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>Having to fake an exchange rate sounds like the economic conditions in badly run countries like Venezuela, Zimbabwe, Russia, etc. "Badly run countries"? Zimba

by batista 14y ago

>Having to fake an exchange rate sounds like the economic conditions in badly run countries like Venezuela, Zimbabwe, Russia, etc. "Badly run countries"? Zimbabwe maybe, but for Venezuela and Russia, I beg to differ. They are doing things THEIR way, not the US/neo-liberals way that would like a better slice of the pie, but Venezuela is much better off than all the dictatorships and banana republics in the region, and Russia is way better than when Yeltsin did things that benefited certain foreign interests...

tatsuke95 14y ago
Things always look dandy in the oil exporting countries when oil prices are high. Iran, Venezuela and Russia all fall under this category. Their political, social and economic cracks begin to show when they can no longer throw oil dollars at problems.
- rafaelm 14y ago
  Chavez announced a couple of years ago that Venezuela had a "bulletproof" economy and that we would not be affected by the evils of the capitalist breakdown. As soon as oil prices went down, our economy started shrinking. When oil prices are lower, the government cannot keep the fake value of the Bolivar and they have to devalue. In the end, the people pay the price with ultra-high inflation rates (28% in 2011).
rafaelm 14y ago
The Venezuelan way is faking the value of the Bolivar and pushing everyone to the black market to buy dollars.The official rate is Bs.4.30 per dollar. The black market rate is almost Bs.10 per dollar. Are you aware that most of the products we consume here are imported? Venezuela almost does not produce anything other than oil. So , the clothes you buy, the medicines,food,etc,etc, everything has to be imported. Not everyone gets access to dollars from the government , so you have to buy dollars in the black market to import products. This causes the 25-28% yearly inflation rate we have. In the end, the people pay the price. The solution from the government against the black market rate : make it illegal to even talk about the black market rate. Basically,censor it. I hardly think that is the proper way to run an economy.
- excuse-me 14y ago
  I think the Saudis might disagree !
  - rafaelm 14y ago
    Did you read my entire comment? Do the saudis have a fake controlled economy?
    - excuse-me 14y ago
      I'm not sure they actually have an economy. Those in charge sell oil and buy toys for themselves - the rest get very poor.
rsanchez1 14y ago
Ah, Chavista propaganda, how delightful. Is that why Chavez is trying to strong-arm the so-called banana republics in the region into an economic "alliance" akin to the Euro, but where Chavez retains control over the currency? You can't trust those silly banana republics to be responsible over their own economies, you have to uplift them with the SUCRE, isn't that right? Gotta issue the currency in Caracas because you can't trust the banana republics to mint it, isn't that right? Interesting how you (and many foreigners) call us neo-liberals, but liberals here insist it's neo-cons ruining the world.

by batista 14y ago

tatsuke95 14y ago

Things always look dandy in the oil exporting countries when oil prices are high. Iran, Venezuela and Russia all fall under this category. Their political, social and economic cracks begin to show when they can no longer throw oil dollars at problems.

rafaelm 14y ago
Chavez announced a couple of years ago that Venezuela had a "bulletproof" economy and that we would not be affected by the evils of the capitalist breakdown. As soon as oil prices went down, our economy started shrinking. When oil prices are lower, the government cannot keep the fake value of the Bolivar and they have to devalue. In the end, the people pay the price with ultra-high inflation rates (28% in 2011).

rafaelm 14y ago

The Venezuelan way is faking the value of the Bolivar and pushing everyone to the black market to buy dollars.The official rate is Bs.4.30 per dollar. The black market rate is almost Bs.10 per dollar. Are you aware that most of the products we consume here are imported? Venezuela almost does not produce anything other than oil. So , the clothes you buy, the medicines,food,etc,etc, everything has to be imported. Not everyone gets access to dollars from the government , so you have to buy dollars in the black market to import products. This causes the 25-28% yearly inflation rate we have. In the end, the people pay the price. The solution from the government against the black market rate : make it illegal to even talk about the black market rate. Basically,censor it. I hardly think that is the proper way to run an economy.

excuse-me 14y ago
I think the Saudis might disagree !
- rafaelm 14y ago
  Did you read my entire comment? Do the saudis have a fake controlled economy?
  - excuse-me 14y ago
    I'm not sure they actually have an economy. Those in charge sell oil and buy toys for themselves - the rest get very poor.

rsanchez1 14y ago

Ah, Chavista propaganda, how delightful. Is that why Chavez is trying to strong-arm the so-called banana republics in the region into an economic "alliance" akin to the Euro, but where Chavez retains control over the currency? You can't trust those silly banana republics to be responsible over their own economies, you have to uplift them with the SUCRE, isn't that right? Gotta issue the currency in Caracas because you can't trust the banana republics to mint it, isn't that right? Interesting how you (and many foreigners) call us neo-liberals, but liberals here insist it's neo-cons ruining the world.