The people of Venezuela had no warning this was about to happen to them. Chavez could be dead soon, taken by cancer, and all Hell will break loose in that nation.
My guess is Cuba will move to occupy Venezuela while President Kirchner is moving to tighten control over Argentinians.
Current events are robbing BHO2 of the time and space he needs to effect changes without alarming the majority of the USA. That is why he is stocking up on ammunistion - IMHO.
Venezuela, Argentina ... and the US are devaluing like crazy. Our MSM won’t report it.
Nobody seems to know if Chavez is alive or dead, other than perhaps Fidel Castro and a few of Chavez’s closest advisors. Who is making the day-to-day decisions in Venezuela?
The black market rate has been at this level for years now. This devaluation is a belated recognition by the government that the former official exchange rate of 4.30 bolivars to the dollar was a farce.
devaluing their national currency,
1) Venezuelan price controls (prices < market = prices too low) leads to:
1.1) increase in demand for consumer's goods by Venezuelan consumers
1.2) decrease in production for Venezuelan domestic consumption = decrease in domestic supply of consumer's goods
1.3) increase in Venezuelan exports = decrease in Venezuelan domestic supply of consumer's goods + increase in Venezuelan money supply
1.4) decrease Venezuelan imports = decrease in domestic supply of consumer's goods
2) Devaluation of the Venezuelan currency leads to decreased prices for Venezuelan consumer's goods which leads to:
2.2) increased exports = decrease in supply of consumer's goods + increase in the money supply
2.3) decreased imports = decrease in supply of consumer's goods
Increase in demand + decrease in supply + price controls leads to higher prices and/or shortages of consumer's goods.
Increase in money supply leads to increased inflation and higher prices. Price controls do not slow down inflation and just lead to shortages. It is ridiculous how dumb politicians keep making the same mistakes over and over again.