Big numbers, or, how do you spell stoopid?


A cup of coffee now costs 1,000,000 bolivars in Caracas. two years ago, when we launched the Bloomberg Cafe Con Leche Index, a coffee cost 450 bolivars. Or that today’s price is the equivalent of almost 1/5 of the monthly minimum wage. Or that to buy a cup with the most common bill in circulation – the 100-bolivar note – you’d need to gather up a stack of 10,000 of them.

1,000,000 bolivars is really nothing. When converted into dollars, it comes to a mere 29 cents. This contrast – a coffee burns through much of a worker’s entire monthly wage but costs just pennies – illustrates the devastating effects of the government’s frantic money-printing policies and how they are sinking the country deeper into poverty.

With the latest price increase – from 800,000 bolivars just a week earlier – inflation over the past 12 months in Venezuela climbed to 43,378%, according to the index. And if you examine a snapshot of the past three months and project that pace out to a full year, it paints an even grimmer picture: inflation of 482,153%.

More at BI. The Cuba angle here. Apparently the US has been “conspiring” against Maduro. Not enough, apparently. BTW, it’s evil, not stoopid, and Michael Walsh has some thoughts on that.

Hey, what’s happening in Nicaragua?

One Response to “Big numbers, or, how do you spell stoopid?”

  1. Bosun Says:

    THANKS! That’s Michael Walsh at his very BEST! Along those lines, I would highly recommend his: “The Fiery Angel”.

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