Venezuela’s hyperinflation, a visual representation.
So, as I’ve talked in the past, the Venezuelan currency, the Bolivar Fuerte - BsF (strong Bolivar, in reference to the father of the country, Simon Bolivar) is effectively useless as cash these days, how useless you ask? Well, let’s see:
On top we have the lovely national currency, 50 100 BsF bills, for a total of 5.000 BsF, 100 50 BsF bills, for a total of another 5.000 BsF, and finally, 100 20 BsF bills for a total of 2.000 BsF, giving us a grand total of 250 bills and 12.000 BsF.
Keep in mind, currently those three bills are the highest valued available on the market these days, and it took me two hours to get them all from a bank.
Now, that’s quite the big number, both in bills and total value it seems, but now let me direct you to the three bills at the bottom: That’s colombian currency, the Peso
These three are also the highest valued ones in Colombia, 10.000, 20.000 and 50.000 pesos, for a grand total of 80.000 pesos (part of my “shit finally hit the fan” emergency fund), and yes, that’s a lot of 0′s, but don’t let that fool you, as that currency is one of the most stable ones in latin America.
Anyway, here’s the kicker: all those venezuelan bills from earlier, those 250 bills? They are effectively worth the same as the two smaller colombian ones, the bigger 50.000 Pesos bill being worth almost twice as all that venezuelan cash.
(fat lazy cat for reference)
“But Enrique”, you say, “this is all fine and dandy, but that does that mean in actual world-class currency?” Well my friend, all those venezuelan bills? the 12.000 BsF that took me two hours to take out of the bank? They’re worth
12 US Dollars
And this, my friends, is why Venezuelan currency is worth less that the paper it’s printed on, but hey socialism/communism works, right?
PS: They internet states they’re actually worth more, but that’s because the internet uses the official government currency exchange, AKA the one no one but government officials can use these days.
PS2: Actually, there’s an even bigger colombian bill, the 100.000 pesos one, but I have yet to meet someone that has even seen it, as it was recently introduced and it’s used mostly for big bank transactions.
NEW YORK — President-elect Donald Trump issued a single tweet blasting defense contractor Lockheed Martin Corp. at 8:30 a.m. on Monday. By lunchtime, he had wiped $4 billion off the company’s market value.
Wall Street traders began dumping the company’s stock after Trump blasted its fighter jet program: “The F-35 program and cost is out of control,“ he tweeted. "Billions of dollars can and will be saved on military (and other) purchases after January 20th.”
With his 17 million Twitter followers and upcoming inauguration to the most powerful job in the world, Trump presents challenges and opportunities that Wall Street has never seen before. Traders not only have to monitor the president-elect’s every word; they also have to follow his Twitter feed. Some are already crafting strategies to cash in on the president-elect’s penchant for bashing individual companies.
“This is a new type of risk, call it presidential tweet risk,” said Jack Ablin, chief investment officer at BMO Private Bank. “And it’s the largest companies that enjoy a global supply chain, relatively low tax rate and have marshaled Washington to their benefit that seem to be at the most risk. But everyone now has to keep their Twitter feed right next to their Bloomberg terminal.”
Consider that the ability to concentrate without distraction on hard tasks is becoming increasingly valuable in an increasingly complicated economy. Social media weakens this skill because it’s engineered to be addictive. The more you use social media in the way it’s designed to be used — persistently throughout your waking hours — the more your brain learns to crave a quick hit of stimulus at the slightest hint of boredom.
Once this Pavlovian connection is solidified, it becomes hard to give difficult tasks the unbroken concentration they require, and your brain simply won’t tolerate such a long period without a fix. Indeed, part of my own rejection of social media comes from this fear that these services will diminish my ability to concentrate — the skill on which I make my living.
The idea of purposefully introducing into my life a service designed to fragment my attention is as scary to me as the idea of smoking would be to an endurance athlete, and it should be to you if you’re serious about creating things that matter.
It’s often said that, without a planned economy, there is no way to ensure full employment.
Capitalism consistently operates under capacity. This means empty facilitates, full of productive machinery, while those who could operate it are unemployed.
That’s true. But it’s not an accident.
Competition for jobs drives wages down. If 1000 people are willing and able to fill one post, the employer can choose the cheapest from a large pool of workers, all undercutting the cost of each other’s labour to secure the job.
If there are only a handful of people to do a job, wages cannot be forced down as far.
Near-full employment would leave employers with a very small pool of potential workers, forcing wages to increase or stay the same.
The market incentivises high unemployment, demanding the longest possible hours from the cheapest available labourers.