08-18-2018, 10:01 PM
*** 19-Aug-18 World View -- Socialist Venezuela introduces new fantasy currency and new Socialist changes
This morning's key headlines from GenerationalDynamics.com
****
**** Socialist Venezuela introduces new fantasy currency and new Socialist changes
****
![[Image: g180818b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g180818b.jpg)
Maduro holds a new sovereign bolivar note (Reuters)
Venezuela's Socialist president Nicolás Maduro announced a bizarre set
of new economic regulations to try to reverse the economic destruction
he's inflicted for years. In his Friday night speech he said:
<QUOTE>"I want the country to recover and I have the
formula. Trust me."<END QUOTE>
The first part of his "trust me" formula was to devalue the bolivar
currency by 96%, and then introduce a new currency, the Bolivar
Soberano ("sovereign bolivar") which is pegged to a
pseudo-bitcoin-like crypto-currency called the "petro," which is
pegged to the price of oil, where oil is produced by Venezuela's
collapsing oil industry.
The second part of the formula is that the minimum wage will be
increased by 3000%. This means that many business owners will have to
lay off employees, substantially increasing unemployment in the
country.
The third part of the formula is to increase the corporate tax rate.
Businesses that survive the minimum wage increase many not survive
higher taxes.
The fourth part of the formula is to remove the subsidy on gasoline.
Businesses that depend on transportation costs to receive or deliver
goods will be hit hard. Millions of workers who have been buying
gasoline at subsidized rates will be hit hard as well. But this is
necessary, says Maduro, to prevent fuel smuggling. There will also be
new taxes on luxury goods.
Socialist Venezuela's inflation rate is above 40,000%, and the IMF
predicts that it will reach one million percent this near. The only
way to stop inflation is to produce more goods. If the people need
two million loaves of bread to avoid starvation, and if the country's
bakeries only produce one million loaves, then one million people will
go without bread, irrespective of what currency is being used.
Furthermore the price of bread will soar, irrespective of what
currency is being used. That's not rocket science. That Economics
1.01. The fact that Maduro and other Socialist politicians in other
countries are unable to grasp that simple fact shows how incredibly
stupid they are. And the results speak for themselves.
Venezuela's Socialist economy is destroying not only Venezuela, but
the entire region, as more than a million migrants have fled
starvation and violence in Venezuela and crossed the border into
Colombia.
From there, many have continued on, planning to live in Ecuador or
Peru. But Ecuador, which has been receiving 4,000 new migrants every
day, crossing the border from Colombia, has closed the border, and
says that no more Venezuelans will be admitted unless they have a
passport. Peru has announced a similar measure to take effect next
week.
Socialist Venezuela is becoming one of the top three economic
hyperinflation disasters of the last century, along with Zimbabwe
under Robert Mugabe, and 1920s Germany under the Weimar Republic.
CNBC and Independent (London) and Reuters
****
**** Socialist Alexandria Ocasio-Cortez says that capitalism has not always existed
****
![[Image: g180818c.jpg]](http://Media.GenerationalDynamics.com/ww2010/g180818c.jpg)
Socialist Alexandria Ocasio-Cortez
Wonder girl Socialist Alexandria Ocasio-Cortez, the new face of the
left, apparently thinks that capitalism has just been invented.
Here's what she said in an interview:
<QUOTE>"Capitalism has not always existed in the world and
will not always exist in the world."<END QUOTE>
So let's be clear. Tens of thousands of years ago, when the first
cavemen formed a community and started bartering with each other for
products and services -- "You make me a wheel, and I'll kill a deer in
exchange" -- that was a free capitalist market. So Ocasio-Cortez is
an idiot.
There's also a lot of nonsense these days about Sweden and Norway
being Socialist countries. No they aren't. They're capitalist
countries. Maybe the government pays for some services, like doctors
and education, but that's also partially true in the United States,
with Medicaid and school scholarships.
Let's review. As I've written many times in the past, Socialism is
mathematically impossible as population grows. Socialism may work OK
when you have a feudal society of a few hundred people, but the number
of regulators grows exponentially faster than the population grows, so
by the time you get to, say, a million people, everyone would have to
be a regulator. So the Socialist system collapses.
Furthermore, Socialism is much worse than Nazism. Nazism killed
tens of millions of people in the last century, but Socialism killed
hundreds of millions. There is literally nothing worse than
Socialism.
Somebody should tell Ocasio-Cortez that it's Socialism that hasn't
been around forever. It was invented in 1848 by Karl Marx, and it's
been a disastrous failure every time it's been tried, for the reasons
I just gave. Whether Ocasio-Cortez likes it or not (and I'm sure she
doesn't), it's mathematically provable that Socialism will always
fail.
That's why countries like Cuba, Russia, China, East Germany, Norway,
Sweden and others that have tried Socialism have been forced to end it
and return to free markets, and a great deal of capitalism.
The only two mostly Socialist countries that I'm aware of in the world
today are Venezuela and North Korea. All others are mostly
capitalistic. I keep wondering how stupid you have to be to support
Socialism, which has a 100% failure record, but we only have to look
at Socialist politicians like Kim Jong-un, Nicolás Maduro, Alexandria
Ocasio-Cortez, Bernie Sanders, and Jeremy Corbyn for the answers.
Daily Caller
Related Articles:
KEYS: Generational Dynamics, Venezuela, Nicolás Maduro,
Bolivar Soberano, sovereign bolivar, petro,
Colombia, Ecuador, Peru, Zimbabe, Robert Mugabe, Weimar Republic,
Alexandria Ocasio-Cortez, Socialism, Nazism,
Kim Jong-un, Bernie Sanders, Jeremy Corbyn
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Socialist Venezuela introduces new fantasy currency and new Socialist changes
- Socialist Alexandria Ocasio-Cortez says that capitalism has not always existed
****
**** Socialist Venezuela introduces new fantasy currency and new Socialist changes
****
Maduro holds a new sovereign bolivar note (Reuters)
Venezuela's Socialist president Nicolás Maduro announced a bizarre set
of new economic regulations to try to reverse the economic destruction
he's inflicted for years. In his Friday night speech he said:
<QUOTE>"I want the country to recover and I have the
formula. Trust me."<END QUOTE>
The first part of his "trust me" formula was to devalue the bolivar
currency by 96%, and then introduce a new currency, the Bolivar
Soberano ("sovereign bolivar") which is pegged to a
pseudo-bitcoin-like crypto-currency called the "petro," which is
pegged to the price of oil, where oil is produced by Venezuela's
collapsing oil industry.
The second part of the formula is that the minimum wage will be
increased by 3000%. This means that many business owners will have to
lay off employees, substantially increasing unemployment in the
country.
The third part of the formula is to increase the corporate tax rate.
Businesses that survive the minimum wage increase many not survive
higher taxes.
The fourth part of the formula is to remove the subsidy on gasoline.
Businesses that depend on transportation costs to receive or deliver
goods will be hit hard. Millions of workers who have been buying
gasoline at subsidized rates will be hit hard as well. But this is
necessary, says Maduro, to prevent fuel smuggling. There will also be
new taxes on luxury goods.
Socialist Venezuela's inflation rate is above 40,000%, and the IMF
predicts that it will reach one million percent this near. The only
way to stop inflation is to produce more goods. If the people need
two million loaves of bread to avoid starvation, and if the country's
bakeries only produce one million loaves, then one million people will
go without bread, irrespective of what currency is being used.
Furthermore the price of bread will soar, irrespective of what
currency is being used. That's not rocket science. That Economics
1.01. The fact that Maduro and other Socialist politicians in other
countries are unable to grasp that simple fact shows how incredibly
stupid they are. And the results speak for themselves.
Venezuela's Socialist economy is destroying not only Venezuela, but
the entire region, as more than a million migrants have fled
starvation and violence in Venezuela and crossed the border into
Colombia.
From there, many have continued on, planning to live in Ecuador or
Peru. But Ecuador, which has been receiving 4,000 new migrants every
day, crossing the border from Colombia, has closed the border, and
says that no more Venezuelans will be admitted unless they have a
passport. Peru has announced a similar measure to take effect next
week.
Socialist Venezuela is becoming one of the top three economic
hyperinflation disasters of the last century, along with Zimbabwe
under Robert Mugabe, and 1920s Germany under the Weimar Republic.
CNBC and Independent (London) and Reuters
****
**** Socialist Alexandria Ocasio-Cortez says that capitalism has not always existed
****
Socialist Alexandria Ocasio-Cortez
Wonder girl Socialist Alexandria Ocasio-Cortez, the new face of the
left, apparently thinks that capitalism has just been invented.
Here's what she said in an interview:
<QUOTE>"Capitalism has not always existed in the world and
will not always exist in the world."<END QUOTE>
So let's be clear. Tens of thousands of years ago, when the first
cavemen formed a community and started bartering with each other for
products and services -- "You make me a wheel, and I'll kill a deer in
exchange" -- that was a free capitalist market. So Ocasio-Cortez is
an idiot.
There's also a lot of nonsense these days about Sweden and Norway
being Socialist countries. No they aren't. They're capitalist
countries. Maybe the government pays for some services, like doctors
and education, but that's also partially true in the United States,
with Medicaid and school scholarships.
Let's review. As I've written many times in the past, Socialism is
mathematically impossible as population grows. Socialism may work OK
when you have a feudal society of a few hundred people, but the number
of regulators grows exponentially faster than the population grows, so
by the time you get to, say, a million people, everyone would have to
be a regulator. So the Socialist system collapses.
Furthermore, Socialism is much worse than Nazism. Nazism killed
tens of millions of people in the last century, but Socialism killed
hundreds of millions. There is literally nothing worse than
Socialism.
Somebody should tell Ocasio-Cortez that it's Socialism that hasn't
been around forever. It was invented in 1848 by Karl Marx, and it's
been a disastrous failure every time it's been tried, for the reasons
I just gave. Whether Ocasio-Cortez likes it or not (and I'm sure she
doesn't), it's mathematically provable that Socialism will always
fail.
That's why countries like Cuba, Russia, China, East Germany, Norway,
Sweden and others that have tried Socialism have been forced to end it
and return to free markets, and a great deal of capitalism.
The only two mostly Socialist countries that I'm aware of in the world
today are Venezuela and North Korea. All others are mostly
capitalistic. I keep wondering how stupid you have to be to support
Socialism, which has a 100% failure record, but we only have to look
at Socialist politicians like Kim Jong-un, Nicolás Maduro, Alexandria
Ocasio-Cortez, Bernie Sanders, and Jeremy Corbyn for the answers.
Daily Caller
Related Articles:
- Socialist Cuba moves to Capitalism, while Socialist Venezuela moves to self-destruction (16-Jul-2018)
- Colombia's president Ivan Duque takes office amidst accusations from Venezuela (12-Aug-2018)
- Cuba's new president Miguel Díaz-Canel makes delusional promise to continue Socialist revolution (20-Apr-2018)
- Socialist Venezuela's state-owned PDVSA oil company near total collapse (21-Apr-2018)
KEYS: Generational Dynamics, Venezuela, Nicolás Maduro,
Bolivar Soberano, sovereign bolivar, petro,
Colombia, Ecuador, Peru, Zimbabe, Robert Mugabe, Weimar Republic,
Alexandria Ocasio-Cortez, Socialism, Nazism,
Kim Jong-un, Bernie Sanders, Jeremy Corbyn
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
