‘Socialist Paradise’ Venezuela: 5 things you need to know about its inflationary crisis

If you want to see socialism unfold in front of your eyes in real-time then all you need to do is follow the events in Venezuela. Described as a “socialist paradise” by many on the left for years, Venezuela has metastasized into hell on earth, which was every socialist country eventually becomes.

The people are starving, businesses are being threatened every day by the government and President Nicolas Maduro is becoming a tyrannical leader. Ah, the beauties of socialism.

But one of the most interesting developments coming out of Venezuela are the inflation rates. Akin to Zimbabwe several years ago, the inflation in Caracas is immense.

Here are five things you need to know about Venezuela’s inflation problem:

1. $1 equals 10,389 bolivars; it was $1 equals 3,164 bolivars at the start of 2017.

2. Venezuela’s money supply surged 10 percent in just one week, the fastest in 25 years. As of July 21, the local currency in circulation was 27.3 trillion bolivars, up 9.66 percent from the previous week. It climbed nearly 11 percent in one week in October 1992.

3. The general public are seeking out alternatives to their currency, and one of the most popular alternatives is bitcoin. Venezuela set a new record on LocalBitcoins as close to 11 million bolivars were converted to bitcoin last week.

4. In order to buy goods – if there are any left – consumers need to carry around large bundles of cash, many even need to sport duffel bags to purchase products.

5. Is inflation hurting the stock market? Soon after the U.S. announced sanctions on the nation’s oil industry, the Venezuela’s equity benchmark rose 3,603 points, or about three percent to 139,399.

This is what you get when you merge socialist policies like price controls, production quotas and nationalization of industry with crazed lunatics like Maduro.

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