An article by Jeff Thomas, at International Man, he talks about the “movie” being played out in Venezuela, where “wheelbarrow economics” is playing out today (this very minutes) as they predicted back in 2014.
How could they know it would? Simple.
The pattern followed by Venezuela is roughly the same as for the other jurisdictions; Venezuela is just a bit more advanced in the progression. Therefore, what we are observing in Venezuela is likely to be played out in other countries that have made the same mistake of taking on more debt than they can ever pay back.
This has all been visible right before your eyes, in the news, as they’ve talked about how the government of Venezuela has been printing so much money that they are having to bring it in at the expense of food and other needs on Boeing 747 cargo planes.
The traditional definition of “inflation” is “the increase of the amount of money in circulation.” Today, we think of inflation as an increase in the cost of goods, but this is merely a predictable by-product of inflation. If the amount of money increases, the cost of goods will always rise to meet it. Therefore, the issuance of large amounts of paper money has only a very temporary positive effect. Ultimately, it creates an increase in the price of goods and services, which, in turn, calls for further printing.
Above, we see a photo from the time—a wheelbarrow full of reichsmarks. Next to it, we see a photo from present-day Venezuela—a wheelbarrow full of bolivares.
You would think that, with the huge amount of information available on the internet (and not just in English), the leading figures in the world would see the error in their thinking. But, alas, it’s not true.
So, are the leaders of Venezuela learning from the mistakes of other countries that have followed this pattern? Far from it. Recently, they took delivery of over five billion banknotes—enough to fill three dozen 747 cargo planes. At the same time, Venezuela is selling off its gold in order to pay for the new currency and other debts. Venezuela will soon run out of real money to pay for the fiat money, and that will bring the charade to a disastrous end.
What we can take away from this is that what happened in Weimar Germany in 1922–1923 is happening now in Venezuela in 2016. (And has happened in some twenty other countries over the last hundred years, most recently in Argentina in 2000 and in Zimbabwe in 2008.)
And, still, the leaders of the “western societies” believe that printing money, the government spending money, is the answer to all “our” ills. Think again!
The same will occur in Europe and America in the fairly near future. That’s not a “Chicken Little” overreaction; it’s a virtual certainty. The same economic errors always bring the same catastrophic results.
It’s almost too late! But, you still have the chance to be better off than most of the people, who will not wake up until disaster hits (and, as demonstrated in Venezuela, even then they will not wake up and understand).
By watching, the reader may be forewarned as to how to prepare himself so that, whilst his country may be headed toward economic collapse, he may take action to assure that the impact to himself, his family and his investments are diminished. Via internationalman.com
This is not meant to scare you, because you will only freeze in your tracks and do nothing if you resort to panic. This is, however, a warning that you have precious little time to dig in and figure out what you can do to weather the financial storm that is approaching your neighborhood.
The fact that you’re reading this article is a sure sign that you’re waking up to the realities; and, you have time to mitigate some of the damage. By doing anything at this point to shelter your financial assets, your earning capacity, and your family, you will be way ahead of 90% or more of your neighbors.