Dear EVERYONE, especially VENEZUELIANS
I've been following several youtube channels about issues related to current situation in Venezuela. And I believe most people understand by now that this country suffer huge inflation, which destroyed all lifesavings of pretty one everyone who had cash / savings in the bank.
One thing that interests me the most, is the answer to two questions:
- How would you prepare yourself ...
for upcoming situation if you would be at potentaially early stage of hyperinflation (as South Africa may just be).
What would you do then? If you were living 5 years earlier and you would anticipate future events?
- A bit more economic based question:
from my understanding hyperinflation can "reset" debt very easily. So those who owned money to the bank then year later those debts would be very easily be paid off. Is that correct?
And I'm even more interested with morgtages (long term loans we take to buy housing property). How does it work in the country hit by hyperinflation? ANYONE KNOWS?
Now perhaps someone here could help me out and find the answer to those two questions?
Yours
Piotr
My response to this crisis using cryptos in Venezuela:
There should be crypto-merchants that can handle transactions in all acceptable cryptocurrencies payments of every goods. More like a private-individual cryptobank. It could be a group of people, or a business establishment or something. Building a micro economy/or it will be called-black market, running in cryptocurrencies.
Is this already in place, or people trying this kind of thing.?
This will help, people around the world to funnel money/help to Venezuelans slowly and safely.
Hope my idea/question make sense.
This is very difficult to happen, although it is true that the crypts are more stable than the currency of Venezuela, as a common Venezuelan does to get the crypts and be able to live on that? In Venezuela there are establishments that accept BTC LTC ETH and some others but almost nobody has to earn them, so almost nobody pays with crypts
Do you know Faircoin and its coop?
Mathematically it seems to make sense that if you owed someone $100K (say for what's left of your mortgage) but $100K become as if nothing due to hyper inflation, they you would seem to owe not so much..
But the real killer is that the bread that costs you say 3 bux now costs 10,000 bux. Or rather, it seems that way, since the 3 bux are now like 3 cents and you have to come up with something akin to this new price of bread.. and you make nothing because everyday what you 'made' working yesterday is now worth nothing..
As long as there is government and banks they will try to ensure they collect on the debt in some way... However, when money's worth nothing, confidence in the civil structures of society fail, and people flee, or there is enough unrest that worrying about food and shelter becomes more important than worrying about debt..
And fleeing, still 'costs' something to the people who transport you. They want some kind of exchange for services..
I remember there were issues that I tired to follow a few years back with Zimbabwe. I imagine if you look into the effects from that historic example, you can get an idea of what's to come for us all if/when economic systems in a country collapse.. I am sure there are probably tons of academic articles about just such a thing..
However every situation would be somewhat unique, as systems involving humans typically morph and change to accommodate human interactions and reactions to situations... (i.e. I have read but not explored the idea that some economic indicators that were used to measure the health of an economy are no longer valid because investors used them/reacted to them and the markets adapted to compensate. I have not explored this idea in any way, and the articles I read about it are probably staledated by now)
Thank you for your amazing comment @darrenfj
I'm only trying to figure out how hyperinflation can affect those with debts. I do completly agree on everything you said.
I remember hearing from Polish older generation, that when strong inflation hit out country (back in the days) then most lost their savings but many got weatlhy because money they borrowed to start up businesses.
Or got a morgage, which they could pay off a year or two later pretty much fully (assuming that they survived financial crisis somehow).
So Im really wondering, how does it work with debts during hyperinflation?
Yours
Piotr
Hi @crypto.piotr
Typically banks do not have a clause in its mortgage document dealing with inflation (hyper or otherwise). Therefore regardless of the value of the money being depreciated you still pay the same amount to the bank, usually, monthly. Whilst the price of essential goods and services like food, transport etc goes up in accordance with the inflation, your mortgage repayment remains the same. Meanwhile it is likely that your salary also goes up somewhat to keep pace with inflation. This makes it much easier to pay off the mortgage, provided there is no default in payment of the mortgage because typically banks do reserve a right to vary the interest rates in the event of a default.
As for preparing yourself 5 years in advance, I would think that you would have to look at inflation beating investments like gold, real estate, and possibly depository receipts for investments in securities in countries with low inflation. Although cryptocurrencies (in particular Bitcoin) have been mooted as a possible alternative for gold in the event of a crash in share market etc., it has not come to pass; Recent events have shown that cryptocurrencies tend to follow the share market trend. This could change in the future, especially if the price of gold shoots up astronomically.
I am not an economist and therefore the above in a layman's view to your questions.
Dear @devann
What an amazing comment. Thanks again for taking the time to write it all down.
Very informative. Appreciate it a lot.
Whats your profession if you don't mind me asking? Your knowledge is mindlowing.
Yours
Piotr
I am trained in law and insurance. My specialty lies in insurance law.
Dear @devann
Would you consider your job market threatened by developing technology? Like AI?
Yours
Piotr
Dear @crypto.piotr,
If we speak of developing technologies, there are many: 3dp, ai, ar, vr, kdd, iot, self-healing materials, BCI (BMI), Nuclear Energy using thorium, 2d materials like graphene etc.
Many of these technologies are being experimented and are being developed and in a decade or so we should see them put to use in unimaginable applications. Many of these applications will utilize a combinations of these technologies. For instance, we can expect ai, iot and kdd technologies to combine to produce numerous applications. Likewise, we can expect 3dp and graphene combine to produce numerous applications.
Even if we take just one of the above technologies, say, 2d materials, currently the research efforts are concentrated only on one 2d material called graphene. It is reckoned that most of the elements in the periodic table are capable of producing a unique 2 d material of its own, with very unique qualities which can be put to use in numerous imagined and unimaginable industrial applications in the future.
Our lives revolves around risks. As a business and as individuals we are always managing risks, at work, at home and everywhere else, even if we care not to admit it. We can pass some of these risks (which are called insurable risks) to insurance companies. Others, we have to manage it ourselves.
What these new technologies will do is that they will, in some cases, either reduce or completely eliminate the existing risks and in some other cases, they will create new risks. For instance, for autonomous vehicles, you may soon find that motor vehicles insurance may become redundant. However, the same autonomous vehicle, which relies on data, may be subject to the risk of data corruption and the consequent risks arising from it, which in itself may create additional types of insurance, yet not thought of. This line of reasoning can be applied to all the other technologies.
Insofar as ai is concerned I foresee, for certain, a lot of jobs of repetitive nature losing ground to robots. But ai relies on data, big data, which originates from activities, be it from human or otherwise. These knowledge derived from data is no replacement for intuitive knowledge like that readily exhibited by Einstein, Stephen Hawkins, Srinivasa Ramanujan and all the other great scientists, which does not originate from data but from certain level of consciousness. All of us are capable of exhibiting intuitive knowledge at varying degrees, although not as readily as Einstein or Stephen Hawkins. That is an abstruse subject reserved for another day!
So my argument is: Life will go on, and if you keep up with the technology and constantly upgrade yourself you have nothing to fear. Those who don't keep up, will likely suffer in every conceivable way you can think of.
I wonder if there's any documentation on what happened on the debt load in Zimbabwe at that time?
Very unlikely @darrenfj :(
Without being a financial expert, it seems that people take out loans with the idea that inflation will make the loan cheaper and cheaper with time. I know that in the US, yearly inflation is built into the system and many work on that principal - borrowing money since it is cheaper in the long run. Unless the government puts measures in place to not allow loans to be paid off, people should be able to get debt free - even though they might be starving at the same time since food is super expensive.
My parents went through an inflation and basically, those that had property did okay after when everyone got the same amount of money to start out anew.
And farmers did okay because they had food.
Thank you for your amazing answer @mariannewest
You mind sharing with me when did they go through inflation? And in which country? Just curious.
Yours
Piotr
My parents were born right around the time of the first inflation in Germany and then, went through another one after the War and a complete change in currency. Everyone started out with the same amount of cash - ergo, the ones with property were way ahead of the game...
Hi @mariannewest
Thank you again for your reply. This is quite fascinating to me to learn about history I've never heard of.
Yours
Piotr
You are welcome 😀
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@crypto.piotr Germany did and Holland did and I assume more European countries after the 2nd World War (so 1945). That is really not that long ago and look where these countries are standing now. They are seen as the richest countries in Europe, they carry the EU ballast on their shoulders. Holland is at place 4 of the most crowded countries in the world. Everybody seems to think it is the paradise, no need to work, you get everything for free.
To rebuild a country you need people, strong people, people willing to rebuild it, helping each other out. The crooks who did come out of the war rich, suddenly had nothing. Had to start at zero too.
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Thank you for your reply. I didn't know that Holland went throught hyperinflation. I'm wondering if europe would sort of their economical problems without help from US.
I am a Venezuela living in the country and can tell that económics it's in worst case, hyperinflayion is still in the raise, every month products cost twice the price han before. No so our salares. It's very dificult to buy food or anything to cover básicos needs.
The inflation 1000000% anually acording to economics experts getting into tje worst levels in the world.
I don't know there is hope, the currency has almost no.value, because of that mostró peple.use dollars por criptocurrency as an alternative
We have the potencial recover of hyperonflation history has shown many countries has done ir before. What se need is freedom in order to acomplish the económica recovery of Venezuela.
Regards.
Hi @slwzl
I don't think we ever had a chance to meet each other. Thank you for your kind comment.
Can people use usd to pay for goods?
ps.
God bless Venezuela.
Yours,
Piotr
Yes. It is not legal according to the government regime, but everything is charged in dollars.
Nice to meet you. I know about you by @Belkisa758
Thanks for all that you do.
Hi @crypto.piotr, i searched for your query in google. I am unsure if it answers your query, but still gave a try.
https://www.quora.com/What-happens-to-a-mortgage-when-hyperinflation-in-a-specific-country-hits
Thank you for that link dear @marvyinnovation
Appreciate. Piotr
It is really difficult to answer this question, the most sensible thing I think it would be to leave the country and prepare to give support from outside. Here inside you not only have the problem of hyperinflation, situation to which you could have prepared by investing in Bitcoin in time. Crime and extortion by the authorities are also part of our daily lives and even if I had enough money I wouldn't have a quality of life.
This is true, but not all citizens have the possibility of receiving a loan, especially the most vulnerable classes who cannot collect the necessary documentation, for example in my case, I already have half a year of unemployment and I can not apply for any kind of credit.
Thank you very much for taking care of our country and for supporting these publications @crypto.piotr.
hi @darthgexe
That's exactly my way of thinking. Some people would consider me a "rat" for running from drowning country.
Thank you again for your kind comment. And hope to "see you" in 2019 :)
I presume that you're also from Venezuela? Caracass or some smaller place? Hope you dont mind me asking.
Yours
Piotr
I am from Ciudad Guayana, Bolívar state, in the south of the country.
@crypto.piotr How can a country be rebuild if everbody runs out? Once gone those people will never return. They need to build a new life. Besides of the fact there is no way to rebuild it from the outside. This is a government issue and they need to restart the whole system. What is lost cannot be given back so those who saved have the biggest lost. Some security for later is gone. Debts are still there, but with a new restart they are gone. Everybody has to start at zero and with 1000$. Everybody this includes directors, presidents as well. All banks have to restart too with a new system. To start without giving loans and making a sky high income on that and ripping people off.
No debts, new start to safe. New prices should be made for bread, milk, cigarettes, taking the bus etc.
Prices should be everywhere the same (the task is to rebuild the country not to make 9 people extremely rich and the resteven suffer more).
Education should be free, since it is needed or just a small amount needed for the teacher to live.
I really would like to have a peep into the safe of some people over there. Cryptocurrencies will not solve the problem. There might be a way to pay a bread with it, but that will never be possible for everyone plus it will not bring a healthy economic either to the country. I assume it needs import and export too to get stronger.
If the country is stronger it can have a new coin of it's own, but to start with it is better to use one that has proved itself, is worldwide accepted and with a good value.
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Dear @wakeupkitty
You need those who will runs out and those who will stay. I remember that I left to Dublin the moment when Poland joined european union.
Stream of money from Polish people working abroad gaved a huge "kick" to economy. Especially in construction and property market sector.
Those people will return. Most of them. Or they will be forced to return. Colombia and Brazil are taking huge amount of them but as far as I know they are only accepting migrants for period of 2 years.
Apart of that I fully agree with you. Again: some people will run, some people will stay. Im runner and Im not proud of it. But I never like to be around any political tornado.
Thank you for your great comment,
piotr
To answer your questions: I prepare by saving, but not only in my homecountry. There is land to grow food and keep chickens etc plus property so my kids can be safe and will always have a home.
Holland is already rebuild after 1945 and it is broken down now by the government and EU.
The biggest part of all the immigrants will never work. Their country is a mess, our country and houses they get for free are too. Since they are our "future", need to work and pay the sky high taxes we pay now to keep our "social security system" alive and they will never do so, it is not hard to guess what our country will look like in future.
Since two of my children live abroad and have their education there as well, they will likely build their lives over there. It is not more as normal to help the country that gave you a home, a good education and a chance to live a good life.
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Hi @crypto.piotr. Another question could be how to identify early signs of hyperinflation. This may help:
https://www.quora.com/What-were-the-factors-that-led-to-very-high-inflation-in-Argentina-during-the-late-1980s
https://www.quora.com/What-causes-hyperinflation-in-Venezuela
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dear @caribehub
Thank you for sharing those 2 links with me.
Yours
Piotr
Thanks again @caribehub
Just read those posts and I found them very valuable. Appreciate.
Yours
Piotr
Thanks for reading my article appreciated friend @crypto.piotr
As for mortgages: the government regime with its totalitarian character sets the interest rates for banks, drowning them too.
This is true. The amounts of the debts become minimum amounts.
so at least debts are not a real issue for those affected hyperinflation?
The point is that credit cards limits are ridicoulosly low and banks usually don't adjust to the inflation, also i think the Banks are finding ways to stole your money, for example I used my debit card and the commerce gave me the ticket wich said the card didn't pass then the Bank actually charged me that ammount and never responds when you send proofs to their emails or call..the same has happened to family and friends that's sad
Omg. That's already awful @jenina619 :/
These things happen everywhere. A friend from the USA was staying with us in Holland. His bankaccount was robbed in Texas (does not live there), he could prove where he was but no refund. Banks are there to steal, get rich, not there to help you out.
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@wakeupkitty For that Crypto is best!🙌 🌞Hey take a look at @anomadsoul Contest if you'd love to share your New Year's Celebration with the community!!!😊🎉✨ Here is the link: https://steemit.com/steempress/@anomadsoul/contestmy2018welcomingthenewyear-100steeminprizes-mo805y48z7 Good Luck!😁🍀🍀🍀🍀
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Hyperinflation in my country might be a possibility in the future however have no defence against it just yet maybe saving dollars and crypto instead of local currency might be a good start
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Would you mind sharing with us where are you from @khussan?
cheers, Piotr
Maldives
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@crypto.piotr As you know I am kind of not that knowledgeable in this kind of things but what only option come in mind is cryptocurrency at the moment.
Also I am curious why people are not doing freelancing there , I mean I show post there that some of are writer, some are engg . they can do so much online via remote working and they can get 1000% more than what they are earning now (as I read after full day job they are getting less than $10 ).
What you think ??
Dear @flash07
As I know, your knowledge has been always blowing my mind :)
Im not sure to tell you the truth. I think many of them are trying to work online and do some jobs here and there. Perhaps it's a problem that they (most of the time) do not speak good english? So it limits their job opportunities.
Cheers
Piotr
I can understand. I think they have good potential as you know some of them writes great articles and some if them are great designers.
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Dear @flash07
As I know, your knowledge has been always blowing my mind :)
Im not sure to tell you the truth. I think many of them are trying to work online and do some jobs here and there. Perhaps it's a problem that they (most of the time) do not speak good english? So it limits their job opportunities.
Cheers
Piotr
I don't recognize there's hope, the currency has virtually no.value, thanks to that mostró peple.use greenbacks por criptocurrency as another however solely will recommendation that we have a tendency to simply continue praying.
Hi @dailyexpress
Terima Kasih for your comment. I was just wondering - how come your reputation is only 14? Did someone downvoted you heavily?
Yours
Piotr
Piotr
Dear @crypto.piotr
I do not have experience in economic or financial matters, so my answer is based on my own experience and that of people close to me; that is, what I lived and saw in these years of economic debacle.
I will try to clarify about it:
Inflation reversed savings and saving capacity.
Long-term loans, it is very difficult to achieve, even the merchants reject the use of credit cards, because the fixed percentages for the credit fall short, ie too small and the debts become very small (relatively? Regarding the new costs in a couple of weeks.
If I had known about this madness five years ago, I would have used all my little money in buying foreign currency, I would have also sold all non-priority things and used the money for the same purposes.
I would have bought a refrigerator, washing machine, dryer, stove, computer, new television, on credit, to have some security in avoiding repairs for a few years and the possibility of paying in small and devalued installments.
But time passed and reality brought us the chaos that we are living, rather, surviving
Thanks to lot.
Maria Luisa.
Thank you for your amazing comment @mllg
I appreciate the time it took you to write it all down.
Yours
Piotr
You're wellcome.
Happy New Year
Hello @crypto.piotr,
How would you prepare yourself?
I would diversify my portfolio into precious metals (gold and silver), buy a house, buy some cryptocurrency, start a farm, and investing low cap healthcare stocks.
What would you do then? If you were living 5 years earlier and you could anticipate future events?
I would have brought the hell out of bitcoin at under $10 and sold at the the price of $17,500 by this time last year.
For the other question, you are right hyperinflation resets debt as the borrower ends up paying less in terms of real interest rate however dealing with mortgages, most mortgage contracts in my country usually have some clause that allows for a reevaluation of the contract in the occurrence of an event like hyperinflation.
Thank you for (as usual) amazing reply @straighttalk
Why would you consider buying gold? And not focusing only on silver? Isn't silver easier to manage? (hope my question isnt to silly).
seriously? could you tell me why? I love to hear more! :)
Cheers
Piotr
Happy New Year @crypto.piotr , Your questions are more than welcome!
Well I would consider buying gold because gold has always & continue to do the real accounting in the economy when ever a flat currency collapse. A case in point would be the 2008 global financial crises. The price of gold jumped from $650 to $1,800 and currently sitting at $1,280.
Silver on the other hand haven't done well looking at historical data but I would still invest in it because she's been suppressed for so long and likely to explode anytime soon.
Why invest low cap healthcare stocks?
Hahaha... Yeah! I knew you were going to ask this one!
I would invest in low cap healthcare stocks because of the going legalization of cannabis across the health sector globally. If a financial crisis (hyperinflation) should occur in the future, this sector will sure do well on all sides of the market from my analysis. (Note: This is not a financial advice.)
Dear @straighttalk
I love your positive energy buddy :)
I'm still not sure how cannabis can have any effect on that sector. Im glad for your explanation but somehow Im not capable of connecting the "dots" :(
Cheers
Piotr
Well in case I could get prepared for such an event, I would obviously invest in something that does not have a local value but a global value like gold and real estate because the price of these remain in global market and can this be exchanged globally or locally for certain goods.
As of debt, it is true that the salaries goes up with the prices of essential goods but rise in price of salaries will be lower because at present the government in Venezuela has only one purpose to printing so much of paper money-to pay off foreign debts. This is the thing that actually makes life harder. Yes mortgage debts will be easily paid off. The thing I still can't believe is that no country in this world even tried to help Venezuela( At least for their crude oil availability) by proxy debt pay off. Governments are dead selfish. Good questions @crypto.piotr. Sorry in case I told something completely wrong because I don't know anything about economy much. 😅😅
hi @n1hal
Thank you again for your kind comment. And hope to "see you" in 2019 :)
Yours
Piotr
Piotr!!! Thank you so much for your help friend!!! You have brought a light to our life😊 I'm so thankful👼you're an angel!
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To the honest, i never trust or believe any government in this world to handle our country because as we all know it's common knowledge that politicians destroy everything haven't seen or heard any good politicians out there
To answer your question @cypto.piotr if people own lands please make use of them even here in Malaysia i always remind all my friends and families that have a huge amount of lands to plant food.
Because in the end you only need food, shelter and water to live. Other than that is a bonus.
For the economic question, I'm not so good at economics but recently @invech company currently helping Timur Leste to create their own cryptocurrency for the people of Timor-Leste.
You can Google their website they have very interesting plans for the new country to help. I'm sure Vanezuela can adopt the same method the save their country as well. Timur-Leste will be the first blockchain smart city in the world.
Hope it answers your questions and i also hope it will help Venezuelans with the info i shared.
Thank you.
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Thank you for your comment @ragnarhewins90
Im not sure if I agree 100%. From my experience most politicians do care about their own land and own people and are fuckin` up emerging markets more than anything.
Of course Im talking about powerful countries. Venezuela is a complete different story.
To find quality land in Malaysia ... very difficult.
ps. thx. I will check @invech right now.
Yours
Piotr
Of course, powerful countries are a different story. But Malaysia keep going backwards you can see the news it's like a living laughing stock for people to read.
About the land, i forgot to mention I'm not living in Kuala Lumpur the capital city. I'm in Sabah north Borneo side city of Kota Kinabalu. The locals here own vast land here but I'm sad to say most of the never make use of it. But some of them are very successful due to the selling of vegetables and fruits. Most of the time they don't even buy food because they grow food.
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It will happen more and more people will grow their own food. In Europe too, they do not want to depend on the government or are no longer able to pay the sky high prices or had it with all that waste and the taxes getting higher and higher.
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hi @ragnarhewins90
That is also my impression. Partly that's why I decided to move out for some time. Right now this place is a mess. Plus so hostile towards foreigners. Even if I want to bring business and money to your country - it's hardly possible.
I've noticed (I read your profile:P). Still my impression is that almost entire Malaysia has very little land. It's a jungle everywhere. Comparing to european countries (flat and easy to build farms etc) it's really hard to get quality land in Malaysia. But thats just my impression.
Thx for your comment buddy
Terima Kasih
Piotr
And what can Timur-Leste do with it if no other place or country does accept this "coin"? But also... what will be done if the city is without power, people are hacked, or... There is no way to import anything with just this coin. I also wonder why a new coin? How come they do not use what is already there? In the end every country or city has its own cryptocurrency?
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That doubt friend @cripto.piotr
In this aspect if you are right in that.
Particularly about 3 or 4 years ago I asked for a loan of one and a half million Bolivares to the bank, at that time they were a few minimum wages. At that precise moment it will be difficult to gather it, but after 6 months, the minimum wage was already an amount similar to the one that had requested a loan.
Then the fee that had to pay the baco was laughable, because with a month of work could pay the bank the total loan requested.
At the time of hyperinflation, it is a good time to ask for loans, because it is known that it is a matter of months or weeks for that loan to be made little.
Here's what I'll do in those 5 years. I'll invest in human essentials as much as my current funds can take me, food especially. And borrow a little to get it working if need be. Because it's clear that food is going to be the most sought after item. Inflation can only drive the price of food up.
I've never done economics and so I really can't give a technical answer to this, but here's what I think.
The amount owed is fixed and not subject to inflation, so I think the debt will be more easily paid off as it isn't dependent on the price of commodities.
Honestly, these interactions are impacting me positively. Talking to people from around the world on various issues is really enlightening me on various topics. @crypto.piotr has been very instrumental. Steem is making me smarter.
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Dear @naijauser
Thank you for sharing your view on that topic with me. I appreciate it.
Im glad you like it. I also think that finding quality content and promoting it, plus turning into "debate" is way to go far on Steemit. Just have a look at amount of quality comments here :)
yours
Piotr
Dear Piotr, there are many ways in which one could prepare for potential hyperinflation. I think that it would be better to start raising our own food- like cultivating mini gardens or gardens in a pot or stocking on basic needs like rice, flour, wheat, etc. It does not also hurt to start making inventories on items that can be traded like gold or any precious items. Above all, when shit would really hit the fan as they say and money would really worth nothing, surplus stocks on basic commodities can also be traded.
i think that for the debt part, it will not really be cancelled. The payment would be suspended until the inflation is corrected.
Hi @nurseanne84,
I agree that in a case of hyperinflation the best way to prepare is to ensure that you have all the commodities you need to survive, like food, water and shelter. I think I would also try to build good relationships with my neighboors and find ways to help each other. To have things of value that are not touched by inflation such as gold or any other device that could be traded would be helpful.
In Venezuela, one of the big problems is that cars, machines, health equipment, are not working anymore because spare parts can't be found to reapare them. Hyperinflation stops economical transactions and it is a kind of reset of the economy. A new economy can only be started when a new means of transaction (money) fullfill the trust of the people.
Best regards,
Achim
That would be a viable option if you live near a river and can transport water easily, but what if it is not? What if the supply systems fail? That happens currently in several cities of Venezuela. In my area the supply collapsed more than 5 years ago. The invasions of vacant land, propitiated by Hugo Chávez, created chaos. These scoundrels and opportunists diverted the pipes, leaving whole settlements without supply. But that's not all, they also made illegal connections to the electrical system and faults are also bread of the day. The "parasitic" mass of the country enjoys the populism strategy of this government. The working masses, who spent their time in going to universades "for free", who want a better country, we have to buy water.
It seems to me that in order to avoid a situation like the Venezuelan one, we should begin to educate children in schools with subjects that really involve them as citizens. For example, learn to detect corrupt politicians so as not to vote for them. Because the problem of this country is not only the government of Maduro, it is the "opposition" politicians who joined forces in secret with the government to betray Venezuela.
If children learn from their first steps that socialism, communism or populism is equal to POVERTY, HUNGER and DEATH OF A COUNTRY. They will never allow the case of Venezuela to happen again.
(I used the Google Translation)
Eso sería una opción viable si vives cerca de un río y puedes transportar el agua fácilmente, pero qué si no es así? ¿qué si los sistemas de suministro fallan? Eso pasa actualmente en varias ciudades de Venezuela. En mi zona el suministro colapsó hace más de 5 años. Las invasiones de terrenos baldíos, propiciadas por Hugo Chávez, crearon un caos. Estas personas sinverguenzas y oportunistas desviaron las tuberías, dejando a urbanizaciones enteras sin el suministro. Pero eso no es todo, también hicieron conexiones ilegales del sistema eléctrico y las fallas también son pan del día. La masa "parásita" del país disfruta del populismo estrategia de este gobierno. La masa trabajadora, que ocupó su tiempo en ir a universades "gratis", que quiere un mejor país, tenemos que comprar el agua. Me parece que para evitar una situación como la venezolana, se debe comenzar a educar a los niños en las escuelas con materias que realmente lo involucren como ciudadano. Por ejemplo, aprender a detectar a los políticos corruptos para no votar por ellos. Porque el problema de este país no es solo el gobierno de Maduro, son los políticos "opositores" que unieron fuerzas a escondidas con el gobierno para traicionar a Venezuela. Si los niños aprenden desde sus primeros pasos que el socialismo, comunismo o populismo es igual a POBREZA, HAMBRE y MUERTE DE UN PAÍS. Jamás permitirán que el caso de Venezuela vuelva a ocurrir.
Thank you for your amazing comment @thaishps
Are you also from Venezuela?
Piotr
Hi @cripto.piotr. Yes, I am.
hi @thaishps
I hope not Caracass ? I was told that it's the worst place to live in your country.
Piotr
I live in the capital of the Bolivar State. The conditions of this country are so chaotic that it is almost impossible to decide which city is the worst to live. But we should ask the habitants of the mining towns of the Bolívar state such as Tumeremo or El Callao if they consider Caracas the worst city to live. These populations are besieged by mafias, assassins and Colombian guerrillas. Its inhabitants disappear without leaving traces, others are located in common graves and many bodies are unidentified. No one investigates. The government is not interested.
There is a war for the control of gold, diamonds and coltan between the government, the guerrillas and the miners. There are mining camps that are massacred in a single night. 80 corpses? Yesterday someone just told me that I'm naive. They have counted up to 200 murderous people! A politician @AmericoDeGrazia (twitter) has been denouncing what happens but the government began to harass him.
I avoid talking as much as possible about this topic, the anguish raises my blood pressure. So I'm going to listen to Michael Bublé to get my center back.
Thank you for your amazing comment @nurseanne84
I'm trying to figure out how hyperinflation can affect those with debts. And I remember hearing from Polish older generation, that when strong inflation hit out country (back in the days) then most lost their savings but many got weatlhy because money they borrowed to start up businesses.
Or got a morgage, which they could pay off a year or two later pretty much fully (assuming that they survived financial crisis somehow).
So Im really wondering, how does it work with debts during hyperinflation?
Yours
Piotr
Hi @crypto.piotr,
Making depts in a country that risks hyperinflation can be very tricky. I can relate from what happens in Turkey where inflation is quite high at the moment.
The only way to fight inflation for a central bank is to increase the interest rates. So most of the time inflation comes together with very high interest rates. So if you have depts that have fluctuating interest rates, your interests will be adapted and you will have to pay much more. You have to imagine that probably your income is also in this currency and it will be equally devaluated. So even though your dept might seem lower in terms of dollars for example, the interests that you have to pay are much higher.
I have friends in Turkey that took depts in foreign currencies but this was also a catastrophe. Even though interest rates were very low, due to the inflation of the turkish money, the interests that had to be paid in foreign currency represented always a bigger part of their income. Their dept grew bigger in Turkish money and in the end my friend had to sell his house and could hardly cover the bank costs.
Conclusion
I would only take depts in such a situation if I had a revenue in a different currency.
Thanks @achim03 for giving me example of turkey. It surely allowed me to understand things better and to see a bigger picture.
That can be very risky. I have my mortgage in CHF (as many polish people do) since their interests rates are super attractive comparing to Polish ones. But it's scary to think what can happen if our currency would lose value and CHF would not. I would be burned alive with my debt.
And ENJOY your NY Celebrations.
Yours
Piotr
Hi @crypto.piotr,
We probably have the lowest interests worldwide. At the moment I have to pay to keep my money on my bank accounts... (negative interests). So mortgages are indeed very cheap in CHF. Mine is 1% p.a. at the moment so I can't complain :-).
I believe as long as our central bank tries at all costs to keep CHF pegged to Euro there is no big risk for you.
I wish you a happy new year !
Regards,
Achim