Venezuala- New economic lunacy

#1
Chavez has apparently decided that after devaluing his currency, there is in fact no need for prices to go up.
http://news.bbc.co.uk/1/hi/business/8451056.stm

This kind of fiscal wish fulfilment was quite common during the later Roman Empire, where the Government repeatedly robbed its citizens through devaluation, but never thought that there would be consequences further up the supply chain,when the supplier raised his prices to reflect the lower real value of the currency being used to buy his goods.

The Roman empire then fell over.

What this proves is that Chavez has allowed his Marxist fantasies to override whatever briefings his economists have provided. Since he also runs one of the most outspoken regimes, (and has cosied up to the Iranians as well), this looks like yet another failed-state-in-the-making.

The good news is that, so far, Alastair Darling has not been seen investing in Venezualan Government bonds.
 
#2
And the cherry on the top of this loony Marxist cake is that he is deploying the Army to beat up on shopkeepers who raise prices as a result rather than go bust.

I suspect that a lot of "going Galt" is going to be going on in the next few months over there, as well as emigration.
 
#4
Did Chavez not appoint the failed London Mayor comrade Ken Livingstone as some sort of advisor?.
 
#5
Not quite sure. For some reason, tho, Transport for London was buying Venezuelan oil to run buses. Only the truly cynical would think that this was a way for Ken to fund the regime of one of his Marxist buddies...
 
#6
P2000 said:
Not quite sure. For some reason, tho, Transport for London was buying Venezuelan oil to run buses. Only the truly cynical would think that this was a way for Ken to fund the regime of one of his Marxist buddies...
The oil deal got sacked by Boris.
Fortunately, though our Ken got offered a job by Chavez.
http://news.bbc.co.uk/1/hi/uk/7585330.stm

Which could explain why the place is rapidly heading into disaster.
 
#7
Le_addeur_noir said:
Did not Chavez not appoint the failed London Mayor comrade Ken Livingstone as some sort of advisor?.
The spin was that Chav gave Ken free oil in return for consultancy on a CCTV system to manage traffic in Venezuelan cities.

Turned out that the 'traffic cameras' were the same as the state of the art facial and number plate recognition cameras that are used to secure London from terrorist attack.

Chav wanted to keep an eye on anybody he didn't like. Ken was only too happy to help.
 
#9
As an aside, surely Sterling has been devalued by the Government/Bank of England printing extra money?
 

Bouillabaisse

LE
Book Reviewer
#10
It's the same marxist claptrap that happened in Zimbabwe where Bob sent in the army to enforce price controls on food in the face of mahoosive inflation, with the result that the shops emptied of goods and there were no more to buy (and no money to buy them with). The difference is that Chavez has been using oil money to subsidise food prices.
 
#11
Yokel said:
As an aside, surely Sterling has been devalued by the Government/Bank of England printing extra money?
'Quantitative easing' it's called nowadays.
After a while it becomes 'hyperinflation'
then 'Mugabenomics'
Finally 'In the Brown stuff'.
 
#12
chavez has stopped being funny now :oops:
 
#14
What's the probability that when it starts to come down around him he'll be looking for a foreign military adventure just like any tinpot dictator?
 
#15
Yokel said:
What's the probability that when it starts to come down around him he'll be looking for a foreign military adventure just like any tinpot dictator?
Which is why Colombia are looking to buy lots of French LeClerc MBTs?
http://www.arrse.co.uk/Forums/viewtopic/t=142094.html

That's possibly why Chavez picked a Colombian-French firm to get spiteful on...
 
#16
HectortheInspector said:
Chavez has apparently decided that after devaluing his currency, there is in fact no need for prices to go up.
http://news.bbc.co.uk/1/hi/business/8451056.stm

This kind of fiscal wish fulfilment was quite common during the later Roman Empire, where the Government repeatedly robbed its citizens through devaluation, but never thought that there would be consequences further up the supply chain,when the supplier raised his prices to reflect the lower real value of the currency being used to buy his goods.

The Roman empire then fell over.

What this proves is that Chavez has allowed his Marxist fantasies to override whatever briefings his economists have provided. Since he also runs one of the most outspoken regimes, (and has cosied up to the Iranians as well), this looks like yet another failed-state-in-the-making.

The good news is that, so far, Alastair Darling has not been seen investing in Venezualan Government bonds.
Wasn't this the same "cnut" that said if the Argies re invaded the "malvinas", he would use his navy to intercept any attempt by Britain to send an invasion force?
 
#17
ex_colonial said:
HectortheInspector said:
Chavez has apparently decided that after devaluing his currency, there is in fact no need for prices to go up.
http://news.bbc.co.uk/1/hi/business/8451056.stm

This kind of fiscal wish fulfilment was quite common during the later Roman Empire, where the Government repeatedly robbed its citizens through devaluation, but never thought that there would be consequences further up the supply chain,when the supplier raised his prices to reflect the lower real value of the currency being used to buy his goods.

The Roman empire then fell over.

What this proves is that Chavez has allowed his Marxist fantasies to override whatever briefings his economists have provided. Since he also runs one of the most outspoken regimes, (and has cosied up to the Iranians as well), this looks like yet another failed-state-in-the-making.

The good news is that, so far, Alastair Darling has not been seen investing in Venezualan Government bonds.
Wasn't this the same "cnut" that said if the Argies re invaded the "malvinas", he would use his navy to intercept any attempt by Britain to send an invasion force?
His Wiki biography:
http://en.wikipedia.org/wiki/Hugo_Chávez
He's a partially sighted, Left wing delusional economic halfwit.

Think of him as Gordon with a Military uniform fetish.
 
#18
ex_colonial said:
Wasn't this the same "cnut" that said if the Argies re invaded the "malvinas", he would use his navy to intercept any attempt by Britain to send an invasion force?
It was, and with the state the moron Brown has rendered the Royal Navy to, the interception would probably be successful.

Still, I await with baited breath 'ashie' and 'Sven/Whet/Cvnt's' defence of the Marxist lunacy that is still alive and well in what was one of the most prosperous and stable countries in South America.
 
#19
Bouillabaisse said:
It's the same marxist claptrap that happened in Zimbabwe
It's the same Marxist claptrap that would have happened in Britain if Michael Foot had become Prime Minister.

Labour's 1983 manifesto included a commitment to place statutory limits on price increases to control inflation. Remember that next time somebody tells you that Maggie only won in '83 because of the Falklands.

Strangely enough, the MPs elected for the first time in support of the '83 manifesto included a certain Tony Blair and a slightly less certain Gordon Brown.
 
#20
As soon as he kicked out the Western oil companies and their experts it was obvious it was going to soon go tits up. Have you seen how fast Venezuela's oil production has dropped since he came to power in 1999 ? something like a million barrels a day if I remember correctly. That does nothing any good at all for the Venez state coffers
 

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