Tuesday, March 30, 2021

The Tale of Three Currencies

 Steve Hanke reports

Today, Venezuela's Bolivar depreciated past the 2,000,000 VES/USD mark for the first time EVER. This has fueled sky-high inflation, which I measure at 2,370.79%/yr. If Maduro ever wants to escape hyperinflation, he must officially dollarize, NOW.

And this:

 This is what happens when you print money at an out-of-control rate, but, but...what about the dollar?

Steve Hanke reports:

Since last year, the Fed has been injecting monetary fuel into the economy by monetizing the government’s debt. There is no end in sight. The Fed is totally committed to monetizing the U.S. government’s debt.

The United States situation is nothing like that of Venezuela or Lebanon, but Federal Reserve monetary policy setting members are acting as though massive money printing (which is the result of monetizing U.S. government debt) will not have any price inflationary consequences.

In other words, irresponsible money printing is in the air, it is just a matter of degree.

Hug your gold coins.


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