Inflation in Venezuela is so bad that the country’s Central Bank is reportedly considering printing new bills, starting at 100,000 bolivars each. This would be the biggest bill ever printed in Venezuela.
But, they’d be worth only $0.23.
Venezuela has reportedly imported 71 tons of security paper this year from an Italian printer owned primarily by the private equity firm Bain Capital according to Bloomberg.
As much as we can’t help but get caught up in the circus that is the U.S. Presidential election, let’s not forget what’s really at stake; the future direction of the U.S. economy.
There are two contrasting paths ahead of us. Socialism or capitalism.
I’d remind readers that are contemplating the need for a Democratic sweep in Washington to consider the case study of Venezuela. Just a three-hour flight from Miami, this is a country that once enjoyed the highest per capita living in all of Latin America.
But that was twenty years ago. Before socialism.
Two decades of total economic management and failed socialist policies have led to hyperinflation. Venezuela is experiencing seven straight quarters of declines with forecasts for its economy to shrink an additional 20% this quarter.
The takeaway for the Dems? You cannot print your way to economic success. And, you cannot redistribute wealth to achieve economic success.