Venezuela's Currency Is Dead! The Rise Of A New Fake Currency?
It's been a while since I've been writing, but I've finally managed to get some time as I am lost up North in Manitoba his week for work. I thought I'd give you an update on the state of Venezuela.
The IMF recently came out with a report saying that inflation in Venezuela has the chance to reach as high as 1,000,000% this year. By looking at the official exchange rate of the Bolivar Fuerte, the current number is 248520 Bolivares to 1 USD. The real inflation is about almost 628,685,741.86% in the free market aka. The black market as I will explain below.
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Venezuela introduced a new currency, the sovereign Bolivar, on August 20th, 2018, in an attempt to curb hyperinflation and economic crisis in the country. The new bolivar is anchored to the Petro, an oil-backed digital cryptocurrency launched in February. The exchange rate of the Petro cryptocurrency is fixed at $60, or 3,600 redenominated bolivars. President Nicolás Maduro announced on August 17th. At the same time, the bolivar was devalued by near 96% from the current rate of 248,520 per USD. To compensate for the devaluation, the President also announced a massive 3500% rise in the minimum wage to half a petro (1,800 sovereign bolivars), starting from September. It represents the fifth rise in minimum wages this year. Historically, the Venezuelan Bolivar reached an all-time high of 248520.90 in August of 2018 and a record low of 0.05 in January of 1989.
https://www.businessinsider.com/venezuela-devalues-bolivar-and-pegs-it-to-cryptocurrency-2018-8
As you can see, the attempt to curb inflation is working overtime for the communist dictatorship in Venezuela. How Venezuela now intends to pay off their massive $42B In USD denominated debt is another question. But is the government exchange rate real?
I will use Bitcoin exchange rate as an intermediary to show you how you are being lied to by governments no surprise there :D If you look at the Local BTC.com, you'll have a Bolivares Fuerte price of 85,493,415,936 per Bitcoin the current USD price is $6,325. As of 9 pm CST August 20th, 2018.
Then what I did to find what I call the free market price of Bitcoin I divided the two and voila the "free market" price aka. Black market price exchange rate using BTC is 13,516,745.60 Bolivares Fuerte to USD not the official 248,520 to USD. That is a difference of 5338.89% Quite a lot more than the official numbers that the government uses to calculate wages. I remember seeing a documentary of a lady who quit her job in the government starting to sell coffee on the streets to have a salary 10-20 times better. The Governments creation of the Petro supposedly oil backed crypto and the new "sovereign bolivar" that was devalued 96% might not help Venezuela for long as they are fixing exchange rates still and are needing to print lots of currency to stay alive as a bloated government. I see the re-engineering of a failed fiat into a new one as just pushing the lie down the road, and my prediction of both hyperinflation and devaluation of the Bolivar Fuerte back in 2014 came true.
They, of course, did not think of all the people who had Bolivares Fuerte savings that lost all they had saved up trusting that the currency would hold value. Meanwhile, the government had to create a new fake fiat paper currency and digital crypto supposedly backed by oil to raise currency instead of declaring bankruptcy. The populace once again became victims of the corrupt government misusing its powers once again to print currency into oblivion only enriching the few with access to the fake currency at a cheap price while most people believing that it had value lost everything.
It should be yet another lesson that we need to see, and not trust the government or banksters to print fiat out of thin air, saying that it will hold its value. Meanwhile, they know very well about the hidden tax of inflation, stealing currency out of the pockets on a daily basis from millions of people that are not educated about how currency is used to enslave, and take from them while they believe they can save the fake currency and the government and banksters laugh behind closed doors at the stupid populace.
It's time to stop this insanity once and for all and say no to government and bankster fiat and let the free market of currencies and money rule instead of allowing the few criminals control the supply and creation of our mediums of exchange. Take back your by not accepting the fake sovereign currency for the Venezuelan government and use other currency or money like good decentralized private crypto, gold, silver and other commodities. Remove yourself from the monetary grid and go off-grid in the free market and let it decide the future of your community, not someone who has created a corrupt monetary system to enrich a few elites and oligarchy of political friends.
Look for Voluntaryism and free markets as a real solution instead of the Crony fake Corporate fascism, socialism or communism we see today. Realise that the currency you use is counterfeit and the only way out is to take back your freedom by going around the grid and go off the grid into the real economy that is free from banksters and politicians stealing your time and energy while becoming rich.
Peace, Love and Voluntaryism,
John Sneisen
Hell yeah! no to corrupt governments, as one simple cuban I can support you 100%, heck 1000%, you guys can't end up like us, don't allow brainwashing, don't allow the government to control you anymore than they have already!!!