Venezuela will issue a 15 year bond next week, which will be sold in local currency and be denominated in US$. The coupon will be around 7-8%. In the end, this becomes a way for those that have money to buy cheap dollars and for the Government to obtain the financing it needs. As in my comment about the banking system, simply perverse all around. But in the end Chavez gets his US$ 1 billion that he wants to throw at Venezuelan agriculture and see if anything grows (other than corruption and waste). Long live the revolution!
The Devil's Excrement
Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
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The Devil's Excrement 
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