Amidst Hyperinflation-Related Problems, Venezuelan President Prints New Bolivar Notes
- In the wake of Venezuela’s ongoing hyperinflation issues, a number of analysts have been calling for an end to the government’s autonomy over its existing fiat assets.
- Many pundits are saying that President Donald Trump’s policy to engage in a trade war with China and Mexico could have a disastrous effect on the US’ economy in the long run.
Within a matter of just six months, Venezuelan President ‘Nicolas Maduro’ (for the second time this year) has released a circular stating that his government will be issuing new banknotes — with denominations ranging from 10,000 to 50,000 Bolivars — so as to keep up with his country’s ongoing inflation problems.
From a technical standpoint, we can see that the largest new currency bill will have a valuation of around $8 (previously, the largest note that was being circulated within Venezuela was worth 500 Bolivar.) Venezuela is currently being faced with an insane inflation rate that is hovering around the 1.1 million percent mark.
Time and again, President Maduro has blamed the US government for its present economic condition. However, a number of experts are of the belief that Maduro’s penchant for repeatedly printing currency in huge volumes could have also resulted in the Bolivar experiencing hyper-inflation within a short period of time.
According to a number of reports, Maduro is in the process of selling his country’s gold reserves on the black market.
In the wake of the aforementioned developments, it should also be pointed out that the US Department of Labor recently released a study that analyzed the inflation scenario within the US and how it seemed to be eerily resemble the financial scenario faced by Venezuela a couple of years ago.
As most of our readers are probably well aware of, unlike fiat assets that are controlled by the whims of a centralized government entity, Bitcoin, is an independent asset that cannot be manipulated by any singular organization.
As a result of this, the population of Venezuela has largely turned towards Bitcoin (and other similar digital currencies) since they are beginning to see the true potential of this burgeoning asset class.