Friday, November 22, 2013

Venezuelan President Declares 'Economic War'

With inflation running at 54%, Venezuelan President Nicolas Maduro exercised new emergency powers for the first time Thursday, signing decrees limiting business profit margins and tightening regulation of imports, reports AFP.

He acted as part of what he called an "economic war" against a crisis for which he blames the opposition "bourgeoisie" and imperialism.

This is why I consider strong price inflation one of the greatest economic dangers. It often results in the addition of new government interventions that make matters much worse. The new Venezuelan decrees are sure to result in shortages.


  1. Venezuelan President Declares 'Economic War' - takes out 'Economic AR-15' and shoots self in head...

  2. ha! Paul Krugman had predicted this precise outcome. many years ago. I wonder why no one listen to Paul Krugman any more..