Venezuela Devalues Bolivar 46%!

20130208_VEF_0After Venezuela sent shockwaves throughout the gold market in the summer of 2011 by repatriating all 110 tons of their gold reserves from NY and London, Venezuela has just sent just as large of shockwaves throughout the escalating global currency wars, announcing a devaluation of the Bolivar by 46% Friday!

With one simple statement, every Venezuelan not holding their savings in physical gold or silver (or dollars or Euros for now) just saw their net wealth vaporize by nearly 50%.



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  1. No smart arse comments to this post, just shock. Oh my god!

    Just got over the shock, My view on this, this is bad. This will affect South America. Who does Venezuela trade with for food, clothing etc….oh hang on, didn’t he come up with a way for products to be exchanged for oil. Genius. Devalue the currency to the outside world, then reduce prices internally.

  2. Hugo is just doing what everybody else wants to do but is too afraid to.  Never let it be said that Mr Chavez isn’t a leader, good or bad.

  3. Whoa! Who’s next???

  4. As is observed in ‘Austrian’ economics … paper ‘money’ invariably and inevitably seeks its intrinsic value of … zero.

  5. Personally I think the dollar should be devalued against Silver.

  6. At least the price of silver is going up somewhere, eh?
    Those silly geese should have bought some yesterday.  Too late.

  7. There was a picture a few years back with Obama giving Chavez something more than a handshake.  They think way to much alike.  But Argentina is the next to take the gas pipe. With $30 billion in debt due PDQ I’m guessing that Christina will give the banksters an Eva Peron and repudiate the debt with a 50% currency deval, if that has not happened yet. 

    • Any thoughts as to how long Christina will survive?  Assassination seems to be a common tool of the banksters and it’s pretty clear that they will be losing their patience with this lady in the not too distant future.  Assassination and attempts at it seem to fill US history and the biggest examples of it all seem to center around US presidents who mess with the banksters… Andrew Jackson (5 unsuccessful attacks), Abe Lincoln (1 successful attack), Jack Kennedy (1 successful attack), etc.

    • Yep, Chavez gave Obama some DAP (the dap handshake).  But you can bet the Venezuelan people won’t be giving each other dap now that everything costs twice as much as it did yesterday. 

  8. This currency war is part of the project plan that is going on. The final objective is to have a official controlling entity setting exchange rates (so no free market). But to install this openly the financial experts need to propose this to the public and they should be of the opinion that this is needed. So first there should be some kind of chaos. I think at least.
    Of course, as a stacker I am supporting this.  Then all the villas I cannot afford now will be in reach soon. Let’s keep the sheeple stupid!

    • just interested in milking some more of you view, so in this scenario, how would not your stash be price controlled?

    • That would fit the typical bankster pattern of behavior.  That is exactly what was done in the panic of 1907 (the crisis), the result of which was the creation of the Federal Reserve System (the solution), the US central bank, that liberty-loving people, such as Thomas Jefferson, had opposed for more than 100 years prior to its creation.  Jefferson’s thoughts on the matter are well documented:
      “If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered…I believe that banking institutions are more dangerous to our liberties than standing armies… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. 
      - Thomas Jefferson”

  9. And just like that your wealth is reduced to SHIT ..

    Just think of when this comes to US/Canada.

    • Considering that fiat currency is already a bunch of cr@p, none of us should be surprised by moves such as this.  When a government can command worthless paper to have value, it should be no surprise when they command that it have LESS value.  They can and will do that anytime it suits them to do so.  This is what demonstrates the power of gold and silver and the power that they place in the hands of the citizens who worked to obtain them.  Yes, governments can and have commanded that precious metals have less value or that citizens cannot possess them but every time they try tricks like that, black markets spring up to resolve those problems.

  10. I just wonder if we will start having a domino effect where every few months another country vastly devalues their currency?
    First Japan and now this.

    • More than likely, PB.  It could also go from 1 or 2 at first, to a trickle, to a raging flood as all others seek advantage by applying an unworkable solution to THE problem.  History, as Pat has pointed out numerous times, has already provided the correct solution to the current monetary problem but few want to follow that course because they derive no special powers over others by implementing it.  No, they would rather use up all of the unworkable “solutions” first and then do the obvious as a last resort and after horrendous damage has been done.  Just remember that inflation, deflation, and devaluation are all aspects of fiat money systems.  Gold and silver money systems also have their problems but they do not have these problems.  Most of us find a PM backed money system superior to any fiat currency system.

  11. So is the benefit to Chavez to pay debts with devalued currency?

    • That would be one aspect of it but I suspect that this is in reaction to US monetary devaluation via inflation.  Venezuela is an oil producing and exporting country.  That business is settled in US dollars, at least for the time being.  By devaluing their own currency, dollars become relatively more valuable.  This makes the payment they receive relatively more valuable.  This effect is likely to be temporary, though.

  12. Why does this particular piece of news make the hairs on the back of my neck stand up?

    • Perhaps because you are seeing it as that first little snow drop that causes a huge avalanche?  That could be exactly what happens as other countries rush to do the same, not wanting to be “left behind” in the mad race to the bottom.  Carried to extreme, of course, this ends when all fiat currencies achieve the very same value of zero.

  13. I think Chavez gave Obama some Palmaide.

  14. We have just seen the look off things to come. There sure will be a lot of angry people that are not prepared when it happens here. Keep Stacking PM’s not Fiat.
    I Wonder if this has started already?

    • “ There sure will be a lot of angry people that are not prepared when it happens here.”
      Indeed there will, Charlie, even though the handwriting has been all over the walls, like graffiti in a major US city, for years.
      Picture this, if you will.  It is said that “In the land of the blind, the one-eyed man is king”.  Might we not translate that to “In the land of the sheeple, the stacker is king”?   lol

  15. Shockingly, what Venezuela has just done is no worse than what the US did in 1933-34.  During that time, President Roosevelt took the Gold of American citizens for a price of $20.67/oz, and promptly devalued the US Dollar by increasing the price of Gold to $35/oz–that was a whopping 41% devaluation!
    What Venezuela has just done is part of the escalating global fiat currency war.  In this war, there will be no winners in the end, save the only sound money that has really withstood the test of time: Gold and Silver.

  16. Ouch! Hugo doesnt play around. This seemed so out of the blue. When this happens in the states US citizens are going to go apeshit!

    • Absolutely no problem as long as we have everything in Facebook, Amazon,Netflix and Google stock

      We can’t lose!

    • lol. Thanks for the stock tip! I am going all in! Oh wait. How are people going to use Facebook, Amazon,Netflix and Google without electricity?

  17. Ed B   3 thoughts.
    1.  BHO is a total lap dog to the banksters. He knows from history that they are completely capable of getting to him
    2. South and Central Americans have 4 centuries of dealing with currencies, caudillos and black markets. The US?  Not so much
    3.  President Gerald Ford 2 unsuccessful attempts.  His VP   Nelson Rockefeller.
         President Reagan-one unsuccessful attempt.  His VP    George Bush
    You just can’t make thi stuff up.  Ford and Reagan were outliers   Rockefeller and Bush were total inner circle.
    Dots connected.  Both Presidents got the warning.  Everyone after that got the message. Step out of line and you get wacked. Presidents are way to easy a target.   Obama knows this and has his own private army.  I would say for what its worth. Obama should fear for his safety just as Chavez, Pinochet, Peron, Kirchner etc etc. 
    PS Chaz, if you are reading this I’m just talking about hypotheticals.  So go back to your girls.
     Fack Fuit I got that DAP Cool handshake Kind of reminds me of hippie handshake. We bankers have the secret handshake but it’s just to keep us from picking each others pockets.. LOL sort of

    • 1.  Yeah, I always thought that he was a son of a bi… well, never mind that now.  lol
      2.  No, not so much.  I predict that the learning curve will be steep but short.  Surviving tends to do that, as well as weed out those who cannot.
      3.  Yes, I recall those incidents but wanted to leave some grist for the mills of others… particularly the Reagan one.  Speaking of old Nelson, I also seem to recall that his middle name is “Aldrich” and that there was a senator named Aldrich who played a big role in getting the Federal Reserve Act through Congress.  :-(
      Agree that we can’t make this crap up, nor do we need to.  There is just so fracking much of it!  

      Obama’s Army?  Would that be primarily the DHS and its TSA Brown Shirts?  I expect to see them in black uniforms with peaked caps, tall boots, Sam Browne belts, and arm bands with the Obamunist symbol any time now.

  18. I was in Venezuela 2 years ago. They have a huge black market for exchanging dollars for Bolivars. At official government sanctioned exchanges or ATMs you would get about 2 to 1. On the black market you could get up to 6 to 1 if you were a tough negotiator. You could swap with anyone from local jewelers to dodgy looking thugs. Not exactly the safest place for carrying around $5,000 in cash. Trust me, if you are an american you wont be popular, luckily i am from Australia but still not overly popular over there. I remember someone writing in big letters on our truck “fuck off gringos” along with a smashed window.
    Unsuspecting tourists we met who had not brought US cash with them were paying out their nose even for simple street food. It is a fairly expensive place and people don’t seem that fussed about conducting business. Makes me wonder where the black market is today.
    Having said this, Venezuela is a spectacular holiday destination. From catching wild anacondas,getting bitten by a piranha, Catatumbo (a place where you can watch lightening all night in 2 second intervals) to the prehistoric Angel Falls and table mountains. Absolutely loved it.

  19. Not good and another domino in the chain fell, what country is it leaning against?

  20. By the way … anyone knows what are the order of countries the had already debased their currencies ? by how many percent?

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