When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs

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Quote from: bitmover on May 16, 2018, 03:18:38 PM

Quote from: ironman2014 on May 16, 2018, 03:11:23 PM

This is insane and hillarious at the same time. I imagine in my country if I would go to the store and exchange milk for eggs, like in the medieval

This is not hilarious. The country is devastated. Basic supplies and food shortage... poverty... Situation is similar to postwar.
Population is fleeing to neighbors countries... Very sad..

Yeah, the situation on the ground is not hilarious but the way some people try to make it look like a success it is hilarious. Who can be insane enough to praise this as a move of independence from the evilz ........whatever Venezuela is blaming for this ?

Quote from: dothebeats on May 16, 2018, 05:28:22 PM

For the citizens, there's no other option but to trade whatever they have in order to get something they need. It worked befote and would work again.

Yeah, it works till a point. When nobody has anything left to give.

Quote from: dothebeats on May 16, 2018, 05:28:22 PM

and I don't even know whether cryptocurrencies can save it from complete obliteration. True that bitcoin might be an effective store of value for most people but the real question is, would it be accessible for most people out there? I, for one believe that it wouldn't, and until the government finds a real remedy to the ongoing financial crisis on the country, people would trade bananas for apples and chicken for pork.

The minimum wage has dropped in real USD value (black market) to around 7$.
What could they buy, even with no tx, no fees, no nothing?
50$ worth of BTC a year if they stop eating and live only on tree bark.

There is no value left to store, they are dirt poor, what they need is a miracle and bitcoin can't provide this for them.
And seeing that there are still millions there that vote for Maduro and millions that blame everything but the stupid socialist politics for the situation in which they finds themselves I can say that the miracle won't come this decade.

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For the citizens, there's no other option but to trade whatever they have in order to get something they need. It worked befote and would work again. Venezuela's financial state is already in turmoil, and I don't even know whether cryptocurrencies can save it from complete obliteration. True that bitcoin might be an effective store of value for most people but the real question is, would it be accessible for most people out there? I, for one believe that it wouldn't, and until the government finds a real remedy to the ongoing financial crisis on the country, people would trade bananas for apples and chicken for pork.

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Quote from: ironman2014 on May 16, 2018, 03:11:23 PM

This is insane and hillarious at the same time. I imagine in my country if I would go to the store and exchange milk for eggs, like in the medieval

This is not hilarious. The country is devastated. Basic supplies and food shortage... poverty... Situation is similar to postwar.
Population is fleeing to neighbors countries... Very sad..

ironman2014

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This is insane and hillarious at the same time. I imagine in my country if I would go to the store and exchange milk for eggs, like in the medieval

bitcad4u

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Previously ,before the invention of money.People user to exchange their goods for other good.You are saying the same thing ,which was in process in ancient periods.If the FIAT in all the country will disappear.We are forced to transfer one good for another.

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Venezuela is in a severe financial crisis, and while the government hopes crypto could help offset the major crash the country’s currency has experienced, there are also hopes that this might allow them to pay international providers who have stopped supplying to Venezuela. This is good, showing that they do not give up with the situation. even their ICO is a success.

timerland

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Spot on. Venezuela is a warning for what could happen to any of the world's economy at one stage, if fiat currencies go into a cycle of hyperinflation, or we run into a major financial crisis. When government issued fiat doesn't work anymore, people will seek alternatives.

And in some extreme cases like this, bartering may have to be resorted to.

Bitcoin actually would benefit the Venezuelan communities a lot, in my opinion, as it is a much better store of value than their government issued paper bills as well as their Petro cryptocurrency. I think that bitcoin adoption may actually rise in Venezuela as a result, after the word goes out.

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Quote from: amishmanish on May 07, 2018, 10:20:18 PM

One can only imagine how much money the top officials in Venezuela would have plundered by now. With their plans to come up with their own crypto "Petro", will there be any improvement in the corruption situation? The launch of the currency itself was full of ambiguities as it was shifted to NEM at the last moment. If this is any indication of things to come by, it again looks like a screw up.

The only way out for the people now is probably a revolution or if those at the top have a change of heart.

Probably he will use this Petro as a security debt.
He will try to Fung his corrupted activity by Petro, as bolivares (his fiat) are just worthless now.

I didn't knew he shifted it to NEM in the last minute... Well, they are incompetent I hope they will never be able to launch this coin as a working product.

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Quote from: bitmover on May 07, 2018, 06:34:44 PM

--snip--
Venezuela was a much better country before socialism. Just like the other neighbors. At least we don't have food and toilet paper shortage and 10.000% inflation a year.

The crisis started when reserves were all nationalized by the corrupted government.
Even the state owned company, PDVSA, is now broke. They just stole all the money from the oil reserves.

Leftists usually say that Maduro and Chaves are not true socialists anymore... So they can try it again somewhere else.

Thanks for the reality check. Governments can only be as good as the checks and measures put on them. Socialist countries that proffer equality turn into dictatorships when no individual is allowed to be influential enough. Capitalist countries stress on property that allows individuals with good intentions to amass wealth too. In a socialist country, only those who are close to power get the monopoly on amassing wealth and in such an unchecked state, they just run away with the purse.

One can only imagine how much money the top officials in Venezuela would have plundered by now. With their plans to come up with their own crypto "Petro", will there be any improvement in the corruption situation? The launch of the currency itself was full of ambiguities as it was shifted to NEM at the last moment. If this is any indication of things to come by, it again looks like a screw up.

The only way out for the people now is probably a revolution or if those at the top have a change of heart.

ivrynx

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It seems that when fiat has loss its value, people seem to go back to the old ways, and that is the barter system, therr is nothing wrong with their method, since humans learned how to survived using barter exchange before, though it may not be the norm today, this is how we used to be. If Venezuela can pull this off and make petro their own crypto currency, the world will see a crypto currency in andifferent way, this will give hope to all nations who have debts, I think they should use a lot of their coins into ttading, and exchange it to bitcoin, then cut their ties totally with US and find another super power to ally with and use their allies' fiat to exchange their petro, I am seing in that way, they can pay off their debt and be back on their feet.

green_fish

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When the economy collapsed, they didn't believe in the government's fiat money! Return to primitive society's equivalent exchange!

Venezuela's government can only rely on PETRO to break the economic blockade! PETRO may be just a digital form of government debt!

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Quote from: Nichao on May 06, 2018, 08:37:18 PM

barter means that official money don't perform their main function. It shows the impotence of the government, and it may happen anywhere, if you have no election and no choice in who is the leader, plus when this leader is weak.. poor people, but they cannot do anything right now..

I don’t think we are going to go that backwards and return to that period again where foods and services are exchanged as a means of payment and there is also no way that there will be a global situation where money becomes so useless. A country’s money may become useless but not the entire world.

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Quote from: Jonsnowstark on May 07, 2018, 06:47:44 PM

Well, really, the barter system was a good way to engage. It is more of giving what someone needs and getting what you need at the same time. I think this sysytem really worked well for people before. But if you think about it, i need 2 bananas and all you have is il1 banana and 1 egg. So i wont be satisfied becausse i dont need eggs. So i wont deal with you. Unlike mo ey, with that piece of paper, i can buy whatever i need

Barter things is only just good when we do talk about medieval times or prehistoric era. Grin

There are lots of thing to be considered or mainly affected if a certain country do got already on a state on where it do make use of paper money or fiat and transitioned back into bartering things up then it would really signifies problems. Not all goods would really be needed by each individual which i dont even imagine how a country would able to survive such state.

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Well, really, the barter system was a good way to engage. It is more of giving what someone needs and getting what you need at the same time. I think this sysytem really worked well for people before. But if you think about it, i need 2 bananas and all you have is il1 banana and 1 egg. So i wont be satisfied becausse i dont need eggs. So i wont deal with you. Unlike mo ey, with that piece of paper, i can buy whatever i need

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Quote from: Hell-raiser on May 07, 2018, 03:29:12 PM

Quote from: bitmover on May 07, 2018, 12:57:12 PM

Venezuela should b a paradise. They have one of the biggest oil reserves in the world. They have low population. They have the Caribbean and the Amazon Forest. And socialists fucked it up.

Note that I'm not defending Maduro and his regime. Just look at Venezuela's neighbors. Do they fare any better? Argentina has been in a state of permanent default since like 1980's. And let us not forget that cheap oil prices don't distinguish between capitalism or socialism, or whatever. If the costs of production are on par with market prices or even exceed them (as was the case for a number of years since 2014), your oil is pretty useless for you as a source of income, though you still have to produce it so as to lose your market share to your competitors.

Hello Hell-raiser,

I don't know where you are from, But Venezuela situation is not what you think. They have more than 10.000% inflation per year. Last year Brazil's inflation was 2.9%.
Venezuela refugee crisis could be worse than Syria

And Venezuelans are not going to Europe. They are going to Colombia and Brazil.
Venezuela have food shortage, basic hygiene products shortage, even the guardian is talking about it.
Venezuela hopes to wipe out toilet paper shortage by importing 50m rolls

I can agree with you that most Latin America countries are similar, except Venezuela and Haiti and maybe few others. But you cannot generalize like that.

Quote from: Hell-raiser on May 07, 2018, 03:29:12 PM

Are you sure it is the Venezuelan socialists' fault? Do you really think that when oil reserves had been in the possession of foreign corporations, people lived a lot better there or would live better if the reserves weren't nationalized?

Venezuela was a much better country before socialism. Just like the other neighbors. At least we don't have food and toilet paper shortage and 10.000% inflation a year.

The crisis started when reserves were all nationalized by the corrupted government.
Even the state owned company, PDVSA, is now broke. They just stole all the money from the oil reserves.

Leftists usually say that Maduro and Chaves are not true socialists anymore... So they can try it again somewhere else.

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Quote from: bitmover on May 07, 2018, 12:57:12 PM

At least in Venezuela electricity is very cheap and people can mine bitcoin and other cryptos. Crypto is saving many families there.

Not really, there's been a crackdown on miners in Venezuela for quite a while now. Remember that the national security forces can monitor power consumption so if you get caught mining Bitcoin then you're bound to go to jail. If I remember correctly the false charges (I say false because it isn't illegal to mine BTC in that country) would be embezzlement, energy theft, money laundering and many other charges. People do it underground but it looks like it could be a dangerous business.

Hell-raiser

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Quote from: bitmover on May 07, 2018, 12:57:12 PM

Venezuela should b a paradise. They have one of the biggest oil reserves in the world. They have low population. They have the Caribbean and the Amazon Forest. And socialists fucked it up.

Are you sure it is the Venezuelan socialists' fault? Do you really think that when oil reserves had been in the possession of foreign corporations, people lived a lot better there or would live better if the reserves weren't nationalized?

Note that I'm not defending Maduro and his regime. Just look at Venezuela's neighbors. Do they fare any better? Argentina has been in a state of permanent default since like 1980's. And let us not forget that cheap oil prices don't distinguish between capitalism or socialism, or whatever. If the costs of production are on par with market prices or even exceed them (as was the case for a number of years since 2014), your oil is pretty useless for you as a source of income, though you still have to produce it so as to lose your market share to your competitors.

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Quote from: Hydrogen on May 06, 2018, 08:31:03 PM

In a worst case scenario, when I see things like this happening, I think to myself this could be my future. That the united states could someday end up like venezuela. We too could revert back to a barter system if we do a bad enough job mismanaging our economy.

Well, it's easier and faster than you imagine.
Make Sanders president 3 times in a row and you will be very close to it. And all will be capitalism fault.

I am from Brazil, and our former president, Lula, now in jail , was a great supporter to Chaves and Maduro, even made tb ads for them.
https://m.youtube.com/watch?v=jf-9BfbDZf4

He tried to do this here. His party is still trying.

At least in Venezuela electricity is very cheap and people can mine bitcoin and other cryptos. Crypto is saving many families there.

Venezuela should b a paradise. They have one of the biggest oil reserves in the world. They have low population. They have the Caribbean and the Amazon Forest. And socialists fucked it up.

bering

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when you're live at the country with the highest inflations in the world so having money is not necessary anymore because it's useless if you have money and you can't even spend it and to stay alive barter is the best solutions currently for Venezuelan people however i heard some of Venezuelan citizen has decide to leave Venezuela because they can not take it anymore and Colombia is the next destination for them

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Amazing ... i'm a bit lost for words reading through your post.

I had to admit, i'm not much into economic news and all (not even a fan of the business section of newspapers, so to say).

But hearing a country revert back to the barter system to sustain it's people's personal economic needs, i'd say there we see a ray of hope.

A loaf of baguette for a parking space, bananas for a hair cut? It seems in times of economic crisis, it's our humanity that will save us.

And i'd be a happy soul to experience that in this lifetime where technology is expensive and the price we pay at times exceed than the fiat currency we hold dear in our hands.

Topic: When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs (Read 326 times)