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When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs

searcher

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#1
When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs


by Tyler Durden
Sat, 05/05/2018 - 21:20




For Venezuela's economy, the ascent into socialist paradise did not turn out quite as planned: in fact, under the Maduro regime, the country with the world's biggest petroleum reserves somehow reversed course, and crashed through every single circle of economic hell, and now that its hyperinflation has hit levels that would make even Mugabe and Rudy von Havenstein blush, all that's left is barter.

And, as Fabiola Zerpa explains as part of Bloomberg's fascinating "Life in Caracas" series, i.e., watching economic and social collapse in real-time, in Venezuela, a haircut now costs 5 bananas and 2 eggs.

Read on for what really happens when money dies, coming to a banana monetary regime near you in the near future.

In Venezuela, a Haircut Costs 5 Bananas and 2 Eggs

The other day, I made a baguette-for-parking swap. It worked out brilliantly

I had time but, as usual, no bolivars. The attendant at the cash-only lot had some bills but no chance to leave his post during the fleeting moments the bakery nearby put his favorite bread on sale. The deal: He let me leave my car, and I came back with an extra loaf, acquired with my debit card. He reimbursed me—giving me a bonus of spare change for my pocket.

That’s how we make do in our collapsing economy. If somebody has lots of one thing and too little of another, an arrangement can be made. I’ve exchanged corn meal for rice with friends from high school, eggs for cooking oil with my sister-in-law. Street vendors barter, too, taking, say, a kilo of sugar as payment for one of flour. There are Facebook pages and chat-room groups devoted to the swap-ability of everything from toothpaste to baby formula.


Amid widespread food shortages, street vendors are selling small portions of groceries. Photographer: Carlos Becerra/Bloomberg

A barber in the countryside cuts hair for yuccas, bananas or eggs. Moto-taxi drivers will get you where you need to go for carton of cigarettes. The owners of one of my favorite Mexican restaurants offer a plate of burritos, enchiladas, tamal and tacos in return for a few packages of paper napkins. At a fast-food joint near my office, the guy working the register let me walk away with a carry-out order of chicken, rice and vegetables without paying the other day, relying on my promise to come back with the 800,000 bolivars.

Acting on that kind of trust was unheard of just a few years ago. Charity is also something new. I didn’t grow up with the traditions of canned-food drives and volunteerism that are common in the U.S. Now parents from my kids’ school collect clothes for the poor, and neighbors gather toys for a children’s hospital. My friend Lidia, a property-rights lawyer, delivers homemade soup to the homeless.

I like to think of all of this as a noble expression of solidarity, as evidence of the decency of my fellow caraquenos at a time of mind-numbing shortages of basic goods and exploding inflation. I know that in most cases the motivation is necessity, even desperation. But that’s all right. Handing that freshly baked baguette to the parking lot attendant made both of us smile, even if for just a second.

* * *

For more true stories on daily life in Venezuela read:

https://www.zerohedge.com/news/2018...-venezuela-haircut-costs-5-bananas-and-2-eggs
 

Uglytruth

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#3
Almost makes you want to pay the higher premium for 1/10, 1/4 or 1/2 oz silver. Whatever the price settles at you will need fractional or be taking more than you want / need. 90% might be a cheaper way to go. The education for common people will be swift & severe. They will feel betrayed. If they force everyone to use credit / debt cards that means they can't shut off power. Got to think on this some more.........
 

Ensoniq

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#4
I’m stunned how long the ultimate collapse is taking.

I’d have thought the people and military would have had enough by now
 

oldgaranddad

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#5
Almost makes you want to pay the higher premium for 1/10, 1/4 or 1/2 oz silver........
I though that was what tin snips were for?
 

ZZZZZ

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#6
Almost makes you want to pay the higher premium for 1/10, 1/4 or 1/2 oz silver. Whatever the price settles at you will need fractional or be taking more than you want / need. 90% might be a cheaper way to go. The education for common people will be swift & severe. They will feel betrayed. If they force everyone to use credit / debt cards that means they can't shut off power. Got to think on this some more.........
They will not refer to 90% coins as "junk" any longer.
.
.
 

oldgaranddad

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#7
They will not refer to 90% coins as "junk" any longer.
.
.
Yep! You'll never get that confused look from a millennial when you say pre-1965 anymore when it happens.
 

oldgaranddad

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#9
Think about it 1964 was 30 years before they were born. Almost like saying silver certificate, $500 & $1000 bills to you older guys.
More like gold coins in circulation.
:gracious:
 

Argent Dragon

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#12
I’m stunned how long the ultimate collapse is taking.

I’d have thought the people and military would have had enough by now
This charade can go on longer than GIM can last......... in the end (assuming there is one) a new system will replace the old one.

The short is don't hold your breath. Those in control will pull strings & manipulate society to retain control.
What is OUR part to trigger the END game, what can we do ?
 

GOLDBRIX

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#13
Back to O.P. - I heard what a Hersey Bar or a pair of nylons could get a G.I. in Europe.
I wonder if the rate of return will be the same in Venezuela ?
:don't    know2:
 

oldgaranddad

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#15
I bet if you could get one of those hot Venezuelan chicks into the USA she would be grateful for a lifetime.
...or at least until she grows a mustache and gains a ton of weight. Then it's all your fault.
 

Thecrensh

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#16
I bet if you could get one of those hot Venezuelan chicks into the USA she would be grateful for a lifetime.
Which makes me wonder...if a haircut cost 5 bananas and 2 eggs, what is the going rate for a BJ or a handy?
 

Juristic Person

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#17
Which makes me wonder...if a haircut cost 5 bananas and 2 eggs, what is the going rate for a BJ or a handy?
Wait, it doesn't come with the haircut? (No pun intended)
 

Uglytruth

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#19
Just a thought....... did we miss the NWO boat? Maybe the plan was to grow the heard to build technology & infrastructure (throwing money at it hand over fist), then AI came along, then robots (new easier to control slaves), THEN reduce the population to their 500M target population & everything is not only "renewable and sustainable" but also easy to control. Debt don't exist in this liberal dream world............
 

GOLDBRIX

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#20
Just a thought....... did we miss the NWO boat? Maybe the plan was to grow the heard to build technology & infrastructure (throwing money at it hand over fist), then AI came along, then robots (new easier to control slaves), THEN reduce the population to their 500M target population & everything is not only "renewable and sustainable" but also easy to control. Debt don't exist in this liberal dream world............

Well, The Federal Reserve and its Masters will not like that one bit. :totally steamed:
 

Uglytruth

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#22

arminius

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#23
Almost makes you want to pay the higher premium for 1/10, 1/4 or 1/2 oz silver.
Be on the lookout for pre 64 junk silver dimes, quarters and halfs. That'll work...
 

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#24
Venezuelan Pirates Spread Fear Across The Caribbean


by Tyler Durden
Tue, 08/14/2018 - 10:45


Authored by Joseph Lafave via The Daily Caller,

Vessels sailing in the vicinity of Trinidad and Tobago are now under threat of being the victims of piracy for the first since the 1700s. According to a report from the Washington Post, in the wake of Venezuela’s economic and societal collapse, criminals desperate to earn a living have taken up the centuries-old crime and are attacking yachts and fishing vessels along the coast of South America.



Jeremy McDermott of Insight Crime, a nonprofit that studies organized crime in the region told the Washington Post that “It’s criminal chaos, a free-for-all, along the Venezuelan coast.”



Although there hasn’t been much research into piracy in the Caribbean, one study from the nonprofit group Oceans Beyond Piracy found that pirate attacks in the region rose by 163 percent between 2016 and 2017. Some experts fear that pirate activity and other crimes in the Caribbean Sea will increase as conditions in the socialist country continue to deteriorate.

“This reminds me of how the problems started off the coast of eastern Africa," said Roodal Moonilal, a politician from Trinidad and Tobago while speaking to the Washington Post. “What we’re seeing – the piracy, the smuggling – it’s the result of Venezuela’s political and economic collapse.”

While the region has seen traffickers use ports in Trinidad to move drugs from Colombia and Venezuela to North America in the past, the new pirates are ratcheting up the violence to levels that haven’t been seen by mariners in the region since the time of Blackbeard.



One witness recounted his experience of being attacked by the pirates to reporters and stated that they were “doused with hot oil, hacked with machetes and thrown overboard, then their boats were stolen."

Although Venezuela has a coast guard, one anonymous Venezuelan port official told the Washington Post that ” Venezuelan coast guard officers have been boarding anchored vessels and demanding money and food,” leaving merchant ships and fishing vessels no choice but to anchor further away from the coast.

https://www.zerohedge.com/news/2018-08-14/venezuelan-pirates-spread-fear-across-caribbean
 

the_shootist

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#25
They should have used a more stable, value backed currency like FRNs for example!
 

searcher

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#27
Venezuela Continues Rearranging Deck Chairs on the Titanic
Silver Fortune


Published on Aug 20, 2018
Why Venezuela's efforts to fight hyperinflation are flawed, at best, an likely doomed.

Help support the Silver Fortune Channel through my sponsor, SD Bullion - 10 oz. Silver Bar at Spot! https://sdbullion.com/sf

Support Silver Fortune through Patreon: https://www.patreon.com/silverfortune


Any content within this video or any other video by the Silver Fortune channel is merely one man's opinion, commentary, and analysis, or actual information obtained from elsewhere, and should not be constituted as legal, investment, or financial advice. Make your own financial decisions, or consult a professional if you'd prefer to go that route. The Silver Fortune channel disclaims any liability for legal, financial, or investment decisions made.
 

searcher

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#28
Gold and Hyperinflation Lessons from Venezuela
belangp


Published on Aug 17, 2018
Currency collapse is hyperinflationary in the currency but hyperDEFLATIONARY in gold.
 

JayDubya

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#30
Ecuador, which is a satellite of Venezuela, uses US dollars and the only thing keeping it from imploding with corruption.
That's not what I'm hearing. Many people talking about what a good place it is for expats.
 

Merlin

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#31
I remember the days when a child's haircut or a gallon of gas could be purchased for a quarter. Of course, those were the 90% "junk."
 

GOLDBRIX

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#32
I remember the days when a child's haircut or a gallon of gas could be purchased for a quarter. Of course, those were the 90% "junk."
Well, Depending on your locale the gasoline might be right at one pre '65 quarter- Reg. Unleaded. Kid's haircut may be two of those same quarters, but around here it's gonna be more like FOUR pre '65 quarters OR get a little change back for one Morgan Dollar ( Get the change in pre '82 pennies or any age nickels, For Now). YMMV
 

Merlin

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#33
Well, Depending on your locale... YMMV
Small Mississippi River town. Yes, my haircuts cost a quarter. Maybe 10-15 years pre-1965.
 

Cigarlover

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#34
Someone once said on GIM that al wealth comes from the ground, be it mining, farming or resources extraction. When the banks and money dies we will return to that old saying. In Venezuela if you have a farm or even a decent sized garden you should be doing ok if you can protect it. Thats what big mean dogs are for though.
Another benefit of barter is you don't have to give the government a cut of your labor.
 

searcher

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#38
Can Venezuela recover from its financial crisis? | Inside Story
Al Jazeera English


Published on Aug 21, 2018
Inflation has skyrocketed, prices are at an all-time high and the national currency, the Bolivar, has lost much of its value,
The financial devastation has led to mass migration, starvation and political unrest.
 

Fatrat

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#39
The Bankers boys are busy, attacking Iranian, Turkish, and Venezuelan currencies, and that gentlemen is why I hold Gold and Silver...
 

the_shootist

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#40