Chavez Cuts Bolivar By Half in First Devaluation Since 2005

[audrey_girl]

first of many?

fyi:

http://www.bloomberg.com/apps/news?p...d=aLmiq7_H51Xs

[BiscayneSunrise]

Re: Chavez Cuts Bolivar By Half in First Devaluation Since 2005

Yes, Venezuelan inflation running at 25% so devaluing currency is an excellent way to solve the problem.

I especially like the part about how there will be a two tier exchange rate. That seems like an excellent opportunity for corrupt government officials to game the system by arbitraging the two rates.

BTW, did everyone see how Venezuela is now rationing electricity? 75% of the country's electrical power comes from one hydro dam which is running low due to record droughts. Favored industries are getting all the power they want.

Interestingly, shopping malls, which use only 1% of the nations power are being cut back the most. Shopping malls are one of the few places in the country where people can gather and still be safe from street crime. Malls, are seen by Chavez, however, as dangerous places where people can gather to plot against his regime.

[Mega]

Re: Chavez Cuts Bolivar By Half in First Devaluation Since 2005

I wonder how long till a "Smart Bomb" finds its way to the wall of the Dam?
Mike

[WildspitzE]

Re: Chavez Cuts Bolivar By Half in First Devaluation Since 2005

I especially like the part about how there will be a two tier exchange rate. That seems like an excellent opportunity for corrupt government officials to game the system by arbitraging the two rates.

People were already arb'ing the fx rate - the official one vs the black mkt one in the following way:

Fly to a caribbean destination with a casino. Draw as many dollars as you could from your local credit cards. Fly back and sell USD to local blackmarket fx dealer. Pay down credit card and keep the profit (sometimes as much as 100%).

[Slimprofits]

Re: Chavez Cuts Bolivar By Half in First Devaluation Since 2005

duplicate thread

http://www.itulip.com/forums/showthread.php?t=13829