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

[DrG]

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?

Yeah bad capitalist buying oil over $100 a barrel and exploiting poor Venezuela. They should be buying it now at $40 when nobody wants it

Venezuela needs to play kiss ass again and entice the wealthy from Dubai, US, and affluent Europeans and Asians. The rich are often bored and want to see new stuff. Many of this current generation have not been to Venezuela. The country would have been better off spending the $300million on a tourism campaign. It worked for Turkey.

[bryant.coleman]

Yeah bad capitalist buying oil over $100 a barrel and exploiting poor Venezuela. They should be buying it now at $40 when nobody wants it

The OPEC made the mistake during 2009-2013, when they tried to push crude oil prices too high. There were statements from the OPEC such as "consumers should be ready for $200 per barrel oil" and "the era of cheap oil is over". As a response, the US shale oil producers moved in and ramped up their production. The greed of OPEC members such as Saudi Arabia and Venezuela resulted in their own downfall.

[Wind_FURY]

Hahaha. Monopoly play money, as a collectible, is a better Store of Value than the Bolivar. A the vintage set sells for $30.00 or more in eBay.

[LogitechMouse]

The damage has been done. They are just creating shit fiat money just like people creating shitcoins in crypto.
Hyperinflation has been there for a long time. Probably this is the start of the recovery of their economy?? Lets see how their plan goes.
If somebody from Venezuela has their Bolivar Bills, just sell it in an online store and probably somebody will keep it as a remembrance or a collectible .

[posi]

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.

In my opinion, if they are indeed doing what they can do in other for their people to survive, they won't have think of the option that will drag their economic to the mud cause the news says there was shortages of cash and what they need is to encourage their citizen to use electronic transaction instead of spending more money which ought to be use to help the country economy to print more cash.

[South Park]

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).

What happens is a classic case of overcompensation, a good deal of governments on Latin America are corrupt and enrich those that are in power and their friends, obviously this is unfair and people eventually elect a populist president that says he will give them everything they want, unfortunately this goes against basic economic principles and instead of stopping a series of expropriations, money printing and debt follows destroying the economy on the process.

[ecnalubma]

They could have been one of the most rich country in the world but what happened is the opposite. That’s what will happen if we let incompetent people run our country, people will continue to suffer if their system will not change. Cryptocurrency is already playing a big role in their current financial system they should stop exporting those useless security papers.

[stompix]

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.

And what makes you think this?
Can you tell me one thing they have done to help their people survive?
The rabbit plan?  Fingerpriting shoppers? Deploying 17 000 troops to combat food smuggling? When there is no food? Or creating a useless cryptocurrency that nobody uses?

Name one thing that they have done entirely for the people and not to keep themselves in power longer!
They aren't doing a thing, they just watch how everything is worsening day by day because they know that they will lose their place and influence if real reforms happen.

Lets see how their plan goes.

What plan? There is none!

[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.

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.

Yeah, I'm not taking issue with the level of corruption in the country. Just the notion that the reason they didn't go with digital currency and stuck with physical currency was because it made the corruption easier. The far more likely reason they don't have a digital currency is because they lack the technology to do so, not out of intention.

[Vishnu.Reang]

What happens is a classic case of overcompensation, a good deal of governments on Latin America are corrupt and enrich those that are in power and their friends, obviously this is unfair and people eventually elect a populist president that says he will give them everything they want, unfortunately this goes against basic economic principles and instead of stopping a series of expropriations, money printing and debt follows destroying the economy on the process.

Giving unlimited handouts is a bad idea. Even oil rich nations such as Saudi Arabia and Qatar have realized this, and now they are slowly moving away from those policies. In case of Venezuela, when the oil prices were high the Hugo Chavez regime distributed all the budget surplus as handouts. The government never cared to setup a rainy day fund, so that they could use it in case the oil prices go down. In the end, the oil prices went down, and the government treasury was bone dry by then.

[South Park]

What happens is a classic case of overcompensation, a good deal of governments on Latin America are corrupt and enrich those that are in power and their friends, obviously this is unfair and people eventually elect a populist president that says he will give them everything they want, unfortunately this goes against basic economic principles and instead of stopping a series of expropriations, money printing and debt follows destroying the economy on the process.

Giving unlimited handouts is a bad idea. Even oil rich nations such as Saudi Arabia and Qatar have realized this, and now they are slowly moving away from those policies. In case of Venezuela, when the oil prices were high the Hugo Chavez regime distributed all the budget surplus as handouts. The government never cared to setup a rainy day fund, so that they could use it in case the oil prices go down. In the end, the oil prices went down, and the government treasury was bone dry by then.

Without a doubt it is a bad idea but this is just more evidence the average person does not understand basic economic principles, it seems they think that just because governments are bigger than they are they can spend all the money they want and this is not true, governments still need to follow the same principles that any normal family would, they need to spend less than what they get on taxes and keep something for a rainy day as you say, but politicians are nothing more but a reflection of the society that elects them, so if the population does not understand this the politician most likely does not as well or at least does not care and that is how it begins the economic debacle of most countries.

[BuNga_cute]

As long as the government in Venezuela is still high in corruption, and politics in Venezuela is still dirty,
then the country will continue to repeat the same mistakes. Because corruptors do need a lot of paper money,
so for me it is not surprising that the Venezuelan government must continue to print money. It is a pity even
though Venezuela has good natural wealth, if its government is clean, hyperinflation will certainly not occur.

[AmoreJaz]

As long as the government in Venezuela is still high in corruption, and politics in Venezuela is still dirty,
then the country will continue to repeat the same mistakes. Because corruptors do need a lot of paper money,
so for me it is not surprising that the Venezuelan government must continue to print money. It is a pity even
though Venezuela has good natural wealth, if its government is clean, hyperinflation will certainly not occur.

corruption is hard to eradicate as it is like already innate in their system. sadly.
 based on last year's corruption index of Venezuela, it only scored 16 points out of 100

https://tradingeconomics.com/venezuela/corruption-index


based from the graph, they are not improving, instead they are going more corrupt!  




so what can we expect from this govt even if they print tons of paper money. hard to move forward if their govt officials are still deep in the old corrupt system

[Salauddin1994]

Venezuela's system of government is very dirty politics and the government does not take any firm action against corruption so the political situation in venezuela is getting worse day by day despite being the best in terms of natural resources many believe that the mining sector in venezuela has been destroyed by nationalization. There is no state policy for this sector  accidents often happen in these mines  robberies and murders continue to cause inflation some new notes were released to control uncontrolled inflation. The venezuelan currency the bolivar has now become virtually worthless paper there has been a severe economic downturn in that country.

[bryant.coleman]

Venezuela's system of government is very dirty politics and the government does not take any firm action against corruption so the political situation in venezuela is getting worse day by day despite being the best in terms of natural resources many believe that the mining sector in venezuela has been destroyed by nationalization. There is no state policy for this sector  accidents often happen in these mines  robberies and murders continue to cause inflation some new notes were released to control uncontrolled inflation. The venezuelan currency the bolivar has now become virtually worthless paper there has been a severe economic downturn in that country.

Having natural resources doesn't mean that a country will be rich. If that was the case, then DRC (Democratic Republic of the Congo) could have been the richest country on earth. If the people don't have enough educational skills and work ethics, having natural resources will be of very little use. This is applicable everywhere, from Venezuela to the African nations, and from the oil-rich Arab states to the mineral rich Russia.

[redsun114]

I’m just not really getting this. If Bitcoin is what works for them, then it’s best that the people continues to be using Bitcoin so that they are not going to suffer due to the corruption of their leaders. This plague of having corrupt leaders (yep plague lol) is something that my country is also facing, they see lots of things going wrong, lots of bad situation, and people will call, shout, even protest and it will fall on f**cking deaf ears.

Only God can save us from these problems. It’s high time that people rise up against these evil souls so called leaders who are not even leaders but just rulers that are there to destroy countries. Their main focus when they are elected is sending their kids to best schools, and filling their bags. Worst part is that the system is so damn corrupt that these people will do things and still go free without facing judgement for the crimes they commit. God help us.

[TravelMug]

Interesting to note as well that Venezuelans’ average income was just .72 U.S. cents per day.

So it doesn't really make sense for them to print this new bills when people are not earner enough to survived for even a day. Yes, they are on the top 3 as far as bitcoin usage in LocalBitcoins and this is good news. And not just in Venezuela, but in Latin America as a whole and it just make sense as people are trying take back their "economic sovereignty".

[DrG]

Yeah bad capitalist buying oil over $100 a barrel and exploiting poor Venezuela. They should be buying it now at $40 when nobody wants it

The OPEC made the mistake during 2009-2013, when they tried to push crude oil prices too high. There were statements from the OPEC such as "consumers should be ready for $200 per barrel oil" and "the era of cheap oil is over". As a response, the US shale oil producers moved in and ramped up their production. The greed of OPEC members such as Saudi Arabia and Venezuela resulted in their own downfall.

Exactly. You push a system too far out of bounds and reasonable forces will exert themselves to correct the imbalance. If oil prices shot up to $1000/barrel all of a sudden nuclear reactors and solar would be popping up all over the place. Quasi environmentalist complaining about birds getting killed by windmills would allow windmills in their own backyard so they could keep watching Netflix.

Oil because expensive enough to warrant US exploration in a previously "difficult" location.

I can only hope the Venezuela people become fed up with too much government control to actually start fixing their own issues without relying on government's helping hand (a hand which may never show up).

[Sithara007]

Interesting to note as well that Venezuelans’ average income was just .72 U.S. cents per day.

So it doesn't really make sense for them to print this new bills when people are not earner enough to survived for even a day. Yes, they are on the top 3 as far as bitcoin usage in LocalBitcoins and this is good news. And not just in Venezuela, but in Latin America as a whole and it just make sense as people are trying take back their "economic sovereignty".

That is less than $0.01 per day? I guess the socialist government provides for most of the food, education and medical requirement. But still it will be difficult to survive on such low income. It amazes me how such a resource rich country can become so bankrupt, that the people can't afford to have food three times a day. Another failed socialist nation...

[Wind_FURY]

Citizens of Venezuela, your 100,000,000 Bolivars can buy you BTC0.019008. Buy now before your 100,000,000 Bolivars can only buy you BTC0.0019008.

Your government has lost control over the monetary system.