Category Archives: Economic Shutdown

Venezuela Cannot Pay to Print Money

According to an op-ed published via Zero Hedge, Venezuela can no longer print bank notes. Residents of the country are already calling for the removal of its president with looting becoming an ever worsening problem. As is the case with most governments, Venezuela does not print its own money choosing instead to have it printed by private industry located outside of the country. Now Jose Manuel Gonzalez said the government cannot pay its printing bill. De La Rue, the world’s largest currency printing company, is owed over $71 million for printing Venezuelan money.

Part of the problem is that the largest bill in the country is 100 bolivars which equals about $10 in the United States. Therefore, it takes a lot of bills to pay for anything in the economy that has seen inflation raise over 720 percent so far this year said Jose Manuel.
A professor at John Hopkins University says that not being able to pay its printing bill leaves the government with two choices. It can choose to go to a cashless society largely based on bartering or it can print larger denomination bills that will increase hyperinflation at an even more alarming rate. The professor continues that if the government chooses to not find a way to print larger denomination bills that people within the country will become even more fearful of economic collapse.