The government’s plan to fight hyperinflation is going about like you’d expect. The New Venezuelan Currency Is Just Three Weeks Old and Inflation’s Already 100%.
After a week and a half of no changes in the Bloomberg Cafe Con Leche Index, the price of a cup of coffee has surged the past two weeks, climbing to 50 bolivars from 25 bolivars. For those still struggling to get used to the new pricing system, 50 of today’s bolivars equals 5 million of the old ones.
Annual inflation is ABOVE 100,000 percent.
Inflation will be 159 percent by the end of the year. Debt that cannot be repaid. Recession. Ah, the wonders of socialism. Venezuelan Economy Receives Lowest IMF Ranking in Decades
In the 1990s, Venezuela was Latin America’s fourth largest economy, behind Brazil, Mexico, and Argentina. However, after several years of a Chavista administration, the country’s debt has increased significantly.
Though the government will not provide official statistics, Venezuelan economists Asdrúbal Oliveros and Gabriel Villamizar place the country’s debt at $249 billion as of August 2015, nearly 190 percent of its 131.6 billion GDP. The nation’s public debt stood at $40 billion when Hugo Chávez took power in 1999.
I wonder why all the Lefties who were flocking down there a few years ago are now staying away. Venezuela has reached that point, described by Margaret Thatcher, where they have run out of other people’s money.