Venezuela is using too much government to solve its problems.
After 2003 the currency controls did not quite work so in 2008 they introduced a new controlled currency.
Now that looks like a bar chart, not a human action graph. Each one of those jumps was a part of government policy to make government policy work. One might view it as a government failure graph, or a citizen misery index. But is is the official exchange rate over the years. Let's look at the black market exchange rate (in the inverse):
The idea is to build the economy by making exports more attractive and imports more expensive. Such a policy is meant to, well, who cares what it is meant to do, it does create winners and losers. And take a wild guess what happens? Answer - the rich get richer and the poor get poorer. Even when socialism is in play.
The government is trying to fight the USA economic hegemony with government policy. Can't win that one. Things just get worse. A much better plan would be to go for freedom. Here is a graph I made to explain this earlier...
When faced with a crisis, the more freedom the better the results, the less freedom the worse. Now even if the government is huge, relatively speaking, it is no smarter at solving problems, but it is expensive. Give people freedom to decide, and freedom from fraud, like a massive guerilla movement they will defeat the enemies of peace and prosperity.
I am an anarchist, of course, but if people are not going to be free, then an acceptable compromise is a kingdom. With a King, Venezuela would have a leader who was truly jealous of who shears his sheep, and at the same time never allowing anyone to get powerful enough (by shearing) to challenge his divine right to rule. This is something democracy cannot offer.
Have a DNA contest, and whoever has blood that is combination of the last Aboriginal chieftain and King Juan Carlos of Spain is declared the King of Venezuela.
Do you have a better plan?
Feel free to forward this by email to three of your friends.
After a decade of currency controls set up by late socialist leader Hugo Chavez in 2003, the disparity between the official and black-market rates for the local bolivar currency is higher than ever. Greenbacks now sell on the illegal market at about seven times the government price of 6.3 to the dollar.Right now a dollar is about 6.5 Bolivars, or a Bolivar is about 16 cents.
After 2003 the currency controls did not quite work so in 2008 they introduced a new controlled currency.
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| http://www.xe.com/currencycharts/?from=USD&to=VEF&view=10Y |
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| http://www.huffingtonpost.com/steve-h-hanke/venezuela-on-the-death-of_b_2853782.html |
The government is trying to fight the USA economic hegemony with government policy. Can't win that one. Things just get worse. A much better plan would be to go for freedom. Here is a graph I made to explain this earlier...
When faced with a crisis, the more freedom the better the results, the less freedom the worse. Now even if the government is huge, relatively speaking, it is no smarter at solving problems, but it is expensive. Give people freedom to decide, and freedom from fraud, like a massive guerilla movement they will defeat the enemies of peace and prosperity.
I am an anarchist, of course, but if people are not going to be free, then an acceptable compromise is a kingdom. With a King, Venezuela would have a leader who was truly jealous of who shears his sheep, and at the same time never allowing anyone to get powerful enough (by shearing) to challenge his divine right to rule. This is something democracy cannot offer.
Have a DNA contest, and whoever has blood that is combination of the last Aboriginal chieftain and King Juan Carlos of Spain is declared the King of Venezuela.
Do you have a better plan?
Feel free to forward this by email to three of your friends.
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