Currency Wars: Something Big Is Happening In Venezuela
“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:
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.
Follow Becket Adams (@BecketAdams) on Twitter
Featured image courtesy Getty Images.
Benghazi, IRS, AP...What's next? Only TheBlaze TV offers the truth from Glenn Beck, Andrew Wilkow, and Real News from TheBlaze. Get instant access and a free trial here.
- John McCain Lectures Tea Party Senator on How ‘Business’ Gets Done in Congress: ‘That’s What We’ve Been Doing for a Couple Hundred Years’ 557 Comments
- Boy Scouts of America Vote to Allow Gay Members 509 Comments
- Pope Francis’ Sermon Sparks Debate: ‘Even the Atheists’ Have Been Redeemed ‘With the Blood of Christ’ 483 Comments
- Obama Doesn’t Return Marine’s Salute, Shakes Hand Instead — Is This a Protocol Misstep? 340 Comments
- Piers Morgan Bans Dana Loesch From His Show Following Twitter Spat: ‘Show Some Bloody Respect’ 333 Comments
- Game-Changing Bombshell? There’s a Major Twist in the Story About a High School Student’s Lesbian Relationship With a Minor 242 Comments
- Is the Boy Scouts’ Gay Amendment the ‘Beginning of the End’ for the Group? (Plus: Tell Us Where You Stand) 237 Comments
- MSNBC Hosts Martin Bashir and Chris Hayes Claim London Machete Killers Aren’t Terrorists: ‘These Are Just Murderers’ 141 Comments
- Did You Catch the Possibly Policy-Changing Ft. Hood Reference in Obama’s Terror Speech? Read More
- Dem. Rep. Apologizes for Attending ‘Racist, Anti-Semitic and Homophobic’ Speech Read More
- Have You Had Scotch at a NJ TGI Friday’s Lately? You Might Have Been Drinking Rubbing Alcohol Read More
- Venezuelan President Blames Toilet Paper Shortage on the Rich Read More
- This Terrible Chart Shows the Change in Food Stamp Participation Over the Last 10 Years Read More
- Disney Makes Absolutely Mortifying Photoshop Mistake Read More
- Trey Gowdy at It Again — This Time with a Jack Bauer Reference! 117 Comments
- Lion Named ‘Bonedigger’ and Small Dog Make Most Unlikely Companions Read More
- Rocket Bike Sets Land Speed Record — and Uses a Fuel You Wouldn’t Expect Read More
- How 3D Printing Technology Created a Special Part for Baby’s Windpipe and Saved His Life Read More
- 6 Fascinating Spy Gadgets You’ll Probably Want (and Can Have) After Seeing Read More
- How Would a 3D-Printed Shotgun Slug Hold Up? Here’s the Test Read More
- Judge: Ariz. sheriff's office profiles Latinos
- Yankees' Teixeira to play in minors on Wednesday
- Actress Bynes accused of bong toss out NYC window
- Bayern faces Dortmund in Champions League final
- Calif. plastic ocean debris bill dies in committee
- 18 hurt in shuttle bus crash near Atlanta airport
- FDA warns of infections tied to Tennessee pharmacy
- Barrick fined $16m for Pascua-Lama violations