Venezuela Follows India’s Example and Voids Half of Its Cash

Re:Venezuela Follows India’s Example and Voids Half of Its Cash by mullen on Saturday December 17, 2016 @12:58PM (#13201623)

> Okay, then how are you going to "borrow and spend on public infrastructure"? Where is that money going to come from?

Countries suffering from hyperinflation don't borrow and spend on public infrastructure. They run the printing presses to make money so they pay off the military, police and their high level supporters to stay in power.

> If you're not going to print it now, you can float a bond, but that bond is going to be backed buy the promise of future solvency.

No one is buying bonds from a country suffering from hyperinflation. That would be crazy.

Unfortunately for Maduro, the only way to solve this problem is to replace the government, introduce a new currency and stop running the printing presses.

Okay, it's not THAT simple, but it is a good start.

[ Parent | on HN ]

Re:Venezuela Follows India’s Example and Voids Half of Its Cash by chimeracoder on Saturday December 17, 2016 @01:07PM (#13201653)

> No one is buying bonds from a country suffering from hyperinflation. That would be crazy.

Yes, that's what I'm saying. Which is why the "solution" isn't as simple as "borrow and spend on public infrastructure".

[ Parent | on HN ]