Real World Solutions For You & Your Family | The Truth About Hyperinflation


Today, we are talking to a private citizen that lived through hyperinflation in Venezuela. We are going to take a look at how important all these mantra pieces are to get in place so that you can sustain a reasonable standard of living.


0:00 Parallels between Venezuela and U.S.
1:52 Preparing for Hyperinflation
4:46 Using Gold and Silver
9:33 Pricing in Percentages
10:56 Social Unrest
12:43 It can happen here in the U.S.


Lynette Zang (00:00):

Why are you here today? Why are you giving us your valuable time today and being here with us, which we really appreciate a lot?

Citizen from Venezuela (00:12):

Well, you know, I started listening to you for a little while and like I said you bring Venezuela a lot of the time. So I started paying more attention and I started realizing what was happening. As an immigrant, we believe United States is this superpower that we’re in a good country, that everything is right, everything is perfect. So it took my attention, the message that you were saying, one, one of your shows. And I started looking up different things and I say, Oh, wait a minute. Oh, let me look at this. Let me look at this. And I started realizing what was happening here in America, which at that time I didn’t have any clue. So you wake me up about what was happening in the situation.

Lynette Zang (00:58):

You just gave me chills. Food, Water, Energy, Security, Barterability, Wealth Preservation, Community and Shelter. Today we’re talking to Alejandro, a private citizen that lived through the hyperinflation in Venezuela and still has family there. We’re gonna take a look at how important all those mantra pieces are to get in place so that you can sustain a reasonable standard of living. Alejandro, thank you so much for being here today.

Speaker 3 (01:31):

If you think that the world is headed in a direction that makes you a bit concerned for the future, and you’d like to be as self-sufficient and independent as possible, then you’ve come to the right place. My name is Lynette Zang. Now it’s time to go Beyond Gold and Silver.

Lynette Zang (01:52):

You know, my mantra, Food, Water, Energy, Security, Barterability, Wealth Preservation, Community and Shelter. Can you speak to how that mantra fell into Venezuela and then or related to what you experienced in Venezuela and then how you are preparing for yourself seeing these signs happening here?

Citizen from Venezuela (02:21):

Well, in Venezuela as the services started getting bad, like the power went off for six hours, people started opting for putting electric plans in their buildings. So basically what they do, they had a meeting, everybody tried to put up a little bit so they can afford to buy the electric plans for entire building.

Lynette Zang (02:50):

You mean like solar panels?

Citizen from Venezuela (02:52):

That kind of stuff? Yeah. They also have electric plants for energy. So the, the whole thing is just basically found solution when there’s no power from the mainline. So they can have power during those times. Same thing they did with the water and some communities, they did their well, so they can have water all the time. There is, water is still a big issue Venezuela, for some reason, there is not enough water and make capital in certain areas. Some areas they don’t have that problem, but certain areas they do.

Lynette Zang (03:30):

Most likely the poor areas have that problem more than the wealthy areas, I would guess.

Citizen from Venezuela (03:37):

Yes, as far as the mantra goes, you have to try to be in a position where you can raise your services or your goods through inflation because it’s the only way that you can survive. So if you provide a service or if you sell goods those are things that, those are the people that were able to survive in Venezuela, believe it or not, like mechanic, they just raise their services on their prices. Electrician, they did the same team, but people that were on their fixed income were the ones who actually suffered the most because they unfortunately, they don’t have any other way to raise their salaries. Mm-Hmm. <Affirmative> However, the government, they trying to implement like every, the Labor Day in Venezuela, they always bring with increment in their salaries, but the increment doesn’t do anything. I believe, I think right now as we speak, I think the minimum salary is like $30 in Venezuela, something like that as we speak right now. So, yes, and of course you definitely have to be out of the bank system because when those things happen, you will not have time to go to the bank to try to save. So I think the main thing to do is take action before those things unfold. Mm-Hmm. <Affirmative> understand that those are not investments, those are, those strategies are just basically trying for you to survive during those times and keep your purchasing power in tact. I think that’s another problem that we have in society because we are too linked with the dollars and we are pricing things in dollars. So you see the fluctuations on the pricing as far as I’m talking about the metals.

Lynette Zang (05:32):

So you mean gold, silver?

Citizen from Venezuela (05:34):

I’m losing, I’m losing money because it’s going down. Right. So it’s not really an investment. So I will, I think people have to understand that and you have to sit on the inflation and it takes time for those things to unfold. But when they happen, you’re gonna be happy that you did it if you, if you guys your audience take actions on it.

Lynette Zang (05:54):

Yeah, as I recall, the first time that they did that overnight devaluation, they devaluated the bolivar by, I believe it was 99.6% and you saw the official price of gold, which had been, well you actually, you can address this better than I can. Looking at the graph, it was pretty obvious that even as the inflation was kicking in, it was the spot price of gold was suppressed. It was different on the black market like you were talking about earlier. But then when they did that overnight revaluation, I think spot gold went up something like 3,300 or 3500% when they did that. Yes. Do you remember that?

Citizen from Venezuela (06:49):

Yes. I happen, you know, I’m very nosy because I was kinda little when I left Venezuela. So I think I remember I was doing, searching the gold prices and I know one of my uncles, sold one of his home, and I translated the amount of money that he got for his house at that time, and I think it was the equivalent, I think was 22 ounces of gold at the time that I did a I mean the meath. What was it? So definitely yes. And I’m talking about this, it happened around probably around 2006, 2005, something like that.

Lynette Zang (07:32):

Yeah. Which is just, just as the official, you know, so that was like right before 2005 would’ve been right before the official hyperinflation.

Citizen from Venezuela (07:46):

Yes. And we didn’t have the, like I said, we didn’t have anyone or any community or YouTube channels at that time that give us a warning about what we were gonna be experiencing at that time. So I thank you every day for what you’re doing because people need to wake up. People definitely have to take actions people have to understand that, this is happening and it’s happening right now in front of our nose. And some people they don’t even realize it.

Lynette Zang (08:19):

Well, I appreciate, you know, our meeting in Miami when I did the George Gammon event and you giving me that 20,000 bolivar bill, which was really very nice of you and the quick conversation that we had there, and I cannot tell you how appreciative I am of you coming on the channel and talking about your personal experience so that maybe you can wake some people up to get into a position. Because when I, you know, when I look at what’s happening and you know, even though we talked earlier about really the no division, not real division between a central bank and a government. Right now, what I see is fiscal policy at odds with monetary policy. And I think it’s on purpose, you know I think it’s on purpose to create more chaos, more havoc and to break the system. And I’m sorry that I’m saying that, but it just doesn’t make any sense. And when things don’t make sense, you have to go, okay, this doesn’t make sense. What would be the benefit? You know, and sort of like pointing a finger.

Citizen from Venezuela (09:31):

Yeah. You know, another thing that I wanna point is that I was looking at the tv, I think they were presenting the prices on different categories, you know, how increased on the prices was. And that’s another thing that people should start looking at is instead of be pricing things in dollar terms, you should start pricing in percentage. Because I think Dollar Store was the one that come out with a 25 cents increase on that. There is no dollar store anymore right now I think it’s a $1.25. But if you bring that in a percentage, you know, we’re not talking about 25 cents. We talking about 25%. So that’s another way that people, if you start looking at things in percentagewise, I think it’s better to comprehend the level of the inflation that we are experiencing right now because the government is telling us if there is a 8.2, but if you start looking different items, you’re gonna realize that it’s way over more than what they are telling us.

Lynette Zang (10:42):

Yes. That’s such a good point. Is there anything else that you feel like people need to really be aware of that we haven’t covered?

Citizen from Venezuela (10:56):

Well, like I say, I think this is gonna end on social unrest. So I think people have to be prepared also for that. You have to be prepared that at one point you’re gonna try to call the police and there’s not gonna be someone showing up. And when that happens, people have to be prepared to defend their selves. I think this normality that we are experiencing is not gonna be forever. And when those times comes, things will be getting very crazy. So that’s one thing that I will say. And like I said, I like the Community. I’m glad for the Miami event. I enjoy a lot George Gammon, all the guys. I love to listen all your shows because I always learn something and there is a lot of time that I don’t understand what you start talking about so I started looking at like M1, M2, M3 because those are things that are new for me because I’m from Venezuela. So when I started learning like money velocity and that’s when you start, Oh okay, this is how the inflation is kicking in, you have to track those indicators in order to follow up how bad inflation is. Unfortunately, they don’t say this in school, they don’t teach you this in schools. So that’s a problem that we have. We need to fix our school system for people, to be more as equipped to those times that we’re experiencing and be more educated. Definitely.

Lynette Zang (12:33):

That’s really, really well said and I’d like to thank you for being here today. This was really a phenomenal interview.

Citizen from Venezuela (12:42):

We have to help Latin communities also, I think they are the most vulnerable right now because I don’t think they are prepared for those changes that are coming now soon.

Lynette Zang (12:54):


Citizen from Venezuela (12:55):

And definitely anything that I can help, you can reach out to me. Definitely because that’s all I’m trying to do here with my message today is just basically trying to help people that those things happen. It can happen here also in United States. It’s happening as we speak right now and things are unfolding in a quickly manner and globally because it’s not just happening here in United States, it’s happening everywhere. So I think we can bring this message and reach out to more people and help. Why not? I mean, <laugh>. So that’s the reason why I’m here today.

Lynette Zang (13:32):

Thank you so much. This is, well this has just been phenomenal and I’m pretty sure we’re going to talk to you again.

Citizen from Venezuela (13:41):

No problem. Also, I listened to too many shows. I wanted to be on the show because I identify myself with all the stuff that you say all the time and I said, Wow, I live all through this. And I didn’t realize that we live exactly the same thing in, in Venezuela. But that happened. I forgot to mention also the credit card limits. You have some people had a credit card, but those limits, at one point you couldn’t buy anything because the inflation was so high that your limits is so down that you can even afford one candy or anything. So the credit system disappear completely.

Lynette Zang (14:21):

Unfortunately. I think that’s what we’re on the verge of seeing here too.

Citizen from Venezuela (14:27):


Lynette Zang (14:28):

Well this has been fantastic. Thank you so much for your time and your efforts and I’m a hundred percent certain we will be having this conversation again, especially with you and Fernando so that you can have it in Spanish and help as many people as possible.

Citizen from Venezuela (14:48):

Thank you Lynette, and take care and thank you for what you do.

Lynette Zang (14:53):

Oh, you’re very welcome. And thank you for being here today and to all of our viewers out there, I hope you got as much out of this conversation as I did because this was really a fantastic conversation and so timely and so important. And please, please, please take heed and until next we meet. Please be safe out there bye-bye.


  • Lynette’s mission is to translate financial noise into understandable language and enable educated, independent choices. All her work is fact and evidence based and she shares these tools openly. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community to survive and thrive through any financial crisis.

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