Latin America

Socialistlemur

(770 posts)

15. A slight correction to the statement above

Sun May 26, 2013, 01:16 PM

May 2013

The devaluation from 4.3 to 6.3 to the USD took place this year. This is the 32 % you mention. Due to inflation the currency has to be devalued - in a free market it would happen on a daily basis. But the 32 % wasn't enough. The SITME wasn't replaced by CADIVI, the later is the official market since 2003. SITME wasn't replaced at first. Then they created a new non transparent market called SICAD, which devalued the currency but was suspended. The Venezuelan central bank announced they would re activate SICAD but it's not known if it will be transparent. Without transparency it will not be a viable market for honest business. I agree there are many large corporations operating in Venezuela, but I don't buy the idea that they are hoarding toilet paper. They do need to reform or they will default their bonds. I'm sure we will see a more rational approach in the next 6 months.

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Toilet paper shortage is because ‘Venezuelans are eating more’ argues the government [View all] Bacchus4.0 May 2013 OP

To quote David Carridine as Woody Guthrie in "Bound for Glory": Buzz Clik May 2013 #1

It's like the global warming deniers naaman fletcher May 2013 #2

Plus naaman fletcher May 2013 #3

correct, the rest of Latin America is growing too Bacchus4.0 May 2013 #8

So this is the oligarch/Capriles strategy to bring down Maduro railsback May 2013 #4

Price controls cause shortages naaman fletcher May 2013 #5

Well, actually hoarding has more of an effect railsback May 2013 #6

That's abusurd naaman fletcher May 2013 #7

Its only absurd if you love oligarchs railsback May 2013 #9

In other words naaman fletcher May 2013 #10

You refuse to accept the answer railsback May 2013 #11

you didn't answer naaman fletcher May 2013 #12

I take it you believe there are huge warehouses hiding toilet paper? Socialistlemur May 2013 #13

The bolivar has been downgraded numerous times already, railsback May 2013 #14

A slight correction to the statement above Socialistlemur May 2013 #15

Toilet paper is a red herring railsback May 2013 #16