Hi,
Chavez´s nationalization continues.
26% annual inflation for 3 years in a row is hyperinflation.
Venezuela is already at 27% annual inflation.
Zimbabwe can guarantee Venezuela that price controls do not work.
As soon as price controls enter, production drops.
Robert Mugabe tried what no-one has ever done: beat the market.
Now Hugo Chavez is trying the same impossible dream: to beat the market.
He will also fail as Mugabe failed.
The market rules.
After Zimbabwe we can now watch Venezuela self-destruct.
I hope the ANC, Julius Malema, the ANCYL, Cosatu, Numsa and the SA Communist Party take careful note how this process unfolds because it always works exactly the same way. Go and look up the exact same process in Zimbabwe a year or two ago.
I see Venezuela already had 39% inflation at the end of last year. And a parallel USDollar exchange rate considerably higher than the "official" rate. And a local petrol price not increased for 10 years.
lol Exactly the same as hyperinflation in Angola and Zimbabwe.
Malema should take a sebatical year from politics in SA and go and learn again from Chavez how the above measures destroy a country´s economy in few short years.
I watched this exact same process unfold on a daily basis in Zimbabwe over the last two years. Venezuela is exactly the same. The same measures by government and the same characteristics in the economy.
Julius Malema can get first hand experience from Chavez how to destroy a country through trying unsuccessfully to surpress the market.
It is time to start reading a Venezuelan English online newspaper on a daily basis. Zimbabwe all over again. What a joke. Very interesting completely up to date daily economics though.
Kindest regards,
Nicolaas Smith
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