Remember those stories about people in pre-nazi Germany needing wheelbarrows of cash to buy bread? Look no further than today’s Venezuela.
To avert this astronomical inflation however, Maduro has implemented unprecedented measures that defy the most basic economic logic: The formation of a new “sovereign bolivar” backed by a cryptocurrency called the “petro” which is theoretically tied to the country’s oil (despite having the world’s largest proven oil reserves, they’re increasingly struggling to get it out of the ground).
The old currency was called the “strong bolivar.” How strong is it you ask? A 100,000 bolivar bill equaled about forty cents in the U.S. The new “sovereign bolivar” will be even stronger still, with five less zeros, so a 100,000 strong bolivar bill = 1 new one. (Don’t worry if this doesn’t make sense—just means you’re sane.)
As millions starve and flee in chaos, the country’s scant resources are being applied to printing this new currency—all the while people have no toilet paper.
As inflation heads for 1 million percent, president Maduro and his government seem to summarize their situation like this:
Due to no fault of their own, they suffer from a “perfect storm within a perfect storm”.
The government is “thinking outside the box” with a new “stronger currency” that can “go to 11.”
Having just “won the election,” trust that president Maduro will keep “giving it 110%.”
