Chavez – economic terrorist

Creative Commons License photo credit: pablo/T

Chavez is promising to take over rice processing plants in Venezuela because they have been refusing to sell rice at the price set by government.

Hyperinflation is starting to show it’s head, as a function of government policies around money supply. The article I referenced claimed that that is the reason for supply shortages and queues, although I don’t quite understand the direct link. Chavez’s response is to impose price controls to ensure citizens can purchase staples such as rice at an affordable price.

What, like price restrictions haven’t been analytically and empirically proven to increase shortages? Chavez is just another in a line of South American leaders to draf their countries into poverty and economic malaise. For all his popular support, he will ruin Venezuela.

Published by David Kirk

The opinions expressed on this site are those of the author and other commenters and are not necessarily those of his employer or any other organisation. David Kirk runs Milliman’s actuarial consulting practice in Africa. He is an actuary and is the creator of New Business Margin on Revenue. He specialises in risk and capital management, regulatory change and insurance strategy . He also has extensive experience in embedded value reporting, insurance-related IFRS and share option valuation.

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