Chavez’s Cancer May Put Venezuela Devaluation On Hold

As a once prosperous country’s heads for the ground, All Rooters worries about is Hugo Chavez and his likely fatal cancer.

Venezuelan President Hugo Chavez’s battle with cancer and the possibility of a new presidential election look likely to delay key economic policy decisions including a sharp currency devaluation needed to shore up public finances.

Chavez spent heavily this year in giving new apartments, home appliances and cash payments to poor Venezuelans to ensure his re-election, weakening the South American OPEC nation’s fiscal position.

Yep, he like Obama bought the election with governmental goodies for the illiterate voters.

Whee, look at us!!! look at our new Obama-phones. Whee, whee!!!!

I was over at Walmart yesterday, I noted they seemed to have new employees, from South America, they were. Part Timers so that Walmart didn’t need no Obama care. Imagine that. So they just spread the wealth amongst part time employees. Just what Walmart said they would do. Now they are all part time, and still they are poor.

And then, and then, and then, the people suffer. The currency adjustment is coming, who wants to lend more money to busted Venezuela?

Economists have widely predicted the devaluation would come this month or in early 2013 because the spending spree expanded a yawning fiscal deficit. Devaluing eases fiscal pressure by giving the government more local bolivar currency for each dollar brought in by oil exports.

But devaluation plans, along with potential cuts to enormous subsidies that also weigh heavily on state finances, now appear to be on hold as Chavez – famous for his micro-managing style – recovers from his cancer operation in Cuba.

Read more here …

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