This Is What Happens With Marxist's Economies, Does This Sound Famliar?

Programs giving money to the poor for their support, while taxing the middle and upper income groups, overspending the treasury of the nation, and driving a vibrant economy straight into the ground. Marxism/Communism is a failed economic system. It's only use is to ensure power remains centralized within the hands of a few, and ultimate power to only the most ruthless of that group. Where is Freedom? There is none, it has been Lost, Stolen, Usurped.

This is the Obama road map for America.

Steve
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By Jorge Rueda ASSOCIATED PRESS

CARACAS, Venezuela (AP) -- President Hugo Chavez's decision to devalue Venezuela's currency for the first time in nearly five years aims to stretch his government's oil earnings further and counter a recession by increasing spending.

The devaluation of the bolivar lessens a wide gap with the black-market exchange rate for dollars and will unavoidably push inflation -- already the highest in Latin America at 25 percent -- to even higher levels.

Opposition leaders on Saturday called the devaluation a blow to Venezuelans that will make them pay through inflation while letting the government instantly convert its oil earnings into more cash domestically to boost spending ahead of congressional elections.

"Venezuelans' standard of living has been devalued," said Antonio Ledezma, Caracas' opposition mayor.

Finance Minister Ali Rodriguez said the devaluation announced by Chavez on Friday night should add to inflation by 3 percent to 5 percent this year. Some economists predict a much bigger leap.

Dozens of Venezuelans lined up in Caracas on Saturday outside stores that sell electronics and appliances, trying to buy items that they fear soon will be considerably more expensive.

"When I heard about the dollar, I didn't think twice about it. I got some of the last cash out of my account and I came to buy my washing machine," said Iraima Rodriguez, a 31-year-old secretary. "Whenever they devalue, the prices go sky-high."

With the devaluation, Chavez also set a new two-tiered exchange rate in an attempt to hold down prices of priority imports like food to counter inflation.

The currency's official exchange rate had been held steady by the government at 2.15 bolivars to the dollar since the last devaluation in March 2005. Chavez said the bolivar will now have two government-set rates: 2.6 to the dollar for transactions deemed priorities by the government, and 4.3 to the dollar for other transactions.

The higher rate, which he called the "oil dollar," now doubles the paper value of Venezuela's oil earnings when converted to local currency. Oil accounts for about half the government budget, but that income has been squeezed by lower world oil prices and declines in output in the last year.