Venezuela Inflation Rate Could Hit 30% in 2008

Hugo Chavez’s control of Venezuela’s economy sucks. His pouring of huge amounts of money into social programs is starting to show major signs of backlash. For 2007, Venezuelan’s saw a 22.5% inflation rate and experts are predicting that to hit 30% for 2008.

So much for helping the people of Venezuela, hyperinflation is going to force them become capitalists… oh what a shame for Hugo, oh wait he really is a capitalist at heart…

If he cannot do something soon to fix his economy he may not make it to the next election, which he cannot run in anyways…

But I bet in a few days he will come out with out the Devil George Bush is responsible for the inflation explosion in his country…

Venezuela Vows to Fight High Inflation

CARACAS, Venezuela (AP) — President Hugo Chavez will make curbing double-digit inflation a top priority this year as he aims to slow the highest consumer price increases in Latin America, Venezuela’s new finance minister said on Monday.

The government intends to slash annual inflation by half to 11 percent in 2008, Minister Rafael Isea announced — a target many economists see as unreachable given high government spending.

“We hope to achieve this objective without sacrificing the well-being of the Venezuelan people in any manner,” Isea told a press conference, without disclosing any specific anti-inflationary measures.

Annual inflation soared to 22.5 percent in 2007, according to the Central Bank — the highest official rate in the region and well above Venezuela’s 12 percent target.

As record oil prices drove 8.4 percent economic growth, Chavez pumped billions of dollars into social programs for the poor, driving consumer prices higher despite state-imposed price controls on hundreds of products.

Chavez, who appointed Isea amid other changes to his Cabinet last week, called for renewed efforts for “fighting and finally defeating inflation.”

But some analysts expect inflation to reach 30 percent in 2008, as high oil prices allow Chavez to continue spending, said Pedro Palma, an economist at the IESA business school in Caracas.

“It appears oil prices will continue rising, and that could generate additional revenue for the government that would allow it to maintain an expansive spending policy,” he said, doubting that the government would trim spending.

Other anti-inflationary options, such as adjusting currency exchange restrictions or lifting price controls, could be counterproductive, he said.

Currency controls imposed in 2003 restrict access to U.S. dollars, forcing many businesses to buy imports with black market cash at more than twice the official exchange rate, which is fixed at $1 to 2.15 strong bolivars.

Chavez’s administration launched the new “strong bolivar” currency on Jan. 1, cutting three zeros off previous denominations to boost confidence in the currency. It has consistently denied any plans to devalue.

“The government is going to try to maintain the exchange rate at 2.15 — not just to give the perception of the new currency’s strength, but also because adjusting the rate would mean additional inflationary pressure,” Palma said.


2 Responses

  1. I Got What America Needs Right Here
    By Jimmy Carter
    January 9, 2008 |
    The Onion Issue 44•02
    Sometimes I’m a little stupid, maybe, a little slow in the head, so I’m wondering if you can help me get something straight. Maybe you can help me understand one fucking thing right now, America, and explain to me what in the Christ is going on here. ‘Cause, unless I’m missing something, this country is in the middle of a motherfucking shitstorm, and I have no fucking idea what you’re gonna do to get out of it. I mean, are you seriously considering voting for one of these shitbags you got here in ’08? Fat fucking chance.
    Way I see it, America needs a president who’s gonna somehow un-royally screw up the Middle East, do some serious cleaning up after you dropped your pants and took a steaming dump all over the fucking environment, and—boom!—restore dignity, honor, and all that shit to these United States.
    See, I got solutions to all your problems—I got ’em right here in my big, hairy ballsack.
    You better get down on your hands and knees and kiss Jimmy Carter’s rosy-red Georgia-peach-picking ass and beg me to run your fucking country again, because there’s no way I’m ever gonna come to you fuck-knobs and politely ask you if I might please be a presidential candidate in your precious fuckin’ election. So you can just bite my cock. I’ve had it with you jerkoffs and your jerkoff candidates.
    You actually seem to think one a’ these assholes is gonna prance in and wave a magic wand and make everything all nice again. Look at you, sitting there like a common fucking schnook and eating all their bull about bi-fucking-partisanship, and how they have all the goddamn answers. Let me tell you something: These fags are dogshit compared to Jimmy fucking Carter, all right? I was arbitrating Mideast crises when this bunch was still sucking on their mamas’ titties.
    But who comes to me, huh? Fucking nobody. Why ask old Jimmy anything? What the fuck could he know about peace in the Middle East? It’s not like he fucking won the Nobel Peace Prize for that shit. You myopic pricks. Back in ’79, I sat Sadat and Begin right down and made those two dicklicks shake hands. It was beautiful—I had all the pieces lined up and I smiled and waved in my best fucking suit and tie right there on TV. And what do you do, you pieces of shit? You screw the whole goddamn pooch.
    Oh, what’s that I hear? The weather’s all screwy? You got a global warming problem? Boo-fucking-hoo! I was telling you morons to turn off your lights and unplug all your shit at night to conserve energy in 19-fuckin’-75, for chrissake. Gee, I wonder what woulda happened if we’d all switched to solar power like I fucking did back when we had a fucking chance to do something about it. Think we’d still be sucking Saudi Arabia’s dick like a five-dollar whore? I sure as fuck didn’t get no fancy Oscar for that little spiel, though, did I? No. But Al Gore, that cum-sucking pig, steals the shit from me and now he’s the greatest thing since Jesus Christ made a fucking sandwich.
    Well, he can lick my asshole right after George W. Bush, that fuck.
    You want compassion? Somebody who’s looking out for the little guy? Why don’t you take a look at Jimmy Carter, ’cause unlike, oh, every motherfucking candidate out there, he spent the last fucking quarter-century building houses for the homeless. And what does he get for it? A fucking hernia. Some fucking gratitude, you selfish twats. You talk to me about compassion? I’ll shove a crucifix so far up the Democrats’ asses they’ll be asking me to buy them dinner and kiss them good night.
    Funny thing about me: I actually fucking know shit! Not like these goombas trying to weasel their way into the White House. I practically wrote the book on collapsing bridges, inflation, and the working poor, fuck-o. I even got a degree in nuclear engineering or some shit. You know how easy I could swoop down right now like a guardian angel and solve all your fucking problems? Snap. Bam. Do it in my fucking sleep. Just fucking try me.
    So you want me to run for president again? Yeah, sure, absolutely, I’ll do it. I’d be honored to do it—with my fucking dick in your mouth, you worthless scumbags.
    You had your chance with Jimmy Carter, and you fucking blew it. So get fucked. Fucking country.

  2. […] this is working out really well in other parts of the world. However, I have to give Maxine credit – at least she is saying what the rest of the Democrats are […]

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