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Wednesday, July 25, 2018

Trust And Money 

One of the foundations of trust in a society is its money.  The public has to believe that it can use paper documents to purchase or pay for something.  When that trust breaks down, the public will eschew notes and find other ways to fulfill economic transactions.This is what is happening in Venezuela where monetary inflation is reaching one million percent.  Its money is worthless, and the public is trying anything to get the necessities of life from barter through blackmarket dollars and in the worst case, theft.  How did it get so bad in a country living on a sea of underground oil?  The government wrecked the economy and continues to pursue its ruinous ways. It has lost public trust and maintains power through the barrel of a gun.  Should the military turn on President Nicolas Maduro, it will be the end of him.  Thus far, he has maintained his grip, but for how long?

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