Now, This The Way To Deal With Speculators

Discussion in 'Politics' started by bitterlyclingin, Apr 23, 2012.

  1. bitterlyclingin

    bitterlyclingin Silver Member

    Aug 4, 2011
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    [Are you listening Mr pres, your friend and goombah, Hugo, is showing you how its done. For those Americans who fondly remember Jimmah Carter and his gas lines, you'll just love this. Who needs free markets anyway?]

    "Don Boudreaux, Café Hayek.

    If anyone out there still needed a primer on why a Government-Centered Society was doomed to ineluctable failure, Hugo Chavez is conducting a seminar in ineptitude out of Caracas. Hugo Chavez has decided to devalue his currency in order to flood the Venezuelan State-Run oil company with revenue. He would then “tax” these revenues in order to fund his social welfare apparatus which has fueled his political viability.

    Looking only at the revenue side of the equation makes this plan look like a winner. The oil company gets more cash, Chavez gets more revenue. However, the cash is held in the form of a deliberately devalued currency. By definition, each individual unit must buy less in goods and services. Except that Hugo Chavez doesn’t like that definition. He wants to have his cake and eat it too. He doesn’t like the price of a hyper-inflated lunch.

    So now the Venezuelans get to play the Leftist Version of The Price Is Right. Soldiers are deploying to make certain that store owners don’t guess too high when they haul out the price gun. If they do, the Venezuelan National Guard will haul out the weaponry and confiscate the store. The Christian Science Monitor describes this hyper-Keynesian view of a well-regulated system of commerce.

    Chávez said the moves should not spur price increases, and on his Sunday radio and television address promised to punish those who do. “There is no reason for anybody to be raising prices,” he said, calling on citizens to “publicly denounce the speculator” and promising to “take over any business, of any size, that plays the bourgeoisie speculation game.”

    This means that any store owner that reacts to a 50% decrease in nominal currency value by raising prices a logical 100% will need bayonet assault course training to plead his case. So the store owners are using their only other viable recourse and de facto shutting down. The artificial price levels are insuring that nothing remains available. The New York Times described the fundamental breakdown in everyday commerce.

    A supermarket in the upscale La Castellana neighborhood recently had plenty of chicken and cheese — even quail eggs — but not a single roll of toilet paper. Only a few bags of coffee remained on a bottom shelf. Asked where a shopper could get milk on a day when that, too, was out of stock, a manager said with sarcasm, “At Chávez’s house"

    Failed Leaders With Failed Agendas Always Blame The Speculators | RedState

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