To illustrate the devastation from hyperinflation, we will now use Venezuelan Bolivares currency to see what that destruction looks like in terms of paper money.
To start, we will look at the currency itself.
As usual for currency outside the U.S., the paper money of Venezuela are esthetically beautiful. All the bills are colorful with lovely illustrations. All the ones we will now see have a nice sized watermark at the otherwise empty space. The watermarks are same face at the bottom of the obverse (front).
Portraits on the obverse of the currency are patriotic reminders of the struggle for Venezuelan independence.
To start our pictorial excursion, here are the obverses of the 2 Bolivar through 100,000 Bolivar currency:
2 – dated 12/27/12, featuring Francisco de Miranda, his efforts for independence in South America failed; he served as forerunner of Simon Bolivar.
Final graph in this series of posts showing the devastating hyperinflation currently running loose in Venezuela will combine two sets of data.
Purpose of doing so is to see if the two sets of data overlap so that there is some good longer-term information that can be used into the future. The source for current data only goes back to late 2020.
Graph at the top of this post shows exchange rate of Venezuelan Bolivars into US dollars between June 2019 and March 2021. This graph is expressed in Bolivar soberanos (Bv.s).
Let’s look at the exchange rate in Venezuela in more detail, breaking out the exchange rate before and after 2018. On the previous graphs it looked like the exchange rate deterioration wasn’t that bad in the lead up to 2018 and it looks like things turned real bad starting in 2019.
That’s the weird thing about hyperinflation. If you remove the recent severe acceleration you still see the rapid increase earlier.
Graph at the top of this post shows exchange rate through 2018. It looks like hyperinflation kicked off in early 2018. Actually, it was going crazy before that. Inflation so severe as to destroy the economy has been running since 2012. Let’s change that graph above to a logarithmic scale to show the percentage changes better.
Socialism in Venezuela has produced the expected results – poverty, a collapsing economy, and people fleeing for their lives. Twenty some odd years of socialism has also produced another foreseeable consequence – hyperinflation.
Let’s track the exchange rate of Venezuelan Bolivars to US dollar as an indicator.
In June 2010 America and the Lakota Sioux people lost a hero.
Clarence Wolf Guts was born and raised on the Rosebud Reservation in the south-central area of South Dakota. During World War II he served as a code talker with other men from the reservation. There were about a dozen code talkers using the Sioux language.
While on vacation recently in San Diego I saw a huge yacht parked in San Diego harbor. This one looked weird, with a helicopter and several boats on the deck. A few hours later another yacht pulled into the harbor, dropping anchor many hundred feet away.
Noticed the name on the side of the first ship was Hodor. Well, of course I did a quick check on the ole’ internet and learned it is a support yacht.
While his clothes were on fire after an improved explosive device blew up the vehicle he was riding in, Army Sergeant First Class Alwyn Cashe returned to the burning vehicle, pulling out a soldier, then another, then another.
Ultimately he pulled six Americans and one national translator from the burning vehicle. Did I mention that his clothing was on fire as he removed each of the soldiers?
Sgt. Cashe is credited with saving the lives of six American soldiers. The national translator, working to free his people, died from the attack. Ten American soldiers were injured, seven seriously.
With 2nd and 3rd burns spread over 72% of his body, Sgt. Cashe died from his wounds a few weeks later.
America is so blessed that we keep finding men like Sergeant First Class Alwyn Cashe.
He was awarded the Silver Star. It took a while for the chain of command to fully understand the depth of his heroism. He will now finally get an even more appropriate award.
Jumbo jet that opened up international travel to the masses reaching end of production run
Background on why B-52 has been around for 50 years and will still be in service after other heavy bombers have long since retired
New F-35C deploying to the fleet
9/8/20 – Wall Street Journal – The Jumbo Jet Was the Pinnacle of Air Luxury – Now It’s Days Are Numbered – Boeing will shut its 747 production line in 2022 when the last of the already ordered freighters is completed. Airbus will close its A380 super jumbo line in 2021 when the last dozen planes are finished. The double-decker A380 was designed as the peer-to-peer competitor to the 747.
Article has lots of fun stats on both planes. I will provide some of the fun detail:
The 747 was the revolutionary jumbo jet. It opened up international travel to the masses. It was a major part of the rapid expansion in air travel.
The 747 debuted in 1969. The A380 in 2000 with first commercial flight in 2007.
Over 50 years there have been 1,556 747s produced. Forecast for the A380 had been 1,200 planes but only 242 have been delivered.
As shown in the following graph, crude oil production increased again in August 2020. It is up 122,351 barrels of oil per day (bopd) over revised July amount, which follows a 148,343 bopd increase over June.