Topic: When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs (Read 330 times)

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..

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.

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.

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

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.

--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.

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..

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

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.

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?

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.

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.

There could also be an interesting divide between the way barter systems are viewed in classroom academics and facets of real world application. I seem to remember people in this section posting about how a modern world could not exist without fractional reserve banking, fiat currency, inflation and similar modern implementations of economics and finance. Here those claims are being challenged.

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.

There could also be an interesting divide between the way barter systems are viewed in classroom academics and facets of real world application. I seem to remember people in this section posting about how a modern world could not exist without fractional reserve banking, fiat currency, inflation and similar modern implementations of economics and finance. Here those claims are being challenged.

While the plight of venezuela is tragic, its amazing to think of how they've reverted to a barter system. While this in itself could be deemed a negative. There is a chance that over the long term this could bring people and communities together and unite them. It could encourage people to be more hospitable and treat each other better. There could be positives here in terms of it challenging some of the preconceptions we have about money and the effect it has upon the world.

I seem to remember people in this section posting about how a modern world could not exist without fractional reserve banking, fiat currency, inflation and similar modern implementations of economics and finance. Here those claims are being challenged.

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.

--snip--
 There is a chance that over the long term this could bring people and communities together and unite them. It could encourage people to be more hospitable and treat each other better.

There could be positives here in terms of it challenging some of the preconceptions we have about money and the effect it has upon the world.

There could also be an interesting divide between the way barter systems are viewed in classroom academics and facets of real world application. I seem to remember people in this section posting about how a modern world could not exist without fractional reserve banking, fiat currency, inflation and similar modern implementations of economics and finance. Here those claims are being challenged.

For Venezuela's economy, the ascent into socialist paradise did not turn out quite as planned: in fact, under the Maduro regime, the country with the world's biggest petroleum reserves somehow reversed course, and crashed through every single circle of economic hell, and now that its hyperinflation has hit levels that would make even Mugabe and Rudy von Havenstein blush, all that's left is barter.

And, as Fabiola Zerpa explains as part of Bloomberg's fascinating "Life in Caracas" series, i.e., watching economic and social collapse in real-time, in Venezuela, a haircut now costs 5 bananas and 2 eggs.

Read on for what really happens when money dies, coming to a banana monetary regime near you in the near future.

In Venezuela, a Haircut Costs 5 Bananas and 2 Eggs

The other day, I made a baguette-for-parking swap. It worked out brilliantly

I had time but, as usual, no bolivars. The attendant at the cash-only lot had some bills but no chance to leave his post during the fleeting moments the bakery nearby put his favorite bread on sale. The deal: He let me leave my car, and I came back with an extra loaf, acquired with my debit card. He reimbursed me—giving me a bonus of spare change for my pocket.

That’s how we make do in our collapsing economy. If somebody has lots of one thing and too little of another, an arrangement can be made. I’ve exchanged corn meal for rice with friends from high school, eggs for cooking oil with my sister-in-law. Street vendors barter, too, taking, say, a kilo of sugar as payment for one of flour. There are Facebook pages and chat-room groups devoted to the swap-ability of everything from toothpaste to baby formula.

A barber in the countryside cuts hair for yuccas, bananas or eggs. Moto-taxi drivers will get you where you need to go for carton of cigarettes. The owners of one of my favorite Mexican restaurants offer a plate of burritos, enchiladas, tamal and tacos in return for a few packages of paper napkins. At a fast-food joint near my office, the guy working the register let me walk away with a carry-out order of chicken, rice and vegetables without paying the other day, relying on my promise to come back with the 800,000 bolivars.

Acting on that kind of trust was unheard of just a few years ago. Charity is also something new. I didn’t grow up with the traditions of canned-food drives and volunteerism that are common in the U.S. Now parents from my kids’ school collect clothes for the poor, and neighbors gather toys for a children’s hospital. My friend Lidia, a property-rights lawyer, delivers homemade soup to the homeless.

I like to think of all of this as a noble expression of solidarity, as evidence of the decency of my fellow caraquenos at a time of mind-numbing shortages of basic goods and exploding inflation. I know that in most cases the motivation is necessity, even desperation. But that’s all right. Handing that freshly baked baguette to the parking lot attendant made both of us smile, even if for just a second.

https://www.zerohedge.com/news/2018-05-05/when-money-dies-venezuela-haircut-costs-5-bananas-and-2-eggs