Socialist Experiment Live! – Update

As Chavez utterly destroys his nation’s economy, we get to watch the foreplay of the economic choices left to the US government.

Bloomberg
Chavez Says He’ll Seize Businesses That Raise Prices

Jan. 10 (Bloomberg) — Venezuelan President Hugo Chavez said that businesses have no reason to raise prices following the devaluation of the bolivar and that the government will seize any entity that boosts its prices.

So a Venezuelan business man has two choices to avoid losing his business: close the doors or pray Chavez chooses him in receiving the billions in subsidies. Everyone knows Chavez is a brilliant economist and business leader who knows exactly what goods, when and how much will be wanted by his people!

And you know what? At this point in the Venezuelan economy is the best its going to be for the foreseeable future – its accelerating down hill from here.

And these are the guys the USA depends on for a huge percentage of its oil supplies….

UPDATE

http://www.sott.net/articles/show/200658-Venezuela-at-risk-of-power-system-collapse

…and to add to their woes – they have only 4 months of electricity unless they severely cut back consumption or it rains.

Unsaid in the report is that it is estimated that nearly 40% of the electricity is ‘stolen’ by the shanty town around Caracas – where the people climb up the poles and string un-metered lines back down into their homes. I’ve driven into Caracas at night – and it is beautiful as the lights run up the mountain side (where the shanty’s are built) like sea of bright stars…When it rains…err, doesn’t rain, it pours…. or something like that

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10 Responses to “Socialist Experiment Live! – Update”

  1. G-Man Says:

    I wondered how that would play out. The citizens lost 1/2 there financial worth in one day! WOW, if that’s where we are heading, glad I did what I did this past year.

    G!

    • Black Flag Says:

      The normal guy is actually fine. They’ve been through this before.

      They are paid every day and go out and spend nearly every bolivar. Saving money is pointless. They buy lots of rough gold and jewelery, though it is illegal to try to take it out of the country (they still do). So, tomorrow, they’ll ask for about twice as much for pay as they did yesterday.

      I found it interesting when I was there and they had a huge devaluation – the subway ticket machines had to be turned off. They were built for a specific coin – and it inflated away so fast that though the machines were in perfect order – they couldn’t except the money; the currency’s printing devalued faster then the vending machine manufacturers could build the currency readers!

      So walls of ‘out of order’ machines – replaced by humans in ticket booths – who made up hand written signs on how much a subway ticket would cost that day.

      But for businessmen with inventory – it is devastating. The stuff you thought you were selling at a profit, now you have to re-buy at twice the price for your own suppliers. Imagine how impossible it is to price anything. So, their economy is total confusion – which is exactly what it is like there – total confusion. No one knows what is for sale, what store is open, what is in the store or when they will ever get product.

      Now, Chavez has guaranteed wide spread shortages. No one will sell below cost. They will close their doors. Shortages will devastate everyone – especially the poor – who cannot afford the black market.

      This could trigger a revolution. It has before…

  2. Kathy Says:

    “This could trigger a revolution.”

    Certainly not desireable but this guy must be taken out.

    PS – What time zone are you in?

  3. Black Flag Says:

    MDT

  4. anita Says:

    Just following your link BF. Keep up the good fight. Will be checking in for lessons regularly

  5. Cyndi P Says:

    Hi Black Flag,

    “When Money Dies” describes a similar situation in Weimar Germany. I dread the day it happens in America…..

  6. Black Flag Says:

    Welcome!

    I’m not sure where this blog may go – just muddling along as an anarchist does!

  7. v. Holland Says:

    Muddling along-not an expression I would use to describe you.

  8. v. Holland Says:

    Marching forward with strategic proficiency.

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