Posted on 09/13/2010 7:49:03 PM PDT by neverdem
Venezuela goes to the polls on Sept. 26 in a parliamentary election that opponents of President Hugo Chavez see as “a chance to turn the tide,” as Reuters news service puts it. Chavez may be taking on more authoritarian powers, but he also has to defend what the latest data show is the worst economy in the world. And you thought the Democrats had problems!
The Economist magazine provides statistics weekly on 57 nations, from the United States to Estonia. Its most recent report forecasts that gross domestic product in Venezuela will decline by 5.5 percent in 2010. Next worst is Greece, with a 3.9 percent decline. Greece, of course, came close to defaulting on its debt earlier this year, and analysts at Morgan Stanley worry that Venezuela is moving in the same direction.
“Our new baseline of at least three years of economic contraction suggests the risks to Venezuela’s ability to honor its international financial commitments may be on the rise,” wrote Daniel Volberg and Giuliana Pardelli in a June report, at the same time predicting that GDP will fall by 6.2 percent in 2010. “While most of Latin America, in line with the globe, has been in recovery mode since last year, Venezuela has seen an intensifying downturn in activity,” they added.
So that’s GDP, the single best measure of economic health. When it comes to inflation, no one is close to Venezuela. Consumer prices are already up 31 percent for 2010 and are expected to rise more by year-end. Only two of the remaining 56 nations monitored by the Economist are suffering double-digit inflation: India and Egypt, both with 11 percent price increases.
Venezuela’s stagflation is all the more remarkable because, as the No. 8 oil-producing nation in the world, the country should be benefiting handsomely from...
(Excerpt) Read more at commentarymagazine.com ...
Yes. Beranke has flooded the market with currency which should have produced hyperinflation already.
Why hasn’t it?
Because our banks are sitting on the cash. And regulators are hesitant to let them lend.
Once they start lending AND FLOOD THE MARKET WITH MONEY, that is where hyperinflation keeps in.
wow — your wife looks gorgeous. and congratulations on learning Portuguese!
Those countries were not rated because they have no measurable economies. The way Venezuela is headed it may soon join their ranks.
Why hasn’t it?
Loan defaults have a very deflationary effect. Japan has been in a low interest rate, loose money, deflationary environment for twenty years now.
Show me a historical period like ours or Japan's that led to hyperinflation.
I have more concern that the Fed will raise rates too quickly once growth resumes.
Venezuela goes to the polls on Sept. 26... Chavez may be taking on more authoritarian powers, but he also has to defend what the latest data show is the worst economy in the world... gross domestic product in Venezuela will decline by 5.5 percent in 2010. Next worst is Greece, with a 3.9 percent decline... [Venezuela's] GDP will fall by 6.2 percent in 2010... When it comes to inflation, no one is close to Venezuela. Consumer prices are already up 31 percent for 2010 and are expected to rise more by year-end. Only two [other nations] suffering double-digit inflation: India and Egypt, both with 11 percent price increases... as the No. 8 oil-producing nation in the world, the country should be benefiting handsomely...
Read on Twitter a few moments ago that between 60 & 70 MP’s were elected to the opposition. Sounds like good numbers against Chavez.
I suppose the reason they have delayed official results in the election is that they are trying to concot the lie Chavez will tell.
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