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Strong Bolivar - Venezuela introduces new currency for 2008

lil dickie said: "Hugo Chavez is never satisfied. He was particularily unhappy with the valuation of the "bolivar". You have to take 10,000 or more of these things into a store to buy a loaf of bread. That doesnt make people confident. Good old Hugo has to decided to replace the "weak bolivar" with the new [url=http://www.ft.com/cms/s/0/095c9ece-b8b4-11dc-893b-0000779fd2ac.html]strong bolivar[/url] [quote] “It was necessary to leave behind the consequences of a history of high inflation,” Gaston Parra, central bank president, said in a televised year-end speech. He added that officials aimed “to reinforce confidence in the monetary symbol”. However, in view of racing inflation, an increasingly unsustainable exchange rate and shortages of basic goods, José Guerra, a former chief economist at Venezuela’s central bank, said: “The monetary ‘reconversion’ is not going to stabilise prices. It’s not going to help reduce inflation, or anything of the kind,” arguing that the new currency could even trigger higher inflation. “It’s a dangerous move,” he said. In 2007 inflation in Venezuela is expected to exceed 20 per cent, the highest in the region – far beyond the government’s target of 12 per cent.[/quote] Experts state this new bolivar will bring confusion to the masses. Who will make money from the new bolivar?"

Airelon said: "Why is it that socialists and communists just never seem to 'get it'? It's not that hard. Someone needs to form a huge "[I]Your system doesn't work[/I]" club and beat them over the head or something. History has been doing it's best to do this, and they still don't get it."

lil dickie said: "I agree with you man. In South America they have a lot of romantic ideas about revolucion...mostly of the marxist and leftists type plots. Havent they heard the news?"

ratAphooey said: "I would be pissed if I had to turn in one million dollar bills for thousand dollar ones."

newinvestor123 said: "The conversion to another currency will not fix their problems unless it is coupled with anti-inflation measures. It's just repainting the problem another color."

ratAphooey said: "They have the worst inflation in the hemisphere based on what I read. Mainly because of social spending."