DEVALUATION: Socialist Venezuela Just Took Five Zeros Off Their Currency

Economic chaos as socialism ruins another country.

Venezuela’s socialist dictator Nicolas Maduro says he has a “plan” for the economy.

He doesn’t.

All he and the socialists have left are harebrained schemes and incompetent ideas that are so dumb, they would be funny if not for the serious human toll of Venezuela’s economic collapse.

Their latest ‘brilliant’ move to deal with the worst hyperinflation on earth?

Take five zeros of the Bolivar and tie it to a cryptocurrency widely viewed as a scam.

The move represents a 96% devaluation of the Venezuelan Bolivar. Whereas it once took 285,000 Bolivars to equal 1 US Dollar, now it takes 6 million Bolivars to get 1 USD.

Amazingly, the socialists also announced a minimum wage hike and an increase in business taxes.

Of course, when a currency is experiencing such massive hyperinflation, things like minimum wages become increasingly meaningless, as currency loses any real value. And businesses are already collapsing, so a tax hike will just make it worse.

1.5 million people have also fled the country.

Insanely, the socialists are trying to peg their so-called ‘Sovereign Bolivar’ (not to be confused with the previous ‘Strong Bolivar’) to the ‘Petro,’ a cryptocurrency widely viewed as a total scam.

“They’ve dollarized our prices. I am petrolizing salaries and petrolizing prices … We are going to convert the petro into the reference that pegs the entire economy’s movements,” said Maduro.

But, as noted by CNBC, economics professor Steve Hanke says this all won’t make a difference:

“Linking (the) new bolivar to the petro is a scam … Appearances change, but, in reality, nothing changes. That’s what’s in store for the bolivar: A facelift.”

Socialism ruins yet another country. And considering that Venezuela has the largest oil reserves on earth, it just goes to show that no country is safe from that destructive ideology.

Spencer Fernando