24 January 2013

VENEZUELA : Caracas Plans Crackdown On Clunker Car Inflation Hedge.


     With annual inflation of over 20% for over a decade...Venezuelans have relied on used and new cars...to keep ahead of the curve.
     Instead of losing value...when a car is driven off a Caracas lot...it's value surges.
     An analyst there reports...'Cars gain value instead of depreciating because of a supply and demand crisis. In Venezuela we buy cars to protect our wealth.'
    Now...the Chavista congress has proposed a law that fixes prices for used and new cars at 2009 levels.
    Venezuela has the world's 3rd highest inflation rate.
    A new devaluation of the currency has been predicted by many observers...but the uncertain condition of President Hugo Chavez's health...has delayed many monetary policies.