Venezuela Planning New 100,000-Bolivar Bills Worth Just $0.23

[CarnagexD]

This is so sad and will probably not help at all. They should be trying to fix their economy instead of printing new money. Who is actually going to use such a bill? I saw in a documentary about Venezuela that most stores are not accepting bolivar anymore as a means of payment. Most restaurants and stores only accept USD these. Around 70% of the families have atleast one family member living abroad send money, usually USD to Venezuela.

Venezuela has so many natural resources that the country should be flourishing with the right government. They need to eliminate corruption and make new economic reforms to get back on track.

They would need to this first as carrying a sackload of bolivar would be too inconvenient for the people. At the very least, I can call this their first step towards reclaiming their country's monetary image. For so long they have become the laughingstock when it comes to uselessness of money. I can say this is their first step towards the many in the near future.

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[verita1]

Thank you all for discussing with analysis of the problem what the Venezuelan is experiencing. We know the reason and the negative meaning of the new high-denomination banknote like the 100,000 Bolívares. A galloping hyper inflation. The hope of the Venezuelan is that the crisis is not eternal because it still has a country with great potential to be productive as it was before.

[The Sceptical Chymist]

So spending fiat to produce more fiat, how ironic it is.

Yeah well, that happens everywhere--it's just that this is a dramatic case of how much is being spent to print the Bolivar bank notes (or whatever you call them) compared to how much they're worth.  Frankly I think the Venezuelan government ought to have picked out the cheapest paper and included as few security designs built into the notes as practically possible.

It's just sad how this rich oil nation turn into another sad story because of the mismanagement from the sitting President.

Definitely sad, and I hadn't heard any news out of Venezuela since before COVID-19 hit.  I thought their situation might have been improving, but I guess not.  What a fucked up situation they're in--and hopefully Venezuelans have adopted a more stable currency (like the USD) for their day-to-day financial transactions. 

And yes, bitcoin was built for situations exactly like this.  Even if it's volatile, it's not in a hyperinflation situation and isn't controlled by banks or governments. 

[romero121]

The prevailing situation of Venezuela is due to mismanagement, corruption, money printing in large volume, deficit spending, and more other political game. The sufferers of the Venezuelan hyperinflation is the common people who doesn't have any other go than move the life with what is available. One of the oil rich country and the richest of South America into such a crisis. Even the countries that doesn't have any source are growing good out of their planning.

By the time of covid-19 the entire country could've suffered much, or else it might have not got attacked as there is no big news out from Venezuela. The worst part is the people suffering for food, as the production has been cut and they are unaffordable to import food and other necessary things.

[jaysabi]

The more corrupt the country is, the more they need paper money. Corruption is simpler that way, including for government officials. The government flattens employees' salaries to maintain superficial control of inflation and allows for further negotiations, criminal activities. No punishment. Many government officials receive more than their own corrupt wages.

Seems to me digital currency would be easier to manipulate. No need to print all that money when you can just expand the monetary base by typing extra zeros in the central bank's account and pushing that money into the economy. I think the reason Venezuela needs so much paper money is not because they're corrupt but because they're not technologically advanced to have a digital economy.

[Kemarit]

The more corrupt the country is, the more they need paper money. Corruption is simpler that way, including for government officials. The government flattens employees' salaries to maintain superficial control of inflation and allows for further negotiations, criminal activities. No punishment. Many government officials receive more than their own corrupt wages.

Seems to me digital currency would be easier to manipulate. No need to print all that money when you can just expand the monetary base by typing extra zeros in the central bank's account and pushing that money into the economy. I think the reason Venezuela needs so much paper money is not because they're corrupt but because they're not technologically advanced to have a digital economy.

Still though, the argument that they didn't make any technological advancement is because the government is really corrupt that maybe the funds allocated for it could have ended up in the pocket of those politicians.

So it's really a lot of contributory factors, mismanagement of politicians, and then their cronies, owning half of the private companies so in just like 10 years, the country made a U-turn for the worst. And now printing worthless mickey mouse money.

[DrG]

Venenzuela just went overboard with it's infrastructure spending - specifically its social programs. Those are a great way to boost a 3rd world country if there's a lot of positive cash flow but one big economic downturn and you've got a massive deficit. The country can't even rely on tourism like it used to - it's just all oil and that is not favorable in the NWO thinking (despite all those elites burning barrels a day).

This shows just how wonderful life is there: https://www.youtube.com/watch?v=2n7mK3dYOLw

[Vishnu.Reang]

Seems to me digital currency would be easier to manipulate. No need to print all that money when you can just expand the monetary base by typing extra zeros in the central bank's account and pushing that money into the economy. I think the reason Venezuela needs so much paper money is not because they're corrupt but because they're not technologically advanced to have a digital economy.

Centralized digital currencies are easier to manipulate. But there will be few takers for such currencies, since they are similar to the digital version of fiat cash. It is not possible to manipulate decentralized cryptocurrencies such as Bitcoin, and I don't think that the Venezuelan regime would be interested in such currencies. For now they are somewhat tolerating it, for well known reasons.

[South Park]

Venezuela Planning New 100,000-Bolivar Bills Worth Just $0.23

Venezuela has begun to import banknote paper and is mulling plans to print bills with larger denominations as hyperinflation causes shortages of cash, according to six people with knowledge of the matter.

The country has brought in about 71 tons of security paper this year from an Italian printer majority owned by the private equity firm Bain Capital, according to some of the people and data reviewed by Bloomberg from Import Genius, which compiles customs records it obtains through private sources. The central bank is considering new bills starting with 100,000 bolivars, the people said. It would be the highest denomination yet, but still worth only $0.23.

https://www.bloomberg.com/news/articles/2020-10-05/venezuela-planning-new-100-000-bolivar-bills-worth-just-0-23

So spending fiat to produce more fiat, how ironic it is. It's just sad how this rich oil nation turn into another sad story because of the mismanagement from the sitting President.

And what's next $1 million Bolivar Bills just worth a dollar?

And it makes sense the Venezuelan are into bitcoin, with record breaking transactions like everyday.

As you say this is such a shame, Venezuela before all of this was a beautiful country full of hard working people and beautiful destinations ready to receive tourists all over the world, and now after all of this it has turned in such a difficult to place to just keep on living that many people have either left the country or are thinking of doing it as we speak, and the worst part is that when all of this is over and finally those people are left without power it is going to take at least a generation to fix this mess and that is if the people of Venezuela elect people that are willing to solve this which is doubtful.

[bryant.coleman]

As you say this is such a shame, Venezuela before all of this was a beautiful country full of hard working people and beautiful destinations ready to receive tourists all over the world, and now after all of this it has turned in such a difficult to place to just keep on living that many people have either left the country or are thinking of doing it as we speak, and the worst part is that when all of this is over and finally those people are left without power it is going to take at least a generation to fix this mess and that is if the people of Venezuela elect people that are willing to solve this which is doubtful.

If Venezuela was full of hard working people, this could have never happened. This issue is not just limited to Venezuela. It is common to almost all the Latin American nations. There is a large section of the public in these countries, that prefer socialist policies. These countries are rich in natural resources, and it allows the government to indulge in populist policies. But when the spending goes above the tolerance threshold, the economic meltdown occurs (similar to what happened in Venezuela).

[hulla]

As you say this is such a shame, Venezuela before all of this was a beautiful country full of hard working people and beautiful destinations ready to receive tourists all over the world, and now after all of this it has turned in such a difficult to place to just keep on living that many people have either left the country or are thinking of doing it as we speak, and the worst part is that when all of this is over and finally those people are left without power it is going to take at least a generation to fix this mess and that is if the people of Venezuela elect people that are willing to solve this which is doubtful.

If Venezuela was full of hard working people, this could have never happened. This issue is not just limited to Venezuela. It is common to almost all the Latin American nations. There is a large section of the public in these countries, that prefer socialist policies. These countries are rich in natural resources, and it allows the government to indulge in populist policies. But when the spending goes above the tolerance threshold, the economic meltdown occurs (similar to what happened in Venezuela).

Economic problem is common almost among all latin American nations but Venezuela situation is worse and hyperinflation doesn't mean the Venezuelan people are not hard working as explained by South Park. However, what led to Venezuela todays problem is political turmoil, embezzlement of public funds and autocracy which started since 19th century.

The Venezuelan need people that will solve this issue so they can totally profit and put fund generated through the country mineral resources not the printing of new note which the government will still use to scam the country economy.

[DrG]

The problem is the Venezuela government has really brought any idea of self sufficiency to a halt. Look at that youtube video link i posted above. Farmers have stopped farming because they lose money trying to farm. The government spent so much money distributing "care packages" to the public that the public lost the ability to care for themselves. Their economy is dead just like a dried up water pump -it needs to be primed. They can restart that with their tourism since they still have some infrastructure from before (737s can still land at the main airport). If they continue to rely on their internal government to fix the problem they will never get their economic engine rolling. UAE was able to transition off oil reliance, Venezuela should be able to as well - they just need to be willing to interact with other countries.

[shoreno]

If Venezuela was full of hard working people, this could have never happened.

thats impossible . no country has ever stated to have a full of hardworking people because theres that percent of people that are lazy or simply dont work hard but this dont mean that all of those people are poor but some are already blessed with a good economy or a good life . on most asian countries its said that most people living on this country are hard working but thier economy is still poor ,

its not thier fault but sometimes its the fault of their government  .

[Del137]

At least Venezuela is trying to do something with their economy. Their crypto ideas looks interesting

[slapper]

Printing 100,000 Bolivar for what purpose ? It does not worth anymore. What are the government thinking right now? What a dump ass person! Instead of saving the economy by realistic action, he try to print more money for an even worse inflation. This situation is hopeless. I cant believe that there are still many countries out there which are under a more terrible condition than mine

The mediocre President needs to accept international aids so that they can meliorate their economy. I wonder how people are struggling there right now. It must be a nightmare trying to find food and supply daily. The government must have been trying to stop reporters from recording and uploading the tragic footage of Venezuelans

[fiulpro]

See when it comes to cryptocurrencies venezuela is one of those few nations who are actually trying to integrate their economy with the cryptocurrencies. Unfortunately the government is totally incapable of handling any situation there. Government is uneducated, corrupt , fragile, the mismanagement not only killed their own resources which would have made the country very stable and well endowed, they at the same time decreased the overall production rates.
The country doesn't have resources now, there is no import of the needed things , prices are rising ridiculously. It's in a really bad condition right now.
But I believe they should carefully see what steps their are taking this is not only ridiculous, but even worse for the people who would try and get jobs...

[Vishnu.Reang]

If Venezuela was full of hard working people, this could have never happened.

thats impossible . no country has ever stated to have a full of hardworking people because theres that percent of people that are lazy or simply dont work hard but this dont mean that all of those people are poor but some are already blessed with a good economy or a good life . on most asian countries its said that most people living on this country are hard working but thier economy is still poor ,

its not thier fault but sometimes its the fault of their government  .

The government was elected by the people themselves. So it is their fault. Here in India, we had a similar scenario. Last year, when the general elections were near, the leader of the opposition party promised ₹5,000 per month in handouts to poor households. But voters rejected his proposal and his party just received 52 out of a total of 542 seats. If someone elects a Socialist regime to power, then it is their problem and I don't have any sympathy with such people.

[RealMalatesta]

See when it comes to cryptocurrencies venezuela is one of those few nations who are actually trying to integrate their economy with the cryptocurrencies. Unfortunately the government is totally incapable of handling any situation there. Government is uneducated, corrupt , fragile, the mismanagement not only killed their own resources which would have made the country very stable and well endowed, they at the same time decreased the overall production rates.
The country doesn't have resources now, there is no import of the needed things , prices are rising ridiculously. It's in a really bad condition right now.
But I believe they should carefully see what steps their are taking this is not only ridiculous, but even worse for the people who would try and get jobs...

We have to also consider the fact that other nations decided to put some laws against trading with Venezuela because they didn't want to deal with the dictator.

Now, I understand that Venezuela political situation is bad and the ruler is a bad person who didn't get elected and rules over by force, so it makes sense that you do not like him, I do not like him neither, I hope he gets couped and finally gone and people could have a free election.

However when another nation stops dealing with you over political reasons, they are not punishing the politicians, they are punishing the public. Look at the dictator, he has his food and his castle, he is not bothered, and he is still the most powerful person there with all that big army. But the public is starving and dying, why? Because big nations wanted to give a lesson to the dictator... which obviously failed.

[stompix]

One bill is usually 1 gram, let's assume there are absolutely no losses that makes 71 000 000 bills, but with them being worth just 0.23$ , it's just $16,3 million and something, or 1430BTC.
But the funny part is in the middle of the article:

Earlier this year, Venezuela turned to a state-owned money printer in Russia to purchase 300 million of new bills after racking up debts with De La Rue, one of the world’s largest makers of bank notes.

Pinnacle of socialism, you're getting in debt when you're printing money, if this keeps up their only option is to start using monopoly money, and of course, not printing them but asking for donations.

Of course this is also largely mismanagement as well as their dirty politics, but this oil-rich country is also suffering from the severe decrease in oil's price. And who would discount the economic sanctions harshly imposed on them by the powerful western countries led by the USA?

So, the situation is because of imbeciles getting elected and ruling and ruining the country and free money not flowing from the ground at the same pace, the real sanctions on the economy came well too late, the country was doomed from 6 years ago.  Also, I find it funny how people are angry and the US for sanctioning Venezuela but haven't said a word previously when Venezuela was milking the capitalists with 100$ a barrel. What have the western world countries done? They stopped dealing with them, simple, isn't that the scenario that would have anyhow happened when all the dirty capitalist world would have collapsed?

[Harlot]

I really don't know what it is but I think the Venezuelan government at this point is doing all they can for their people to survive but the thing is what they are doing is dragging the country down. Right now this move is something that I don't think they will benefit really even in the short term as they are further devaluing their own currency. If they really want to have a plan that will work they should focus on the economy rather than focus on their money.