Is Venezuela heading for debt default?

Rampant inflation and the state seizure of Venezuela's electronic stores has rattled foreign investors.

"As a solution to rampant inflation, banning price rises and jailing shopkeepers has limited potential," says The Economist. But with consumer prices rising at more than 50% over the past year and important local elections looming next month, Venezuelan president Nicols Maduro is willing to give anything a try.

So in early November, the government seized a number of electronics stores, arrested the managers for "usury" and ordered them and other businesses to sell off their stock at discounted prices, hoping to placate wavering voters with a bargain television or fridge.

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