A great article in the Economist follows up on my recent critiques of Chavez’s socialist experiment (HERE , HERE, and HERE) and in general on countries (Venezuela, Russia, Iran) who depend almost entirely on oil exports to fund their entire social welfare (I call it financial ‘crack’) program.
Check it out HERE: Economist Article
(Another article on this topic from Bloomberg)
According to the article, Venezuela had growth of 10.3% and inflation of 17% in 2006. If you think that is crazy, the current figures for growth are 7.1% and for inflation 36%!!!! And now that oil revenues are down, he will surely cut some government hand outs and you know what that means in a small Latin American government controlled by a strong-handed socialist – REVOLUTION. Let’s just hope he gets voted out, but the people in VZ are fools – they gave him all this power because they liked his HANDOUTS – now they will have a heck of a time trying to dislodge him.
Let’s see what happens in the elections in November…
Chris Grande
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