Venezuela Moves to Cap Prices. Dumb Move.

November 12, 2013

This is just comical to me.

Venezuela Moves to Cap Prices, Profits

The cause for the inflation?

“The amount of bolĂ­vares in circulation rose 70% over the past year, a clear sign the government is printing ever larger amounts of money to stoke a slowing economy.”

So, the government floods the economy with new money, prices rise, and the government moves to cap prices. Pretty crazy, isn’t it?

2 responses to Venezuela Moves to Cap Prices. Dumb Move.

  1. Gee, just like Zimbabwe….I guess I hope that OUR government is watching. And paying attention. No, I’m still sure our situation is different, BUT I also don’t think it is different enough.

  2. i feel sorry for Venezuelans that are having their lives destroyed by this madness, but I don’t have much hope that things will turn around. It seems more likely that Venezuela will follow Zimbabwe, Argentina, Cuba, etc. into an economic meltdown. Seems like people never learn.