“Are we on the verge of a currency war? TheBlaze asked last month.

At the time, we reported that Alexei Ulyukayev, first deputy chairman of Russia’s central bank, had accused Japan of leading the way in regard to “competitive devaluation.”

“Japan is weakening the yen and other countries may follow,” Ulyukayev warned in January, adding later that the world is headed for a “currency war.”

We also mentioned that Ulyukayev is not alone in his concern:

  • Luxembourg Prime Minister Jean-Claude Juncker recently noted the “dangerously high” value of the euro.
  • Norway and Sweden have expressed concern over currencies exchange-rates.
  • The Bank of Korea has threatened “an active response” to current rates.
  • Federal Reserve Bank of St. Louis President James Bullard said he’s “a little disturbed” by Japan’s actions and the risk of so-called “beggar-thy-neighbor” policies.
  • Bank of England Governor Mervyn King said week that he is worried “we’ll see the growth of actively managed exchange rates.”

But if Japan actively intervening to depress the yen has world bankers and financiers worried, wait until they get a load of Venezuela. Check out these Bloomberg headlines (via Zero Hedge):

  • VENEZUELA DEVALUES FROM 4.30 TO 6.30 BOLIVARS
  • VENEZUELA NEW CURRENCY BODY TO MANAGE DOLLAR INFLOWS
  • CARACAS CONSUMER PRICES ROSE 3.3% IN JAN.

“And that, ladies and gents of Caracas, is how you just lost 46% of your purchasing power, unless of course your fiat was in gold and silver, which just jumped by about 46 [percent],” the Hedge notes.

“And, in case there is confusion, this is in process, and coming soon to every ‘developed world’ banana republic near you,” the report adds.

Here’s a chart showing the remarkable devaluation of the Venezuelan Bolivar (VEF) when paired against the U.S. dollar:

Currency Wars: Something Big Is Happening In Venezuela

Courtesy ZH

Hey, wait a minute. What was that bit about gold, silver, and fiat? Oh, yeah, check out this list of the world’s gold holdings (hint: #15): Currency Wars: Something Big Is Happening In Venezuela

Anyway, “this is what happens to the nominal price of a stock market as currency wars escalate … how do those US investors who flooded Venezuela with cash feel now?” the Hedge asks.

Currency Wars: Something Big Is Happening In Venezuela

Courtesy ZH

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Featured image courtesy Getty Images.