DEVALUATION: Socialist Venezuela Just Took Five Zeros Off Their Currency

Economic chaos as socialism ruins another country.

Venezuela’s socialist dictator Nicolas Maduro says he has a “plan” for the economy.

He doesn’t.

All he and the socialists have left are harebrained schemes and incompetent ideas that are so dumb, they would be funny if not for the serious human toll of Venezuela’s economic collapse.

Their latest ‘brilliant’ move to deal with the worst hyperinflation on earth?

Take five zeros of the Bolivar and tie it to a cryptocurrency widely viewed as a scam.

The move represents a 96% devaluation of the Venezuelan Bolivar. Whereas it once took 285,000 Bolivars to equal 1 US Dollar, now it takes 6 million Bolivars to get 1 USD.

Amazingly, the socialists also announced a minimum wage hike and an increase in business taxes.

Of course, when a currency is experiencing such massive hyperinflation, things like minimum wages become increasingly meaningless, as currency loses any real value. And businesses are already collapsing, so a tax hike will just make it worse.

1.5 million people have also fled the country.

Insanely, the socialists are trying to peg their so-called ‘Sovereign Bolivar’ (not to be confused with the previous ‘Strong Bolivar’) to the ‘Petro,’ a cryptocurrency widely viewed as a total scam.

“They’ve dollarized our prices. I am petrolizing salaries and petrolizing prices … We are going to convert the petro into the reference that pegs the entire economy’s movements,” said Maduro.

But, as noted by CNBC, economics professor Steve Hanke says this all won’t make a difference:

“Linking (the) new bolivar to the petro is a scam … Appearances change, but, in reality, nothing changes. That’s what’s in store for the bolivar: A facelift.”

Socialism ruins yet another country. And considering that Venezuela has the largest oil reserves on earth, it just goes to show that no country is safe from that destructive ideology.

Spencer Fernando

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NancyW
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NancyW

I wonder how close Trudeau Butts and Maduro are, same kind of people, Maduro liked Castro too. Sadder is the Venezuelans who were living in tents in Brazil are being burned out along with their meager possessions and chased back across the border to their own country, as Brasil’s north is poor and they were already asking for help, and as more people arrived they could no longer help the Venezuelans, so Brazil has sent their military there, not to help their own people but the Venezuelans, taking them south to immigrant centres, Columbia cannot take more in so closed… Read more »

Del
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Del

No country is safe from that destructive ideology promoted by Liberals, Democrats and the NDP.

NDP income tax – long form:
– How much money did you make last year?
– Send it in.

Liberal tax form:
– How much did you have left after taxes last year?
– Calculate the Trudeau / Horgan carbon tax and send it in.

Wendy Lush
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Wendy Lush

Top photo: this guy Maduro looks like he could be Trudeau’s half-brother.

Bernard Hutchinson
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Bernard Hutchinson

I hope those Venezuelians are not coming to Canada, b/c it won’t be long & Canada will be just another socialist collapsing country with Trudeau at the helm!

Jen
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Jen

Canada … Sorry, I meant Socialist dictator terrorist supporter Justin is on road to destroying our economy, our Canadian culture and values. Jobs for Canadians who follow our rules will lose their jobs their business to others who follow jihadi trudeau’s values.
As jihadi Justin already said on every occasion ‘ that Canadians are racist’.

Catanddog
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Catanddog

And neighboring countries are overwhelmed with fleeing socialists who voted for all of this. And would again. That is what is so disheartening. Free stuff trumps reality.

Wendy Lush
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Wendy Lush

Here is a country with massive oil reserves yet the economy is in free fall.. Talk about mismanagement. Could it be because of their power-hungry socialist ideologue leader?

For Canada, Venezuela is the “canary in the coal mine”.