Venezuela On the Road to Economic Ruin ?

#1
Perhaps. But its beginning to look more like Zimbabwe with every passing day.

http://www.nytimes.com/2007/02/17/w...l?_r=2&oref=slogin&pagewanted=all&oref=slogin

CARACAS, Venezuela, Feb. 16 — Faced with an accelerating inflation rate and shortages of basic foods like beef, chicken and milk, President Hugo Chávez has threatened to jail grocery store owners and nationalize their businesses if they violate the country’s expanding price controls.Food producers and economists say the measures announced late Thursday night, which include removing three zeroes from the denomination of Venezuela’s currency, are likely to backfire and generate even more acute shortages and higher prices for consumers. Inflation climbed to an annual rate of 18.4 percent a year in January, the highest in Latin America and far above the official target of 10 to 12 percent.
 
#2
tomahawk6 said:
Perhaps. But its beginning to look more like Zimbabwe with every passing day.

http://www.nytimes.com/2007/02/17/w...l?_r=2&oref=slogin&pagewanted=all&oref=slogin

CARACAS, Venezuela, Feb. 16 — Faced with an accelerating inflation rate and shortages of basic foods like beef, chicken and milk, President Hugo Chávez has threatened to jail grocery store owners and nationalize their businesses if they violate the country’s expanding price controls.Food producers and economists say the measures announced late Thursday night, which include removing three zeroes from the denomination of Venezuela’s currency, are likely to backfire and generate even more acute shortages and higher prices for consumers. Inflation climbed to an annual rate of 18.4 percent a year in January, the highest in Latin America and far above the official target of 10 to 12 percent.
America hates Venezuela and will do anything to cast it in a poor light - having said that Chavez has been relying on his increased oil revenues (tripled since last government) to fund all his schemes. He's gradually taking power for himself and is causing problems. However, Zimbabwe's inflation in 2005 was over 1000%, they're not quite there yet!
 
#5
crabby said:
tomahawk6 said:
Perhaps. But its beginning to look more like Zimbabwe with every passing day.

http://www.nytimes.com/2007/02/17/w...l?_r=2&oref=slogin&pagewanted=all&oref=slogin

CARACAS, Venezuela, Feb. 16 — Faced with an accelerating inflation rate and shortages of basic foods like beef, chicken and milk, President Hugo Chávez has threatened to jail grocery store owners and nationalize their businesses if they violate the country’s expanding price controls.Food producers and economists say the measures announced late Thursday night, which include removing three zeroes from the denomination of Venezuela’s currency, are likely to backfire and generate even more acute shortages and higher prices for consumers. Inflation climbed to an annual rate of 18.4 percent a year in January, the highest in Latin America and far above the official target of 10 to 12 percent.
America hates Venezuela and will do anything to cast it in a poor light - having said that Chavez has been relying on his increased oil revenues (tripled since last government) to fund all his schemes. He's gradually taking power for himself and is causing problems. However, Zimbabwe's inflation in 2005 was over 1000%, they're not quite there yet!
Oh, but they will, they will. Perhaps not tomorrow, perhaps not even next year, but, provided el Presidente manages to cling to power, the note of 1,000,000 VEB (two of which will probably buy you a cup of coffee) may eventually have his effigy.

It's Latin America, and, with no IMF and no Washington Consensus (Chávez's bête noire), it's really a piece of cake.
 

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