Posted on 11/08/2013 4:55:20 AM PST by Zakeet
Venezuela's consumer prices rose 5.1% in October, pushing the 12-month inflation rate to 54.3%, the highest mark since the late President Hugo Chávez took power in 1999. The news was released by the central bank on Thursday which also revealed that the scarcity index had reached its highest level since 2009.
Hyperinflation is attributed to two main factors: one is ramped-up public spending from President Nicolás Maduro, Chávez's successor. The central bank said the country's money supply grew 70% in the past 12 months, much of it to underwrite a big increase in government spending.
Likewise currency controls Chávez implemented in 2003 have made access to dollars difficult, causing widespread shortages in an economy that depends on imports for roughly 70% of everything it consumes. The central bank's scarcity index, a measure of basic items missing from the market, edged up to 22.4% in October from 21.2% in September, the highest since at least 2009.
[Snip]
President Maduro has alleged that Venezuela's mounting economic woes have been caused by right wing conservatives that want to see him and the Bolivarian revolution out of office, and are hoarding products in order to drive up prices. Earlier Thursday, Mr. Maduro said 1,000 inspectors had been sent out as part of a recently launched task force to root out businesses that seek inflated profit or hoard products.
[Snip]
The government has made it a crime to even mention the black-market rate, punishable by as many as seven years of prison time. But Mr. Maduro openly presented details on the currency market during his comments Wednesday night, even mentioning the names of underground websites locals use to track the illegal rate.
(Excerpt) Read more at en.mercopress.com ...
Fortunately, this sort of thing can never happen here under this idiot's brilliant leadership ...
First thing I thought of: “America, behold your short-term future”
The official name of Venezuela’s currency is the “Bolivar Fuerte” or Strong Bolivar. LOL!!! In 2008 Venezuela due to inflation looped off a bunch of zeroes and introduced new bank notes. Either Venezuela will have to start printing currency with more zeroes or people will be carrying around wheel barrows of currency to buy stuff.
These excuses sound so familiar!
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