Venezuela acknowledges inflation at historic high

[rooster59]

Venezuela acknowledges inflation at historic high

HANNAH DREIER, Associated Press


CARACAS, Venezuela (AP) — Venezuela on Friday released its first economic data in more than a year Friday, showing an economy in shambles and inflation at a historic high. The announcement came hours before President Nicolas Maduro began his annual address to congress, facing down an opposition-led National Assembly for the first time.

The Central Bank for the first time acknowledged what analysts have long said: That annualized inflation has surged into triple digits.

The bank said the economy contracted by 7.1 percent during the quarter that ended in September 2015, and inflation reached 141.5 percent.

Ahead of the surprise data release, Maduro said he would declare an economic emergency giving him 60 days to unilaterally enact sweeping reforms. The decree will be debated in the newly seated opposition congress next week.

In the evening, he arrived at the congressional building to deliver his annual state of the nation report, parading past crowds of cheering onlookers in the red shirts adopted by supporters of Hugo Chavez's socialist revolution.

The speech represents the first time a president in 17 years has had to speak in front of a congress controlled by the opposition. Critics of the socialist administration took control of the chamber last week after sweeping Dec. 6 legislative elections.

Unlike last year, Maduro was not greeted by posters of Chavez when he set foot in the building. Instead, he was received by hardline opposition leaders who sat impassively as he began to defend his embattled administration. Another departure: the chief of the U.S. diplomatic mission in Caracas was in attendance.

Venezuela, which has the world's largest oil reserves, has suffered enormously as the price of oil has crashed from above $90 a barrel two years ago to just $24 today. Analysts say that means Venezuela is getting dangerously close to just breaking even on the oil it produces, which accounts for 95 percent of export earnings.

The country's newly-appointed economic czar has written that "inflation doesn't exist in real life."

In its press release, the bank officials blame a widely used website that tracks the black market rate of the Bolivar and other participants in an "economic war" for the soaring inflation rate.

-- (c) Associated Press 2016-01-16

[trogers]

The ostrich, taking his head out of the sand, finally acknowledged that the grasslands around him has all withered from the drought...

[ezzra]

Here's a fantastic country who has everything, oil riches, beautiful sceneries, good people, a would be dream tourist destination, rich heritage and culture, but with the shittiest government of all the world bent on keeping their citizens poor as a turnips as long as they keep their BS " revolution " crappy ideas alive....

[klauskunkel]

The country's newly-appointed economic czar has written that "inflation doesn't exist in real life."

In its press release, the bank officials blame a widely used website that tracks the black market rate of the Bolivar and other participants in an "economic war" for the soaring inflation rate.

which prompted me to contemplate just for a moment:

what was here first, Thainess or Venezuelaness?

no need to answer, it's rhetorical

[Srikcir]

Another failed socialist regime just like Greece.

So far as "getting dangerously close to just breaking even" - if it wasn't that Chavez nationalized all the foreign owned production and refinery facilities without paying fair value for the seizures, Venezuela wouldn't be breaking even.

[Krataiboy]

When 90 per cent of your exports and 50 per cent of your GDP are based on a single source, as Venezuela's are, the politics of the leadership doesn't really make much difference. You can be a dictator like Mugabe or a Socialist like Maduro, but the end result will be the same.

Just ask Vladimir Putin of Russia, one of the world largest oil producers. As a billionaire he is personally insulated from the effects of plunging oil prices on Russia's economy, but the mass of the people over whose destinies he presides are not. Hence his insistence on playing a starring role in Middle Eastern affairs. It's a diversionary tactic to boost his popularity in troubled times.

Iran is also up against the wall, as are the Saudis, though the US vassal state has huge foreign currency reserves to break its fall from grace. The Saudis are continuing to maintain production in the expectation that other more vulnerable oil nations will be forced out of business first.

Venezuela is just the first domino to drop. Other oil-dependent economies will follow, irrespective of the kind of regime which happens to be running the show

Edited January 16, 2016 by Krataiboy

[Ulic]

It does not matter if it is a democracy or a totalitarian state, socialist or republican the big problem

is corruption. Venezuela has that in spades.

[fred Kubasa]

Good for these former cheer leaders of Hugo Chavez !

[Yahooka]

This is hopefully the last attempt to prove that the dreadfull system called communism can work......................No it can`t never do !!!

[MAJIC]

This is hopefully the last attempt to prove that the dreadfull system called communism can work......................No it can`t never do !!!

Correct! one of the best idea's for the people that in reality destined to never work !

[trogers]

When 90 per cent of your exports and 50 per cent of your GDP are based on a single source, as Venezuela's are, the politics of the leadership doesn't really make much difference. You can be a dictator like Mugabe or a Socialist like Maduro, but the end result will be the same.

Just ask Vladimir Putin of Russia, one of the world largest oil producers. As a billionaire he is personally insulated from the effects of plunging oil prices on Russia's economy, but the mass of the people over whose destinies he presides are not. Hence his insistence on playing a starring role in Middle Eastern affairs. It's a diversionary tactic to boost his popularity in troubled times.

Iran is also up against the wall, as are the Saudis, though the US vassal state has huge foreign currency reserves to break its fall from grace. The Saudis are continuing to maintain production in the expectation that other more vulnerable oil nations will be forced out of business first.

Venezuela is just the first domino to drop. Other oil-dependent economies will follow, irrespective of the kind of regime which happens to be running the show

I have never seen any oil exporting country in the world with a high achieving educated populace, irrespective of its political system.

[thaibeachlovers]

When 90 per cent of your exports and 50 per cent of your GDP are based on a single source, as Venezuela's are, the politics of the leadership doesn't really make much difference. You can be a dictator like Mugabe or a Socialist like Maduro, but the end result will be the same.

Just ask Vladimir Putin of Russia, one of the world largest oil producers. As a billionaire he is personally insulated from the effects of plunging oil prices on Russia's economy, but the mass of the people over whose destinies he presides are not. Hence his insistence on playing a starring role in Middle Eastern affairs. It's a diversionary tactic to boost his popularity in troubled times.

Iran is also up against the wall, as are the Saudis, though the US vassal state has huge foreign currency reserves to break its fall from grace. The Saudis are continuing to maintain production in the expectation that other more vulnerable oil nations will be forced out of business first.

Venezuela is just the first domino to drop. Other oil-dependent economies will follow, irrespective of the kind of regime which happens to be running the show

I have never seen any oil exporting country in the world with a high achieving educated populace, irrespective of its political system.

Read about the Seven Sisters, if you want to know why oil exporting countries are corrupt and in a shambles.

Seems that all the countries of the world are in a shambles, regardless of the governmental system. Interesting times lie ahead, and I hope I'm not around to see them- too "interesting" for me, at my age to enjoy.

[GOLDBUGGY]

To bad Hugo is not around to see the mess he made by kicking out all the Gold Miners and Foreign Oil Explorers and Producers.

[trogers]

To bad Hugo is not around to see the mess he made by kicking out all the Gold Miners and Foreign Oil Explorers and Producers.

Oh he is seeing it, by just looking up...

[thaibeachlovers]

To bad Hugo is not around to see the mess he made by kicking out all the Gold Miners and Foreign Oil Explorers and Producers.

You wouldn't say that if you watched The Seven Sisters. If anyone has gone to the hot place it's those evil men.