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Thread: Venezuela devalues currency around 40% overnight

  1. #1

    Default Venezuela devalues currency around 40% overnight

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  3. #2

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    Wow.
    "Integrity means having to say things that people don't want to hear & especially to say things that the regime doesn't want to hear. -Ron Paul

    "Bathtub falls and police officers kill more Americans than terrorism, yet we've been asked to sacrifice our most sacred rights for fear of falling victim to it." -Edward Snowden

  4. #3

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    This is the strange part.

    Venezuela devalued its currency for the fifth time in nine years as ailing President Hugo Chavez seeks to narrow a widening fiscal gap and reduce a shortage of dollars in the economy.

    The government will weaken the exchange rate by 32 percent to 6.3 bolivars per dollar, Finance Minister Jorge Giordani told reporters today in Caracas. The government will keep the currency at 4.3 per dollar for some products, he said.
    What? How do you devalue the currency but keep some products at the old rate? Can anyone explain that?
    "Let it not be said that we did nothing." - Ron Paul

    Internet shills exposed: (Yes, there are plenty on RPF)
    http://the-tap.blogspot.com/2012/10/...eyre-real.html

    Why most RPF members are against the US involvement with Israel explained by Mini-Me:
    http://www.ronpaulforums.com/showthread.php?t=218093
    No anti-semitism, just logic.

    Visiting the Outer Banks of NC?
    Outer Banks Fishing Boat Rentals

  5. #4

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    export v import? Enemies v friends?

    No idea.
    "Integrity means having to say things that people don't want to hear & especially to say things that the regime doesn't want to hear. -Ron Paul

    "Bathtub falls and police officers kill more Americans than terrorism, yet we've been asked to sacrifice our most sacred rights for fear of falling victim to it." -Edward Snowden

  6. #5

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    Want to see how devaluing currency correlates to a rising stock market index? Check out the 1 month chart of their (already insane looking) stock market. In the last 3 days leading up to this official devaluation their stock market has risen about 15%.

    http://www.bloomberg.com/quote/IBVC:IND/chart
    "Let it not be said that we did nothing." - Ron Paul

    Internet shills exposed: (Yes, there are plenty on RPF)
    http://the-tap.blogspot.com/2012/10/...eyre-real.html

    Why most RPF members are against the US involvement with Israel explained by Mini-Me:
    http://www.ronpaulforums.com/showthread.php?t=218093
    No anti-semitism, just logic.

    Visiting the Outer Banks of NC?
    Outer Banks Fishing Boat Rentals

  7. #6
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    Not suprising . Anything there is devalued a helluva alot more than 40 % to me.

  8. #7

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    I still want to know how they devalue a currency but keep an old exchange rate for certain products. Zippy? Id love to see more info on how that works.
    "Let it not be said that we did nothing." - Ron Paul

    Internet shills exposed: (Yes, there are plenty on RPF)
    http://the-tap.blogspot.com/2012/10/...eyre-real.html

    Why most RPF members are against the US involvement with Israel explained by Mini-Me:
    http://www.ronpaulforums.com/showthread.php?t=218093
    No anti-semitism, just logic.

    Visiting the Outer Banks of NC?
    Outer Banks Fishing Boat Rentals

  9. #8
    Member KrokHead's Avatar
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    It's funny when the government controls the economy to solve problems, then there are more problems created because of that, thus the government controls the economy more.

  10. #9
    Member Zippyjuan's Avatar
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    Quote Originally Posted by devil21 View Post
    This is the strange part.



    What? How do you devalue the currency but keep some products at the old rate? Can anyone explain that?
    Would have to be some sort of price supports or price fixing. Trying to keep essencials like food more affordable. But that will add to their budget deficit they are trying to reduce. Venezuela's economy is highly distorted by the government already. Chavez has been using oil revenues to create his socialist state and to buy votes but he is seriously messing things up for them. If a future government decides they can't afford all the things Chavez has been spending on there will be massive social shocks in the country.
    I am Zippy and I approve of this message. But you don't have to.

  11. #10

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    We're on Lap 3 for the race to the bottom?

  12. #11
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    Quote Originally Posted by Zippyjuan View Post
    Would have to be some sort of price supports or price fixing. Trying to keep essencials like food more affordable. But that will add to their budget deficit they are trying to reduce. Venezuela's economy is highly distorted by the government already. Chavez has been using oil revenues to create his socialist state and to buy votes but he is seriously messing things up for them. If a future government decides they can't afford all the things Chavez has been spending on there will be massive social shocks in the country.
    That would be my guess , they will price control common food staple items.

  13. #12

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    Quote Originally Posted by devil21 View Post
    Want to see how devaluing currency correlates to a rising stock market index? Check out the 1 month chart of their (already insane looking) stock market. In the last 3 days leading up to this official devaluation their stock market has risen about 15%.

    http://www.bloomberg.com/quote/IBVC:IND/chart
    Click on the five year tab.

    I remember seeing the stock market and commodities reach a certain point here that it seemed to yank the slats out of honest business and its profitability. Lots of us went home or had our hours cut.

    About a year and a half ago and after what I'm guessing was all of the defaulting on loans caused stock market to pull back and commodities to fall. The dollar once again increased in value enough for some employers to call people back. Traffic picked up some on the morning commute.

    Anyway the stock market and commodities are again rising. The value of the dollar is again falling. I can't help wonder if we are going to be pushed over the edge where working is now longer profitable.

    I wonder what Venezuela's devaluation ceiling was in regards to earning a living? I would think with they would now be way past any point of a market correction bringing them back.

  14. #13

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    Quote Originally Posted by oyarde View Post
    That would be my guess , they will price control common food staple items.

    I remember when a president here in the U.S. tried to fix the price of gas.

    Fixed us good.

  15. #14
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    Quote Originally Posted by Carson View Post
    I remember when a president here in the U.S. tried to fix the price of gas.

    Fixed us good.
    I bet that price is already fixed there.They meddle with beer pricing too , if I recall.Probably be moving to rice & beans now ...






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