The situation getting worse by the day. Here’s an update (with video) on the hyperinflation and economic collapse happening in real time…
The situation in Venezuela is getting worse by the day.
We’ve got some street level prices of what goods actually cost.
To say that prices have gone parabolic is an understatement. When a one-and-a-half pound block of cheese nearly costs a month’s worth of wages (see below), you know things are very close to the end.
I have long argued that Venezuela is a taste of things to come in the United States. People counter and say, “No way, the United States is not some third world country”.
True, the U.S. isn’t a third world country. Yet.
But now I actually think things could get even worse here than in Venezuela because of an armed populace addicted to entitlements such as Section 8, Food Stamps, Obamacare, and other things the government takes care of but cannot afford.
In other words, think of the riots we get in some inner-cities when a cop shoots and kills a person. Now add in some hunger pangs, electricity being cut off because of non-payment, and a government telling us how great America is, and we have a recipe for a disaster much worse than Venezuela is experiencing.
Back on track.
We’re seeing hyperinflation in real time, and one of the craziest parts is just how hyper-inflationary things become before the whole system simply blows. Just when you think it’s about to have it’s final blow-off, it goes on for longer.
Here’s a quick run down of just how expensive some things have become, from The Organic Prepper:
One Bolivar is worth 0.000020 USD. The minimum wage is $5.21 or 1.800.000 Bs for a month. Now, how could we expect someone to live under these conditions? It is entirely unexplainable to me that this has not generated massive riots…yet.
Here are the hyperinflation costs of basic items in Venezuela
Remember, many people are paid only 1.800.000 Bs for a month:
- Vegetable oil 900ml. Bottle: 748.367 Bs
- Cereal mixture for milkshakes: 900Grs can: 1.057.057 Bs
- Wheat flour, 1 kg: 398.750 Bs
- Cheese, 1 kg: 2.160.950 Bs (yes, TWO MILLION)
- Chicken and Bacon: 2.299.500 Bs
- 395Grs Condensed milk w/sugar: 566.144 Bs
- Oatmeal 400 Grs: 550.000 Bs
- 1 kg. Margarine: 747.000 Bs
- 1Kg Chocolate mixture for milkshakes: 2.060.000 Bs
- Cheese (melted-for spreading) 300 Grs: 1.097.230 Bs
- Black Olives 235Grs: 1.677.120 Bs
- Ladies deodorant: 890.000 Bs
- Insecticide 1 can: 900.000 Bs
- Mayonnaise 910 Grs.: 955.000 Bs
- 2 toilet paper rolls: 399.974 Bs
- 1 Kg. avocados: 500.000 Bs
- 30 Eggs: 650.000 Bs.
- Dog food, dry, bulk 20Kg: 6.060.000 Bs
- Dishwashing soap, cream 500 Grs: 440.000 Bs
- 2 door fridge: 627.900.000 Bs (yes, six hundred MILLION)
- 400ML. Shampoo: 2.052.050 Bs (2 million)
- 4 small ice cream cups: 2.072.691 Bs
- Rice 500 Grs: 115.277 Bs
- TV 65 inches: 329.999.990 Bs
- 2Lt soda: 298.000 Bs
- Lemon Juice, 500ml bottle: 731.881 Bs
- Light bulb, power saving: 935.000 Bs
- Shoes: 5.986.825 Bs
- Catfish: 465.300 Bs
- Sweet corn 400Grs: 466.480 Bs
- Ground meat: 1.150.000 Bs.
- Steak: 1.300.000 Bs (depending on the region, usually cheaper in cattle-producing states)
- Pork chops: over 1.000.000 Bs
- Corn flour, 1 kg: 265.000 Bs.
- Dollar price: 350.000 Bs / 1 USD
In addition, there’s a video circulating of sugar being delivered to the central bank gold vaults in Venezuela:
Only in Venezuela: sugar, brought in high – security trucks from who-knows where, stored for safekeeping in Central Bank vaults… pic.twitter.com/6Vv0cxyMae
— Carlos Bivero (@cbivero) April 13, 2018
Some of the commentary from the video:
- “Wow, this massive mobilization just to deliver sugar”
- “That’s where the store the gold”
- “Sugar delivered in unmarked trucks”
- “Only in Venezuela”
When I was living in Mexico 18 years ago, I noticed cigarettes delivered to the convenience stores were delivered under armed guard.
To me, this is a taste of things to come.
Side note: Think autonomous-driving trucks are going to be riding all over the nation? Not if they’re carrying anything worth stealing, which is anything.
Because in Venezuela, bands of roving looters don’t even care if it’s not an autonomous-driving truck – it’s getting looted:
And just like the body will sacrifice the extremities to protect the core, the collapse is happening on the periphery, but eventually, it will move to the core of the monetary system itself, the U.S. dollar.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.