Refers to the possibility that the level of real expenditure in the economy is going to collapse every time that the effect of inflation will be higher than the nominal increase which may lead to the Government. In any case, everything indicates that a box is complying. Inflation will remain elevated with serious repercussions in the purchasing power of Venezuelans that increasingly looks more like uncontrolled price increases in some commodities, more when it is a country that is characterized by excessive use of imports, especially in some agricultural commodities that could be processed in the country. The truth, which next year which is very soon to start is not very clear in economic reality Venezuelan, precisely on this Economist Jose war says, that economic activity is experiencing a sustained slowdown, which has deepened this year. Though official and unofficial spokesmen of the Government want to hide this situation the strength of the figures is compelling. In the first nine months of this year the Venezuelan economy grew 5.5%, a figure significantly lower than the same period in 2007, when growth stood at 10.8%. I.e., the economy has lost almost half of its growth. Only an ignorant fanatical and economic issues civil service may place unaware of this situation.

The phase of economic expansion in Venezuela started in 2004, is unfortunately ending and the country must prepare for another stage characterized by the following elements: slower growth or even stagnation, deterioration of the external sector, and high inflation. Very interesting what brings war, when referring to that for Venezuela, the decrease in the price of oil translates into lower revenues in bolivars in the mediated that does not devalue the Exchange rate. This implies that if the oil price close next year in, say, US $50 per barrel, the Government would receive 30% less tax revenue. This suggests that the Treasury will not have the resources to finance public spending that looks difficult that it may reduce but at the cost of provoking recession in the economy.

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