Just to make sure the Venezuelan economy has a chance of collapsing, Chief Economist Hugo Chavez announced today that he will take US$ 12 billion from the country´s International Reserves and put them in his petty cash development fund Fonden. This guarantees that if oil prices stay where they are today, the Venezuelan economy will implode later this year as the swap rate soars and a devaluation is sure to follow.
You have to wonder whether the whole thing is on purpose. Now you know why they transferred the US$ 5 billion to the Central Bank at the end of 2008, the autocrat wanted US$ 12 billion and that would have left reserves close to a dangerous level of US$ 25 billion.
Venezuelans are about to find out that Milton Friedman was absolutely right. They already suspect this is the case, as inflation topped 30% this year, they will soon get a higher education on its meaning.
The Devil's Excrement 
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