them costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A Big Mac as photographed in a studio with an illustrative price tag of $14.60 (US dollars), equivalent to the Bs. 92 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A locally produced bath towel as photographed in a studio with an illustrative price tag of $136 (US dollars), equivalent to the Bs. 859 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A hair dryer as photographed in a studio with an illustrative price tag of $697 (US dollars), equivalent to the Bs. 4,392 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A Barbie doll as photographed in a studio with an illustrative price tag of $194 (US dollars), equivalent to the Bs. 1,226 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A household broom as photographed in a studio with an illustrative price tag of $24.60 (US dollars), equivalent to the Bs. 155 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A 50 lb. (22.7 kg) bag of Purina Dog Chow as photographed in a studio with an illustrative price tag of $272 (US dollars), equivalent to the Bs. 1,716 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
A 75-watt incandescent light bulb as photographed in a studio with an illustrative price tag of $13.51 (US dollars), equivalent to the Bs. 85.12 (bolivars) that it costs on average to purchase in Caracas at the official exchange rate of 6.3 bolivars per dollar, in Caracas September 29, 2014. (Photo by Carlos Garcia Rawlins/Reuters)
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I could affort the hoiusehold broom :)
They live in interesting times resulting from heinleinian "bad luck" We need more Latin American style voters up here, so we can get a taste of such excitement.
Get ready, we will see these prices!
I give it 8 years, for 2 doublings. Inflation 18% per year will get you there. Quadrupling of prices in 8 years.
Someone is getting punished for asking for and getting their gold back.
what is gold and silver going for down there?
Those prices make we want to fill that pressure cooker up some KNO3 + fertilizer.
How much is a bj, in $?
Always a good matric to use.
Its "BLOW-JOB" - its OK to spell it out and not to be embarrassed. :-)
But even that is kind of a misnomer. There really isn't any blowing going on.
What about calling it the "no-handed meat pole pushup?"
pods
Thanks pods, appreciate the levity. No pun intended.
Is it one word or two? Easier to use BJ on the Thank You card
...its OK to spell it out and not to be embarrassed
Says the guy with a paper bag over his head.
[duplicate comment adjusted]
-mom
And move to Boston?
The new guy doesn’t steal shit as well as the old dead guy.
The new guy doesn’t steal shit as well as the old dead guy.
The new guy doesn’t steal shit as well as the old dead guy.
Congrats on the triple-play.
The whores must be raking it in?
Hmmm, $115 for a box of pencils, or................
pods
Good luck with your projections. Inflation doesn't stay at 18% for long, it either gets a lot lower or much higher and does it quickly. Still you have to love a fiat currency that is referred to as Bs. Refreshing honesty.
We all live in interesting times. Venezuela is just very progressive.
Hopefully people there followed ZH and bought all the gold and silver they could get their hands on before the currency went into the crapper.
This is why I own silver and gold.
Gold?
Isn't that the really pricey shiny stuff?
Shit.... Would hate to see what it costs for a roll of toilet paper.
They will be using Barbies
A good time to labor on your own account in that country. I.E. Grow own food.
So... go long tires, towels and tv's.
edit: add TP to that list.
$136 for a generic bath towel? Phuck, I wonder how much I can get a designer spiderman towel for?
You can still get the Ben Affleck Gigli movie designer towel for $9.95
Yes, 6.30 bolivars make 1 dollar and I weigh more than Shaquille O'Neal
No actual dollar bills were harmed in the production of this article.
coming soon to a neighbourhood near you
This basically shows that the black maket currency rate is pure bullshit and the product of panic.
Reading comprehension isn't your strong suite. You got it backwards. This shows that the OFFICIAL rate is bullshit, because these are what the goods would be priced at in dollars if the official rate was correct.
So you consider $131 for a bath towel and $272 for a sack of dog food to be the "correct" prices? Is that what they sell in your local mall (wherever that might be)? I think I have a bridge to sell you.
It would be if my country was currently in a hyperinflationary death spiral. Fortunately I (think I) have a couple years left to prepare before my local mall IS selling things at those prices.
Can't all Venezuelans get subprime loans at near zero interest rates? That has worked so well for the US auto market.
Surviving on dogfood is not an option it seems.
No, but eating your dog is still an option.
will help strengthen usd
no one will want to hold bolivars ... get me some benjamins
All this stuff is just stuff. But you have to feel bad for the dog. Will he eat?
He will either eat or be eaten...
If the dog is smart..all he has to do is wait until his owners die of starvation and he can eat his owners....
it's only clown bolivars
Take all imports and multiply the price by 3 and I think that is where we will be soon. That 37 inch TV at costco for $300 will be $900.
Wow, they can still buy incandescent light bulbs.
Viva La Revolucione!
Itchy and all,
It disturbs me that so many on ZH are taking glee from Venezuela's plight. It's as though y'all somehow can't put all the pieces you're uncovering together on this site into a bigger picture. Maybe it's the word "socialism" that clouds your minds. Or you're desperately clinging to some last vital piece of dogma from your Econ 101 religion class.
The fundamental power-shift in Venezuela occurred when the US tried to organize a military coup to overthrow the nationalist government of Hugo Chavez, and the junior officers and rank and file troops rebelled, forced his release and restored him to the presidency. They will not be forgiven for that! But all attempts to destabilize that government since (including many believe the murder of Chavez) or to organize a color revolution have so far failed.
The efforts of the socialist-led government to stabilize what is essentially still a capitalist economy against the economic warfare being waged on it are failing. If the issue is socialism vs. capitalism, we know the core ZH readers are capitalists. We all want to be right, and I understand your enjoying this.
But if what's really at stake for the world in this moment is the Empire vs. the Russian/Chinese led campaign for a de-dollarized multipolar world, perhaps you're cheering for the wrong team!
Or maybe those colored pencils correctly reflect the real value of the USD.
Clever.
I hear you, WW, and in part I agree with you. But what I find unacceptable is that the likes of Chavez and now Maduro fail to comprehend that - if you really want to help the poor of your country - you do not suck your prosperous sectors dry by nationalising them, you do not impose cockamamie ideas as to the selling price of goods and you should continue to invest properly in the infrastructure of what reinforced your country economically, hence socially. And yes, private entrepreneurship remains instrumental in serving that purpose.
These leaders are just creating an economic desert - true, not all of it is their fault or own doing, just as the current mess in Argentina is not all due to the policies of Kirchner - but all their current decisions only spell disaster.
You don't really think they want to help the poor, do you?
Or maybe they do but it comes after "gouging my own eyes out with a rusty ebola spoon" on their priority list...
Norway successfully nationalized their oil industry and hardly "sucked it dry" on the contrary "The Norwegian Experience" is a model for the third world, but not one that the oligarchs find appealing.
If a pair of shoes costs $1,200 is the average life expectancy of a runner measured in years or milliseconds?
Gallup: Voter opposition to Obama at 16-year high, worse than Bush, Clinton | WashingtonExaminer.com
Since when did people matter in the land of the free? 93% want GMO foods labeled but they do not have that. Besides, water is still being poisoned with Fluoride in America even as Israel has completely banned the neurotoxin Fluoride.
Even the rich cant afford those prices..
At those prices, everybody is poor.
Challenge to BRICS. Help Venezuela restructure, or admit that third world countries are still at the mercy of the dollar.
This will require some serious hard bargaining, and Venezuela may be a tough case, but the stakes are Venezuela's independence from the Empire of the Dollar - and the possibility of any other country breaking free.
Argentina still hasn't decided to make the break. You can bet they are watching the drama in Venezuela closely!
Venezuela has had its gold returned and is an exporter of oil.
Don't see how that's not attractive to any dev. bank, IMF or Brics.
IMF hasn't showed any visible interest. Question is why not? Only explanation can be that US and IMF decide to stay out of there because they want to get it cheaper. IMF cabal is the same cabal that owns the US.
Let's hope Brics dev bank goes in and Venezuela gives the cabal a couple middle fingers.
Wow, tax revenues must be way up!
/s
[moved by author]
It's clear the price of the pressure cooker is for the safety of everyone.
and the price of the colored pencils is set high enough to keep children from buying them with their allowance. It's for the safety of the chillens.
They're too pokey.
SABATOGE! SABATOGE!.
How could Glorious 21st century Socialism fail. It's not like it's regular Socialism or something it's 21st F-ING CENTURY SOCIALISM PEOPLE!
The black market and official rate are not important in the price illustrations, what is important is what it costs in local wages for a local worker. It seems that both local and imported products are very expensive according to local wage levels.
Not locally made as they would be dependant on wages paid locally. Much business in Venzuela has an European history and gradually nationalizing them will remove the unfair European tactics to bring home high profits as they exploit the developing economies, such as Venezuela.
No price for toilet paper, I guess it still isn't available.
Nobody uses toliet paper they just use the old flyers and posters with Chavez's face on them. They have billions of them after all.
The purchasing of US made items, is something the Venzualians have to learn to live without. Any smart entrapeneur will find ways to solve the import problems with made locally or doing something needed with a different method. The Socialistic government is concerned with the citizens well being, health, music access and othe educational and creative activities. Soon the Chinese will be there to help harvest their oil resources and develop a trade partnership where both benefit, not the US trade policies that discourge local manufacturing, agriculture and educational activities, but only the military ones so they can get hooked on arms from the US. Luckily Ecuador, Bolivia and Honduras are avoiding the US trade treaty Trap. It makes me so angry when we treat our southern neighbors so poorly.
Was thinking along the same lines. What's the price of domestically manufactured goods from a domestic company?
Prices coming to a grocery store near you when the petrodollar collapses.
Ha, stupid Argentinians.. Our government is too smart to ever print away its currency or get in debt it cannot service. We are special and will soon be entering Deflation as we are so terribly responsible, we laugh at velocity and especially the psychological component of hyperinflation. Our government is so smart it made our people so dense it can never happen here..
Shit I am not sure if I am in sarc territory or not anymore...
who cares about dollar cost? what is the price in yuan?
How much do las putas cost?
If I were Pres, I would conquer Central America & Venzuela, recycle the millions of socialist parasites, gang bangers, compessinos etc, partner with the domestic intelligent educated productive people to set up cooperative governments, and dominate the oil industry. Much better investment than pissing away soldiers & $$$ in the islamic mideast.
At $4/carrot, stop growing coco leaves. (sugestion to Venezuelian drug farmers)
Wrong country. Boliva grows cocoa leaves. Venezuela is just a transit nation.
Carrots at $4 still seem a better choice for any form of business. At that price, I will become a farmer.
At 4$ a carrot, start smoking them.
By the look of it, Chavez's cancer was contagious.
Yep...I see a lot of people fighting cancer, especially in the U.S.
who dumb to buy color pencil when with a computer you can do billion color o_O
I always have trouble getting the colors to stick to the screen.
I have some Venezuelan family visiting with me right now. They say their number one concern is personal security. As you can imagine rising prices and criminal activity rise proportionately. At this point the entire country is almost paralyzed with fear.
A true story: Last Thursday my Venezuelan mother-in-law passed away. The viewing and internment followed on the same Saturday. The cemetery was so busy that they had to hold the viewing in the basement. Well wishers were a little upset by the treatment until they found out that the other burial parties were robbed at gunpoint.
I've seen enough thanks.
My new postal delivery specialist is hot as fuck!
I wonder if she will accept bolivars for head!