On February 8, Venezuela devalued its currency, the bolivar. They hacked it by 32% - from 4.3 to the U.S. dollar to 6.3 to the USD.
Nobody was really shocked by the move. When it comes to the currency wars, massive devaluation is simply one of the keys to the"race to the bottom."
But Venezuela's bad fiscal behavior does mean trouble. We've seen it before; Venezuela has defaulted no fewer than 11 times in its 202 years of existence as an independent nation. And the effect is hardly isolated. If half the continent goes bust, it can't be good news for the other half.
Indeed, I believe Latin American countries are now likely to suffer hyperinflation or declare bankruptcy.
Here's what that means for anyone invested in Latin America...
surviving hyperinflation
Article Index
This Is a Recipe for Massive Hyperinflation or Bankruptcy
Hyperinflation in America: When a Loaf of Bread is $3 Billion
Too few understand just how disruptive hyperinflation in America would be.
Truth is, it would be a nightmare.
In an episode of hyperinflation, money loses value so rapidly that people spend it as quickly as possible, which only feeds the cycle of pushing prices higher and higher at a faster and faster rate.
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