This week marked the beginning of a new year and a new National Assembly for Venezuela: the Chavistas no longer have the supermajority of the past five years and an opposition dedicated to restoring true democracy is growing stronger with 65 legislators seated. With detailed reports about a failing economy coming out every day, and tensions bubbling between the U.S. and El Presidente, 2011 promises to be a “year of great battles.”

In case you missed it, here is the latest of Venezuela in the news:

FACTBOX-Key political risks to watch in Venezuela

A volatile political scene since parliament gave President Hugo Chavez the power to rule by decree, jockeying ahead of the next presidential election, and a weak economy are risks to watch in Venezuela in 2011.

A Grim Forecast in Venezuela Newsweek

There’s method to this show of muscle. Until now, the president—whose allies hold 95 percent of the legislature—has played Parliament like a flute. But with a new, more independent National Assembly being sworn in on Jan. 5, he had to boost his powers while he could. This is the fourth time in 11 years that Chávez has sought extraordinary powers.

Without ambassadors, US-Venezuela tensions grow AP

The United States and Venezuela are starting the year without ambassadors in Caracas and Washington due to an intensifying diplomatic dispute that is likely to persist and boost President Hugo Chavez’s long-standing antagonism.

Chavez, Clinton Shake Hands, Chat Amid Tensions AP [Video]

Venezuelan President Hugo Chavez and Secretary of State Hillary Rodham Clinton shook hands and chatted briefly [during Rousseff’s inauguration] in a rare cordial encounter amid a diplomatic dispute between the two nations.

Soto Rojas: “Larry Palmer may not come to our country” El Universal

National Assembly (AN) Speaker Fernando Soto Rojas said on Thursday that Larry Palmer, the nominee for US ambassador to Venezuela, may not enter the country because he disrespected the Venezuelan State and President Hugo Chávez.

Venezuela: Economy shrank 1.9 percent this year Bloomberg – Businessweek

Venezuela’s economy has shrunk 1.9 percent in 2010, declining for a second year, but is recovering and headed for growth in 2011, the Central Bank said Thursday.

Venezuela December Inflation Up 1.8% -Central Bank The Wall Street Journal

Venezuela ended 2010 with an inflation rate of 27.2%, higher than the 25.1% rate of 2009, according to statistics released Thursday by the Central Bank of Venezuela.

Venezuela Chavez Rebuts Higher Inflation Talk, Warns ‘Speculators’ WSJ

Venezuelan President Hugo Chavez rebutted claims that his government’s recent move to devalue its currency would lead to higher inflation and warned of a crackdown on “speculators” raising prices.

Venezuela’s Bolivar Slides in Black Market After Devaluation Announcement Bloomberg

Venezuela’s bolivar fell in the unregulated market after the government devalued the currency by unifying the country’s two official exchange rates.

Curtailed Powers Greet Venezuelan Lawmakers Wall Street Journal

Venezuela’s new National Assembly will be seated Wednesday, but recent moves by President Hugo Chávez have rendered the legislative body practically powerless and set the stage for months of confrontation between the populist president and an embittered opposition.

Stronger opposition at the Venezuelan National Assembly El Universal

Venezuela’s National Assembly -a unicameral Congress- is to start sessions on Wednesday amidst high expectation for a stronger presence of the opposition in a parliament where, nevertheless, the pro-government faction will prevail.

Chavez spurred Morales to seize oil: cables AFP

Bolivian President Evo Morales was “emboldened” in his effort to nationalize his country’s energy sector by Venezuela’s Hugo Chavez, who pledged technical assistance and other aid for the effort, leaked US cables showed Wednesday.