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Bloomberg cafe con leche index - Venezuela hyperinflation
Old 07-25-2018, 05:00 PM   #1
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Bloomberg cafe con leche index - Venezuela hyperinflation

https://www.bloomberg.com/features/2...n-leche-index/



tracks just one item: a cup of coffee served piping hot at a bakery in eastern Caracas. Its price has jumped to 1,400,000 bolivars from 2,300 bolivars over the past 12 months, an increase of 60,770 percent.


I see reports of Venezuela inflation reaching 1 million percent by the end of this year
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Old 07-25-2018, 10:32 PM   #2
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Guess you are not keeping up.... it is now 2 million...
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Old 07-26-2018, 12:57 AM   #3
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Guess you are not keeping up.... it is now 2 million...
Where is your source on this?
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Old 07-26-2018, 03:50 AM   #4
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I visit this site https://dolartoday.com to see how the Bolivar Fuerte is doing.
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Old 07-26-2018, 11:24 PM   #5
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Where is your source on this?


I suppose if you wait long enough to respond it will get there


https://www.bloomberg.com/news/artic...-for-venezuela

The price of a cup of coffee measured in Bloombergís Cafe Con Leche Index soared to 2,000,000 bolivars this week from 1,400,000 bolivars the week before. Back in late April, the price was 190,000 bolivars. That three-month increase equates to an annualized rate of 1,227,638 percent.
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Old 07-27-2018, 08:19 AM   #6
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Old 07-27-2018, 09:16 AM   #7
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They've got a ways to go before they match the collapse of Zimbabwe's currency, which inflated at a rate of 79 billion percent in November 2009!

Wikipedia has a pretty interesting summary on Zimbabwean hyperinflation, although it could use some updating. https://en.wikipedia.org/wiki/Hyperi...on_in_Zimbabwe

Here's a fresher look at the situation: https://www.bloomberg.com/news/artic...economy-flails
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Old 07-27-2018, 10:56 AM   #8
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Where is your source on this?

Did not see this post...



But I got it from your link...
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Old 07-27-2018, 11:28 AM   #9
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This could never happen here in the USA, right? Right?
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Old 07-27-2018, 10:02 PM   #10
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But was that coffee with cream?


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Old 07-27-2018, 10:29 PM   #11
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This could never happen here in the USA, right? Right?
It's theoretically possible with any fiat currency. I know there are (supposedly) lots of anti inflationary pressures currently in the US$. I hope they remain for, let's say, at least the next 25 years (which takes me beyond my current 'plan'). Of course, stuff happens so YMMV.
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Old 07-27-2018, 11:02 PM   #12
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It happened in Germany in the early 1930's. I had some stamps that were overprinted with one million marks.
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Old 07-28-2018, 09:35 AM   #13
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What a crying shame. And such a beautiful country, too; according to several of my coworkers. I’ve never been, and it’s doubtful I will anytime soon with this level of unrest.

I selfishly can only hope the rum stills can continue to produce Ron Pampero’s Anniversario. Easily my favorite dark rum.
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Old 07-28-2018, 09:48 AM   #14
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The Washington Post has a sad story today about people from Venezuela's middle class fleeing the country for work in the underground economy of neighboring nations. Like many refugees, they're being badly victimized.
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Old 07-28-2018, 11:19 AM   #15
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This could never happen here in the USA, right? Right?
"It" is happening here, albeit at a slower rate. In 2018, what costs you $10 dollars today would have cost you .39 cents in 1913. The loss due to inflation is about 96%.

Thus, in my opinion, it is inevitable that, sometime in the future, our current currency will be changed over to another named currency, perhaps called the "new dollar" or the "heavy dollar." Money will be exchanged for perhaps an old dime for a new dollar. $100 dollars in the bank will be turned into $10 dollars of the newer currency. And the process will then continue on.

Rich

https://www.usinflationcalculator.com/
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Old 07-28-2018, 11:29 AM   #16
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Quote:
Originally Posted by Rich View Post
"It" is happening here, albeit at a slower rate. In 2018, what costs you $10 dollars today would have cost you .39 cents in 1913. The loss due to inflation is about 96%.

Thus, in my opinion, it is inevitable that, sometime in the future, our current currency will be changed over to another named currency, perhaps called the "new dollar" or the "heavy dollar." Money will be exchanged for perhaps an old dime for a new dollar. $100 dollars in the bank will be turned into $10 dollars of the newer currency. And the process will then continue on.

Rich

https://www.usinflationcalculator.com/
Hmmm - been well over 200 years so far.........

Not in my lifetime I would guess. We haven’t even gotten rid of pennies!
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Old 07-28-2018, 12:35 PM   #17
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Quote:
Originally Posted by Rich View Post
"It" is happening here, albeit at a slower rate. In 2018, what costs you $10 dollars today would have cost you .39 cents in 1913. The loss due to inflation is about 96%.

Thus, in my opinion, it is inevitable that, sometime in the future, our current currency will be changed over to another named currency, perhaps called the "new dollar" or the "heavy dollar." Money will be exchanged for perhaps an old dime for a new dollar. $100 dollars in the bank will be turned into $10 dollars of the newer currency. And the process will then continue on.

Rich

https://www.usinflationcalculator.com/
One possibly interesting thought on this subject: If that $.39 were in four dimes of the era (yeah, I know, that's $.40) then the current value would be over $5 at today's silver prices. Back in the early teens (20 teens that is) 4 silver dimes were worth up to $15. Not making any recommendation, just sayin'... So YMMV.
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Old 07-28-2018, 01:51 PM   #18
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The United States has gone through many more instances of disruptive currency deflation than inflation, the most recent in 2008.
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Old 07-28-2018, 02:51 PM   #19
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Venezuela is a modern day tragedy. Thereís no other case of a middle income country falling to become a low income country with such loss of living standard for so many without war being the cause. It looks to get worse - nothing is underway to change the current course or direction.

The probability of something similar happening in the US, or any other developed high income OECD country, is so low itís not worth considering and certainly not doing any contingency planning.
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Old 07-28-2018, 05:12 PM   #20
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Venezuela is a modern day tragedy. Thereís no other case of a middle income country falling to become a low income country with such loss of living standard for so many without war being the cause. It looks to get worse - nothing is underway to change the current course or direction.

The probability of something similar happening in the US, or any other developed high income OECD country, is so low itís not worth considering and certainly not doing any contingency planning.
The fact that I'm still mostly invested must mean I believe this at the gut level. Having said that, I have indeed begun to think of contingencies. I'll stop at that to avoid the smell of bacon. YMMV
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