What they have in gold reserves is irrelevant.
This “nuke” is nothing more than a fart and no doubt is pushed by the folks peddling gold..
It may not be a "nuke" for the rest of the world, but for Venezuelans it certainly is.
Everything you buy that isn't made in Venezuela just doubled in price and you won't be able to buy much anyway because your savings have just been cut in half.
It tells what members of the upper class who remain to leave for Miami today and makes paupers of the middle class who can't afford to.
The devaluation will devastate businesses who must import a large amount of their capital equipment. They simply won't be able to afford it. Their plants will begin to rot from lack of maintenance and productivity will fall as a result.
It's productivity because of capital investment that raises living standards. Chavez has just made sure that living standards will fall.
Hugo the Marxist believes the same economic tripe that motivates Ben Bernanke. He's just providing us an example of what happens when Helicopter-Ben's policies are speeded up by five years or so.
This is a disaster for Venezuela.
Great points and this will only increase the demand for dollars and American RE.