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March 25, 2018


Venezuela hopes to tackle the world’s worst inflation by deleting zeros from its currency

(Thanks to Steve Pudlo)



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Venezuela has been taking advice from divorce attorneys. They are experts at deleting zeros from a bank account.

Unfortunately, those zeroes are already in Washington.

Last time I asked the boss for a raise, he suggested I pretend adding a few zeroes.


Now there's room for more zeros on their bank notes...

France did this in the late 40's. New Francs were instantly worth 10 old francs, which had eroded in value due to inflation.

I’m with Rintinglen on this one. And with economists who have studied hyperinflation

Has anyone suggested generic Ritalin to treat hyperinflation?

Zimbabwe tried that and then their currency collapsed, as in that country doesn't have a national currency anymore. They use the South Africa Rand, Euros, and US dollars.

It might work if they improve their economy.
In Poland because of inflation after the communism fell the inflation was a serious problem. In 1995 they decided to exchange the old Zloty to a new currency in 10,000 to 1 ratio.
Ever since the currency became stable and keeps its value at about 3.50 Zloty for 1 USD. But they also had privatization program, no more state own enterprises, full capitalism.

Venezuela wants to be socialist, and the results are obvious.

When I went to Argentina in 1969 the exchange rate was 300 pesos to a dollar. When I left in 1976 it was 26,000,000 to a dollar. The company I worked for had to pay part of my salary in local currency. By law, my severance was paid in cash. It was a stack of money about 24 inches to the side. Came to about $175 I think.
As soon as anyone got paid they immediately spent it. In 1983 they moved the zero over 4 places. That didn't quite get it done so in in 1989 they moved it another 3 places. And you thought the 70s were crazy in the US. The good news is that I mostly missed the disco era.

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