Chavez orders currency devaluation by 50% in Venezuela...

The Great Catpiss · 01-10-2010, 10:05 PM

Chavez orders currency devaluation by 50% in Venezuela
Will seize businesses that raise prices
National guard will enforce this.

I don't see how that will possibly work out. Any company that has international relationships will no longer be able to stay in business. This means no more imports as everything would cost twice as much. It will lead to more job loss and economic problems for the people.

How can this guy stay in power? This may be his downfall, if he for some reason could possibly lose power.

stolz25 · 01-10-2010, 10:12 PM

Well it should be fun to watch this debacle from an economic perspective.

The Great Catpiss · 01-11-2010, 02:11 AM

Originally Posted by stolz25

Well it should be fun to watch this debacle from an economic perspective.

Would it even be possible to devalue currency by 50% and not increase prices? The only businesses that can survive would have to have been gouging customers.

JaJae · 01-11-2010, 10:30 PM

It's amazing how Chavez is loved and idolized by the left. Many people who post on this forum speak of him like he is a hero or something.

Mosheh Thezion · 01-11-2010, 11:56 PM

It will work... only. if in doing so.. he is ready to increase productive jobs.. to produce goods for export... and.... offer some form of social security to the poor to keep their homes and buy food.

Time will tell if he has the wisdom to set this straight.

_Mosheh Thezion

The Great Catpiss · 01-12-2010, 02:20 AM

Originally Posted by Mosheh Thezion

It will work... only. if in doing so.. he is ready to increase productive jobs.. to produce goods for export... and.... offer some form of social security to the poor to keep their homes and buy food.

Time will tell if he has the wisdom to set this straight.

_Mosheh Thezion

(I already regret hitting view post)

The country better be self sustaining... The cost of imported goods will double... .-. +.@ Since, by law... businesses are not allowed to increase prices, they will not be able to afford to buy imports anymore... That is... unless their profit margins were incredibly high, and they could afford to pay double for their goods.

More than likely... the government to take over these businesses... by making laws that give the government ownership of the businesses...

The Great Catpiss!

DosEquis · 01-12-2010, 12:17 PM

Originally Posted by JaJae

It's amazing how Chavez is loved and idolized by the left. Many people who post on this forum speak of him like he is a hero or something.

Nice to meet you Glenn Beck. Links to people loving, idolizing, and promoting Chavez to hero status?

stolz25 · 01-12-2010, 02:11 PM

Originally Posted by The Great Catpiss

Would it even be possible to devalue currency by 50% and not increase prices?

No, that's what makes it an economic debacle. Basically he wants to keep local prices the same while raising prices on any imports. That means that anyone in the country who can get dollars instead of whatever their currency will do it. I don't know what the laws down there are like, but I know in Russia the locals weren't allowed to trade in dollars, and if they got any from tourists they were required to trade them in immediately. I imagine they have similar laws there, and if they don't they'll need them soon.

Venezuela might not actually have as big a problem in that respect. I don't know how many tourists they get each year, but I wouldn't think it would be terribly high. The other thing they have to worry about is anyone exporting goods getting dollars (or any other currency) and spending them directly. Oil is probably their main export though, and I think the government sells it, so that might not be a big issue either.

But yes, either the people will attempt to trade in other currencies or mark up prices to make up for the devaluation.

Mosheh Thezion · 01-13-2010, 02:56 AM

Originally Posted by The Great Catpiss

(I already regret hitting view post)

The country better be self sustaining... The cost of imported goods will double... .-. +.@ Since, by law... businesses are not allowed to increase prices, they will not be able to afford to buy imports anymore... That is... unless their profit margins were incredibly high, and they could afford to pay double for their goods.

More than likely... the government to take over these businesses... by making laws that give the government ownership of the businesses...

The Great Catpiss!

what strikes me as odd... is the stance of just declaring a new value...

when if he wants to devalue it... all he has to do, is print more money... and then spend the money on social infrastructure.. like roads... etc... this would allow the shock to be slow... but he has choosen to just force the adjustment... which is a hard shock.

Since he is leftist.. he should of just prinited the money and spent it, on all kinds of projects across the nation... and by doubling the currency in circulation, over a year or two... maybe 10 years.. the currency value would drop, and serve the same goal, and yet make for smooth transistions...

I, could not imagine doing this kind of exteme re-valuation if I was in charge, as the shock... would hurt too many people and buisnesses.

But done slowly.. by spending and creating jobs... would reduce the pain considerably.

Maybe you guys get it?

Maybe you can explain the logic?

I'm not seeing it.... unless he is in bed with his nations exporters.

-Mosheh Thezion

motivez · 01-16-2010, 05:14 PM

Originally Posted by DosEquis

Nice to meet you Glenn Beck. Links to people loving, idolizing, and promoting Chavez to hero status?

Originally Posted by JaJae

It's amazing how Chavez is loved and idolized by the left. Many people who post on this forum speak of him like he is a hero or something.

I know, right? I thought the same thing... how about some links?

Donkey® · 01-17-2010, 11:03 AM

Originally Posted by JaJae

It's amazing how Chavez is loved and idolized by the left. Many people who post on this forum speak of him like he is a hero or something.

Fail

Scrum · 01-17-2010, 11:09 AM

Originally Posted by JaJae

It's amazing how Chavez is loved and idolized by the left. Many people who post on this forum speak of him like he is a hero or something.

stolz25 · 01-17-2010, 02:02 PM

Originally Posted by motivez

I know, right? I thought the same thing... how about some links?

Originally Posted by Donkey®

Fail

Originally Posted by Scrum

So hardly any replies to the actual OP, but you crawl out of the woodwork to get into a he said, she said debate? Obviously JaJae's comment was crap, but did it really deserve three replies consisting mostly of laughing faces?

Donkey® · 01-17-2010, 02:46 PM

Originally Posted by stolz25

So hardly any replies to the actual OP, but you crawl out of the woodwork to get into a he said, she said debate? Obviously JaJae's comment was crap, but did it really deserve three replies consisting mostly of laughing faces?

Well first off, I have no idea what the OP was even talking about.

This?

Chavez?s Anti-Dollar Currency to Debut at $1.25, Nacional Says - Bloomberg.com

Doesn't seem like a huge issue to me.

The Great Catpiss · 01-17-2010, 11:11 PM

Originally Posted by Donkey®

Well first off, I have no idea what the OP was even talking about.

Basically Chavez is weakening their currency, but demanding businesses do not increase their prices. In effect, the businesses must then sell their goods for less than what they buy them for. If the businesses raise their prices, then the government will take over the businesses and possibly jail the business owners. Their only choice will probably to close shop.

Also, when the president has the ability to make such decrees on their currency so easily, their currency becomes more volatile and risky. His demand may actually cause more inflation and less demand for their oil which is 90% of their income.

Originally Posted by Donkey®

Doesn't seem like a huge issue to me.

really?

The Great Catpiss · 01-17-2010, 11:15 PM

Update:
In the first few days more than 200 businesses that hiked prices were temporarily shut down.

Venezuela Nationalizes (takes over) a French-Colombian Retailer chain for raising prices:
http://online.wsj.com/article/BT-CO-...eadlinesEurope

JaJae · 01-18-2010, 01:25 PM

Wow you guys get really defensive, it's interesting because a couple of you could be included in my statement.

I clearly remember a thread a while back regarding Chavez when Thorgrim was defending him needlessly (as per usual to counter conservative thought) and quite a few members did their usual anal dwelling in his buttocks and defended his arguments. Basically he was saying Chavez was good because he keeps the country together and his high voter turnout showed that. This was also similar to his views on Saddam if I remember correctly.

Yet now that Bush is out of office and a Democrat is in the White House suddenly opinions change. Go figure, color me shocked!

JaJae · 01-18-2010, 01:51 PM

A French owned retail chain wouldn't comply with the devaluation of the currency so Chavez has ordered it to be seized and nationalized. Anyone want to do business with Venezuela?

UPDATE: Venezuela Nationalizes French-Colombian Retailer Exito - WSJ.com

CARACAS (Dow Jones)--President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.

"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito SA (EXITO.BO), headquartered in Colombia and controlled by French retailer Casino ...

motivez · 01-23-2010, 12:38 AM

Originally Posted by JaJae

Wow you guys get really defensive, it's interesting because a couple of you could be included in my statement.

I clearly remember a thread a while back regarding Chavez when Thorgrim was defending him needlessly (as per usual to counter conservative thought) and quite a few members did their usual anal dwelling in his buttocks and defended his arguments. Basically he was saying Chavez was good because he keeps the country together and his high voter turnout showed that. This was also similar to his views on Saddam if I remember correctly.

Yet now that Bush is out of office and a Democrat is in the White House suddenly opinions change. Go figure, color me shocked!

It's not defensive so much as flabbergasted at your ridiculous claim. You say he's "idolized by the left" and when the people more left of center on some issues reply criticizing your stupid suggestion, you have some "vague memory" of a Thorgrim thread in the past?

And then instead of linking it, you talk about how opinions change because a Democrat is in the White House? It's a total non sequitur.

How about you go find said thread and link it?

motivez · 01-23-2010, 12:39 AM

Originally Posted by stolz25

So hardly any replies to the actual OP, but you crawl out of the woodwork to get into a he said, she said debate? Obviously JaJae's comment was crap, but did it really deserve three replies consisting mostly of laughing faces?

It seems like a stupid idea, like most of Chavez's ideas.

And yeah, when you make a ridiculous claim for the sole reason of pushing people's buttons, it deserves ridicule.