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7-26-2009 7:04 AM
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merrie says:
expropriated land as part of his socialist revolution.

For Venezuela to experience a shortage of coffee is like Obama experiencing a shortage of lies. Very difficult to imagine let alone arrange.

Nationalization and shortages go together in the same way that Chicago and corruption go together. Find one, find the other. Naturally Chavez refuses to take the blame for his absurd policies. Neither does Obama. In typical socialist fashion, each blames others.
Critics point the finger at price and foreign exchange controls that have slowed investments in expansion and maintenance and eroded productivity. The government blames shortages on speculation by the private sector.

In a nutshell this is Obama’s health care plan. Conjure up a problem in the private sector, blame it on speculating capitalists, and use both as a reason to nationalize the entire system.

This is not the first time Chavez ran afoul of Economics 101. Some years back he was already sticking his semi-illiterate
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7-26-2009 7:06 AM
merrie
snout into the business of Venezuelan coffee.

President Chávez, who maintains price controls on basic foodstuffs, raised the price of coffee beans by 100% last month after weeks of protests by coffee farmers.

But most of the country’s coffee producers, who buy, roast and grind the beans, refused to sell on the coffee yesterday, claiming their margins had been cut, and began hoarding thousands of sacks of unprocessed beans.


And then Chavez took a page from Stalin.

I’ve instructed the National Guard to look for the missing coffee and to find every single kilogram of it. The army has the permission to seize the coffee with the power of attorneys and judges. We will sell the cof...
7-26-2009 7:08 AM
merrie
Socialism always brings shortages, sometimes in odd ways. Five years ago I was backpacking around the Nicaraguan island of Ometepe. Oddly, I found that

Water is very scarce everywhere on the island, in all hotels and restaurants and homes. It simply quits, sometimes for the entire day. And the island sits in a huge freshwater lake! Granada, the third city of the republic, also suffers from water problems, and it is on the shores of Lake Nicaragua.

While the Americans look for water on Mars, the Nicaraguans cannot seem to find it in their own backyard. It baffles.

The place was awash with water yet Nicaraguans could not figure out how to get it to their homes. I remain baffled....
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