worthless currencies Tag

For many years, I’ve described black markets not as the evil danger to economies that governments profess them to be, but as predictable and sensible reactions to the overregulation of official markets. Black markets appear whenever an official market has become overregulated or otherwise unworkable due to governmental interference. They then thrive in direct proportion to the failure of official markets to function freely. They are, in fact, both a barometer and a checks-and-balances system for official markets. Back in 2008, I commented on the growth of the black market in Zimbabwe,Read More

Posted On April 4, 2017By HoudiniIn News

Venezuela’s Money Supply Soars By A Record 200%

Two weeks ago, Reuters reported that due to “unexplained” reasons, the Venezuela central bank had stopped publishing its M2, or money supply, data.  The M2 money supply was up by nearly 180% in mid-February from a year earlier, according to the central bank before it halted the release of the weekly data without explanation in February. “If they are not publishing, you know it must be skyrocketing,” Aurelio Concheso, director of the Caracas-based business consultancy Aspen Consulting, stated the obvious. The central bank and ministry of communications did not respond to aRead More

Posted On March 23, 2017By HoudiniIn News

Why Nobody Trusts the World’s Best Currency

It took a decade of gains for the Azeri currency to build up trust, and two devaluations to ruin it. Even after a rally that’s made the manat the world’s best performer since the start of February, Azerbaijan’s Main Street isn’t convinced. The little confidence people had left in the Caspian Sea nation’s currency after it lost more than half its value in 2015 has been worn away by bouts of panic and wild swings in the exchange rate last year. “I have no dollars, and even if I did, I wouldn’t sell them for manat becauseRead More
By: Farhah Aziz As you turn on your TV channels or browse through your daily newspaper articles, stories about Venezuela’s crippling economy is omnipresent. There is no war or intense political conflict in Venezuela. Then why do we see miles-long queue of people trying to purchase basic goods or why thousands of Venezuelans are taking the risk of crossing the borders to seek a better life in neighboring Colombia or even the Portuguese-speaking Brazil? WHY IS THERE AN ECONOMIC COLLAPSE IN VENEZUELA? Just a few years ago, Venezuela was cited to beRead More
NEW YORK, 1 Feb 2017: The US dollar tumbled yesterday, headed for its worst start to a year in three decades, while stocks dipped as president Donald Trump added uncertainty to the market following stringent curbs on travel to the US from seven Muslim-majority countries. Comments from Trump’s top trade adviser Peter Navarro that Germany was using a “grossly undervalued” euro to gain advantage over the US knocked the US dollar in early North American trading. Trump followed up on those comments in a meeting with the chief executives ofRead More
By: Farhah Aziz Zimbabwe; a landlocked country known for Victoria Falls, Robert Mugabe and indeed the hyperinflation crisis. Who hasn’t heard of the infamous phase of hyperinflation crisis plaguing the country in the late ‘90s stretching into early 2000s? The annual inflation rate was indeed extremely staggering with a record high, 500 billion per cent as of 2009, ranked the highest in the world. So, what has caused this economic chaos to happen in the first place and where is this southern African economy heading to in the future? “Indigenization”Read More