Rizal Philippines
August 30, 2018
From Forbes: Venenzuela path to hyper inflation
This week, as I was ordering food from turs2, the viand price has gone by as much as P10.00 per order. The reason: because of train law. That is what the vendor said as the cause. It is disturbing. Because when food prices go up, it forebodes of more challenges. Thus this has to be addressed to well: food security is now at risk....
This problem must be addressed to ASAP. We cant afford to have hyper inflation as what has happened in Germany and some South American nations early on. Now we see Venenzuela with severe inflation problems, people facing woes...Its citizens are migrating to Peru Ecuador, a humanitarian crisis. It is partly political
Venenzuela was once the envy of South American countries with huge per capita GDP. But it is very much dependent on oil exports and the drop in prices of oil and labor strike in the oil companies caused economy to shrink. Strict currency controls nationalization of companies, dependence on imports contributed to the woes of the country. With FDI down to zero, decline in dollar reserves, the country has no resort to print more money contributing further to hyper inflation. Its inflation rate is at 1,000% annually. Despite 4 wage increases, people are poorer than ever.
The economy's inflation rate is indexed on price of coffee pegged at Bolivar
The govt of Chavez a dictator, has adopted socialistic policy to keep his people happy, thus incurring deficits and causing loss of value of currency leading to challenges in monetary system leading to inflation. Are there similarities in the Philippines. Sana malayo tayo. at hindi mahawa Pilipinas. Sana ang paglait sa Diyos ay hindi tayo parusahan,
But price of fish and rice doubling is not a good sign. And even the least educated in the country points to Train law as the culprit.
2.3 Million flee from Venenzuela since 2015 amidst economic and political woes
