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It's not the currency that is dying, it's that nobody wants the currency, because the entity that backs it has no integrity. So, it's more like 'Venezuelan eco
by edblarney 10y ago
It's not the currency that is dying, it's that nobody wants the currency, because the entity that backs it has no integrity.
So, it's more like 'Venezuelan economy and governance is failing -> nobody wants Venezuelan Bolivars -> currency loses value rapidly
- btdiehr 10y agoIs that not what people mean when they say a currency is dying? Or is there some other meaning of a dying currency?
- edblarney 10y agoA lot of people surprisingly don't make the connection. Even among politicians and leaders. They see inflation, then blame outsiders etc. - and then try to fix prices / grab private businesses which only exasperates the problem.
- edblarney 10y agoA lot of people surprisingly don't make the connection. Even among politicians and leaders. They see inflation, then blame outsiders etc. - and then try to fix prices / grab private businesses which only exasperates the problem.
- repsilat 10y ago> the entity that backs it has no integrity. Funnily enough, one of the most perplexing thing about Venezuela's disintegration is that they haven't defaulted on any bonds, even though they're paying exorbitant interest rates. See https://www.bloomberg.com/news/articles/2016-07-04/venezuela-refuses-to-default-few-people-seem-to-understand-why https://www.bloomberg.com/news/articles/2016-07-04/venezuela... They're going to run out of money to pay bondholders soon, though.