15% Inflation Rate in just four days in Venezuela. A quick way to explain Hyperinflation:

metalmag25 (55)in #informationwar • 6 years ago

So, I wrote a couple days ago that last week, there was a 100% inflation rate in just 7 days. Then, on monday I wrote about the Venezuela currency, the Bolívar (Bs.) kept losing value, as one dollar is now worth Bs. 700,000.00. Well, guess what, four days later, one dollar is worth Bs. 800,000.00, 15% more.

I'll try to explain how this is happening in a quick example:

There is a country where 1000 people live.
The GDP is 1000 apples.
The monetary mass is Bs.1000.
Each person has Bs.1.
Each apple costs Bs.1.

One day, the government prints Bs.1000 new but there are still 100 apples.

Then, what will the price of apples be?

Of course, now apples have to cost Bs. 2 to maintain their GDP worth.

Now, I'll try to explain it taking into account Venezuela in 2017 as an example:

Venezuela is a country where about 13,500,000 people have an income, with massive migration (working population shrinks).
Their GDP is $215,307,000,000, and declining.
Their monetary mass was Bs. 122,700,000,000,000.
Each person has, on average, Bs. 12,000,000 of a yearly salary.
Each $ is worth Bs. 100,000.00, as it's heavily controlled by the government and only is easily bought in the black market.

In three months, the government of Nicolas Maduro raised salaries twice, with a raise of 185% in total. And, apart from that, he gave special bonds for his party supporters for a total of Bs. 30 Billion, 25% more monetary mass.

So, the working population of Venezuela is about 13,500,000 inhabitants.

So they go from about a Bs. 1,000,000 monthly salary to:

Wage raise: Bs. 1,000,000 * 2.85(185%)= Bs. 2,850,000
Government Bonuses= Bs. 2,850,000+Bs.1,000,000= Bs. 3,850,000

So, income grows by Bs. 2,850,000 for each working individual.

The overall income of working population grows by Bs. 51,975,000,000,000 on a monthly basis:

More than 40% of our monetary mass in January, each month.

And with our GDP in decline.

Now, can you understand our currency mess?

It is our duty to spread the truth. If you agree, i invite you to resteem the post. Let's prevent the world for what could happen if we don't take a stand against the Venezuelan Socialist Tyranny.

The Information War is real.
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