Question about inflation and debt.

[Google+]

I also asked my teacher about this in the past.

She just smirked at me and asked me if I want to have another inflation, I'm confused. This could happen but the thing is that the money circulating in the country would increase and that would lead to inflation.

Economic inflation can indeed happen at any time because currency conditions are very easy to print and there are no restrictions when wanting to print local money will make inflation likely to happen again, in my opinion it is different if there are currencies that really have a supply limit and cannot added or subtracted again it will make inflation difficult to occur because the portion is clear.

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[deisik]

This could be the solution to Venezuela's hyperinflation rate as of the moment. The country's been in a bad debt lately and their money pretty much is worthless right now. They have little to none to work out, so basically what they could just do to alleviate this is to sell stuff they already have. I don't further details regarding the issue in Venezuela's economy but as I was saying thsi could be a viable solution

Hyperinflation is not a cause

It is an effect of and a consequence to some underlying problem (a host of problems) which reveals itself in many ways, while hyperinflation is only one of them (but probably the most conspicuous and telling). The point is, you can't effectively deal with it without dealing with this deeper problem as it would be like fighting with a symptom of a disease instead of overcoming the disease itself

And the main problem with that problem (pardon the pun) is such you can't solve a problem by relying on those who are creating this problem in the first place ("If you're not part of the solution, you're part of the problem"). In other words, solving Venezuela's economic woes first and foremost requires dismantling the whole political system there, which is a grave problem in its own right

[atjiat]

This could be the solution to Venezuela's hyperinflation rate as of the moment. The country's been in a bad debt lately and their money pretty much is worthless right now. They have little to none to work out, so basically what they could just do to alleviate this is to sell stuff they already have. I don't further details regarding the issue in Venezuela's economy but as I was saying thsi could be a viable solution

Hyperinflation is not a cause

It is an effect of and a consequence to some underlying problem (a host of problems) which reveals itself in many ways, while hyperinflation is only one of them (but probably the most conspicuous and telling). The point is, you can't effectively deal with it without dealing with this deeper problem as it would be like fighting with a symptom of a disease instead of overcoming the disease itself

And the main problem with that problem (pardon the pun) is such you can't solve a problem by relying on those who are creating this problem in the first place ("If you're not part of the solution, you're part of the problem"). In other words, solving Venezuela's economic woes first and foremost requires dismantling the whole political system there, which is a grave problem in its own right

According to research, oil reserves in Venezuela account for 18% of global reserves.  For example, you can bring Saudi Arabia, which has 16% of the total global oil reserves.  And now you can compare the standard of living of citizens of Venezuela and Saudi Arabia, as well as the degree of development of the economy of these countries.  After analyzing all the available information, one can accurately answer the question posed that it is the shockless and corrupt government of Venezuela that does not allow the country's economy to develop and that it practically steals everything that should belong to the people of Venezuela.

[deisik]

After analyzing all the available information, one can accurately answer the question posed that it is the shockless and corrupt government of Venezuela that does not allow the country's economy to develop and that it practically steals everything that should belong to the people of Venezuela

You don't need to be an Einstein to understand that

It is interesting that the population of Venezuela is a few millions smaller than that of Saudi Arabia (31M versus 33M), so all things equal, Venezuela should be better off than SA. Apart from that, this Latin American country has far better climate which ensures better conditions for sustainable agriculture and a lot of other things. Compare that to SA which is mostly desert, and there's not much beyond oil (and natural gas)

[wack slacker]

A country that owes foreign currency will force them to repay the debt in the foreign currency it borrowed, and the money cannot be printed by itself, forcing it to exchange to get the desired foreign currency.  The sell-off has no strategy to weaken their currency.  There are many ways to repay.  They may have to sell their reserves of other foreign currencies, metals such as gold, silver ... or sell the country's natural resources such as rare earths and precious metals...
All debts must be paid if they print the money themselves to repay the debt, then inflation will definitely occur.