3 ms·
Well, because of course it was not a mistake. Inflation is a way to transfer wealth from the general population to the guys with the printing press (The gov fri
by aortega 13y ago
Well, because of course it was not a mistake. Inflation is a way to transfer wealth from the general population to the guys with the printing press (The gov friends). The only way to escape this trap is to save money in a hard currency, for example the dol...wait a minute...
- rafaelm 13y agoTalk about govt friends. The govt friends here are the only ones that get dollars at the official rate. They are supposed to be importing food, medicine, electronics,etc. They ask for $1mill from the govt for importing 1000 refrigerators at $1000 each. They get them at Bs.6.3 so they have to pay Bs.6.300.000 for the $1mm They import only 500 refrigerators and bribe everyone from the national guard, customs officers,etc. to say they imported 1000 refrigerators, paying their supplier only $500.000. They sell the 500 refrigerators at Bs.15 per dollar, keep the rest of the $500.000 outside of Venezuela and then sell enough of them at the black market rate of Bs.35 to buy the next $1mm at the official market rate. Then they ask for more dollars from the government. And the cycle continues. Multiply this by a LOT more. Almost every govt official is in on it and it has produced a ton of multi-millionaires.