The Venezuelan Bolivar is most certainly on the brink of complete collapse. The FIAT currency which is mostly dependent on the petroleum industry is being devalued at a frightening rate. The official stat released by the Venezuelan communist government for inflation is 108%. However, according to the IMF’s official stat in 2015, inflation rates reached 275% which means the price of living is nearly tripling each year which is incredibly unsustainable and mimics what we’ve seen in Zimbabwe and earlier, the Wiemar Republic. On top of all of this, projections seem to point towards Venezuela inflation hitting 720% in 2016. This is absolutely catastrophic.
In this video, author and economist John Thore Stub Sneisen explains what’s happening in Venezuela, how it affects other countries and the root reasons for all of these monetary problems throughout the world.
Venezuela’s government income has been cut by 80% as they print themselves into oblivion from the disastrous efforts by their central bank.
On March 8th, 2015, U.S. President Barack Obama signed Executive Order 13692 which declared Venezuela a national security threat to the United States. This is likely because a lot of banks have invested heavily in Venezuelan debt which is how they printed all this money. The U.S. government will probably try to bail out Venezuela when the collapse happens and we all know how worthless the American dollar is already.
The U.S. has bought the most Venezuelan bonds and these bonds are not going to be repayable.
In conclusion, John Sneisen makes it quite clear that hyper-inflation is coming very soon to Venezuela followed by complete economic collapse. It will not be long until the people of Venezuela stand up out of total poverty and demand an end to the Bolivar currency.
Yet another argument for free markets and competing currencies.
Of course this is a global monetary issue and we at WAM will continue to analyze economies throughout the world as the world order agenda is unfortunately accomplished.
Find John Sneisen’s book ‘The End of Freedom: How Our Monetary System Enslaves Us’ on Amazon here:
Video shot and edited by Josh Sigurdson
Graphics by Bryan Foerster
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