== Current Inflation == 

 The article downplays the current situation regarding inflation in Venezuela. It is impossible to valuate the Bolivar using normal currency metrics because some many prices are held artificially low. The Venezuelan government has pinned to the exchange rate between their limited supply of US Dollars to the Bolivar. They trade 1 USD for 2150 VEB, but in other markets, the VEB trades at around 4180 for 1 USD. Venezuela could be on the brink of economic collapse, due to declining oil production. Oil exploration and production is capital intensive, but Chavez has devoted the large profits from the recent oil boom to social projects, neglecting the reinvestment necessary to maintain their production level.  With the integrated oil majors ExxonMobil and Cononco abandoning the country, it is likely that PDSVA, the state oil company which could already be on the brink of bankruptcy, will not be able to produce enough oil to support Chavez's regime. This could rationalize his recent scramble to convince other major producers to keep the price of oil high (http://www.bloomberg.com/apps/news?pid=20602099&sid;=ay2TE8iPHuPs&refer;=energy) 

  
 Source for the currency data: http://www.bloomberg.com/apps/news?pid=20601086&sid;=aAXxY.Po5b2E&refer;=news 

 16:10, 29 June 2007