Viva la gente. Viva Venezuela. Viva libertad. Viva una dia nueva!
Socialism can not calculate prices effectively. This is socialism’s (of various kinds) fatal flaw.
Real prices, honest prices, often reflect a reality that the powers that be in socialist systems don’t like. As such the powers that be start looking for reasons, any reasons other than the real ones, for why their particular economy is failing. They often conjure boogeymen.
You see it’s reactionary capitalists undermining the system. They are trying to extract the people’s surplus value.
Sorry, hunger is not funny. But have you noticed that it is in socialist countries that famine seems most likely to break out? Soviet era Ukraine. Mao’s China. (43 million people died in Mao’s famine.) Ethiopia. North Korea. Venezuela. (Though thank God, “famine” is probably not the most accurate word for what is happening in Venezuela, yet.) This is because governments can not allocate resources effectively. Even simple things like food markets will fail if regulated from on high enough.
Obama and Chavez doing the “soul brother” handshake.
Many socialists honestly believe that massive state control is the best way forward. They want to believe that humans can engineer heaven on earth. They fear the market and love the totalitarian hand of the state. Why? Social justice we are told.
This ignorance and general adherence to the religion of big government has brought untold misery to those unlucky enough to have lived under socialism over the past century.
This ought to solve the problem.
Thing is socialism always implodes eventually and in proportion to the amount that it is embraced. But if Bitcoin can help it along that’s a good thing.
It should also be noted, because it has been a while since we have, that crony capitalism, “fascism (generally) lite,” is a form of socialism.
The whole place is economically dysfunctional. This is what happens when prices are restricted by the government and the totalitarians refuse to let in the light of the market. It’s really that simple fundamentally.
It should be noted also that the Indian government pulled a similar thing a couple of weeks ago and also threw its economy into a spin.
The War on Cash is on.
When the army is distributing medical supplies in a country it’s pretty safe to say that things are not going well. Venezuela is a tragedy.
Hyperinflation, it happens.
Socialism is truly a wonderful thing. So fair.
Socialism fails sooner or later. The key factor is the degree an economy is infected with socialism. A moderate amount of socialism (that is anti-price government intervention) means a moderate collapse eventually. Total socialism means total collapse of the economy eventually.
There are 2 very important variables in this simple equation however (there are of course more than 2, but these are the biggies) and that is how much fear a regime can induce in the population, and how far a regime is willing to go to stay in power.
Better days for the socialistas.
It’s been a weird political year south of the US border. The Peronists in Argentina lost. Dilma was kicked out of the Brazilian presidency. Venezuela plunged totally into economic chaos induced by the current Chavista government. And now the rejection of the FARC deal in Columbia. Things have not gone well for the lefties, and it doesn’t look like they will be seeing much relief anytime soon.
The Pink Tide has ebbed and continues to ebb.
Funny, the statists always warn that without big intrusive government societies go haywire. But we have seen over and over and over that this is simply not true. In fact where government has a light hand and the rule of law upheld the typical result is prosperity.
However what we also see over and over and over is that countries that embrace big government have a tendency over time to turn into hellholes. The Soviet Union,
It should be remembered that Venezuela, especially in Caracas had a pretty viable middle class prior to the socialists decimating it.