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Monday, May 07, 2018

When Money Dies: In Venezuela, A Haircut Costs 5 Bananas And 2 Eggs

For Venezuela's economy, the ascent into socialist paradise did not turn out quite as planned: in fact, under the Maduro regime, the country with the world's biggest petroleum reserves somehow reversed course, and crashed through every single circle of economic hell, and now that its hyperinflation has hit levels that would make even Mugabe and Rudy von Havenstein blush, all that's left is barter.

And, as Fabiola Zerpa explains as part of Bloomberg's fascinating "Life in Caracas" series, i.e., watching economic and social collapse in real-time, in Venezuela, a haircut now costs 5 bananas and 2 eggs.

In Venezuela, a Haircut Costs 5 Bananas and 2 Eggs

The other day, I made a baguette-for-parking swap. It worked out brilliantly

I had time but, as usual, no bolivars. The attendant at the cash-only lot had some bills but no chance to leave his post during the fleeting moments the bakery nearby put his favorite bread on sale. The deal: He let me leave my car, and I came back with an extra loaf, acquired with my debit card. He reimbursed me—giving me a bonus of spare change for my pocket.

That’s how we make do in our collapsing economy. If somebody has lots of one thing and too little of another, an arrangement can be made. I’ve exchanged corn meal for rice with friends from high school, eggs for cooking oil with my sister-in-law. Street vendors barter, too, taking, say, a kilo of sugar as payment for one of flour. There are Facebook pages and chat-room groups devoted to the swap-ability of everything from toothpaste to baby formula.

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4 comments:

Anonymous said...

It all started with bartering among friendly participants.

Anonymous said...

Western Banks caused this collapse of the Bolivar.
They always get what they want one way or another.

Anonymous said...

Have you seen the grocery store prices lately? I'm going to start cutting hair.

Anonymous said...

Venezuela was also crippled by US tariffs so that socialism wouldnt ne seen as a viable form of government.