Re:Venezuela Follows India’s Example and Voids Half of Its Cash
by petertodd on Saturday December 17, 2016 @07:43AM
(#13200487)
> Not necessarily in cash alone
The argument of the government is people are hording the Bolivar; hoarding other things isn't relevant to that argument.
You haven't given me any reason to think black market entities would actually be hoarding the Bolivar. Meanwhile, it's quite plausible that part of the aim of this cash confiscation is to take money out of the money supply by any means possible, with political deniability. This reduces inflation, albeit at a high cost, and buys political time by making it look like they're doing something.
The argument of the government is people are hording the Bolivar; hoarding other things isn't relevant to that argument.
You haven't given me any reason to think black market entities would actually be hoarding the Bolivar. Meanwhile, it's quite plausible that part of the aim of this cash confiscation is to take money out of the money supply by any means possible, with political deniability. This reduces inflation, albeit at a high cost, and buys political time by making it look like they're doing something.