Hyperinflation Hell:Following Currency Devaluation,Belarus Economy Implodes,Sets Blueprint For West

[stockholmer]

"A ‘91-style meltdown is almost inevitable." So says Alexei Moiseev, chief economist at VTB Capital, the investment-banking arm of Russia’s second-largest lender, discussing the imminent economic catastrophe that is sure to engulf Belarus following the surprise devaluation of the country's currency by over 50%, which we announced on Monday. "Unless Belarus heeds Russia’s call for mass privatization of state assets, it is headed for “hyperinflation, massive un- and under-employment, and a shutdown of production" Moiseev concludes.

Ah - "privatization" as Greece is about to learn, the lovely word that describes a fire sale of assets to one's creditors, courtesy of a "globalized" new world order. Ironically, this is precisely the warning that will be lobbed at each country in the developed world, as the global race to devalue currencies, first against each other on a relative basis, and ultimately against hard currencies, or on an absolute basis, as the world realizes that there simply is not enough cash flow to cover the interest payments on a debt load, in both the public and private sectors, that continues to rise at an astronomic rate, even as the world prepares to exit from the latest transitory, centrally-planned bounce in the Great Financial Crisis-cum-Depression that started in earnest in 2007 and has been progressing ever since.

Ultimately, Belarus will succumb to hyperinflation, as will each and every other government which seek to devalue its currency: "Unless Belarus heeds Russia’s call for mass privatization of state assets, it is headed for “hyperinflation, massive un- and under-employment, and a shutdown of production,” VTB’s Moiseev said. The ruble will slide to 10,000 per dollar, he added." Of course, this is the primary side effect of attempting to avoid formal bankruptcy through currency devaluation. And all those who continue to believe deflation is an outcome that will be allowed by the Fed, need to look just to the former Soviet satellite to see what lies in store for everyone currently doing all in their power to devalue their currency......................."
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First look at the Belarus Ruble chart below: this is what always happens to every country that resolutely continues to live outside its means. Always.




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much more at http://www.zerohedge.com/article/welcome-hyperinflation-hell-following-currency-devaluation-belarus-economy-implodes-sets-blu

[blindpig]

1. No, this is what happens to people who continue to tolerate...

Capitalism.

[mike_c]

2. +1

[socialist_n_TN]

3. True.

nm

[Igel]

4. Belrus is arguably the least capitalist country in Europe.

It's still largely abiding by the Soviet system. There have been moves to start privatizing, but they've been weak and recent--and behind the calls for privatization.

The Soviet ruble was also vastly overvalued at the end.

[Hannah Bell]

5. which is irrelevant to the point. Lukashenko is being squeezed by global capitalism to bring him

into line.

Foreign capital has not been allowed full penetration, and full rape is always its ultimate demand.

[Vinee]

6. communism has caused more human misery,suffering, and death than capitalism ever has.

communism sucks balls. Capitalism, on the other hand, rocks like a Zeppelin CD.

[Fumesucker]

8. WWII was caused by communism?

I learn something new every day on DU..

Today I learned that the most destructive and deadly war in human history was caused by communism, that none of the nations that instigated the war was capitalist.

[Vinee]

10. That's dumb. The nations that instigated WW2 were national socialists and fascists.

Capitalism more accurately ended the atrocities committed by fascist socialists and communists; furthermore, if you look at Stalin's behavior before during and after WW2, and compare it to every western capitalist democracy I think it's pretty clear who was causing more human misery, suffering, and death. It's nearly impossible to find an example of a successful communist society let alone a modern successful communist society that isn't brutal and repressive. China comes close but lets face it, they got where they are through human rights violations that would never be tolerated in a modern western capitalist democracy and, furthermore, it is Chinese communism that is currently dragging the world down to hell, not western capitalism. Communism sucks balls and anybody that publicly endorses communism is a fucking retard with no grasp of history or reality.

[Fumesucker]

14. I never mentioned democracy, I mentioned capitalism..

And both Germany and Japan were essentially capitalist with many privately owned corporations.

Messerschmitt, Volkswagen, Porsche, Bayer, Siemens, Mitsubishi, Kawasaki.. All those produced war materiel for the Axis powers.

How did America treat the Native Americans? We were a capitalist democracy then and we engaged in genocide.

[blindpig]

15. National Socialists and fascists are capitalists

Their economic system remained capitalistic despite the statist overlay. Those assholes could never have assumed power without capitalist acquience and connivance.

Enjoy your Cold War fantasies, distortions and delusions.

The crimes of 'capitalist democracy' surpass anything that actually occured in socialist societies and continue to this day.

[coalition_unwilling]

11. Um, you might want to take a close look at infant mortality rates

in pre-revolutionary Cuba and post-revolutionary Cuba. While you're at it, you might also want to take a look at adult literacy rates for the same two time periods.

The results directly contradict your various assertions.

In fact, you're so full of shit, i have no further desire to communicate with you whatsoever.

[Vinee]

13. “The Cuban model doesn’t even work for us anymore...” Fidel Castro

And why would it? It is what every communist empire is, a plutocracy and an oligarchy. You have one elite group of wealthy party members ruling over millions of serfs who must suffer food rationing, housing shortages, abject poverty, and political repression in order to sustain the epicurean lifestyles of their wealthy RULERS. Now, if you want to argue that an improvement in infant mortality rates over a 50 year period justifies that kind of repression and oligarchy, I would have to remind you that pretty much EVERY nation on earth has seen improvements in infant mortality (as well as literacy rates) over the same period of time. Communism is the modern scourge of mankind and should be opposed by anyone with any fucking sense at all. That obviously doesn't include you.

[Chris_Texas]

7. lol

[JVS]

9. I thought they were doing currency union with Russia.

[bemildred]

12. Piffle. nt