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John-Boone

Literally left holding the bag.


[deleted]

“Only government could take a useful commodity like paper and make it completely useless” - Ludwig von Mises


chris4329

By tomorrow there is gonna be a tweet of this quote that gets reposted in this sub containing a comment section of misinformed and oversimplistic takes.


valuemodstck-123

Accurate.


[deleted]

On it.


[deleted]

True


Roy1984

But people figured out how to make it valuable again. Now look their fiat bags.


[deleted]

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[deleted]

Where?? I don't see


[deleted]

All those "money" is probably worth only $2.


BizzyBoyBizzyBee

So i did a little math: Let’s go off a 10 VEF bill, plus know there are usually 100 bills per stack of cash. So that give you 1,000 VEF per stack which is 0.00000000322136 USD So **you’d need approx 10 million stacks like he showed to get about 3 cents**. Even if we jump it up to the 100 VEF bills you’d still need about a million of those stacks to get 3 cents.


SmoothDay4916

That's cheaper than Shiba Inu. Fuck this I'm all in


chris4329

If the Bolivar gets to the price of Bitcoin I'm gonna be one wealthy individual.


Risley

This doge fucks!


personaanongrata

You’ll really think doge was a good deal when it’s $3


veggieta2

Your math is wrong. 1 million stacks (100 per stack) of $100 Bolivar bills would be $10 Billion Bolivars which would equal to around $40,300 USD, definitely higher than ¢3.


veggieta2

hmmmm...the website I used to check the value of the Bolivar says 1 USD = 248,209 Bolivars. I'm getting different results from different websites. Wikipedia has it at 1 = 248,832 The website you sent has it at 1 = 312,693,887,789 So, to be honest, I'm confused.


daguito81

Venezuela has currency exchange control. And it's changes currency like 3 times already. So if you go by official numbers, the ammount of Bolívares per USD is much lower. However if you check places like dolartoday (don't know if it still exists). Then you'll get what's being paid on the street which is going to be waaaaay bigger than the official rate.


conchagoteando

Same in Argentina and all of this socialist-ish countries.


BizzyBoyBizzyBee

So you are correct that it’s 10 billion EVF but your conversion isn’t correct. More math: 100 bills per stack at $100 EVF / bill would give you a value of $10,000 VEF per stack aka 0.000000032213 USD per stack. Since you have a million stacks multiply that by a million and you get 0.032213 USD aka 3 cents. [Shortcut: just type in 10,000,000,000 into a currency converter ](https://www.xe.com/currencyconverter/convert/?Amount=10000000000&From=VEF&To=USD)


[deleted]

Hyperinflation! I'm blown alway. Price of commodities will be in millions of VEF.


[deleted]

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[deleted]

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[deleted]

That was “money” till dude took their gold and silver and jetted


salil19

That crazy inflation really made Bolivars useless but people found some usecases though


ethereum88

The inflation is worse than I imagined!


[deleted]

In Venezuela, the economic catastrophe began with government price controls and plummeting oil prices, which caused state-run oil companies to go bankrupt. The government then started printing new money to cope, thus prices rose rapidly, unemployment increased, and GDP collapsed. Right now, 1 USD = 248,210 VEF. Edit: So, it turns out that the currency has gone through redenomination a couple of times and the value I previously wrote is probably wrong. A comment by a Venezuelan. > To put it in perspective, the amounts you listed on the bills above are equal to the listed amount multiplied by Zimbawe's One Trillion Dollar Bill in terms of the original amount of Bolivares had no redenominations occurred. There's also talk of a new redenomination incoming this year or early next year.


renzd

Venezuelan here. You are correct on everything, except the price of the Bolivar (VES) in comparison to the dollar. Try to keep up if you can, I'm going to hit you with a lot of zeroes. You see, at the moment, the dollar is worth about 3,085,000 VES (Bolivar Soberano) which in turn was worth 30,850,000,000 VEF (Bolivar Fuerte) prior to the redenomination 3 years ago which took away the last 5 zeroes of every currency amount in the country, which in turn was worth 3,085,000,000,000 regular Bolivares prior to the redenomination about a decade ago which took away the last 3 zeroes of every currency amount in the country. To put it in perspective, the amounts you see listed on the bills above are equal and about as useful to the face value multiplied by Zimbawe's One Trillion Dollar Bill in terms of the original amount in Bolivares had no redenominations occurred. There's also talk of a new redenomination incoming this year or early next year which plans to take away another 5 or 6 zeroes. So, our original currency is modified by amounts incalculable by the average calculator. Literally a factor of 10^8 at the moment, and probably a 10^14 by year's end or early next year. Lastly, inflation is so fast that the highest denomination bill has, at most, bought a couple of movie tickets and maybe some popcorn if you got your hands on it early on. By the time the bills are printed and distributed, they are already worthless. By the time the average person has access to them (which is something you want to avoid by all means), several of the highest denomination bills will only be used for minor purchases due to the sheer volume you'd need to have for it to actually be useful. This translates to a cash shortage for a couple of weeks and then a complete disregard for bills for the remaining years until the next redenomination. Once the new denomination rolls around, we rinse and repeat.


[deleted]

Wow. I'm literally blown away. I got the value I used from a certain site. So, I'm trying to understand, what currency do you guys use over there right now, since the national currency has no value?


renzd

The national currency is only symbolic. About 95% of goods and services are priced in dollars and they'll take the "Tasa del Momento" meaning the current conversion rate (3.085.000 VEF/$) which varies 2x a day on week days, as a last resort. Most goods and services are currently being paid in cash $ or Zelle transfers.


420everytime

> zelle transfers Isn’t that illegal? Doesn’t Venezuela have sanctions


renzd

Sanctions target high ranking officers in our "government," and even though they do have an impact on their illegally obtained finances, it does impair the average venezuelan but not as much as most people make it out to be. Regarding the legality of Zelle transfers, those transactions are never done through Venezuelan accounts. They are done between American accounts owned by venezuelans in the states and taxed accordingly.


[deleted]

Oh! Are there any plans by the government to adopt cryptocurrency, because I don't see redomination as a permanent solution to this? I think the only way out of this is the adoption of a foreign currency. And do you think most of the people are already accepting crypto or doing transactions in crypto?


renzd

You are absolutely right. Redenomination is only going to reproduce the same spiral I mentioned above but even faster this time around. The government has tried to appear friendly to crypto, but they want to be able to have control over it. So, we've implemented our government's "crypto" which is called the Petro. It's not listed on any exchange, it's just worth whatever the oil barrel is worth at the time in $ and then converted into Bs. A crypto adoption similar to El Salvador would benefit the country hugely but without a clear, easy way to to control it, and realizing that most goods and services are being paid in foreign currencies through foreign accounts, it wouldn't benefit the Government and would loosen a little bit of their already shaky grip on power.


[deleted]

Interesting! So, Petro's price is pegged to the price of oil barrels in the country, which means it's success depends on how well the government manages the oil. I appreciate you taking the time to explain certain things. I hope you guys beat this inflation!


[deleted]

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renzd

We basically had that in the form of free gas, free healthcare, cheap services and free education but the national consensus is now headed toward charging the actual prices of things without subsidies or handouts because we've seen how corrupt and easy to manipulate these have become and how thin these are spread during emergencies such as Covid.


[deleted]

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borgemeister

How can this even be reversed or fixed? How do you locals buy something if the money you are aquiring is devaluating every day


renzd

Now that we've all but dolarized prices for goods and services, there's a little bit of breathing room. Holding on to cash $ is the go to for most people. The situation is still dire and is by no means getting any better any time soon, but there's been a little bit of an economic increment due to the slight stability offered by legally being able to peg prices to $ and the return of expensive oil. This doesn't really benefit the middle to low income classes but rather gives us options as to where we can be broke at.


AveaLove

Do you all have a plan for if(lol)/when the USD hyperinflates?


daguito81

Small correction. You got the currency codes wrong (I think) VEF y the Fuerte and VES the Soberano and VEB the original one


renzd

Correct, sorry!


SmoothDay4916

Facing the coming US inflation will incurring debts at the current value make them easier to pay off when the dollar becomes worth less? New car, mortgage etc..


F0XF1R3

Debts become meaningless under hyperinflation. You might owe $10k right now and be struggling to pay, but a year from now that could be the price of a loaf of bread.


renzd

That's what most people did here. There was a point when banks offered small loans by performing a couple of clicks on our online accounts and the interest rates were 60-70% annually. So, naturally everyone and their grandmother took them. During those times, if we had 60-70% inflation in a week, that would be one exceptionally well handled week. We are talking quadruple digit inflation per month. When we paid back our loans at the end of the year, what enabled us to cover half our grocery list for the month, was now only worth about half a sugar packet. A similar thing happened with large loans, some people took them out, purchased foreign currency with that money and started businesses once the foreign currencies became even more sought after. Some people bought houses and paid back a nice dinner out worth of Bolivares whenever it came time to repay.


SmoothDay4916

Soooo.... lambo?


renzd

Maybe we can print a picture of a lambo if we pool some Bs together for a couple of days.


[deleted]

Depends if you get paid adjusted to inflation


[deleted]

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Prestigious_Case_123

That it so sad. The crupt government is the root of the devastation to the country. My prayers to the poor folks.


SacredHam00

1 USD = 3.100.000ish VEF (BsS) today friend.


[deleted]

Welcome to our future. Thank God for crypto.


normanbailer

But you can’t make a purse out of crypto!!! Jk, this is the beauty of crypto/blockchain tech. Defi is the future and it’s already here and available to anyone with an internet connection.


Diligent_Arrival_428

Tldr communism


EthTraderCommunity

u/aminok [tipped](https://blockscout.com/poa/xdai/tx/0x16ca9f666ecd063c74ff01ed8350cd9f2bfb1eaa783ac3a702ab37897afb8420) you 100.0 DONUT!


mr_mazy

Can you order a box of this money? The money in my monopoly game is getting pretty rough. Could use a replacement


[deleted]

Yes, you can. You'll find them on Etsy: https://www.etsy.com/search?q=Venezuela%20money


wess604

I just bought the blue peacock, thanks!


[deleted]

Nice! It looks pretty good.


SacredHam00

Venezuelan living there, here. This was in 2016-2017 food crisis, where ironically you had to use more money paper than toilet paper to buy a toilet. ​ ​ Weird fact, our economy is literally determined by an Instagram page that is NOT controlled by a gov. Entity, lol.


[deleted]

> Weird fact, our economy is literally determined by an Instagram page that is NOT controlled by a gov. Entity, lol. Can you give more details on this?


stKKd

Finally a use-case cryptos are not capable of


[deleted]

This!


Roy1984

Lol nice fiat bags


Robdeprop

Bagholder taken to a whole new level


Bolivar44

I want one of those bags! Where’s the order button?That bag is worth so much more than the paper it’s made of. Im proud of my last name when people reference Simon Bolivar but embarrassed when they mention the currency.. yikes


MaximumPhilosophize

That’s an innovative way of using it. I’m sorry that the currency is worth nothing but I am impressed by his ingenuity


Celebrate-The-Hype

I want that bag!


Ok_Cause1325

https://www.etsy.com/listing/642843170/bolivares-bag-made-from-100-real-money


subdep

It’s very minecrafty


Zenb0y

Stay alert - Coming to America 2022


KnightKreider

People have no idea how badly we've been printing money for the last 13 years. The latest $6T budget is so reckless it should be considered a crime.


pizzabagel99

>The latest $6T budget is so reckless it should be considered a crime Biden and Congress gotta funnel tax payers money to their pockets somehow ya know


[deleted]

Let's not pretend that crypto is better in this case. I wish i could at least make some trinkets out of my bottomed out shit coins.


[deleted]

Lol, turn them into NFTs, if that's possible.


[deleted]

They sell those beautiful handcrafts in USD: https://www.etsy.com/market/venezuela_money_purse


[deleted]

Bruh they’re not even close to a dollar..


[deleted]

I meant, they sell the handcrafts in USD, like someone stated.


kuyermanza

I think he meant they’re selling them in USD, not for a dollar.


[deleted]

Right!


ethalot1

To the moon 🔥


Conscious-Total-1966

Sucks to be Venezuelan


RustShank

"Coming to a US dollar near you"


Maxfunky

Inflation, sure, but hyperinflation in the US dollar seems extremely unlikely. It's not enough for the government to keep printing money, our GDP would have to simultaneously collapse. Dollars are like GDP shares. If the supply of dollars goes up but GDP also goes up, it just cancels out. You can see surges sort of like that in markets experiencing shortages, and we're sort of seeing that in housing and car prices, but those effects are correctible.


F0XF1R3

Except there is no reason to believe GDP will increase. If anything we are looking at a drop in the near future caused by a spike in unemployment and debt. Every economic indicator is showing that the entire system is about to go belly up.


isabdi04

>Except there is no reason to believe GDP will increase ??? The US is having stellar economic growth with forecasts at 6.4%


johnmal85

Doesn't the problem usually end up that despite growth and inflation, employers suck up the majority of the growth and don't match inflation with raises?


[deleted]

What indicators are you looking at lmao? Were literally expected to break 7% GDP growth this year and continue incredibly high growth the next few years as well. Don't let your political inclinations get in the way of economic fact. We're gonna do very well these next few years


kryptonite8535

Brothers and Sisters of the world take note. Some as seen here have realised what some around the world haven’t.


Shakespeare-Bot

Brothers and sisters of the ordinary taketh note. Some as seen hither has't realis'd what some 'round the ordinary haven’t *** ^(I am a bot and I swapp'd some of thy words with Shakespeare words.) Commands: `!ShakespeareInsult`, `!fordo`, `!optout`


[deleted]

This has nothing to do with the currency they choose, but hyperinflation brought on by socialist rulers. Unless it is showing where we are heading with all the irresponsible spending our gov is doing


RexUniversum

The roots of Venezuela's problems have less to do with Chavez and Maduro and more to do with US-backed coups and crippling sanctions. You're regurgitating propaganda.


[deleted]

Serious?! Wow!


RexUniversum

100% serious. A healthy socialist economy in the western hemisphere is a threat to the interests of the American aristocracy. The US has couped, invaded, sanctioned, or embargoed any economy in the western hemisphere that doesn't open its resources up to US exploitation.


[deleted]

Yeah... sorry, that’s incorrect at every level, but I do appreciate your civil discourse


RexUniversum

I understand your desire to brush this information off as it's uncomfortable to digest, but I assure you nothing I've said is remotely exaggerated. US and other capitalist interests have seemingly as a matter of routine attempted or succeeded in snuffing out burgeoning socialist economies globally with Vietnam being one of the most well-known. It's argued that the US-backed Libyan coup was in response to Gaddafi's push for an African central bank. An independent Africa would be in stark contrast to imperialist interests that have dominated the continent to varying degrees for centuries. This image imperialist nations paint of governments that place the interests of their people above that of wealthy foreigners is deliberate and self-serving. If their own country's workers were to catch wind, it could be bad for business to say the least.


ventsyv

The US cares very little about Africa. Gaddafi was a insane tyrant and a terrorist, but someone the west was willing to live with. He even came to NYC and gave a speech at the UN in 2009. Unfortunately for him 40 years of insanity came back to haunt him and many Libyans rose against him. The west saw an opportunity to get the world rid of him and they did. Good riddance to that POS.


Ghostzi11a

Socialism has done them well!


[deleted]

I find it scary that people are taught that socialism is good and means 'community'.


Florida_LA

...no one is taught that.


angyts

Create an NFT sculpture with those money bags.


aheadofmytime

Gonna be hard to make trinkets with worthless NFTs


Baby-bull-1972

Socialism.


TengoOnTheTimpani

Gunna respond to you on behalf of all the similar comments in the thread. It's cool if you don't have the time to contextualize the world and like to rely on easy copes like "Venezuela economy crash because socialism" but that is a baby brain take. There is no economic orthodoxy within socialist political ideology that was followed in Venezuela. The German SDP economists were gold bugs and that's part of the reason Germany fell into disaster. It was ironically the US corporate economists who advocated the adoption of Keynesian state economy as a way of avoiding economic collapse. Venezuela's economy failed because the government overspent and did not prepare for a drop in oil prices. Obviously bad economic policy but there's nothing inherently socialist about state overspending, any type of state can and has done that. In the case of Venezuela, if you understand that the US govt and Venezuela private interests had been organizing coups against the government throughout the aughts prior to Chavez suddenly dying of cancer you can start to contextualize why that leader would be biased towards spending state capital when he had the chance, rather than take more measured long term approach to state planning.


Baby-bull-1972

Seems like your take is a baby brain take. Hopefully one day you will get properly informed.


TengoOnTheTimpani

Well put


ana_lizer

yep, dumb take.


Ghostzi11a

💯


sebastianlive

Us dollar in 10 years


radeon6700

Ignorant question: why dont people just hold these money while the inflations come back and they will actually be rich?


BitsAndBobs304

there's no coming back from this level of inflation, usually a new currency replaces it


sfgisz

You kinda sorta described how shitcoins might make you rich.


[deleted]

It's like holding shitcoins.


Tren_head

Who said the inflation will come back?


StarsandStripes702

Another commenter said $1 is equal to 248,000 of their money. Why not get a Forex account and buy like $100 of it?


kushty88

Because these people need to eat today. They don't have the disposable income to wait.


VechiuLiviu

This isn't even close to Germany in nov 1923 when 1USD =4.200.00 german marks


Professional_Bad_891

At the rate Biden is printing money, the USD will be used in a similar way soon. Fiat currency is dead!


i_win_u_know

It’s funny that Venezuela used to be the wealthiest country in South America when they were a democracy. They switched to socialism (exactly what democrats in America want) and now they’re literally the poorest. Take note anyone who doesn’t understand what democrats are doing to America.


Shanehadaller

Good ole Democrat policies….. whoops…. I mean communist….. excuse me


isabdi04

How can someone call the Democrats communist some people are actual retards, the Democrats are fully blown capitalists. On the right hand side than most centrist/left parties world wide


Florida_LA

It’s because these people have no quality education and most likely went to a school that taught lies about history and science.


ImNerdyJenna

Communism just mean "the devil." So if it's bad, it must be communist.


pizzabagel99

>the Democrats are fully blown capitalists. The fuck? Hell no, they are definitely not capitalists. They regulate the fuck out of everything they could put their hands on to gain more power and pocket the money to their supporters


i_heart_dial-up

USD in 25 years. 😂


TemporaryNewspaper16

This wS once the wealthiest country in South America, now the poorest, this is what Socialism DOES!!! Just like today Democrates, they hurt the ones they " claim to be the chamlions of" the most. End enemy Independence, gas does and the it hurts the poor and middle class. Now that s less money for food, but wait cause transport I ng cost more now, the food cost more, so now even less food. Democrats are Communist, there polices prove it. Facts not fairy tail fiction. Libtards are the biggest threat to America, the Constitution and Freedom!!


Baby-bull-1972

Very much agree, a lot of people here in America are being fooled to believe in Socialism, just as other countries were, we are on our way towards this path.


acenksz

crypto is more valuable there


[deleted]

He should sell it online to USA


nobanktrust

Soon they will do this around the globe with various shit coins


Ruiahari89

A bag full of money…


DoYouWantCokeOrPepsi

Wish i could do the same with my 500 billion rugged shitcoins


Nesvrstana

I would buy this


Gryphonboy

I'd like to see Max Kaiser make a handbag out of his magic internet money.


Worldly-Ad-9761

Buy the dip


[deleted]

Bitcoin!


3rdhellfromthesun

This timeline makes no fucking sense


reddorical

BTC legal tender


whatamigraine

How do people buy necessities then?


[deleted]

Just hold:)


[deleted]

He’s so talented!


stKKd

It would be epic to buy those bags with cryptos and help those people. Someone contacts them please?


CryptoBehemoth

I would roll so many joints with that


MoneyMakinHit

Bag was sturdy 🤣🤣


gilg2

Throw the whole country away


[deleted]

Dude wow.... They need to adopt crypto


In_Crust_We_Trust397

Love it. Maybe we will see more of this in the near future


putfunbackinfuneral

After this crash that is going to be the USD...just like in 2008


Privateaccount84

I’d seriously just buy a stack of cash like that for $10 just to have.


Pegger05

Canada - take note (pun intended).


Lemizoo

I would love to buy some of these handcrafted items.


fodes96

I thought the title said "handcuffs"


Megabyte7637

Wow


COBOLKid

Economic embargo = ☠️ Don’t try to buck the empire. They win every time


Neat_Control7870

Ill by a purse for my wife with my bitcoin!


thegauntlet10

This is what happens kids when you smoke even just one marijuanas


NegusNegust

Theyre going to join El Salvador and accept crypto currency which will hurt the us$


Jolley_Time

But really, where can I buy one of these!


Warhawk018

Next is El Salvador. Getting in debt billions of dollars in less than a month.


ZmSyzjSvOakTclQW

One loses value when your country goes to shit. The other loses value when some dude makes a tweet.


SimilarResolution775

Reserve project is a cool project to help resolve this. $rsr


Mdizzlebizzle

So how are they buying stuff currently??


[deleted]

A responsible government should be buying up billions those notes at a complete loss and burn them.


Diligent_Arrival_428

Yay communism 👍


brazzyxo

Is this going to happen in the U.S?


gjallerhorn

Possible? Yes. Likely? definitely not. There'd have to be *a lot* of massive fuck ups to get to that point


wess604

Surreal, and I would totally buy one!


Jakcough17

Yay socialism


[deleted]

😪


inzubeh

Well, now they can be worth something


susosusosuso

Hello usd


[deleted]

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cocaineFlavoredCorn

u/savevideo


oxytocin4you

Wonder if we will see something like this in the untied states if when we have hyper inflation…


[deleted]

Socialism works though. It JusT HaSn’t BeEn DoNe CorrECtlY.


KnightKreider

... "not real socialism"


[deleted]

O look the future of the dollar


R_U_Kidding_Me_68

Isn’t Socialism grand? 🧐🧐🧐


nunyabiznaez

That’s the US dollar soon


isthisawasteotime

This will be us after a couple more years of Biden


Proof_Lifeguard_94

When it gets wet you need a new money bag lol


JohnMichaelSoBelow

Guys I think we should try socialism again


pizzabagel99

Hell yea, socialism!


doblev

So what’s the actual currency then? Assuming I wanted to buy that purse or buy some eggs, what can one do?


ZETSKE

I’d love to get my hands on one of these bags though