Let The Mayhem Commence: Venezuela Sets The Pace!

This is worth breaking my blog silence for (Sometimes the real world is just so glorious I can’t get my act together online).

Venezuela just nuked the global finance world with a devaluation of it’s currency with46% . Even with Hugo Chavez in cancerous limbo it seems Venezuela can’t stop being naughty. The bad news is of course that the population of Venezuela will have lost half it’s purchasing power on the global stage and time will tell how that works out but more interesting is how this will reverberate around the world.

Last year Venezuela called back most of it’s gold. I’m not sure if they have received it which would make the devaluation perhaps a stroke of evil genius in that it might hasten the demise of the global financial system while they can back their currency up with gold.

If they haven’t maybe this is how they want to blackmail the NY fed into repatriating it faster. No matter what the motivation it will set in motion what the central bankers around the globe have been trying to prevent: The collapse of the global financial system!

While the rest of the developed world is scrambling here and there, politely prodding its central bankers to destroy their relative currencies, all the while naming said devaluation assorted names, “quantitative easing” being the most popular, here comes Venezuela and shows the banana republics of the developed world what lobbing a nuclear bomb into a currency war knife fight looks like:

  • VENEZUELA DEVALUES FROM 4.30 TO 6.30 BOLIVARS
  • VENEZUELA NEW CURRENCY BODY TO MANAGE DOLLAR INFLOWS
  • CARACAS CONSUMER PRICES ROSE 3.3% IN JAN.

And that, ladies and gents of Caracas, is how you just lost 46% of your purchasing power, unless of course your fiat was in gold and silver, which just jumped by about 46%. And, in case there is confusion, this is in process, and coming soon to every “developed world” banana republic near you.

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