Chavez Devaluated the Boliver.

[NickD 202]

We were suppose to meet my wife's son in Bogota next month, he did purchase his plane ticket some months ago in preparation at the 2.15 rate that was equivalent to 800 US bucks. Was just told yesterday, his ticket is no longer valid and now has to pay an additional amount at the new rate. That's an additional $1,160.00 he doesn't have, and we have no means to send that money to him. Getting difficult to contact him as Chavez is also cutting the water and electrical supplies to areas of the country to save on energy. His latest law is no singing in the shower.

The new rate is just suppose to apply to what he considers non-essential goods, like airline tickets. Can also toss in anything that isn't extremely basic like food, but over the last two years, food prices have increased by over 70%. He is in the process of closing the seventh bank, basically banks that he says are screwing the customers, but also owes money to.

Would think there must be at least one or two Venezuelans that are disturbed to how he is running that country into the ground and would tend to rebel. Maybe just a little. But somehow, that guy stays in power. Incredible.

[lostinblue 1,989]

http://www.bloomberg.com/apps/news?pid=new...id=aTtr11jqdrdM

Chavez Says He’ll Seize Businesses That Raise Prices

By Daniel Cancel

Jan. 10 (Bloomberg) -- Venezuelan President Hugo Chavez said that businesses have no reason to raise prices following the devaluation of the bolivar and that the government will seize any entity that boosts its prices.

Chavez said he’ll create an anti-speculation committee to monitor prices after private businesses said that prices would double and consumers rushed to buy household appliances and televisions. The government is the only authority able to dictate price increases, he said.

“The bourgeois are already talking about how all prices are going to double and they’re closing their businesses to raise prices,” Chavez said in comments on state television during his weekly “Alo Presidente” program. “People, don’t let them rob you, denounce it, and I’m capable of taking over that business.”

Chavez devalued the bolivar as much as 50 percent on Jan. 8 for the first time in almost 5 years, as last year’s decline in oil revenue caused the economy to contract an estimated 2.9 percent, its first recession since 2003. The government set a multi-tiered currency system that Chavez says will stimulate national production by making imports more expensive.

Inflation Outlook

The devaluation may add to inflation by 3 percent to 5 percent this year, Finance Minister Ali Rodriguez said. The government forecast an inflation rate of 20 percent to 22 percent this year, after consumer prices rose 25 percent, according to the National Consumer Price Index.

The government also will “attack” the so-called parallel exchange rate, which Chavez called “illegal.”

Venezuelans turn to the parallel rate when they can’t get government authorization to buy dollars at the official exchange rate. The bolivar traded at 6.25 per dollar on Jan. 8, traders said.

“They put the value of the dollar at more than 6 in an arbitrary and illegal manner,” Chavez said. “We have to organize to reduce and attack that speculative, illegal dollar that hurts the Venezuelan economy so much.”

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net.

[NickD 202]

http://www.bloomberg.com/apps/news?pid=new...id=aTtr11jqdrdM

Chavez Says He'll Seize Businesses That Raise Prices

By Daniel Cancel

Jan. 10 (Bloomberg) -- Venezuelan President Hugo Chavez said that businesses have no reason to raise prices following the devaluation of the bolivar and that the government will seize any entity that boosts its prices.

Chavez said he'll create an anti-speculation committee to monitor prices after private businesses said that prices would double and consumers rushed to buy household appliances and televisions. The government is the only authority able to dictate price increases, he said.

"The bourgeois are already talking about how all prices are going to double and they're closing their businesses to raise prices," Chavez said in comments on state television during his weekly "Alo Presidente" program. "People, don't let them rob you, denounce it, and I'm capable of taking over that business."

Chavez devalued the bolivar as much as 50 percent on Jan. 8 for the first time in almost 5 years, as last year's decline in oil revenue caused the economy to contract an estimated 2.9 percent, its first recession since 2003. The government set a multi-tiered currency system that Chavez says will stimulate national production by making imports more expensive.

Inflation Outlook

The devaluation may add to inflation by 3 percent to 5 percent this year, Finance Minister Ali Rodriguez said. The government forecast an inflation rate of 20 percent to 22 percent this year, after consumer prices rose 25 percent, according to the National Consumer Price Index.

The government also will "attack" the so-called parallel exchange rate, which Chavez called "illegal."

Venezuelans turn to the parallel rate when they can't get government authorization to buy dollars at the official exchange rate. The bolivar traded at 6.25 per dollar on Jan. 8, traders said.

"They put the value of the dollar at more than 6 in an arbitrary and illegal manner," Chavez said. "We have to organize to reduce and attack that speculative, illegal dollar that hurts the Venezuelan economy so much."

To contact the reporter on this story: Daniel Cancel in Caracas at dcancel@bloomberg.net.

Could be Chavez is a genius and I am an idiot, Venezuela does not have a manufacturing base, practically everything is imported in that country. Just seems to me, if the bolivar is only worth 47% of it's last value, any business would have to pay 2.13 as much for the same product, so how can they sell that product at the old rate? Only asking this question because I am an idiot. But do see this as a perfect opportunity for Chavez to take over all the private businesses.

[mawilson 2,133]

It's even stranger that that.

There will be a "two-tiered exchange system" which would offer the 2.6/dollar rate for goods

deemed essential, such as food, medicine and industrial machinery. Other products, including

cars and telephones, will be imported at the higher 4.3 rate.

Those who have good contacts will buy at 2.6 and sell at 4.3.

Edited January 11, 2010 by mawilson

[lostinblue 1,989]

http://ferfal.blogspot.com/2008/10/thought...vival-2005.html

Life in Post-Collapse Argentina, Oct. 2005

The Modern Survival Manual: Surviving The Economic Collapse" by Fernando "FerFAL" Aguirre.

http://www.amazon.com/dp/9870563457?tag=su...MG2T1ARMC6&

Here is an author that has lived through what you may see next for that country. It may be a good read for you.

Keep us informed on what the common persons life is like in this situation. Do post something once in a while. I wonder if it would become to dangerous to send information out of the country for your family.

[Hilarious Clinton 452]

Hope and change in action.

[Saddle Bronc 124]

Translation: the chop Chavez could no longer peg the Bolivar at the value which he claimed, ergo it got devalued to more-realistic rate (minor apology to OP, who got affected by this).

[NickD 202]

Translation: the chop Chavez could no longer peg the Bolivar at the value which he claimed, ergo it got devalued to more-realistic rate (minor apology to OP, who got affected by this).

Prices were outrageous even before this devaluation. Need a single 14 mm box end wrench, wife took me to three different places that had low prices. Where a set of these made in China, the crappy ones here for under tens bucks, prices there were more like a hundred. I managed to get by with an old pair of rusty Vice-Grips, not paying that kind of money for a piece of #######. Electronics is totally outrageous, two to three times the price of what the same thing is here. Automotive parts? Forget it and is the reason cars are parked in prisons, also bars on all the windows. Feel like I am in jail, four different keys to get into her condo and that is after you show your pass to get in.

Wife did work for a major US based medical supply company with over 5,000 imports, wife said that after Chavez got in, each different product had a different tariff with no reason for that amount. They had to fill out a government form for each one, charge accordingly, and make sure Chavez got his share and a big share it was.

The guy is a crook, first class, and no, he is not helping the poor, maybe a free beer if they vote for him, but maybe that it all it takes, a free beer, has his trucks all over the place. Was told to leave my red shirts at home. He is no different than Hitler, anyone that goes against him can end up in jail. See he is closing his seventh bank that he owes money to. The people with money in those banks lose everything. Really don't need to read a book, still have eyes and ears.

[Gary and Alla 3,694]

We were suppose to meet my wife's son in Bogota next month, he did purchase his plane ticket some months ago in preparation at the 2.15 rate that was equivalent to 800 US bucks. Was just told yesterday, his ticket is no longer valid and now has to pay an additional amount at the new rate. That's an additional $1,160.00 he doesn't have, and we have no means to send that money to him. Getting difficult to contact him as Chavez is also cutting the water and electrical supplies to areas of the country to save on energy. His latest law is no singing in the shower.

The new rate is just suppose to apply to what he considers non-essential goods, like airline tickets. Can also toss in anything that isn't extremely basic like food, but over the last two years, food prices have increased by over 70%. He is in the process of closing the seventh bank, basically banks that he says are screwing the customers, but also owes money to.

Would think there must be at least one or two Venezuelans that are disturbed to how he is running that country into the ground and would tend to rebel. Maybe just a little. But somehow, that guy stays in power. Incredible.

He sounds a bit like Barack Hussien Chavez