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from the toilet-paper-is-worth-more dept.
In a surprise announcement, [President Nicolas] Maduro said on Sunday that the 100-bolivar note, worth about 2 US cents (£0.015) on the black market, would be taken out of circulation on Wednesday.
The president said the aim was to tackle transnational gangs which hoard the Venezuelan notes abroad, a move he has in the past described as part of the "economic war" being waged against his government. [...] He said part of the plan was to block any of the 100-bolivar notes from being taken back into the country so the gangs would be unable to exchange their hoarded bills, making them worthless.
"I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned and they're stuck with their fraud abroad," he said speaking on television.
Venezuela's currency has fallen dramatically amid skyrocketing inflation.
[...] Analysts say the move is likely to worsen the cash crunch in Venezuela, where people have already been limited in the amount of cash they can take out at automated teller machines. Venezuelans have only been given 10 days to exchange their 100-bolivar notes for new coins and bills ranging from 500 to 20,000 bolivars due to be introduced from 15 December.
(Score: 1, Insightful) by Anonymous Coward on Wednesday December 14 2016, @09:58AM
Libertarianism stands opposite authoritarianism. Basically what you're saying is that libertarian socialism works, and far better than authoritarian capitalism or laissez-faire capitalism, and I agree with you 100%.
(Score: 0) by Anonymous Coward on Wednesday December 14 2016, @01:26PM
Basically what you're saying is that libertarian socialism works
Possibly. It is way too soon to start picking winners and losers. Thus far, state capitalism looks to be the obvious choice, but 50 years from now?
One of the problems with socialism (well, all systems really) is the lack of controls. Keynesian economics should work, but there are no limits on spending, no requirement for saving, or even direction of how government money should be spent, so you end up with a corrupt system that falters under its own weight.
Socialism has the same problems in that you can always spend more without regards to what you can afford, and places like Venezuela are the inevitable result.