American drivers might be envious of this week’s chart. But it’s
investors that should pay attention. The chart depicts a phenomenon that
could soon wreak havoc on your portfolio.
This week’s chart shows the drop in Venezuelan gas prices in U.S. dollars over the last five years. Right now, 1 gallon of gas in Venezuela costs one-fifth of a penny or $0.002.
Befitting Venezuela’s role as the holder of the world’s biggest oil reserves and in an attempt to gain favor with the people, the government set the price of premium-grade gas at US$0.05 per gallon. Then, an annual bolivar inflation rate of 50% gradually pushed the price of oil up in bolivars and down in dollars.
With crude exports accounting for about 95% of the country’s foreign currency earnings, the oil price crash is pushing Venezuela towards bankruptcy. The country’s economy is expected to shrink 7% by the end of the year.
Read more at Click here / www.trade4x.net
This week’s chart shows the drop in Venezuelan gas prices in U.S. dollars over the last five years. Right now, 1 gallon of gas in Venezuela costs one-fifth of a penny or $0.002.
Befitting Venezuela’s role as the holder of the world’s biggest oil reserves and in an attempt to gain favor with the people, the government set the price of premium-grade gas at US$0.05 per gallon. Then, an annual bolivar inflation rate of 50% gradually pushed the price of oil up in bolivars and down in dollars.
With crude exports accounting for about 95% of the country’s foreign currency earnings, the oil price crash is pushing Venezuela towards bankruptcy. The country’s economy is expected to shrink 7% by the end of the year.
Read more at Click here / www.trade4x.net
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