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Zorro

(15,716 posts)
Tue Jan 3, 2012, 04:51 PM Jan 2012

Chavez's spending could boost Venezuela inflation

President Hugo Chavez's government is likely to spend heavily this year to rev up the economy during his re-election bid, and that could worsen one of Venezuela's biggest problems: 27-percent annual inflation that is already close to the highest in the world.

Chavez has started ramping up spending ahead of the October vote, and economists warn that more money injected into the economy will jolt prices. The government predicts 22 percent inflation in 2012, but the investment bank Barclays Capital projects that it could top 36 percent.

The incomes of the poor are being squeezed in places such as Winche, a hillside community on the outskirts of Caracas where children play on dirt roads lined with shacks made of wood and corrugated zinc. Some residents say they're being forced to spend more of their paychecks on groceries because of soaring food prices.

"I buy what's most necessary, which is food, and I don't buy other things, you know, like clothes," said Nebis Berrios, a 55-year-old woman who says her husband's modest pay does not go as far as before. "As far as the money goes, we buy food. And if not, that's as far as we get."

More at: http://news.yahoo.com/chavezs-spending-could-boost-venezuela-inflation-190245078.html

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Chavez's spending could boost Venezuela inflation (Original Post) Zorro Jan 2012 OP
Funny how we NEVER SEE a corporate 'news' article about all the Venezuelans benefiting from.... Peace Patriot Jan 2012 #1

Peace Patriot

(24,010 posts)
1. Funny how we NEVER SEE a corporate 'news' article about all the Venezuelans benefiting from....
Wed Jan 4, 2012, 12:00 PM
Jan 2012

--higher wages
--more jobs
--free education through college
--free medical care
--sizzling economic growth during the 2003-2008 period and relatively quick recovery from the Bushwhack instigated worldwide depression now
--low cost food in state-run stores
--free computers to kids in school
--subsidies for education and retraining
--low cost housing
--strict regulation of banks (protection for small savers, among other things)
--government grants and low cost loans to co-ops and small businesses
--greatly improved tax fairness
--community councils--local empowerment
--honest and fair elections
--government support of Indigenous and peasant farmer land rights
--government subsidy of the awesome and vast "children's orchestra" program
--50% reduction in poverty and 70% reduction of extreme poverty.

On and on goes the list of the REASONS WHY the Chavez government has been elected and re-elected that are NEVER MENTIONED in the corporate press, and whose beneficiaries are NEVER QUOTED in the corporate press. Instead, corporate so-called journalists go out and find somebody with something negative to say, after they've consulted the CIA and the USAID on the latest "talking point" against the Chavez government.

Upshot: The Wall Street ideologues, whom the Corporate Press slavishly worship, don't want us to know that there are significant upsides to socialism. They desperately want us to believe that a socially responsible government will inevitably fail and they are actively working to induce such a failure in any way they can including non-stop propaganda.

Inflation is not the worst thing in the world that can happen to a country with high employment, rich natural resources and a government committed to social justice. And the foaming-at-the-mouth anti-inflationists of Wall Street couldn't be more destructive, here (or wherever they have their talons in the government). Lack of government spending is literally destroying our economy, as we speak. FDR and the "New Deal" had the right idea, after decades of destructive looting by the rich: ONLY government spending can pull a country out of such a hole as we were in then, and are in now, and if that means inflation, SO BE IT. You can't let people starve. You can't let employment reach these low levels. You can't let society implode because of rightwing/corporate ideology. What has the rightwing and its corporate masters ever done for us--or for Venezuelans? Nothing!

THEY created this Depression--and we're supposed to follow their advice? Lula da Silva, recent former president of Brazil, said it all when he called them "the blue-eyed wonders of Wall Street." Their "advice" is self-serving crap.

Venezuela was recently designated "THE most equal country in Latin America" by the UN Economic Commission on Latin America and the Caribbean, and, in poll after poll, the great majority of Venezuelans speak highly of their own welfare and future prospects and of their government and their democracy (which they rate as one of the best in the world). WHERE is this reflected in the Corporate Press? Nowhere! They are writing propaganda not news.

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