Venezuela: new banknotes, same poverty
The Nicolás Maduro regime in Venezuela has taken out new banking denominations for the second time in less than a year, fueling the hyperinflation of the…
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Common sense is the only thing that doesn't increase in the Miraflores Palace.
After having managed to get four million displaced persons into cities and countries abroad, fleeing the poverty and violence established by the Chavez regime, Venezuela is once again suffering the consequences of the economic ineptitude of the Nicolás Maduro government.
According to the Venezuelan Central Bank, the government has authorized the issuance of new Bolívar notes of 10,000, 20,000 and 50,000, which will begin to circulate gradually this Thursday, "as a way to make more efficient payments and transactions," the Associated Press explained.
For months, images of large amounts of unused bills in the country have circulated through social media, as a metaphor for the economic catastrophe that the country is experiencing.
After the government had tried to control hyperinflation with useless mechanisms last year - including cutting five zeros off the currency and prices - the gradual dollarization of the economy has given a coup de grace to the lives of Venezuelans who decided to stay in the country.
Up to this moment, the highest denomination banknote that existed in the country was 500 bolivars. The new 50,000 bill is equivalent to U.S. $ 8, and the minimum salary is around 40,000 bolivars.
Considering that the inflation of the Caribbean country reached 815,000 percent during May, according to data handled by the National Assembly, the strategy of issuing larger bills without an economic apparatus behind is only part of the government's illusionist game.