Venezuela's currency plummets

[nmap]

Is it wrong to take pleasure in another's trouble? Perhaps. But it can be great fun! :munchin

On a more serious note, Mr. Chavez seemed to be spearheading a trend toward resource nationalism, which in turn is potentially disruptive of the global economy. Maybe this will modify the trend.

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CARACAS: The Venezuelan economy, under the direction of President Hugo Chavez, is starting to unravel in the currency market.

While Venezuela earns record proceeds from oil exports, consumers face shortages of meat, flour and cooking oil. Annual inflation has risen to 16 percent, the highest in Latin America, as Chavez tripled government spending in four years.

Exxon Mobil and ConocoPhillips are pulling out after Chavez demanded that they cede control of joint venture projects.

The bolivar has tumbled 30 percent this year to 4,850 per dollar on the black market, the only place it trades freely because of government controls on foreign exchange. That compares with the official rate of 2,150 per dollar set in 2005. Chavez may have to devalue the bolivar to reduce the gap and increase oil proceeds, which make up half the government's revenue.

LINK to entire article (http://www.iht.com/articles/2007/09/02/bloomberg/bxbux.php)

[Team Sergeant]

The road to a total dictatorship can be frought with bumps.;) (I'm sure those can be smoothed with a large enough firing squad.)

If I were a betting man I say he'll fix this problem while, at the same time, diverting the attention of his lemmings.;)

[jatx]

Is it wrong to take pleasure in another's trouble? Perhaps. But it can be great fun! :munchin

As much as I disdain Hugo Chavez, I take no pleasure in this. Venezuelans are great people and most do not have access to foreign currency accounts these days, so the misery index is just going to ratchet a bit higher. :(

I know what you meant, though...

[NousDefionsDoc]

As much as I disdain Hugo Chavez, I take no pleasure in this. Venezuelans are great people and most do not have access to foreign currency accounts these days, so the misery index is just going to ratchet a bit higher. :(

I know what you meant, though...

They voted the son of a bitch in and more than once. They got the government they deserve.

[nmap]

Venezuelans are great people and most do not have access to foreign currency accounts these days, so the misery index is just going to ratchet a bit higher. :(


Chavez having trouble? Are you sure? I'm sure he's probably living the life of luxury.

You both make good points.

Interesting, is it not, that those proposing diplomatic solutions often advocate sanctions - which will result in exactly the problems you each mention. I suppose the question of how to apply pressure to a dictator (or aspiring dictator) has no easy answer.

[The Reaper]

I have been boycotting CITGO gas stations for over two years.

Understand that it has different impact from the expected, but it makes me feel better.

Screw Hugo, with his ridiculous monthly claims that the U.S. is about to invade and the people who support him.

TR

[82ndtrooper]

I guess Danny Glover and Sean Penns American dollar will stretch a bit further while visiting their beloved Chavez.

Since it will, they can stay.

[Ret10Echo]

I have been boycotting CITGO gas stations for over two years.

Understand that it has different impact from the expected, but it makes me feel better.

Screw Hugo, with his ridiculous monthly claims that the U.S. is about to invade and the people who support him.

TR

Amazing the number of people that still don't understand that connection between Citgo and Chavez.

I was visiting a buddy in FL and was very low on fuel once reaching his place. We ran out to get some steaks and fill the truck. First station we came to was a CITGO...he paused and said..."Well there's one there..". I told him I'd rather push the car to the next station. His response was..."Good"

Best way to stay in a position of power is to make sure the people are too busy surviving day-to-day to be concerned with anything else that is going on.

The occasional burning of an effigy helps too.