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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Joe Btfsplk who wrote (53856)	9/26/2013 10:32:13 AM
From: FJB	Read Replies (1) \| Respond to of 85487

Venezuela's economy approaches full-scale hyperinflation Venezuela's Amuay Refinery explosion, August 25, 2012 According to the latest figures, inflation in Venezuela reached the hyperinflationary level of 45.4% in August. Since the bolivar currency was introduce in January 2008, total inflation has been 323%. The country is plagued by shortages of everything from milk and cooking oil to toothpaste and toilet paper. The hyperinflation is thought to be caused by the extravagant spending and vote-buying by the late president, Hugo Chávez. However, the astronomically high inflation of the past few years turned into hyperinflation this year because of an August 2012, explosion at the government-owned Amuay Refinery, killing 42 and reducing Venezuela's oil exports by 25%. From the point of view of Generational Dynamics, full-scale hyperinflation happens, with very few exceptions, in generational Unraveling eras. Venezuela is currently in a generational Unraveling era (see "Students riot against Hugo Chavez in Venezuela" from 2007). Germany's famous Weimar hyperinflation occurred during an Unraveling era, as did Zimbabwe's hyperinflation. In America, there was 30% inflation from 1977 to 1980, near the end of America's Awakening era, but this was well below the "hyperinflation" level. Today, America, Europe, and much of the world are in a generational Crisis era, a period when the bills come due for all the excesses of the previous Unraveling era. Although America did not have hyperinflation during the 1990s, it did have the huge tech stock market bubble that led to the Nasdaq crash in 2000 and eventually to the current financial crisis (which is far from over). There is no hyperinflation during generational Crisis eras, because when the bills come due, people stop spending money and society goes into a deflationary spiral. World Socialist Web Site and Venezuelanalysis