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Bloomberg cafe con leche index - Venezuela hyperinflation
07-25-2018, 04:00 PM
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#1
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gone traveling
Join Date: Nov 2011
Location: The Deep South Bay
Posts: 744
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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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07-25-2018, 09:32 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,203
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Guess you are not keeping up.... it is now 2 million...
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07-25-2018, 11:57 PM
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#3
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gone traveling
Join Date: Nov 2011
Location: The Deep South Bay
Posts: 744
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Quote:
Originally Posted by Texas Proud
Guess you are not keeping up.... it is now 2 million...
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Where is your source on this?
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07-26-2018, 02:50 AM
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#4
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gone traveling
Join Date: Dec 2015
Location: Berkeley, Denver, CO, USA
Posts: 1,406
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I visit this site https://dolartoday.com to see how the Bolivar Fuerte is doing.
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07-26-2018, 10:24 PM
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#5
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gone traveling
Join Date: Nov 2011
Location: The Deep South Bay
Posts: 744
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Quote:
Originally Posted by 97guns
Where is your source on this?
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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 Bloomberg’s 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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07-27-2018, 07:19 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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OMG!
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Retired since summer 1999.
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07-27-2018, 09:56 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,203
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Quote:
Originally Posted by 97guns
Where is your source on this?
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Did not see this post...
But I got it from your link...
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07-27-2018, 10:28 AM
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#9
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Full time employment: Posting here.
Join Date: May 2014
Posts: 977
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This could never happen here in the USA, right? Right?
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07-27-2018, 09:02 PM
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#10
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Recycles dryer sheets
Join Date: Nov 2004
Posts: 245
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But was that coffee with cream?
Rich
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07-27-2018, 09:29 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
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Quote:
Originally Posted by cbo111
This could never happen here in the USA, right? Right?
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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.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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07-27-2018, 10:02 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,070
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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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Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
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07-28-2018, 08:35 AM
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#13
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Full time employment: Posting here.
Join Date: May 2014
Location: Lakewood
Posts: 919
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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.
__________________
Why be normal when you can be yourself?
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07-28-2018, 08:48 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Apr 2011
Posts: 2,962
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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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07-28-2018, 10:19 AM
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#15
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Recycles dryer sheets
Join Date: Nov 2004
Posts: 245
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Quote:
Originally Posted by cbo111
This could never happen here in the USA, right? Right?
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"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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07-28-2018, 10:29 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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Quote:
Originally Posted by Rich
"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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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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Retired since summer 1999.
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07-28-2018, 11:35 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
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Quote:
Originally Posted by Rich
"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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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.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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07-28-2018, 12:51 PM
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#18
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Thinks s/he gets paid by the post
Join Date: Apr 2011
Posts: 2,962
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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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07-28-2018, 01:51 PM
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#19
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,585
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Venezuela is a modern day tragedy. There’s 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 it’s not worth considering and certainly not doing any contingency planning.
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07-28-2018, 04:12 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
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Quote:
Originally Posted by MichaelB
Venezuela is a modern day tragedy. There’s 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 it’s not worth considering and certainly not doing any contingency planning.
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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
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
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