http://biz.yahoo.com/ap/080101/venezuela_new_currency.html This is not the right solution to a strong currency. The right solution for Chavez is to adopt a form of capitalistic socialism. Business entities do not have a chance of reaching their highest valuations unless they are traded on an electronic stock exchange. To be sure , Chavez is reacting to failed capitalism in Latin America. and is right to do so. But trying to create wealth from assets in decline whose decline is caused by governmental actions is simply heading in the wrong direction. Capitalism failed because assets were not better distributed. However distributing from a collapsed valuation base is not proper thinking. Just because capitalistic socialism is a luke warm topic, perhaps it would be better to change the label that represents a new world thinking that moves forward and away from old style capitalism and socialism. Just call it New World Economics whereby deterrents to productivity are removed, and business entities are freely traded on the worlds electronic stock exchanges. It is indeed time for the developed countries to set the example, and thus adjoin the lessor developed countries. All countries need to get on the same page.
gotta love these socialist ignorants, nevermind money printing, his plan to combat inflation: zero cutting
Willfully ignorant socialists are all over the place... and they are so incredibly irrelevant to anything that is going on in the world...
Venezuela has the highest inflation rate in South America. The official inflation rate is over 20%, the unofficial rate is over 100% when taking in account the underground economy and realistic exchange rate to other currencies. Chavez's introduction of a new currency is simply an attempt to hide the extent of the inflationary problem from the people of Venezuela. Unfortunately this solution will not really resolve the issue, and the second half of 2008 is likely to see stagflation in the economy as Chavez pushes his fiscally-irresponsible social policies.