Devaluation ups stakes in Venezuela election year
 

From G. Edward Griffin:

Venezuela: Chavez devalues currency by nearly half, causing a frenzy to spend money while it still has some value. A similar process, is underway in all collectivist countries, with central banks devaluing currencies secretly, gradually, and indefinitely.
Reuters 2009 Jan 9 (Cached)


UPDATE 1-Devaluation ups stakes in Venezuela election year

By Frank Jack Daniel and Eyanir Chinea

CARACAS, Jan 9 (Reuters) - Venezuelans rushed to the shops on Saturday, fearful of price rises after a currency devaluation that will let President Hugo Chavez boost government spending ahead of an election but feeds opposition charges of economic mismanagement.

In a bid to jump-start the recession-hit economy of South America's top oil exporter, Chavez on Friday announced a dual system for the fixed rate bolivar.

It devalues the currency to 4.3 and 2.6 against the dollar, from a rate of 2.15 per dollar in place since 2005, giving the better rate for basic goods in an attempt to limit the impact of the measure on consumer prices.

The opposition seized on fears that prices for imported goods will double as shoppers formed lines of more than a hundred people outside some stores in the capital Caracas.

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

SOURCE: http://www.realityzone.com/currentperiod.html