Venezuela's Hyperinflation Problem In Perspective

At the beginning of this month, Venezuela's opposition-dominated National Assembly released a report showing that the country's annual inflation rate increased to a mind-blowing 13,779 percent over the past year.

As Statista's Niall McCarthy notes, that corresponds with a projection made by the International Monetary Fund and visualized on the following infographic which shows that Venezuela's annual inflation rate will be more than 13,800 percent this year.

Infographic: Venezuela's Hyperinflation Problem In Perspective  | Statista

You will find more infographics at Statista

Steve Hanke, a professor of applied economics at Johns Hopkins University, has an even higher estimate. He claims that inflation rose by 16,000 percent over the past 12 months.

Even though Venezuela is oil rich, it's cash-poor and suffers from severe shortages of food and medicine. The government has not published inflation statistics since 2015 and critics have claimed this is an attempt to conceal the scale of the problem.

Venezuela's currency is worthless, a fact that can be clearly seen by the fact that a cup of coffee cost 2,000 bolivares a year ago. Today it would cost 200,000. Using the IMF's projections, the infographic shows how the situation compares to other countries.

 

Comments

Escrava Isaura A Sentinel Wed, 05/30/2018 - 04:55 Permalink

Inflation for ‘college educated’ dummies:

I was having breakfast with two friends in Brazil, a lawyer and an entrepreneur that owns a jewelry store and couple other business.

The entrepreneur friend was complaining that the orange juice, which was freshly squeezed, wasn’t sweet enough because the best oranges go to America. Her complaint was that, why don’t you Americans plant your own orange threes?

I told them it doesn’t work like that because we would need another Florida and we don’t have another Florida.

Then, Americans should drink something else she replied.

Again, I told her, it doesn’t work like that, and if you were to find out, there would be a revolution in Brazil before tomorrow morning.

The layer friend, I hate when you do this to us. I have no idea what you’re talking about.

I told her, look at this way; imagine that Brazil didn’t have oranges. Then you borrow some money in Brazil, go to Florida and buy half of the US oranges. What do you think would happen to the prices of orange juice in America?

The price of orange juice in America would double because you just took half of the US oranges to Brazil.  

However, the reality is the reverse. That’s why your juice doesn’t taste as sweetie while your oranges are more expensive.

 

Now imagine that after you sold the oranges in Brazil you declared bankruptcy.

You just took half of the US oranges for free, got it?

America financial systems are too powerful to let it happen to the American population.

Can’t say the same of the Brazilian financial system.

 

In reply to by A Sentinel

Escrava Isaura HRH of Aquitaine 2.0 Wed, 05/30/2018 - 06:14 Permalink

I was explaining to them John Connally’s “Dollar is our currency, but your problem" which you haven’t seem to grasp because most are so distracted by the indoctrination that they forget to research history.

This might help you overcome the endless clichés that's common by bloggers that don't have a clue:

United States would use the convertible financial system to trade at a tremendous profit with developing nations, expanding its industry and acquiring raw materials. It would use this surplus to send dollars to Europe, which would then be used to rebuild their economies, and make the United States the market for their products. This would allow the other industrialized nations to purchase products from the Third World, which reinforced the American role as the guarantor of stability.

A trade surplus made it easier to keep US armies abroad and to invest outside the U.S., and because other nations could not sustain foreign deployments, the U.S. had the power to decide why, when and how to intervene in global crises. The dollar continued to function as a compass to guide the health of the world economy, and exporting to the U.S. became the primary economic goal of developing or redeveloping economies. This arrangement came to be referred to as the Pax Americana, in analogy to the Pax Britannica of the late 19th century and the Pax Romana of the first.

http://en.wikipedia.org/wiki/Bretton_Woods_system#Dollar_shortages_and_the_Marshall_Plan

 

In reply to by HRH of Aquitaine 2.0

jmack HRH of Aquitaine 2.0 Wed, 05/30/2018 - 07:17 Permalink

And three states grow citrus.  Albeit Texas citrus production is a fraction of california or Florida.  Actually Arizona also grows a bit of lemons.

 

       You could have just told your friend she was an idiot, but you are an idiot, and probably think that she is smart.  https://qz.com/995218/europeans-and-americans-are-drinking-less-orange-…

 

   Next you will be posting how americans not drinking orange juice is a conspiracy to break brazil, just like venezuela was broken by the usa. 

In reply to by HRH of Aquitaine 2.0

shovelhead Escrava Isaura Wed, 05/30/2018 - 08:21 Permalink

You make a nonsensical comparison and then draw faulty conclusions from it.

 

"Now imagine that after you sold the oranges in Brazil you declared bankruptcy.

You just took half of the US oranges for free, got it?

America financial systems are too powerful to let it happen to the American population."

 

Please explain how you contract with Florida orange-growers to take their crop without payment?

Why would any "financial institutions" care about oranges and the desires of the American population?

All nonsensicals you present as a fait accompli when in reality these conditions are never present.

Quite a stretch even for a socialist. Nice story bro but could never happen. Tell your whiney bitch to go complain to the Brazilian orange seller and beat the American traders price for the crop. Nobody owes him shit.

 

In reply to by Escrava Isaura

MusicIsYou Wed, 05/30/2018 - 04:20 Permalink

Oh please, elites just made an example out of Venezuela, and it didn't really have to happen. They just wanted to show the world - look at what we can do if you don't play ball. Don't over analyze Venezuela, because there's plenty of countries in worse shape that haven't had hyperinflation.

pynky01 MusicIsYou Wed, 05/30/2018 - 11:31 Permalink

I grew up on the Orinoco River basin 50+ years ago...my ol'daddy was a petroleum engineer and we lived in a camp formed by a circle of barbed wire fence with armed Federales patrolling our perimeter ... on visits to the villages: you saw carcasses hanging in the open markets ie they have always eaten dogs and cats... you would see small children sleeping in doorways and bodies floating down the river, usually after a weekend... el poopo told the peasants to work for the "man" for 30 cents a day and give 15 to the catholic church...they complied under veiled threats of excommunication and living eternity in some place he called hell...the shakedown went on for decades... el poopo also told them that some god told him to tell them to populate the earth ie no birth control...so they had babies till they couldn't feed them ... and the parents by some method chose the child that would be thrown out on the street...a death sentence to many..NOW that the people of Venezuela need a few kind words from el poopo ...crickets.. except to push the socialist agenda... fuk el poopo ... during WWII in Rome there was a Jewish enclave that had been there for over 1000 years ... smart people that lived through the WWII period and afterwards said el poopo could have stopped the Nazis from rounding up these folks by simply walking out on his veranda, raising his arms in the air and say to the Nazis to stop and he didn't ...fuk el poopo and the madburro... FREE TOMMY ROBINSON.........NOW...

In reply to by MusicIsYou

MusicIsYou Wed, 05/30/2018 - 04:34 Permalink

Vote for the wrong people and your economy gets sunk like Venezuela.

That is why Guenther Oettinger, told Italy "the markets will lead Italians not to vote much longer for the populists". Elites can crash an economy whenever they choose.

I'm not the person who said economies are weaponized - Guenther Oettinger just said it. But I wouldn't expect it would register in the minds of the low IQ monkeys that call themselves human.

Dilluminati Wed, 05/30/2018 - 04:36 Permalink

This is what happens when some communist cocksucker says there will be free shit that doesn't exist, that makes all the real shit that exists worth much more than the imaginary shit that doesn't exist.

If you accept that too many debts chasing too few dollars = deflation

Then it only stands to reason that free shit that doesn't exist = inflation

The stupid cocksuckers, communists and the progressives: they fuck up what they don't shit on instead.

A Sentinel BritBob Wed, 05/30/2018 - 04:57 Permalink

Exactly that was missing from my insomnia.

More of your Falklands bullshit.

Please don’t stop. Stopping, you would make milliondollarbonus the most consistently lousy commenter. He definitely doesn’t deserve any award for anything.

By the way, here’s yours: 

💩💩💩💩💩💩💩💩💩💩💩

In reply to by BritBob

VWAndy Wed, 05/30/2018 - 05:19 Permalink

 At those number the MOE has a negative value.

  Its more trouble than its worth.

 Imagine you are in business selling shoes. You buy them in bulk. Say at a cost of ten per pair. You sit on them as long as you can. Because the cash value of those shoes is going up fast. Now if you barter them you can avoid that loss you will take holding the cash.

 Maybe someone can explain it better?

 

NoWayJose Wed, 05/30/2018 - 06:14 Permalink

OK, their coffee costs 100x more.

In the US, we had 5 cent coffee up until 1964.  Now a cup costs $5.00 at Starbucks.  Our hyperinflation just took a little longer so the masters could stay in control.

therover NoWayJose Wed, 05/30/2018 - 07:39 Permalink

I would look more at the raw cost of coffee per pound versus what it costs at a Starbucks as a better gauge.  Looking at some stats, from 1964 until today, it went up 5X. I could be wrong. My eyes aren't young in the early morning hours. 

$5 for a cup of Starbucks sludge ? If people actually pay that much for that garbage, they deserve it. 

Wasn't 1964 the last year silver was in the US dime, quarter, half dollar and dollar coins ? Hmmmmm...didn't the Romans debase the Denarious the same way ? 

However, your point is well taken. The masters are boiling the frog very slowly. 

In reply to by NoWayJose

To Hell In A H… Wed, 05/30/2018 - 07:11 Permalink

As the resident Africa expert, it is interesting to understand why South Sudan is on the list.  Who was the first country to recognise South Sudan as an independent nation? Which country did South Sudan recognise as an independent state? Which country has its claws in South Sudan, running the majority of the oil drilling and mining contracts? And guess what South Sudan rebelled against? South Sudan spoke out against the deportation of their citizens from a certain country and then BAM, currency comes under sustained attack. What a coincidence?

Next thing you'll know Faith Goldie, Laura Southern and Stefan Molyneux are Jews? Oh wait..... The average IQ fall for anything. Venezuela was vilified on ZH and I said they Maduro would win the election. Too many retards on ZH, simply do not have the capacity to research for themselves, nor to extrapolate future events. 

Venezuela is under attack by international finance, just like Italy is today and 100's of countries before that. Venezuela was fundamentally stronger under every economic metric than their neighbours Columbia, yet the money-changers crushed the Venezuelans financially and new NATO outpost vassal state Columbia just rides along.

Whether you despise communism, or socialism, or mulattoes, or Latin Americans, it is in the interest of every poster on ZH, to support Venezuela in their fight against the money-changers. Their fight is our fight, for we ALL SHARE THE SAME ENEMY. 

The enemy of Italy, is the same enemy of Venezuela, is the same enemy of South Sudan, is the same enemy that shoved its finger up the arsehole of Argentina a fortnight ago and the same enemy is owed $22 trillion in debt by the USSA taxpayer and rising. 

IT IS THE SAME FUCKING ENEMY! It is debt bondage all around for the peoples of the world and until we unite, we will be picked off one by one. Only a fool allows that to happen. Then again as i always say, none of the yokes will be thrown off by Americans first. The yanks are all mouth and keyboard warriors, divided and ruled and conditioned to fight the wrong enemy every single time. Since the war of independence the USSA has sided on the wrong side in 95% of their wars.

Wrenching Away Wed, 05/30/2018 - 11:14 Permalink

A few weeks ago, my 8 year old son said to me “Why does the government still make pennies Dad, when you can’t buy anything with them?”

 

To keep up the illusion son, to keep up the illusion.