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.
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 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.
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:
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.
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.
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?
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:
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.
