Sunday, January 10, 2010

Prediction for Venezuela

The American left's favorite South American dictator is up to his old tricks.

Venezuela's President, Hugo Chavez, has said troops will seize control of any business that raise prices in response to the devaluation of its currency.

He said there was no reason for prices to go up, and speculators' businesses would be handed over to the workers.
Chavez has run his country into virtual insolvency despite the fact it sits on some of the largest mineral reserves in the world. It has nationalized many industries, defaulted on international loans, threatened foreign investors, and vilified private business owners as enemies of "the people."

The country is collapsing in much the same manner that Zimbabwe has.

Economics teaches us that Hugo's latest foray into places where he has no discernment will spur inflation, reduce the availability of goods and services, discourage more investment, weaken infrastructure, and will further shock Venezuela's withering economy with expanded unemployment.

Other than that, I'm certain it will be a success.

1 comment:

Marv said...

And it appears we may be next.....