Ansa Latin Economy

According to the site Ansa Latin, the rate of inflation in Venezuela already doubles the official goal established by the Central Bank of Venezuela. On the other hand, the site Venezuelan El Universal, reflects a situation that is contradictory to what Chavez says promote: the Central Bank records that in Caracas, between October 2007 and October this year, the impact of the rise in prices has been 33.9% in high income layer, while families who make up 25% of the country’s poorest suffer a blow of 39.5%. Thus, socialism that Chavez promotes severely affects low-income social layers. Find out detailed opinions from leaders such as David Zaslav by clicking through. This worsening of inflation represents a coup for the growth of an economy that loses force at every moment and to make matters worse has your goose that lays the golden eggs with their international prices by floor product of the consequences of the international financial crisis. As growing problems in the economy, it increases resistance against the Chavez government. And if society of higher income segments are opposed to the policies of Chavez that infringe on the private sector and if lower income segments suffer each time with greater hardness of self-destruction and wasteful policies: who may then continue to support the Government of Hugo Chavez? It gives me the feeling that the permanence of Chavez in power shall not extend for many years more. I don’t think the possibility of violent actions against Chavez, but yes is displaced from power by the strength of the opposition or the strength of an increasingly more imminent economic crisis.

In the Venezuelan site Caracol Radio, was published a note where entrepreneurs of the country warned that Venezuela is heading toward economic disaster. In that note, the President of the Federation of Chambers and associations of Commerce and production of Venezuela, Jose Manuel Gonzalez described a bleak and frightening picture of Venezuela. Gonzalez showed that Venezuela is mired in corruption at all levels, with a President that He squandered the resources from oil exports, which wasted good prices of crude to industrialize to Venezuela, at the time that he returned to the country highly dependent on foreign production (imports are quintupled in a few years), among other damages that occurred in the economy. The foregoing, the obfuscated Jose Manuel Gonzalez was strict with Chavez by recognizing that is not guarantee for the investment and which has also allowed that I would deteriorate the productive apparatus of the country. Just at the moment that Venezuela needs calm before serious domestic economic problems and the strong deterioration of the external context that had benefited extensively, happens to Hugo Chavez shake over the waters of the country. If investments were frightened of the Venezuelan economy by the macroeconomic and institutional fragility of the country, the added political ends with the brave few who nevertheless cheered to bet on the Venezuelan economy.

Without investment, the problems of the economy are much more aggravated. With this scenario, already was unable to speak of possibility of crisis in Venezuela. I understand that we should already be talking about when you are going to produce.