Devaluation ups stakes in Venezuela election year

[Pete]

Devaluation ups stakes in Venezuela election year

http://www.reuters.com/article/idUSN096521320100109

".....The devaluation is politically risky but means every dollar of oil revenue puts more bolivars in government coffers. That allows Chavez to lavish cash on social projects and fund salary increases ahead of parliamentary elections in September.

Opponents were quick to criticize the socialist, who a year ago promised the global financial crisis would not touch "a hair" of Venezuela's economy. He announced the devaluation on Friday night during an important baseball game.

"By establishing the exchange rate at 4.3 bolivars per dollar, the quality of life for Venezuelans is automatically devalued since we now have half the money we had before," said Caracas Mayor Antonio Ledezma, a Chavez opponent....."

President Obama's bud is "fixing" his economy.

[Pete]

Government inspectors backed by soldiers have shut more than 70 shops .....

http://news.bbc.co.uk/2/hi/americas/8453570.stm

"Venezuela soldiers shut shops accused of profiteering

State television was on hand to show the alleged rises in prices
Government inspectors backed by soldiers have shut more than 70 shops in Venezuela accused of trying to cash in on last week's currency devaluation.

Soldiers have been on the streets to check prices as people queue to buy imports, fearing prices could rise.................."