RSS 2.0 FeedHugo Chavez Continues To Defy Common Sense
by Doug MataconisHugo Chavez must have it in mind to violate every law of economics in the book. Price controls, nationalization, and now demonetization:
CARACAS, Venezuela, March 17 — Of all the startling measures announced by President Hugo Chávez this year, from the nationalization of major utilities to threats of imprisonment for violators of price controls, none have baffled economists quite like his venture into monetary reform.
First, Mr. Chávez said the authorities would remove three zeroes from the denomination of the currency, the bolÃvar. Then he said the new bolÃvar, worth 1,000 old bolÃvars, would be renamed the “bolÃvar fuerte,†or strong bolÃvar.
Finally, at the behest of Mr. Chávez, the central bank said this week that it would reintroduce a 12.5-cent coin, a symbol of Venezuela’s prosperity in the 1960s and 1970s before freewheeling oil booms ended in abrupt devaluations, after three decades out of circulation.
Moves like this, of course, are common when countries are dealing with out of control inflation. Instead of dealing with the root causes of the problem, which would require a dictator like Chavez to abandon his ambitious/insane plans for Venezuela’s future, you simply change the monetary system and hope people will forget that the food they bought for 28,000 bolivars last week is the same as the food they’re buying for 28 “new bolivars” this week.
And it would appear that at least some people realize this:
The decisions to rename the currency and reintroduce the unusual coin, known here as the locha, a term thought to derive from an anachronistic practice of dividing monetary units into eighths, have dumbfounded many Venezuelans. More than a third of the country’s population of 26 million is under age 18, with no memory of the coin, which stopped circulating in the 1970s.
“I think that it’s cheap psychology,†said Jhonny Márquez, a manager at a transportation company. “I don’t believe the inflation will go down.â€
Still, Mr. Chávez, 52, waxes nostalgic about the coin. Citing “the respect Venezuela’s economy has around the world†in a transmission of his television talk show this month in which he announced the coin’s return, Mr. Chávez said, “We’re going to end monetary instability in Venezuela.â€
Yea, sure you are.
Chavez made a decision to remove Exxon from exploiting the primary resource that should do more to benefit the people of Venezuella. Chavez made the terrible mistake of doing the right thing for his people. In response we have all these right wing “news” articles and blogosphere babel aimed at demonizing Chavez. If you don’t believe that Exxon is capable of orchestrating a nationwide propaganda campaign to protect its archaic product and practices, just look at the war we we were sold so that Exxon could get the long term contracts for Iraq’s oil.
Comment by Kevin Morgan — March 18, 2007 @ 10:41 amAmerica and the world have suffered long enough so that Exxon could rape the environment and gouge us at the pumps. Time to get with the fact that we are losing alliances and sacraficing American lives so that the mega-profit oil giants can continue to bilk us.
“Finally, at the behest of Mr. Chávez, the central bank said this week that it would reintroduce a 12.5-cent coin, a symbol of Venezuela’s prosperity in the 1960s and 1970s…” this issue is what matters the most. Is not the economy my major concern, is the effect that it has on people the fact of seeing the old 12,5 coin on circulation again. They don’t realize that this back from the prosperity past is just an ilussion.
Comment by Julia — March 18, 2007 @ 11:15 amKevin,
I am so glad you’re staying on topic with your rant.
Comment by Kevin — March 18, 2007 @ 11:21 amI’m all for bringing back obsolete coins! A return to the half-cent, I’m sure, would remind Americans of the prosperous 1840s gold-boom. Also, ditch those ugly new nickels and give us back a half-dime!
Chavez should look at how many currency changes Brazil has gone through since 1942. It never helps unless strong economic discipline is put in place. In Weimar Germany, Stresemann halted inflation not just by issuing a new deutchmark but also by halting runaway government spending.
Comment by Allen Garvin — March 18, 2007 @ 3:08 pmWake up!!! CHAVEZ IS GOING TO BACK HIS CURRENCY WITH GOLD/SILVER AND COPPER AND SINK THE US DOLLAR!
ARE YOU PEOPLE ASLEEP?!
Comment by Joey — March 18, 2007 @ 6:00 pmJoey,
I don’t believe that for a second. But if Chavez would actually get onto a sound money policy, I’d consider investing in Venezuelan currency as a hedge against the falling dollar.
But as I said, I don’t believe that for a second. First, Chavez has no incentive to go to sound money. As a socialist, it makes it too hard for him to hide rampant government spending. Second, the Venezuelan currency, even if backed by gold/silver/copper, isn’t big enough to sink the dollar, nor do I think the international investor class trusts Chavez enough to take him at his word.
(Let it be known that I think our own government will sink the dollar, but that’s neither here nor there.)
Comment by Brad Warbiany — March 18, 2007 @ 7:45 pmThe days when right wingers like mata”rightwingNUT”conis talks arrogantly and proudly about their fucked up US economy are limited.
These right winger’s GRINGO economy will soon be consumed and overwhelmed by the greatness of emerging economies like those of China, India, Brazil, and other Asian, African, and Latin American nations.
Look at your fucked up gringo economy! What the fuck do the gringos produce? Nothing – Nada. Apart from the production of weapons of mass destruction, like nukes, warships, guns, and PORN what the fuck do you see MADE IN USA?
Nothing! Fucking gringos are not good at anything!
You gringo morons can’t even defeat the Iraqis, where a few Iraqi warriors are making the gringos spend 100 billion dollars a year and still no sign of victory. It is like Vietnam all over again. You good for nothing gringos are truly good for nothing. The world’s most trained and expensive army can’t even win against Iraqi teenagers armed only with AK-47.
hahahahahahahah! what pussies you guys really are like!
Everything you gringos purchase in stores are made/manufactured in elsewhere, whether they are made in china, india, or some other asian nations, etc.
Moreover, heroes like Hugo Chavez, Rafael Correa, Evo Morales, Daniel Ortega, Fidel Castro are giving you gringo’s whores (aka – the servile oligarchy) in Venezuela, Ecuador, Bolivia, Nicaragua, and Cuba the proper spanking in the butthole they deserve.
You good for nothing gringo pussies should just swim back to europe where you guys came from, cause pretty soon, we the non-white black, indigenous, hispanic, and asian people will take over the gringos land in north america and rule over your pale faced asses.
Viva la revolucion!
Comment by FuckingRightWingers — March 19, 2007 @ 6:17 pmOn top of that, you gringos are going to be so much in debt in the trillions of dineros with the creditors emerging economies like China, Japan, etc. which you guys already are, that you gringos can’t even go to take a dump without the permission of your chinese creditors!!! hahahahahah!
You baby killers in iraq, vietnam, latin america, and north america (I refer to the genocide of native americans and the oppression of african americans and humiliation of latinos and chinese settlers) should pay more attention to your own fucked up pussy economy, then butting into our latin american nations.
no gringos are welcome here! gringos get the fuck out!
Hugo Chavez is the modern day simon bolivar, you imperialist, genocidal, and racist gringos are the modern day NAZIS and Storm Troopers.
you guys are the devils of the modern world!
Comment by FuckingRightWingers — March 19, 2007 @ 6:46 pmSir,
You’re comments would be more amusing, although probably not anymore inciteful, if you actually lived in Venezuela and understood what it was like to live in a country on the verge of becoming a dictatorship.
Comment by Doug Mataconis — March 19, 2007 @ 7:42 pmDoug,
I’m just curious, how do you know where he’s from? I’m going to assume that you guys can chekc the IP’s of posters, which gives their location. Like I said, just curious. I’m imagining some punk kid who’s in the midst of puberty, sportin’ and che shirt and listening to RATM.
Nick
Comment by Nick M. — March 19, 2007 @ 7:58 pmListen mataâ€rightwingNUTâ€conis!
Do you live in Venezuela? Judging by your senile, right wing, and one-sided and pro-oligarchy posts, it seems that you are in cahoots with the venezuelan oligarchy, the right wing heritage foundation, and the likes of oliver north and other right wing goons!
you talk about liberty. don’t be a fucking hypocrite! I know that you mean liberty only for venezuela’s and other latin american nation’s traditional white oligarchy at the expense of the poor non-white mestizo, black, mulatto, and indigenous majority!
Admit the truth. be a man to admit it.
the likes of comrades Hugo Chavez, Rafael Correa, Evo Morales, Daniel Ortega, Fidel Castro are extending liberty, ownership of land, rights, legal and other rights, and dignity to all the non-white majority populations in Venezuela, Ecuador, Bolivia, Nicaragua, and Cuba, who have been subjected to vicious oppression of white oligarchies (who could be likened to white latin nazis) since that pig christopher columbus landed in 1492 in indigenous land.
But, anyway, enjoy you right wing posts, and note that non of the grass roots population in Venezuela, Ecuador, Bolivia, Nicaragua, and Cuba will give a rats ass to what you right wingers write.
Oh by the way! I am from venezuela. so I know how it is like to live under comrade and hermano hugo chavez!
you gringos have only one objective, pioneered by the likes of imperial spain, britain, and all other european imperialist powers and their ilk: divide and rule.
your ignoramus and evil right wing antics and tactics will no longer work in latin america, asia, africa, or the pacific islands.
prepare to be ruled and dominated by non-white peoples, comrade! there is nothing wrong with it.
Comment by FuckingRightWingers — March 19, 2007 @ 8:51 pmmaybe you will learn some aspects of humane CIVILIZATION and humaneness as a result! hasta lavista!