Inflation in Venezuela
I figured that with Chavez's moronic handling of Venezuela's economy that there would be some inflation. I didn't know that they are having to devalue their currency and that the
published inflation number is 26.9%
From
Reuters:
Venezuelans fret over prices after devaluation
Venezuelans worried on Friday that a second devaluation of their currency in 12 months would make life even harder as the socialist government of President Hugo Chavez struggled to turn the economy around.
Already suffering one of the world's highest inflation rates and the only major Latin American economy still in recession after the global financial crisis, they fear the New Year devaluation could hit their livelihoods more.
"It is a blow against the pockets of the workers, against the poorest people," said Robinson Calua, a 50-year-old security guard in downtown Caracas.
Officials say the devaluation announced on Thursday will increase spending and boost growth in South America's biggest oil producer, while easing the pressure on foreign reserves and freeing up dollars for imports.
I feel sorry for his citizens. Venezuela is sitting on one of the largest oil reserves in the Western hemisphere and the nation is coming apart at the seams. Chavez is an ideologue without any grasp of reality. He is not a leader, he is taking Venezuela down a path that will take decades to recover after he is ousted.
Posted by DaveH at December 31, 2010 5:53 PM