Jittery Venezuelans on Friday rushed to shops and lined up at gas stations on concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic commerce impossible.
Inflation hit 82,700 percent in July, according to the opposition-run congress, as the country’s socialist economic model continued to unravel, meaning purchases of basic items such as a bar of soap or a kilo of tomatoes require piles of cash that is often difficult to obtain.
Drivers also rushed to fill up on Venezuela’s heavily-subsidized gas, the world’s cheapest at around 2,896 gallons per U.S. penny. Some drivers were worried about paying for gas come Monday as there will be no new legal tender small enough to pay for a full tank.
Maduro, who has said the country is victim of an “economic war” led by political adversaries, said the new monetary measure would bring economic stability to the struggling OPEC nation.
So you have a huge financial crisis, and still you cling to subsidizing gas to the point of selling it for under a penny a gallon, and then you declare that by virtue of issuing new currency that carries a 100,000 to one exchange rate you will stabilize the nation?
This is why central planning doesn't work. And before you say, well, that's just plain stupid, we would never do anything that ham-handed, I would remind you of the disaster that fell upon us when gas prices controls were enacted in '73. The mood was to punish the evil oil companies for charging "too much" (nevermind that OPEC had raised prices beyond the control of US companies) and so we had fixed prices - and huge shortages and lines.
Jittery Venezuelans on Friday rushed to shops and lined up at gas stations on concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic commerce impossible.
Inflation hit 82,700 percent in July, according to the opposition-run congress, as the country’s socialist economic model continued to unravel, meaning purchases of basic items such as a bar of soap or a kilo of tomatoes require piles of cash that is often difficult to obtain.
Drivers also rushed to fill up on Venezuela’s heavily-subsidized gas, the world’s cheapest at around 2,896 gallons per U.S. penny. Some drivers were worried about paying for gas come Monday as there will be no new legal tender small enough to pay for a full tank.
Maduro, who has said the country is victim of an “economic war” led by political adversaries, said the new monetary measure would bring economic stability to the struggling OPEC nation.
So you have a huge financial crisis, and still you cling to subsidizing gas to the point of selling it for under a penny a gallon, and then you declare that by virtue of issuing new currency that carries a 100,000 to one exchange rate you will stabilize the nation?
This is why central planning doesn't work. And before you say, well, that's just plain stupid, we would never do anything that ham-handed, I would remind you of the disaster that fell upon us when gas prices controls were enacted in '73. The mood was to punish the evil oil companies for charging "too much" (nevermind that OPEC had raised prices beyond the control of US companies) and so we had fixed prices - and huge shortages and lines.
mach es sehr schnell
'exponential reciprocation'- The practice of always giving back more than you take....
If your argument is that the government shouldn't try to institute price controls on a highly competitive commodity like oil, you're not really going to get any argument from anyone who knows anything about economics.
The problem is that I think you're trying to take that to the next step to say this is an example of why price controls are always bad. That would be fallacious, as we can see numerous examples in our very own country where price control has been highly beneficial. See e.g. utilities as discussed earlier in the thread.
Capitalism in general is good, but sometimes it doesn't work well, and ideas from socialist theory can be used to improve the system. Norway is a good example of this in the oil-production sphere.
who the fvck you trying to kid here? the problem is you regurgitate, thinking isn't part of anything you post here....ya gotta do what they tell you...
mach es sehr schnell
'exponential reciprocation'- The practice of always giving back more than you take....
Brazil’s President Michel Temer announced an emergency meeting of government Sunday after deploying troops to the border town of Pacaraima where Venezuelan migrants clashed with residents.
The situation in Pacaraima was critical on Saturday, migrant camps were overwhelmed by angry residents following reports that a local restaurant owner had been attacked by a gang of Venezuelans.
There has been growing hostility towards the numbers of Venezuelan migrants entering the Roraima state, Brazil’s northernmost region, in recent months.
Groups of men carrying blunt objects set fire to the camps and other items belonging to the Venezuelans, and more than one thousand migrants fled town back across the border.
why would the venezuelans want to flee shangri la? guess they came to their senses and went back...
mach es sehr schnell
'exponential reciprocation'- The practice of always giving back more than you take....
Kpdemello wrote:If your argument is that the government shouldn't try to institute price controls on a highly competitive commodity like oil, you're not really going to get any argument from anyone who knows anything about economics.
The problem is that I think you're trying to take that to the next step to say this is an example of why price controls are always bad. That would be fallacious, as we can see numerous examples in our very own country where price control has been highly beneficial. See e.g. utilities as discussed earlier in the thread.
Capitalism in general is good, but sometimes it doesn't work well, and ideas from socialist theory can be used to improve the system. Norway is a good example of this in the oil-production sphere.
As one involved for years in the energy business and active in efforts to deregulate first natural gas pricing and later electricity pricing, I'd be interested in your supporting arguments for this thesis
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"The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function" =
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"There's nothing more frightening than ignorance in action" - Johann Wolfgang von Goethe
Authored by Lars Hedegard via The Gatestone Institute,
Here are some facts to consider before American "democratic socialists" look to Denmark for guidance, as Senator Bernie Sanders did during the 2016 presidential campaign.
Trish Regan recently claimed on Fox Business that Danes pay a "federal tax rate" of 56% on their income. This is misleading. The 55.8% is the levied on the marginal tax for the top income bracket, only on the part of their income above DKK 498,900 ($76,500). Any income under DKK 498,900 is taxed at lower rates. And the 55.8% marginal rate does not represent a "federal" or "national" rate. It represents the total of all taxes on income: national tax, regional tax, municipal tax and labor market tax. It does not, however, include Denmark's 25% value-added tax (VAT), paid on all purchases.
Regan also claimed that Danes pay a 180% tax on cars. While it is true that there was once a maximum tax of 180% on care in Denmark, the vehicle tax rates have been lowered in recent years. Today, the first DKK 185,100 ($28,400) of the price of a gas- or diesel-powered car is taxed at 85%, and if the car's price is above DKK 185,100, the remaining amount is taxed at 150% -- which is of course bad enough.
Denmark's total tax burden amounts to 45.9% of GDP, the highest of all countries in the Organisation for Economic Co-operation and Development (OECD).
the same number KPdemento has read apparently...
mach es sehr schnell
'exponential reciprocation'- The practice of always giving back more than you take....
Sure, Bubba, as you well know before deregulation came along whoever owned the infrastructure usually owned the means of production and could charge or underserve however they liked had there not been regulation and rate setting. Which made regulation and rate setting a necessary evil. Deregulation forced carriers to carry from other suppliers. Deregulation is good, certainly better than what we had before, but it only works because the government forces carriers to carry supply from other vendors, right? And even that wouldn't be possible without some degree of rate-setting for the transportation charge, right?
"I'M YELLING BECAUSE YOU DID SOMETHING COOL!" - Humpty Dumpty
"Kzone should bill you for the bandwidth you waste writing novels to try and prove a point, but end up just looking like a deranged narcissistic fool." - Deadheadskier at madhatter
"The key is to not be lame, and know it, and not give a rat's @$$ what anybody thinks......that's real cool." - Highway Star http://goo.gl/xJxo34" onclick="window.open(this.href);return false;
"I am one of the coolest people on the internet..." - Highway Star
"I have a tiny penis...." - C-Rex
XtremeJibber2001 - THE MAIN STREAM MEDIA HAS YOU COMPLETELY HYPNOTIZED. PLEASE WAKE UP AND LEARN HOW TO FILTER REALITY FROM BS NARRATIVES.
"Your life is only interesting when you capture the best, fakest, most curated split second version." - Team Robot regarding Instagram posters
Daily Mail linked on Drudge shows heavy fighting...
Guys with Blue arm bands look to have heavy American fire power and Bananas.
"Yes, we have No American Weapons".
Timing by Trump, another smoke screen as State of New York goes after bank records and he obstructs. I wouldn't want to represent him unless there was a pizza and beer bar.
CIA and Special Forces have clearly been on standby for this.
"I'M YELLING BECAUSE YOU DID SOMETHING COOL!" - Humpty Dumpty
"Kzone should bill you for the bandwidth you waste writing novels to try and prove a point, but end up just looking like a deranged narcissistic fool." - Deadheadskier at madhatter
"The key is to not be lame, and know it, and not give a rat's @$$ what anybody thinks......that's real cool." - Highway Star http://goo.gl/xJxo34" onclick="window.open(this.href);return false;
"I am one of the coolest people on the internet..." - Highway Star
"I have a tiny penis...." - C-Rex
XtremeJibber2001 - THE MAIN STREAM MEDIA HAS YOU COMPLETELY HYPNOTIZED. PLEASE WAKE UP AND LEARN HOW TO FILTER REALITY FROM BS NARRATIVES.
"Your life is only interesting when you capture the best, fakest, most curated split second version." - Team Robot regarding Instagram posters
