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The Hyperinflationary Endgame: Venezuela Currency Crashes 15% In One Day

The Hyperinflationary Endgame: Venezuela Currency Crashes 15% In One Day thumbnail

Just last week we were amazed to report that the Venezuela currency, the Bolivar, had crashed below 2,000 for the first time ever, losing 50% of its value in just two months as the Venezuela hyperinflation had entered its terminal phase.

As of this morning, the website, maintained by a person the WSJ dubbed “Public Enemy No. 1 of Venezuela’s revolutionary government, Gustavo Díaz, a Home Depot Inc. employee in central Alabama” reports that having crossed the psychological 2,000 level just one week ago, the Bolivar has just plunged to a new all time low of 3,480.22 on the black market, dropping by 15% from its latest print of 2,972 reported on Friday of last week, and has lost 60% in its value just in the past month.

So for anyone still curious what hyperinflation in real time looks like, here is the visual answer.


11 Comments on "The Hyperinflationary Endgame: Venezuela Currency Crashes 15% In One Day"

  1. Davy on Mon, 28th Nov 2016 11:55 am 

    “Can An OPEC Deal Save Venezuelan Oil From Total Collapse?”

    “The government of Venezuelan President Nicolas Maduro is hoping it will soon get some relief. China has decided to invest $2.2 billion into Venezuela’s decrepit oil sector, in exchange for a larger share of the country’s output. By some estimates, China has dumped $65 billion into Venezuela over the past decade, making the South American country too big to fail for Beijing. Venezuela has been paying that toll back in oil, earmarking some 550,000 barrels per day in output for China. But the latest deal will bring that obligation up to 800,000 barrels per day.”

  2. joe on Mon, 28th Nov 2016 4:55 pm 

    How not to manage an economy. They like to blame Chavez but this has been going on long before him. Venezuela is the story of oil. This is the likely fate of the other oilistans and sooner than we think.

  3. Bob Inget on Mon, 28th Nov 2016 5:02 pm 

    What Davy said..
    Plus: Where oh where do you think that extra 250, barrels a day will come from ?
    Every Wednesday when EIA releases it’s 11:30
    INVENTORY report we see oil prices dropping
    11:31 because of extra imported spec oil.(the next repore, 12:00 THURSDAY) on account of Thanks.

    Because Venezuela is so close, we will begin to notice storage diminution somewhat quicker then
    Mid East cuts if those come at all.
    China, BTW has lent this kind of money to All
    oil producers. $65 Billion is a good match considering Venezuela’s massive reserves…

  4. Go Speed Racer on Mon, 28th Nov 2016 8:04 pm 

    Buy stock shares in wheelbarrow factories..
    To buy a load of bread, they will need to
    push their cash around in wheelbarrows.

  5. brough on Tue, 29th Nov 2016 4:15 am 

    If there was one certainty in an ever increasingly uncertain world, it was that the Venezuelian economy was going to crash.
    The big question is, what happen next and if it takes anyone else down with them.

  6. Hubert on Tue, 29th Nov 2016 5:33 am 

    America will look like Venezuela in few years. Time to leave.

  7. Davy on Tue, 29th Nov 2016 5:52 am 

    Hubert, which America? You do realize America spans a continent or are you just generally pissed off. Where am I supposed to go if I am supposed to leave? LOL Philippines? Unless you get more specific you are just showing your intellectual laziness.

  8. Ross on Tue, 29th Nov 2016 6:00 am 

    The majority of people of Venezuela brought this huge problem to them selves voting freely for the wrong presidents for years

  9. makati1 on Tue, 29th Nov 2016 6:37 am 

    Hubert, you are going to irritate the ‘blindly patriotic’ Amerikans on here. Even though you are correct. lol

  10. Davy on Tue, 29th Nov 2016 7:39 am 

    Lol, more like those blind to facts will be irritated by being forced fed reality.

  11. Cloud9 on Tue, 29th Nov 2016 4:11 pm 

    I have two Zimbabwe bank notes. I have a one dollar note printed in 2007 and a fifty trillion dollar note printed in 2008. The lesson here is that when things start to go parabolic, money dies in about 24 months or less.

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