Watching Venezuela Implode

Malor wrote:
Venezuela will not implode because of this devaluation. It is just one of many that Venezuela has had to deal with in the past 30 years.

The money printing causes the devaluation, which reduces living standards and f*cks up the economy. The price controls will cause the implosion.

Remember what I'm telling you, goman. Your economic prescriptions are getting a full-on test. Print money for everything you need. Let's see how it works out for Venezuela.

By devaluing the Bolivar Venezuela is expecting more internal investment and production. Venezuela imports too much and this devaluation will help spur domestic production.

Inflation is already expected in Venezuela and even the think tanks say this devaluation is not going to break the record inflation or the average inflation of the 1990s. This devaluation will have short term consequence in that sense.

It will also immediately reduce the Venezuelan deficit. This might or probably make Chavez think he can spend more money. But perhaps he won't. Or won't to too much of an extent.

MaverickDago wrote:
Real capitalists don't go for "safe" investments. They invest in new interesting things.

Real capitalist don't like being told "here 5 dollars, that farm you used to own, its ours now". Their isn't any in Venezuela that's worth that hassle that isn't found in its neighboring nations.

By devaluing the currency the government is giving more of incentive for domestic producers to produce.

Quintin_Stone wrote:

What exactly is a Real Capitalist?

Not a rent seeking monopolist.

http://en.wikipedia.org/wiki/Rent_se...

Heh, if printing money worked, the banana republics would have owned the world.

Malor wrote:

Heh, if printing money worked, the banana republics would have owned the world.

The whole world does the same thing. Why are you calling out the banana republics?

Because they were early proponents of printing your way to prosperity, and it failed so spectacularly that 'banana republic' is engraved in the lexicon.

Malor wrote:

Because they were early proponents of printing your way to prosperity, and it failed so spectacularly that 'banana republic' is engraved in the lexicon.

That is not the only reason for the term banana republic.

It's sort of the defining characteristic, why they were remembered with such infamy.... not only were they repressive and horrible places, they self-destructed through economic wishful thinking.

There is only so much actual wealth in an economy, and printing money without providing value into the system always damages it to some degree. Do enough of that, steal enough resources through fraud, and the economy will collapse.

Again: if it worked, the banana republics would have prospered. They didn't. Printing money does not create wealth, it merely steals it in a particularly pernicious and destructive way.

goman wrote:

Chile 14,000
Argentina 12,500
Venezuela 12,300
Uruguay 10,700
Brazil 9,400
Suriname 8,200
Colombia 8,200
Peru 7,300
Ecuador 7,100
Bolivia 4,200
Paraguay 3,900
Guyana 3,600

GDP per capita

Real Capitalists know these facts and don't let propaganda get in the way. There are opportunities abound in South America.

This reminds me of the scene from Oceans 12 where the dice plant is shut down because the workers want a pay raise of 50% and the con men need the factory to open and it will cost $36,000 to meet the workers demands, they are trying to figure out how much that would be with 200 workers, only ot be told tht $36,000 would give all 200 workers all of their demands. The cons look at each other and decide to cut them a check.

This is all I have to say about this, I won't engage on a counterpoint vs counterpoint since it's useless, when someone has made up his mind there's no use trying to make them see reason. I can however, drop this little link (NSFW-ish:Long Blog, many pictures, some big text blocks, please endure through them. Warning: this link may make you hate Chavez, or cause you to assplode, or both) to let you know how deep hipocricy runs in the current regime. It's in spanish but it pretty much shows Chavez' closer family members, among other, engaging in an orgy of socialistic activities, wearing socialistic clothes and being very socialistic in general.

Ignorance is bliss

Just ran across this: a gamer's perspective of the situation in Venezuela from November of last year.

Great read, this caugth my attention:

And if you live in Caracas today, you are at substantially higher risk of meeting a violent death than if you live in Iraq these days.

Fact, and yet you'll find people still singing praises to Chavez. Unabashed criminality and a society scared out of the country is what holds this government on power.

feeank wrote:

Fact, and yet you'll find people still singing praises to Chavez.

Everyone in America who I've known to support Chavez has changed their mind, in light of recent events. I'm sure he's got supporters in your neck of the planet but he is losing goodwill. At least among the "people who don't matter to Chavez in the slightest" demographic.

That is because Venezuela has no coherent opposition that speaks for the people.

I guess they could have Colombian strong man like Uribe who is popular at home and a US supporter. But that wouldn't work I think because there is no FARK like presence in Venezuela or cocaine growers either.

The government takes station off the air.

http://www.rsf.org/spip.php?page=art...

goman wrote:

The government takes station off the air.

http://www.rsf.org/spip.php?page=art...

Good article. I think it's important to note the excuse used to shut down the station - not meeting deadlines for government inspections (even though they had, as far as they knew).

Five stations have been blocked from broadcasting in Venezuela for allegedly failing to broadcast one of Chavez's speechs.

Courtesy of Hugo, to tame those pesky student protests
Welcome to the 14th century
IMAGE(http://img97.imageshack.us/img97/4374/garradehierrogn.jpg)

Is that what I think that is... a f*cking hook on a chain?

Actually, I'd say there are four f*cking hooks on said chain

Um, what's it for?

grobstein wrote:

Um, what's it for?

In most parts of the world, climbing gear (grappling hook)...
In Venezuela, I'm guessing as substitute for a crude mace.

Venezuela cancels $295 million of Haitian debt. About a 1/3rd of Haitian foreign debt.

feenank - No wonder your country is a mess. You have judges letting convicted bankers go scot-free.

Did you know that Venezuelan banks are the most profitable banks in South America?

http://www.laht.com/article.asp?Arti...

Venezuela once again contributed the most to BBVA’s South American net attributable profit of 871 million euros ($1.23 billion) in 2009, accounting for 664 million euros ($935 million) of the total.

http://seekingalpha.com/article/1467...

BBVA was the 5th most profitable bank in world in 2008.

If you are a capitalist - get into banking.

goman wrote:

feenank - No wonder your country is a mess. You have judges letting convicted bankers go scot-free.

article wrote:

Her offense, in the eyes of the Chavistas, was that she ordered a conditional release of my client Eligio Cedeño, who had been imprisoned illegally without trial for almost three years (the maximum term for pre-trial detention is two years). She issued her decision during a proceeding on Dec. 15 in the presence of two representatives of the Public Ministry, citing an opinion published by an independent United Nations Working Group which had declared Cedeño's detention as arbitrary. Cedeño was later forced to flee to the United States when a nationwide dead-or-alive manhunt was initiated by Chávez.

Where did you read that this banker had been convicted?

Quintin_Stone wrote:
goman wrote:

feenank - No wonder your country is a mess. You have judges letting convicted bankers go scot-free.

article wrote:

Her offense, in the eyes of the Chavistas, was that she ordered a conditional release of my client Eligio Cedeño, who had been imprisoned illegally without trial for almost three years (the maximum term for pre-trial detention is two years). She issued her decision during a proceeding on Dec. 15 in the presence of two representatives of the Public Ministry, citing an opinion published by an independent United Nations Working Group which had declared Cedeño's detention as arbitrary. Cedeño was later forced to flee to the United States when a nationwide dead-or-alive manhunt was initiated by Chávez.

Where did you read that this banker had been convicted?

You are correct. Not convicted, just charged.

At least they charge the banking crooks in Venezuela.

Having illegally imprisoned allegedly crooked bankers somehow justifies sentencing an honest judge to Jail in what way?

Right, the banker is such a crook that the prosecution can't be bothered to show up at the trials to prosecute him. Give me a break, goman.