Thursday, February 4, 2016


Three dozen (36) 747 cargo planes ferried Venezuelan currency from printing companies around the world into Caracas, Venezuela.

Stuffed to the brim 50 and 100 bolivar banknotes (that's their currency, like our "dollars") because it costs more to physically print twenty bolivar bills and tens and ones than they are worth. The country has been under democracy and some years ago "elected" as president Hugo Chavez, who was a Socialist in a "democracy" as Bernie Sanders professes to be. Being a Socialist he took from the rich and gave to the poor (the most numerous of voters). He also financed it by borrowing from the world's banks and selling its sole plentiful resource, oil. For billions of bolivars.  Then a butterfly flew in the United States. (Bing for the "chaos theory.") Two smart oilmen invented the technologies of long-distance, right-angled drilling and pressure fracturing of rock formations to free up access to oil and natural gas imprisoned for millions of years. Presto chango! The United States possessed and could get at more oil and gas than it needed.

Now please stick with me. When there is more "stuff" (whether goods, services, ideas or other) it becomes worth less if demand for it remains static (which rarely happens). This is called the "law of supply and demand" (Bing it.) In the case of energy (for which oil and gas is the most useful of material) at the time those entrepreneurs were to apply "fracking" and get rich(er), the Peoples' Republic of China, managed by people similar in ideology to Chavez, began a slowdown in its economy. (How much, no one knows since it is generally acknowledged that financial figures and released publicly from China are manufactured to the standard President Xi Jinping desires.)

OK then, supply increases and demand, because of the slowdown in China's economy the largest or second largest in the world, decreases. The result, children, is?

Oil and gas prices drop.

Venezuela has more oil than any other country in the world, but he U. S. dollars it brought in by selling oil declined precipitously. (Same output selling for less, yields less.) But Venezuela did not lower its spending since Hugo Chavez's hand-picked successor, Nicholas Maduro wanted to maintain his own power through socialist ideology after Hugo died in 2013. Promises are promises after all. Maduro lost the latest election.

Turning the supply and demand equation the other way, now the country of Venezuela had fewer dollars to back its currency (which outside of Venezuela was worthless) and buy necessary stuff to feed its people and keep the country running. If the supply of money drops and the demand for the things money buys stays the same, prices must increase. And increase they are, projected to be up 720% this year. (There is essentially no -- zero, nada -- inflation in the United States now.) A $1.00 bottle of beer in Caracas today will be $7.20 this time next year. A $10,000 car will be $72,000. That takes a lot more physical currency circulating throughout the country to buy things. Like food. And bartering is unwieldy. (This is how "business" began thousands of years ago.) But there is only certain number of physical (paper) bills of money. So it must bring some in since it can't afford to buy the paper and metal to print the bills itself. Just stop and think about that. Stop!

You might Bing the German Weimar Republic's inflation in the 1920s and 1930s that put Germany on its path to Hitler.

THIS IS BERNIE SANDERS' GOAL FOR THE UNITED STATES!!!! And, of course, any politician's consequence when he or she spends more money of the United States than it has or can generate. Today the United States owes nearly $20,000,000,000,000. (Twenty Trillion dollars.) This increased some $12,000,000,000,000 since the day Barack Obama was sworn in as president of the United States of America.

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