I'm sure you've seen photos of people in Zimbabwe paying millions of dollars for a dozen of eggs, or perhaps you've heard the story that if you were to play a golf game in Zimbabwe, you'd have to buy the meals for the whole day early in the morning, because by noon, it would be much more expensive.
Here, that's not too far from the truth. This was my day in Caracas, Venezuela.
All the photos in this post were taken by me earlier today
Pepsi. Live Now
It all started a couple of weeks ago when my car started making grumbling noises on its front axle. I also noticed that my right frontal tire was leaning outwards but I wasn't quite sure and I didn't find an answer online. My dad checked it out and told me that he was 90% sure it was the shock absorbers. On Tuesday, I head down to a tire shop and yes, the first thing guy tells me is that the tire is leant and that my shocks are busted.
Why? Because the streets of Caracas are teeming with potholes.
Why? Because there is no money to repair the sewer system underneath, which has leaks which rot the pavement.
Why? Because the national water company HIDROCAPITAL is controlled by the government, which is insanely corrupt.
I ask the guy if he has the shocks and he does, he then writes me up a payslip to repair my car:
I was expecting a similar a blow. Let's talk currency exchange rates.
In Venezuela, the great business is not corruption nor drug trafficking. It is the currency exchange control. National U.S. dollars are controlled by the government, which only give them away to very select individuals and companies to bring goods from other countries. The flawed economic system, or socialism, caused the value of the Venezuelan Bolivar to plummet to the lowest its ever been. Years ago, it had three 0's removed so we wouldn't be so shocked at the inflation. The exchange rate increases with each passing day, as common Venezuelans rely on the black market to have a reference, which is basically the most straightforward way to obtain dollars.
As of today, September 30, the black market values 1 USD to be worth 29,000 Venezuelan Bolivars (VEF).
Now, that wouldn't be such a problem if it wasn't for inflation. Inflation refers to the speed at which market prices change. Here, we can only see unofficial inflation rates, since the government refuses to acknowledge them. These rates are public in any country.
So, the payslip totaling the repairs would total about $51. Not so bad huh?
Well, yes, it is bad. Minimum wage here is $20 per month at a black market rate even if filling my car with 95 octane gasoline costs 0.01 USD because we are an oil-rich country.
But wait, that was on Tuesday...
I returned today morning after I sold some USD to cover the expenses and the guy greets me with this:
"That would be $61"
Because I took five days in selling my USD, the price of the VEF had dropped so fast that now I had to pay 290,000 VEF more. Luckily, my dad had given me money to help with the repairs but he mistakenly gave me a bit more, so I used that.
I was furious. The guy tries to explain that costs change and everything... I get it, we all do. We live in the same country and we all have to make a living. I decide to take a walk while they get the repairs done.
Perhaps you can't quite see what you can buy in Venezuela with 290,000 VEF, which would be around $10. In the U.S. you can buy three massive bags of Lays Chips, a medium-large pack of AA batteries or a nice medium-range book. Well, I went around, saw the Pepsi billboard displayed above and thought just that "live now or inflation will crush your work." I went to eat something. I sat down in a nearby cafe and bought a slice of pizza and a Malta.
That cost me 7.700 VEF or 0.26 USD
I then started to read a book about Che Guevara's life that my dad bought on WalMart long ago, when they were still American owned and they put cheap books near the cashiers. That book cost $7 at that time or 203.000 VEF. Perhaps I could have given the guy the book to meet the full price?
After one hour or so reading, I notice that the shop had not yet touched my car, so I go on a walk to see what I can find.
I found a homeless person
and another one right across the street.
You might think that I was in a bad neighborhood, but no. I took a selfie to prove that you could still take out your phone in public. The zone is called Colinas de Bello Monte, a "middle-class" area with plenty of repair shops. Decades ago it was a small city in itself, a cultural hub full of artists and important figures.
I kept on walking and saw this popular signpost telling people to not pay for ransom if someone they know is kidnapped. You know, just in case, right?
Do not pay. Denounce! 0800 KIDNAP
Finally, I found something that could serve as a price reference. In global economy, there are different types of "dollar" besides the currency. There's the "brown dollar," which is the price of a small black coffee, and the "Big Mac dollar," which is the price of a Big Mac.
For some reason, we don't have the Big Mac anymore! We have the "Big Melt." These are the "dollar menu" items that are more oftentimes advertised:
McDonald's Classic Burger with a medium soda:
1 patty 0.44 USD,
2 patties 0.65 USD
3 patties 0.79 USD.
Finally, I got a call from the guy. My car was ready and as I head down to the shop I start planning this post.
Let's pray I don't bust a tire anytime soon....
because my sole died that day!
Thank you for reading!
Please comment, resteem, follow and upvote!
Your article was spot on and I enjoyed reading it! Feel free to take a look at my blog as well and keep Steeming as I will be looking forward to reading more from you!
Thank you for reading! I'll be on the lookout for your work
Great stuff, so you were just visiting there? Can we help them with blockchain tech or cryptocurrencies? I mean I'd invest in Venezuela if everything is so cheap!
I live here! And yes, crypto is heaven on earth for us. There are thousands of Venezuelans on Steemit, creating trails and curation teams. Because electricity is cheap, Bitcoin mining is very profitable here.
If you have a specific plan for investing here feel free to ask.
Well this is great news and I'd like you to invite and come talk at the #BeyondBitcoin #Whaletank about it. You can RSVP here it is each Saturday.
Being an american and only speaking English I would be so scared for my life if I saw that sign and knew what it said kidnapping thats crazy glad I live in a state that allows concealed weapons permits no one is kidnapping me.
Sadly in Venezuela criminals have assault rifles and bigger weapondry than most armed forces.
You dont really need a concealed weapons permit, and a small firearm will not be much for protecting you!
Keep up the #discussion :D
wow thats true even here in Miami they show on the news someone is getting shot like every day it seems like.