Source: Chávez ciera más de 1.000 comercios por subir los precios, Libertad Digital.
Point of the Article (for those that don't know Spanish)
In fight against "speculation" and inflation, Chavez closed over 1,000 businesses for increasing their prices after the devaluation of the bolivar. The government has fixed the value of the bolivar to 2.6 bolivars per dollar for prioritised markets and 4.6 bolivars per dollar for other markets, such as the automobile industry and telecommunications. Since last monday, many believe that the government has nationalized 1,697 businesses for charges of speculation.
Chavez actually told them to decrease their prices.
Comments
If we thought Roosevelt (F.D.R.) was crazy, we're lucky not to have had this nutcase. I'll dub this the "war against markets correcting shortages". Chavez will probably turn into a textbook example on how to destroy your country's wealth at the fastest possible rate (if business owners are disallowed to scale prices to inflation, those holding bolivars will just purchase more undervalued goods with their larger paychecks).
This is the same country that already has a food shortage problem.
Zimbabwe 2.0 on the horizon...
I can't wait for someone to state the genius of this action.
Just when you think certain presidents (hint, hint) are too much into themselves, Chaves takes the crown as the most big headed and utterly stupid politician to walk the Earth.
I can only hope the economic consequences are immediatly felt because I could see more countries adopting policies such as this.
Latin Americans worship the state, it's incredible... Soon he will mimic the pathetic marxoid-keynesian brazilian Plano Cruzado of 86, that in the middle of a hyperinflation froze prices, gave wage increases and tried to increase "effective demand"...
Jonathan M. F. Catalán:we're lucky not to have had this nutcase.
Sorry, but I don't see why he is any more of a nutcase then any of the politicians here.
He is simply in a more desperate situation then us. For example, there is no way that Obama is any less economically ignorant and power thirsty then Chavez. The US simply has a lot more "insurance" against such idiots due to its capital intense production structure, so the adverse policies are not as noticeable in the immediate future. I think this will change.
Wow, just, wow. Has he not learned anything from the last 90 years of human history. Now repeat after me "Inflation is a purely monetary phenomenon"
DD5: Sorry, but I don't see why he is any more of a nutcase then any of the politicians here.
Politicians here tend to believe in bidding up prices (that's why I made a reference to FDR); they welcome inflation as some type of god-send (also, see End the Fed, where Paul and Bernanke discuss the ills of inflation).
In the meantime, my Marxist friends on YouTube five-star videos such as Hugo Chávez 1/3 the voice of the people in Copenhagen 2009. This guy is set to become the poster child of developing-world leftist dictators - full of himself, devoid of second thoughts and more infallible than the pope, at least for his international fan base.
Sphairon: In the meantime, my Marxist friends on YouTube five-star videos such as Hugo Chávez 1/3 the voice of the people in Copenhagen 2009. This guy is set to become the posterchild of developing-world leftist dictators - full of himself, devoid of second thoughts and more infallible than the pope, at least for his international fan base.
In the meantime, my Marxist friends on YouTube five-star videos such as Hugo Chávez 1/3 the voice of the people in Copenhagen 2009. This guy is set to become the posterchild of developing-world leftist dictators - full of himself, devoid of second thoughts and more infallible than the pope, at least for his international fan base.
And when it fails, 1/10th of those Marxists that adore him will change their mind. (I think more than 1/10th is being too optimistic)
Jonathan M. F. Catalán: DD5: Sorry, but I don't see why he is any more of a nutcase then any of the politicians here. Politicians here tend to believe in bidding up prices (that's why I made a reference to FDR); they welcome inflation as some type of god-send (also, see End the Fed, where Paul and Bernanke discuss the ills of inflation).
Yes, but let's see what they will advocate for if inflation hits double digits or even triple digits. I think you will see Chavez on steroids.
PVnole89: Wow, just, wow. Has he not learned anything from the last 90 years of human history. Now repeat after me "Inflation is a purely monetary phenomenon"
Try the last 2000 years of human history. The Romans enacted insane price controls under threats of crucifixion... And the dreaded markets still wouldn't obey them, the ravenous beasts!
From that vid:
"we need a leader like Chavez in Canada. We'd be much better off"
Jonathan M. F. Catalán:In fight against "speculation" and inflation,...
He's just going by the book and repeating the age old process of the inflationist blaming "price gougers", "greedy profiteers", "speculators", and everybody else (and their grand-mothers) for the s**t that's hitting the fan. So they all must be regulated and/or put in jail. If you think we're safe from the same thing happening in the US, just observe the increased rhetoric of public discourse headed that way. Read the most recommended reader's comments on Krugman's NYT articles. The "masses" are already livid and barking mad at the "greedy speculators" and "profiteers" which, by definition, is anyone making more than $100k/year. "What honest person could possibly value his contribution to society THAT much in this economy?". I think we're far beyond the point of no return, and only a hard splash at the bottom will be strong enough of a wake up call, that is, if there's anyone left to wake up.
Z.
I still remember when Chavez threatened to nationalize Spanish banks in Venezuela, and Spain and those bankers said, "Go ahead and try, and see what happens." I'm not sure if Chavez operated under the lessons he learned after presuading Correa to kick Repsol out of Ecuador, which cost Ecuador much of its oil profits.
As others have alluded here, I'm curious to see how this plays out for observers on the left. Yes, given their track record, Hugolp paints the likeliest portrait... but I still look forward to seeing exactly how they frame that argument. I've never seen anything even approaching a causal explanation from leftist writers identifying the mechanism that compels merchants to suddenly begin boosting the prices of goods; they assume that this is a normative state of affairs in a market economy. I'd like to see one try, but I won't hold my breath. "Animal spirits" suffices for such a mechanism and that playbook has evidently worked for them for over a century and a half, so why change now?
Jonathan M. F. Catalán: Source: Chávez ciera más de 1.000 comercios por subir los precios, Libertad Digital. Point of the Article (for those that don't know Spanish) In fight against "speculation" and inflation, Chavez closed over 1,000 businesses for increasing their prices after the devaluation of the bolivar. The government has fixed the value of the bolivar to 2.6 bolivars per dollar for prioritised markets and 4.6 bolivars per dollar for other markets, such as the automobile industry and telecommunications. Since last monday, many believe that the government has nationalized 1,697 businesses for charges of speculation. Chavez actually told them to decrease their prices. Comments If we thought Roosevelt (F.D.R.) was crazy, we're lucky not to have had this nutcase. I'll dub this the "war against markets correcting shortages". Chavez will probably turn into a textbook example on how to destroy your country's wealth at the fastest possible rate (if business owners are disallowed to scale prices to inflation, those holding bolivars will just purchase more undervalued goods with their larger paychecks). This is the same country that already has a food shortage problem.
In the long run, this makes no difference, because the market always works.
In the short run it is merely an opportunity for those both flexible enough and willing enough to engage in grey and black market activities to make immense profits. Yay!
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New news from Venezuela: Chávez gives away 53 billion€ dollars to his allies, while bankrupting Venezuela
In the past ten years, Chavez has given his friends 53 billion€. In 2009 alone, in the midst of recession, he gave away 8 billion€. In the mean time, he reduced the purchasing power of his people by 50%.
The majority of the money goes to allied governments: Brazil, Argentina, Ecuador and Nicaragua.
For the most part, the quotes deal with an indigenous Venezuelan wondering why Chavez spends on foreign nations, but not on Venezuela. Great to ridicule Chavez, but it kind of takes away from the point that Chavez shouldn't be spending at all. In any case, it seems that Venezuela is headed on the road to hyperinflation.
Jonathan M. F. Catalán:If we thought Roosevelt (F.D.R.) was crazy, we're lucky not to have had this nutcase.
When Chavez is spending more on his military then any other country, has more military bases spread throughout the world than any other country, has a deficit equivalent to nearly 13 trillion, when he has duped most of the world into using his pyramid scheme currency, when he leads Venezuela into a state of perpetual war, and when he is sending billions to other countries in the form of "foreign aid" for the sake of bribing his way to becoming a world power - then I will stop to consider that he might be worse than the people who have been running our country for the past 50 years.
Regardless of his latest antics he could not compete with the amount of economic destruction that the US government performs on a daily basis if he tried, he simply does not have access to enough resources or power.
Good point. In many ways Venezuelans are very badly off and getting worse. But they have one freedom we do not have - freedom from the Empire. They are not under the heel of Pax Americana. And that counts for something too. In fact for many millions around the world it is the one freedom they would rather have than any other.
Rafael Hotz: Latin Americans worship the state, it's incredible...
Latin Americans worship the state, it's incredible...
Dont put all of us in the same group please.