Steve Hanke: Central Banks Fuel Wealth Loss and Inflation ...

An attempt to solve Venezuela’s Hyperinflation and economic crisis

“The bolivar has been hyperinflating since November 2016.”
“Both the government and the state-owned oil company are in default on dollar-denominated debts.”
“The economy has now been in deep recession for five years and there is no sign of recovery.”
What is Hyperinflation? (from Investopedia)
“Hyperinflation is a term to describe rapid, excessive, and out-of-control price increases in an economy.
Hyperinflation can occur in times of war and economic turmoil followed by a central bank printing an excessive amount of money.
Hyperinflation can cause a surge in prices for basic goods—such as food and fuel—as they become scarce.”
The prime example for hyperinflation that is used in almost every textbook on economics is the Great Depression which had a severe impact worldwide and took place mostly during the 1930s. But, we will come back to it later…
tl;dr: Venezuela’s economy is not doing very well and their currency is experiencing hyperinflation.
“Back in August [2018], President Maduro tried to end the hyperinflation. He devalued the bolivar by 95%, lopped five zeros off the face value of banknotes, and pegged the bolivar to the petro, the state-issued oil-backed cryptocurrency that he had created earlier in the year. The new-look bolivar is now known as the Sovereign Bolivar (VES).”
“Petro is a cryptocurrency whose price is set by government.” This means the government is just doing the same thing that they did with their fiat money – erasing zeros of the face value. But these measures did not work. Unless there is drastic monetary and fiscal reform, hyperinflation simply continues from the new base of the adjusted currency.
tl;dr: As countermeasures the government erased a couple of zeros on their money to make it worth more and created a cryptocurrency controlled by the government. But that did not stop Hyperinflation.
“Steve Hanke outlined two alternatives for monetary reform: one is to replace the bolivar with a hard currency such as the U.S. dollar, and the other is a currency board. In a strict currency board, the currency is pegged to a hard currency and backed 100% or more by reserves denominated in that hard currency, typically government bonds. Thus, all roads to sound money in Venezuela appear to lead to the U.S. dollar, though the Euro could be an alternative.”
“Unfortunately, neither dollarization nor a currency board are remotely acceptable to Maduro’s socialist government.” It would make no sense to give in to a foreign government and rely on their currency if a government wants to maintain economic sovereignty – especially if the country in question is not in favour of the current government.
Today, Venezuelans are adopting and experimenting with Bitcoin to evade hyperinflation and strict financial controls. But as much as I love Bitcoin it serves as a way to store value and is not efficient (too expensive because of its fees) when it comes to everyday transactions like buying milk – especially in a relatively poor country like Venezuela. Consequently, there is a need for a currency with low or no transaction cost that is still independent from the government.
So, as an alternative wouldn’t it make sense to have a currency board with a decentralized cryptocurrency (because a centralized CC like the petro could not prevent government intervention) that is backed by oil reserves and is pegged to the WTI oil price.
I understand that this would make Venezuela rely even more on oil and that the oil price is unpredictably volatile but it seems to be the best option.
tl;dr: The traditional monetary reforms necessary to combat hyperinflation would mean that Venezuela would have to rely on the US Dollar but they are not on good terms with the US. So, creating with a decentralized cryptocurrency that is backed by oil reserves and is pegged to the WTI oil price is the best choice.
Coming back to the Great Depression to spice up this think tank (which I hope this post will turn into; relating to the think tank btw and not a Great Depression… hopefully) even more.
There are many economic theories to combat (hyper-)inflation and an economic depression but they keep on happening. Granted, they might have been caused my economic mismanagement and not following these theories but I would like to bring up a practical example – The Wörgl Experiment.
The Wörgl Experiment was implemented as a countermeasure during the Great Depression by Michael Unterguggenberger a socialdemocratic major of a town in Austria. His political background should not be important but mentioning this might make it more appealing to be implemented in Venezuela. Anyway, the idea was to create a local “demurrage” currency based on the free-economic-theories of Silvio Gesell (a social reformer) that would lose value if it was not used in a certain timeframe. This should bring money into circulation and encourage people to spend their money, and by doing so, stimulate/help the economy. This was executed by paper money with boxes for every month on it that showed the price that It would have in a given month. Picture
To conclude, I have read a post about the BOMB Token a “Million Dollar Hyperdeflationary Currency” and altough I understand that the idea behind it is quite extreme and „the intention [that the BOMB-Token] is not to be used for day-to-day transactions“ it goes in my desired direction, which is:
tl;dr: To create a deflating decentralized cryptocurrency with a currency board that is backed by oil reserves and is pegged to the WTI oil price.
Its purpose would be to stop Hyperinflation and stimulate the economy in Venezuela (or wherever there is an economic depression and/or Hyperinflation). I might be dreaming here but if some crazy (in a good way and with the spirit of Michael Unterguggenberger) major from Venezuela (or whoever from wherever) reads this and implements it AND it actually works – that would be awesome. So, this is an idea I would like to resurface in whatever way possible because I cannot make a cryptocurrency, I have no pull in Venezuela, I do not even speak Spanish.

So please use this idea, take it apart, criticize it, improve it and do some good with it. :)

submitted by pathei_mathos7 to CryptoCurrency [link] [comments]

Newsdumps issue 3

News dumps issues 3#

Date: 21/10/2016
Front cover :
Welcome to newsdumps issue 3
All the links is dump into one Reddit post
Playlist : Spotify :
youtube :

Movies of the week:

1968 American dramatic thriller film directed by Peter Yates and produced by Philip D'Antoni. It stars Steve McQueen, Robert Vaughn, and Jacqueline Bisset. The screenplay by Alan R. Trustman and Harry Kleiner was based on the 1963 novel, Mute Witness,
To Live and die In La (1985) 1985 American action thriller film directed by William Friedkin and based on the novel by former U.S. Secret Service agent Gerald Petievich,
The film tells the story of the lengths to which two Secret Service agents go to arrest a counterfeiter.
The Guest(2014)
2014 American action horror-thriller film and it is like Captain America meets hotline miami meets Universal Solder
Obscure news section
technology section
Gaming Section
local London news

Obscure section

(sunday 16th 2016) WikiLeaks Emails Clearly Show Serious Media Impropriety
University of Cape Town Student Leader Wants to Scrap Science Because It’s Racist, Oppressive
 University of Nevada Cancels ‘Sausage Party’ Screening Because a Douche ‘Raped’ a Juice Box
 Stupid idiot Number 1
 Stupid idiot number 2
 In the uk ,Cheerleading Team Ordered to Cancel Party Over ‘Cultural Appropriation’; Holds it Anyway
 Feminists Attack United Nations for Picking Wonder Woman as UN Honorary Ambassador
Political Correctness Means Murder and Torture of Christians is Ignored
 WikiLeaks: Ecuador cut off Julian Assange's internet
 Students told term ‘be a man’ represents toxic masculinity
 Stupid Idiot number 3
 ‘Remember, it’s illegal to possess’ WikiLeaks Clinton emails, but ‘it’s different for the media,’ says CNN’s Chris Cuomo
 [Industry] Github threatens to remove contributor repositories for 'hate speech', but 'hate speech' has become saying anything that the left disagrees with.
Mindy Kaling’s family feud exposes America’s cultural divide
sjws are going after comic books
Professor: A University Placed a Trigger Warning on the Movie ‘Clueless’
‘Deadpool’ Comic Creator Battles Social Justice Warriors Over ‘Iron Fist’ Outrage
Far left organizations at Clemson scheme to disrupt Milo event
 GQ Austrilla Goes after Milo
 Male Australian Student Pretended to Identify as Woman to Win Paid Position at the College, Friends Say
 Oklahoma Campus Protestors Hate The Term ‘Sooner,’ Because Racism
Professor Refuses To Use ‘Genderless Pronouns’ And Now The Faculty Is In Full Revolt
YouTube Under Fire After Labeling Conservative Radio Host’s Videos ‘Potentially Offensive’

Technology Section

 (sunday 16th 2016) Don't learn to code the guy said
 Meet Google’s New Robotic Safe Space Enforcers: Conversation AI
 apple is going after Detroit Let us pray detroit right now
 Firefox Expermenrs
 Germany says Tesla should not use 'Autopilot' in advertising
 No ones wants to buy I guess buy it myself
 Quantum Computers Will Destroy Bitcoin, Scientists Warn
 People are salt over Peter Thiel support donld Trump and shows how regressive left in the technology industry is.
 Drones will be crashed into passenger jets in mid-air to test safety after string of near misses near airports
 apple wants to build Cars
 Netflix gets new people and stock market is rocking
 FTC says it may be unable to regulate Comcast, Google, and Verizon
 WIKILEAKS: Facebook Founder Mark Zuckerberg ‘Hungry to Learn’ About Politics
 The Salty Reddit Ex Ceo is pissed by a vc donted his money to trump
 Drivless Car
 5G internet is coming
 Microsoft sends out invitations for Office event on November 2
 The Internet of Things is being used to launch massive cyberattacks
 Google’s Cloud Platform gets new a cold storage service
 it is about Visual Studio 15
 it is about IBM 90000 employeess using macs
 It’s Goodbye QWERTY, Hello Emojis as Apple Rethinks the Keyboard
 Google going after VR
 Guardian try to write something bike protection
 Apple lawsuit reveals most chargers sold on Amazon are fake
 you can draw on windows 10
 Microsoft cloud annualized run rate hits $13bn in strong first quarter

Games Section

 Read Dead Making Come back ?
 Everything is code Red for Rockstar
 GTA 5 is Still ongoing Like a train
 Diablo 4 ?
 United Games is Closed
 Red Dead Redemption 2 is confirmed for 2017
 Trailer is coming thursday october 20th
 Battlefield 1 accuused of Sexism
 Hearts Smashed as United Front Games Closes Doors
 The Aim Controller is PS VR's literal secret weapon
 Skyrim Remastered:Bethesda Announces New Creation Kit
 SAG-AFTRA Threatens to Strike American Games
 Red Dead Redemption 2 Trailer 1
 Ninetendo NX will get preview on friday
 ‘Pokemon GO’ Latest News & Update: Niantic CEO John Hanke Confirms Mew, MewTwo, Articuno, Zapdos, Moltres Are Coming Soon! Player Battles Possible?
 Red Dead Redemption 2 Trailer
 NVIDIA Technology Powers New Home Gaming System, Nintendo Switch
 Red Dead Redemption 2: PlayStation and Rockstar Games announce partnership

Local London News

 In the air Tonight, he is making come back mr phil collins
 fires in london flats
 Heathrow issues
 Knifes in Ilford......
 police searching for a man
 Steakhouse open up woodford
 Train Strikes
(not local) Paedophile jailed after vigilantes tricked him into thinking he was meeting 13-year-old
Woman filmed chasing man along Tube platform after seeing ‘racist’ attack
Five car crash causes severe delays in A406 near Ilford
Bus use across England falls to lowest level in decade
 London Zoo gorilla helped himself to blackcurrant squash
 Tube train device controlled explosion at North Greenwich
 PC Gordon Semple: Officer 'killed and dismembered on Grindr sex date'
 ‘Hundreds’ of jobseekers victims of 'recruitment scam'
 Labour hold Jo Cox’s old seat, while Tory majority is slashed in Witney
Breaking Bad ‘fanatic killed police officer then dissolved his body in acid bath’
submitted by pi3dpip3r to Newsdumps [link] [comments]

[Saturday, June 24th, 2017] Jordan to cancel 'marry the victim' clause that exempts a rapist from punishment if he marries his victim; For the fourth time, small Kentucky town elects a dog as mayor; New blockchain-based decentralized internet being built by Princeton-trained computer scientists




  • mvea
    Bioengineers create more durable, versatile wearable diagnostic biosensor for diabetes monitoring that can detect three interconnected compounds - cortisol, glucose and interleukin-6 - in perspired sweat for up to a week without loss of signal integrity. || Link || Comments


  • BeckoningElephant
    What did various indigenous people/natives around the world use for insect repellent before DEET was developed? || Comments


  • maxwellhill
    Cops Sent Warrant To Facebook To Dig Up Dirt On Woman Whose Boyfriend They Had Just Killed: '.... Facebook refused to hand over the information on the grounds that the indefinite gag order was unconstitutional.' || Link || Comments


  • Maggoats
    [Title Post] New blockchain-based decentralized internet being built by Princeton-trained computer scientists || Link || Comments



  • madamcornstinks
    ELI5: Why is it so hard for law enforcement to locate and bust scam call centers? || Comments
  • Duzzeno
    ELI5: Why do yawns sometime yield no fulfillment as if you couldn't "complete" them. || Comments


  • DownvoteMeIWouldToo
    TIL that despite being used to make balloons float and our voices squak, helium is a rare element (on Earth) which is only getting rarer due to the fact it floats out of our atmosphere. This is problematic, as it has useful scientific applications, and is currently essential in MRI technology. || Link || Comments
  • coyotetom
    TIL when nazis demanded a list of Jews living on the island of Zakynthos from the mayor and the bishop, they handed over a list of only their own two names. || Link || Comments


  • newtothelyte
    The physics of salad. How do I get my toppings to stay evenly distributed throughout the salad? || Comments


  • lookglen
    Steve Martin's opening at Tom Hanks AFI Lifetime Achievement Award ceremony. Perfect timing and delivery. Other hosts take note || Link || Comments










  • celica90
    Watching the moonrise in Samuel Boardman State Park, OR (OC)[2000x1800] @rosssvhphoto || Link || Comments
  • rorysexboat
    Recently returned from a few weeks in Alaska and visited 3 national parks. This picture was taken in none of them. The whole state is like this! Matanuska River, near Palmer, AK [5184x3456] [OC] || Link || Comments


  • domenicocavasso
    Falklands War. Steel helmets abandoned by Argentine armed forces who surrendered at Goose Green. May 1982. [768x480] || Link || Comments



Something New

Reddit is HUGE with 1,099,478 subreddits. (This number is updated daily!)
/tldr is trying out a new feature where I will post a random, small subreddit and its top content. It's a fun way to include and celebrate smaller subreddits.

Today's random subreddit is...


A community to share tips and tricks that will help yourself improve on activities, skills and various other tasks.
It’s top 3 all time posts:
  • MungoTungo
    YSK: These four sites connect you to a wealth of knowledge and learning. I go to them to help me fill my idle time with learning (vs. TV, video games, etc.) || Comments
  • temporarycreature
    YSK: Microsoft is going to start injecting ads into Windows 10 File Explorer with the next Creators update. Here is how to turn them off preemptively. || Comments
  • ThePatientsFiance
    YSK that there is a .gov website that allows you to type in any doctor's name and see the type and monetary value of any kickbacks or perks that the doctor received from pharmaceutical companies/ drug reps, and the name of the company that gave the perks. || Comments
submitted by kaunis to tldr [link] [comments]

What is HYPERINFLATION with Professor Steve Hanke and Jeff Deist Prof. Steve Hanke: COVID-19 economic crisis is 'massive', expect 'many many bankruptcies' Steve Hanke - Massive Economic Bull Market Last Ten Years Economist Steve Hanke Bitcoin Is Not a Currency It’s a “Speculative Steve Hanke

While Bitcoin becoming a currency may have been the goal of Nakamoto and others, it is a goal that has not widely been accepted. Economist Rebuts Sentiment That Bitcoin Is a Currency. On July 4th, Steve Hanke, an economist at John Hopkins University and foreign exchange trader, said that he doesn’t think Bitcoin is a currency. Respected economist Professor Steve Hanke has chanted down central banks. While Hanke doesn’t tout cryptocurrency as an alternative, he does say that the world needs fewer central banks because these government-controlled entities are messing up economies and abusing monetary policy, while fueling inflation and loss of wealth. If you have read Satoshi Nakamoto's original white paper on Bitcoin, the likely takeaway is that BTC is a currency. Take the following excerpt from the Respected economist Professor Steve Hanke has chanted down central banks. While Hanke doesn’t tout cryptocurrency as an alternative, he does say that the world needs fewer central banks because these government-controlled entities are messing up economies and abusing monetary policy, while fueling inflation and loss of wealth. Also read: Ex-Liberia Central Bank Chief Under Probe For […] Veteran economist Steve Hank is not a bitcoin fan. The Johns Hopkins University professor on Tuesday bashed the cryptocurrency for lacking the qualities of a traditional currency. He said in a tweet that he sees Bitcoin as a speculative asset, adding that it can become a currency only if it gets tied to a basket of commodities. #Bitcoin is a highly speculative asset, not a currency. # ...

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What is HYPERINFLATION with Professor Steve Hanke and Jeff Deist

Professor Steve Hanke on the benefits of dollarization - Duration: 44 minutes. 1,827 views; Streamed 3 years ago ; 47:32. Matthew Slater on bottom-up strategies for monetary reform - Duration: 47 ... Bitcoin Analysis, Top bitcoin analysis, price prediction, Bitcoin Trading, Bitcoin 2018, Bitcoin Crash, Bitcoin Moon, Bitcoin News, Bitcoin Today, Best Bitcoin Analysis, Bitcoin price, Bitcoin to ... Professor Steve Hanke from the department of economics at the Johns Hopkins University explains why 2008 was ‘peanuts’ compared to the economic woes today. ... This book no longer describes the version of Bitcoin that is traded under the ticker symbol BTC. The roadmap and vision for BTC Bitcoin changed in 2017. The network split, and now the Bitcoin that ... If you have read Satoshi Nakamoto’s original white paper on Bitcoin, the likely takeaway is that BTC is a currency. Take the following excerpt from the conclusion of the white paper. While ...