Following Argentina – Venezuelean hyperinflation has started

[Y_Participant 4591]

Hyperinflation is the direct result of what happens when the general population loses all confidence in the government, reminiscent of Germany’s hyperinflation following World War I and Zimbabwe’s crash a decade ago. This is how the final death spasm of fiat money usually will unfold (inclusive of the US Federal Reserve note).

In the early 1990s, the incoming Argentinian Menem administration had committed itself to tackling malignant hyperinflation as a result of no confidence in the fiat currency.

After an earlier inflation stabilisation plan had ended in abject failure – a substantial devaluation and a 58% fall in foreign exchange reserves took place. Fearing an all-out run on the banks, the Argentine government froze all accounts on 1st December 2001. Argentine citizens were allowed to withdraw a small amount of cash on a weekly basis.

The following month, just weeks after defaulting on a record $95 billion worth of sovereign debt, the government succumbed to the inevitable and proceeded with a devaluation of the peso.

In the weeks that followed the bank freeze, social unrest very nearly brought the country to its knees. By the time of the peso’s devaluation, those protests had escalated into full scale rioting and looting.

It took four years of negotiations before Argentina agreed a deal with their creditors to restructure the terms of Argentina’s outstanding debts. On 1st March 2005, the deal, in which a majority of investors (75%) surrendered their claims in exchange for new bonds worth roughly 35 cents on the dollar, was completed.

http://treasurytoday.com/2014/02/argentinas-debt-crisis-ttbigp

Argentina was lucky with hyperinflation measures – Venezuela now is in the same hole – but no-one seems to be able to fix things – yet.

Venezuela’s troubles began in 2014 when the price of oil took a nosedive. Instead of moving to separate the country from its dependence on oil, the Venezuelan government lost the confidence of the people and was compelled to issue more money to pay its bills lacking revenue flow.

Venezuela’s currency has become virtually worthless in just two months, and the bolivar plummeted 50% in value while Venezuelans are now desperately trying to get U.S. dollars, the only alternative available to them. (The same situation is starting to emerge in India after the government demonetized the large denomination notes but I will continue that in a forthcoming thread).

This is exactly what US President-Elect Trump wants to do – print trillions more to increase US revenue.

The key to hyperinflation is NOT the issue of money, but the collapse of public confidence in the currency. Once this happens there is no turning back from the outcome.

Venezuelan Hyperinflation

[Anonymous 42]

I bet the black market is thriving there, it’s the only economy that works, only because it operates like a ghost that’s not regulated by the government and operates on the plane of reality, not centralized societal engineers with grandeur plans of some utopia where everything can be controlled by the powers that be and what they decide is good for the people.

Never worked in the history of the world and won’t work now. Freedom and prosperity happens when power is in the hands of the individual.

It’s also your natural right to be appalled at another person using whatever tyranny to overpower and externally operate you like some god damn stupid puppet. To the spirit of a man it’s like having someone fist you as their little drone slut puppet! F~~~ THAT!

Freedom is sovereignty above all else for the male spirit! Don’t let anyone or any power that be FIST F~~~ YOU IN THE NAME OF COMMUNITY!

[experiencedParticipant]

http://biblehub.com/proverbs/22-7.htm

People Want to lend you money, that way, you are their slave.
Mgtow is about ending slavery.
On a personal note, never borrow money.

"It seems like there's times a body gets struck down so low, there ain't a power on earth that can ever bring him up again. Seems like something inside dies so he don't even want to get up again. But he does."

[Anonymous 11]

Y_ wrote:

The key to hyperinflation is NOT the issue of money, but the collapse of public confidence in the currency. Once this happens there is no turning back from the outcome.
The Venezuelean hyperinflation is the direct result of what happens when the general population loses all confidence in the government.

Some people are beyond losing all confidence in the government, and are now of the mindset that trading all confidence in those government peoples in exchange for the knowledge of what those government peoples are doing, is a great trade, and by far it is one trade being well worthy of the admiration and proclamation of all used car dealers.: A rusted-out mass-produced junker that needs everything, for a rare antique cherry in gem-mint condition.

[Biggvs_DickvsParticipant 3725]

Y_ wrote:

Hyperinflation is the direct result of what happens when the general population loses all confidence in the government

BZZZZT. Thank you for plyaing, we have some lovely parting gifts for you backstage.

Well sort of. You reversed cause and effect. When the currency stores no tangible value, THEN the people lose all confidence in the government and existing power structures.

How does that happen? Simple: Currency devaluation by increasing the M1 via legalized counterfeiting:

That’s why they keep our Federal Reserve under *private* ownership/control.

But here’s the big problem: From time to time your NEED to print more money to keep circulation going. If you put that under direct government control, the people sooner or later figure out that they can just vote for more money and you get this:

Which was just enough to buy a *pint* of milk at the time this note was printed. Bear in mind they started off at 1-to-1 with the US dollar.

With private control like we have now, you get separation, but then it’s a rigged game where the “member banks” that own Federal Reserve shares get access to zero interest loans at the discount windows, as well as flat out free money (Quantitative Easing), and that gives them a clear buy advantage in Real Esate and other crucial areas over their fellow citizens (You and I).

In my mind, the best compromise would be to have a separate/private entity control money creation, but have and extremely lengthy and difficult process they are required to engage in to do it. Similar to the “land use notice” you must post and the rezoning process where they have to declare ahead of time what the new money is being created for, who it is going to be loaned to, what the benefit is to the America citizens. and multiple opportunities for public comment/objection.

After all, it IS nothing short of a tax on the purchasing power of your hard earned dollars. We deserve representation.

That’s why the framers wrote that only congress shall have the power to coin money, but somehow we’ve conveniently stuck our fingers in our ears and gone “la la la la la” on that one.

Worse yet, our economy is SO incredibly dependent on the counterfeit money at this point that any interruption would spiral us into the worst depression in human history. Really. So who wants to be the guy that goes down in history as the cause of that?

Even if it IS for all the right reasons…

"Data, I would be delighted to offer any advice I can on understanding women. When I have some, I'll let you know." --Captain Picard,

[Biggvs_DickvsParticipant 3725]

Oh and this:

Tom knew what was up.

"Data, I would be delighted to offer any advice I can on understanding women. When I have some, I'll let you know." --Captain Picard,

[PistolPeteParticipant 27143]

Yumbo—you did it again brother—you rock!

[Author]

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