Venezuela's currency crisis explained
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- čas přidán 21. 08. 2018
- Professor Steve Hanke, one of the world’s leading experts on hyperinflation and former adviser to Venezuela’s former President Rafael Caldera, says dollarisation is the only way to get out of the hyperinflationary spiral. That’s after the President devalued the currency by 96% and pegged it to the state-backed cryptocurrency the petro. He also raised the minimum wage by 3500% as the country faces an economic malaise, a migration crisis and political instability.
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#venezuela #venezuelacurrency #hyperinflation
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Living with inflation out of control is no easy task, we pray for the people of Venezuela and we hope that the leaders of the world start taking notice of what they have done and show empathy, by helping in stabilizing Venezuela's economy.
Maduro is learning the hard way that running a country is nothing like driving a bus. Economic policy is complicated and should be made by those who understand economics. I watched the same thing happen to the people of Zimbabwe. A wonderful country who was lead to economic kaos by a leader who also didn't understand what happens when you mess with the economy and those helping to keep it healthy. The Venezuelan economy by tying it to the price of oil, which is a speculative commodity, can only leave a country in very precarious health. I feel bad for the citizens of Venezuela they have to go through this …. They will have to abandon their currency for a new one, and then tie the new currency to a better more stable measurement. Sad!
X Galanty was venezuala economy not tide to its oil production and reserve through Hugo Chavez not Maduro?
Azia. Yes ( Venezuela economy ) it was tide to oil production with Chavez and Maduro. You don't count on oil only. that is why they fell.
Can you maybe explain, if you have time, the role socialism had with Venezuela's problems? I hear everybody saying socialism, socialism, socialism but nobody can give specifics. When I look at the definition of socialism, I don't understand The link. And, capitalist systems can suffer as well. Just would like a little bit of insight if anyone would like to give their opinion. Thanks
Wonderful information update and to the point. Thank you professor.
I get the general gist that the Venezuelan national oil company extracts oil at the breakneck pace of an arthritic elder, but could someone please help this layman understand specifically what "THE AVERAGE BARREL OF OIL COMING OUT OF THE RESERVES, comes out after 193 years" means; is this another way of saying their rate of extraction will drain their well(s) in 193 years? The semantics seem funny especially when you then ask: "what is the average cost of a barrel?" does that mean cost per one barrel (at that specific time) or the averaged accumulative value of the entire well(s)?
I wish i could answer . I been reading through these comments hoping someone was going to mention it. Sounded odd that it would take 193 years to replace every one barrel, and that the middle east countries or exxon's oil field reserves(wherever those are he referred to) only take 8 years on average to replace a barrel. I know the US reserves are only like 40 million barrels and we consume 20 million a day. So not sure how the math works on all of this.
Professor Hanke knows his stuff. Meduro and Venezuela is in a world of hurt. Bottom line Venezuela needs to get its oil to markert. Meduro needs to get his people out of the oil fields and get the skilled workers back to work.
HANKE IS A LIAR HE KNOWS HOW TO LIE AND RUIN LIVES WITH
UNCLE SCAM'S BLESSING
@@21boxhead get a grip
The name is Maduro, not Meduro. Also, the US government is partially to blame. Don’t get me wrong, of course the country is plagued with corruption and shitty planning, however think about this. Why the hell is the US meddling with foreign economies? What do they care? If they care about the common people of Venezuela, the last thing you want to do is impose economic sanctions, which ultimately harm the local market.
@@21boxhead Needs more caps to show juvenile idiocy and lefty sympathies.
Grow up.
@@babasonic "Why the hell is the US meddling with foreign economies?"
What "meddling"? Specifics, not lefty arm-waving.
If you're talking about the sanctions, you don't have a clue.
Steve Hanke one the worlds best paid leading experts.
It is impossible to micromanage a nation's economy!!
Venezuela need new leader
They need a free market
LeaderS*
It's Venezuela not Venzuela!
I've heard of a Vuvuzela! Is that what he's on about? :D
wht is the possible solution to this?
Get Maduro out, and have a new ruler and constitution, with a social democracy like Western European countries.
Why has it happened? That's the question we were hoping to be answers.
Socialism is the reason (he said,I agree)
He says his oil price predictions are very accurate, but he gets WTI oil price terribly wrong. 8:20
8:15 - Nope. He predicted WTI at $75/bbl at the end of the year; it's $46.50. nearly 40% difference. He didn't give us his gold/oil ratio, so that remains unknown.
But the world is using oil more efficiently and the US (fracked) reserves have turned out to be far larger than predicted.
He actually didn't answer any of the questions...
"He actually didn't answer any of the questions..."
Yes, he did. He didn't give the answers YOU wanted to hear.
He’s a Typical white boomer
0:46
Interviewer: So what tends to happen to an economy, in terms of jobs and businesses, when inflation gets out of control like this?
Professor:
Well, the main thing you do is... *proceeds to give solution*
This block is a very good swimmer.
Too late for Venezuela. The damage is done.
So what happens to the millions living there eh 😂😂. Inflation has been worse than this in history (Germany) hopefully it'll turn out okay.
They just need to declare the old currency null and void and print new stuff and trade it off or start burning it all
Venezuela needs some ad interim non venezuelan experienced expat CEOs to run the national oil company
Based John Hopkins!
Que viva una Venezuela LIBRE!!!!
WTI closed at $45 not $75... whoops.
The imf should take over the Books to get the country back on track.
American imperialism? maybe the world should look to Russia? they spent their money on their military and they fell. Ya, that is what the world should follow.
The Spider's Web: Britain's Second Empire (Documentary)
Why elect a bus driver to lead their country
Mario luis Bonoan The same reason why Americans elected a trust fund baby who went bankrupt 6 times- stupid voters.
The why's this professor never head-on answered the questions is that inherently he almost always replied as if he is still the adviser.
Quite true, people were trying to buy bread with wheeelbarrows full of money.
60 million dollars Canada gave u where that money
They just need to produce some goods.fuckers were depending on oil too much.
Venzoowala???
That is why the country cant get any better
We need a global currency.
what do you expect from a bus driver w/ no high school education?
America has a reality tv star who has been bankrupt more than once, so I wouldn't be pointing fingers, babe.
Smart man but doesn't really answer the questions lol
soon everyone in Venezuela will be billionaires? maybe three billionaires can get together and buy a chicken. go socialism.
rick couture - Don't be absurd !! - It's more like trillionaire, but the chicken price has risen greatly by the time I put this post and you can only buy half a chicken without salt !! If you want salt that has gone up too but it will be much cheaper than tomorrow's price. Just don't ask for a warpped one - that's even more. But heh socialism is great isn't it because everyone is equal !! All equal to bugger all.
- All in the shit together but nobody is allowed to complain about it for fear of being called a capitalist pig !!
I have to laugh on that one hahaha
you gotta love left wing states.
All that blabbering and still couldn’t explain why it went hyper
What backs the dollar? Bombs
#buy#bitcoin
VENZEUALA
Global authority on economics, Professor at Johns Hopkins, needs 19 year old to hook up his laptop for video interview.
Ven ZUELA
Lady- "so what going to happen to jobs, businesses, etc???"
Old dude- "In Venzawayla blah blah blah bolivar.
No shit .. former Soviet or communist countries collapsed when capitalism came in .. or should I say when coups and foreign intervention happened through embargoes
manduron venezoulabd. haver. economin. pein
Huh! Zimbabwe wasn't socialist (it was mostly capitalist) but they had a very high inflation rate. I think people who attribute socialism to economic failures are very biased and are being deceptive.
mnjm There are many reasons hyperinflation can occur. In this case, yes, it was socialism. Oil prices dropped and the country no longer had the ability to maintain its vast welfare state, leading to a serious currency crisis.
Tom is right. Socialism as in Venezuela and Cuba. Not Canada or Europe-they're social democracies. And right-wing unregulated capitalism is more likely to hit inflation than social democracies. I'd say that the two-party balance and the higher-trained work force in the U.S. puts it somewhere between Europe and a far-right capitalism.
Buy bitcoin and xrp!!
He says, "You actually can forecast the price of oil pretty accurately. At least I've been doing it that way for years. I see WTI at $75 a barrel by the end of the year."
WTI ended 2018 at $45.41.
Anyone who tells you they can predict the future is either delusional or lying. Academia and the real world are two very different places.
Not trying to be malicious... I just thought that was funny.
Try Brazil's solution, the U.R.V.
THANK GOD INDIA PRINTS CURRENCY AGAINST GOLD RESERVE...THAT MADE INDIA 6TH ECONOMIC POWER IN THE WORLD NOW...
Not anymore. Check your facts. No major economy in the world has its currency backed by gold. Most of it is fiat money.
Is that right? Didn't the rupee devalue awhile back?
The INR is FIAT.
No, it's because you don't have any natural resources America wants to thieve. Just hope you don't find any.
Look at any nation that America has 'intervened' in, and connect the dots. It's why their boogeyman is still cold war rhetoric, they need a scapegoat to cover their tracks.
Only Pakistan's economy is backed by scarce commodities, you heathens.
LOL! nice try Ravi.
Becus The the Rothschild family thats why
Ain't no one gonna say it? "VENZUELLER"
mexicano vivo muy bien en mexico entro a usa busco benezolana yo voy por ella por fabr intercambiemos facebock para que no piense mal de mi! mandeme mensaje por aqui por mi canal aga click alado isquierdo en el circulito!
thanks USA economic war
😂😂
Chavez and Maduro took private companies
They took private property
They took the private oil fields
Turn v enezuela into a comunist dictatorship
And that always fails
USA has nothing to do with that
Lol
Sigmundy Freud anytime.
Sigmundy Freud
Yep blame it on the USA when you ruin your own country with socialism. Get real.
You shouldn't be thanking us you should thank that shitty thing you call socialism.
Nationalizing private industry, which is what they did, is exactly what communism is, you fucking dolt.
TLDR
socialism