So "works" socialism, even in the oil-rich country and low tariffs on communal! .. Only capitalism can be effective!
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Already without unnecessary words it is clear that the economic situation in Venezuela leaves much to be desired. The country is experiencing a shortage of food, and careless handling of government finances led to a significant increase in inflation. Experts predict that inflation in Venezuela will increase to 1.600% in 2017. But at the same time, it is a good chance for bitcoin.
Inflation in Venezuela
Today, life is difficult in Venezuela. Inflation is a great danger for the economy of the world's countries. Fortunately, the situation in other countries is not so dangerous, but nevertheless, the fight against inflation is the most important task of any state.
Now Venezuela is going through the worst inflation in its history. The International Monetary Fund has published research data on which the forecasts in Venezuela is expected to 1,640% inflation during 2017. For those who have been shocked by the 480% increase in inflation this year, such predictions are a real horror.
The plight of a negative impact on all spheres of life in the country. Shortage of food, medicines and widespread theft, have become usual routine of life in Venezuela. The situation has deteriorated so much that now the military have to protect food stores. Perhaps in the next few months, the IMF will have to provide emergency assistance to the country.
But as long as there is no solution to the problem of military power in the country is growing every day. Control over food warehouse was handed over to the armed forces. Moreover, the probability of getting outside help is very low, so as the Venezuelan government a few years ago dangling bonds with the IMF.
But turmoil in the country is an invaluable chance for bitcoin. Before finally devalued the bolivar, you must transfer all their savings in assets that are not subject to inflation. Bitcoin is an excellent opportunity to do just that, in addition, if desired bitcoin can be transferred back to the bolivar. Although this is only a guess. In fact, it is difficult to say whether Venezuela will buy bitcoin residents en masse.
I agree I've actually been watching this for awhile now.. which has got me to buy a lot of bags of rice oats ramen and water.. But I definitely agree crypto could change everything there if they would open up to it :/
development cryptocurrency makes freer exchange of goods and services, labor and capital and thus reduces the destructive role of the state (sorry for my English)
I attempted a video about Steemit and moving past make up posts.. Will u please check it out and let me know what ya think :D
https://steemit.com/new/@stealthtrader/steemit-vlog-2
Our current version of capitalism will result in hyper-inflation too; it just takes longer.
Inflation is caused by an increase in the money supply; and increasing the money supply is required in order to keep the system afloat: Without an increase in the money supply, there would not be enough money to cover the interest on debt and we'd have mass defaults. It's like a game of musical chairs where everyone is forced to buy-in and additional chairs are constantly added so that the game never ends.
Plot a graph of any amount of money subjected to any amount of positive interest - stretch it out long enough and it will always reach infinity.