Cubans face uncontrollable inflation, may soon need ‘wagonloads’ of pesos to buy daily essentials

From our suddenly busy Bureau of Socialist Voodoo Economics

It looks as if Cubans will soon be in the same situation as Venezuelans and those Germans who had the misfortune to live in the Weimar republic a century ago. Runaway inflation is about to crush the Cuban people. Couple this with a rapidly collapsing economy and severe shortages in food and the result is bound to be horrific.

As one Cuban put it: “To get through the month, with those new salaries…. Cubans are going to need two wheelbarrows of money.”

Germany, circa 1923: runaway inflation

Loosely translated from Diario de Cuba:

Long lines, both in commercial establishments in freely convertible currency (MLC) and in national currency (MN), continue to predominate in the Havana panorama after the start of the monetary and exchange unification process on the island and despite the increase in Covid-19 cases.

“What prevails is shortages, shortages and, logically, rationing, with the consequent speculation of prices in the black market,” said Gustavo Chacón Calzadilla, a worker in a tobacco factory and father of four minors, who it also coincided with a concern among state employees: national production. “Neither in the short nor in the medium term” will it be able to support a monetary order that hardly functions as a smokescreen.

“It does not matter if wages increase another five times, but how prices will evolve because national production cannot cover even half of the demand, and we must continue to depend on imports,” said Chacón Calzadilla, who after covering half from Havana to supply the pantry of his family – made up of eight members – he had to turn to the private sector and face these prices: a kilogram of ham, 225 pesos; a kilogram of cured chicken mince, 53 pesos; a kilogram of chicken burger, 183 pesos; a kilogram of chicken croquettes dough, 36 pesos; a kilogram of cured chicken mortadella, 180 pesos.

“You can hardly get products in the state agromarkets, and even in the cooperatives, and it seems that the carretilleros are extinct. There are hardly any bananas, sweet potatoes, tomatoes, vegetables or any fruit, and where they supply a little, the queue is armed and The tremendous one. Not even combining my wife’s salary (2,100 pesos a month) with mine (2,200 pesos) will we be able to sustain the cost train —and that only in food— beyond the products of the regulated family basket. “

For two one-kilogram bags of powdered milk, which he had to buy on the black market, Chacón Calzadilla spent 400 pesos. Nothing bought, after investing almost half a day, will be enough to feed his family for a month. At the most “and with a little stinginess”, for 15 days. The long lines made this father of a family give up trying to take home chicken, sausages, tomato puree and pasta….

To get through the month, with those salaries that sound nice on the surface, but do not solve our situation, Cubans are going to need two wheelbarrows of money.”

Continue reading HERE in Spanish

1 thought on “Cubans face uncontrollable inflation, may soon need ‘wagonloads’ of pesos to buy daily essentials”

  1. Don’t worry. This just means the “diaspora” will have to compensate and keep things afloat, as it did during the “special period” between the Soviet abandonment and the Venezuelan rescue. It knows the drill.

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