From the S&A Digest:
Venezuela seems poised to achieve a truly remarkable feat: a currency collapse in the midst of an oil boom. After doubling government spending, Chavez imposed price controls on meat, sugar, eggs, milk, and other basic products. You'll never guess what happened... Now shortages abound, and a black market for U.S. dollars is thriving (at a much worse exchange rate).
The poor, who elected Chavez, are taking the brunt of the fallout. They can't get their money out of Venezuela, and they can't afford black market prices.
Like Bill Bonner (The Daily reckoning) says – People usually get what they deserve... good and hard.
Here's my favorite part: To solve the problems, Chavez is knocking three zeros off the paper bills and calling the new currency the "strong bolivar."
It's like watching someone put on a lifejacket backwards. Sure, they'll float... but face down.