Blogging the democratic revolution
Yesterday, Estonia held its national parliamentary election. Prime Minister Andrus Ansip’s Reform Party increased its position from 19 to 31 seats in the 101-seat parliament, while their coalition partner in the previous government, the Centre Party, gained one seat to move to 29. The Union of Pro Patria and Res Publica holds 19 seats, the Social Democrats hold 10, and the Greens and the People’s Union of Estonia each hold 6 (the agrarianist People’s Union was the third coalition party in the previous government). This is a remarkable gain for the liberty-oriented Reform Party, although it does not provide enough…
Venezuela: Where products are generic – and customers are branded Source: Anibal Barreto, Correo de Caroni, via Feathers In the slums of Caracas, Chavista grocery patrons are now being branded on their bellies (food goes into your belly, right?) with indelible ink by store personnel to ensure that they do not buy more chicken than the government arbitrarily allows. Since at least the beginning of the year, Venezuela’s groceries have been wracked by food shortages due to Chavista price controls and controls on foreign currency. Beef, sugar, pork and coffee have disappeared from store shelves. Meanwhile, at state-controlled Chavista stores,…
After years of braying about ‘food security’ – Venezuelan dictator Hugo Chavez has accomplished the opposite of that: widespread empty shelves for basic food stocks like meat and sugar, throughout Venezuelan grocery stores, duplicating Soviet-style food shortages. The next step will be rationing. As of now, only chicken feet can be bought, according to this AP report. The brutal dictator is repeating the failures of Castrodom in Cuba, as he completely politicizes the economic realm. Chavez is also yelling about ‘speculators’ when the fact is, these food shortages are the natural result of Chavista control over the economy. This goes…
You can kind of hear it in the distance, the tolling bell for Chavez as his regime spirals into ever louder lunacy. But there is a real tolling bell that will get him, the bell of plunging oil prices. That bell is starting to ring so you can hear it. This week, oil prices fell below $52 a barrel. That’s not just bad news for Hugo Chavez, it’s the worst news there could be. Combined with declining production, falling oil prices will ensure that Chavez won’t be making the buku bucks he’s been making in oil earnings, something he’s currently…
Venezuelan dictator Hugo Chavez has signalled his true intentions with more clarity than ever today, announcing that he would expropriate: 1. All the phone lines 2. All the electricity As this happened, a provincial governor from Bolivar state down south let it all hang out, simply saying he wanted to confiscate the entire media, forcing it all under state control. Just ‘nationalization’ don’t you know. Think of the implications of Chavez’s move, there, as well as the nutty governor’s statement. Chavez intends to control all the media and information all through the country. CANTV’s stock has now plunged 16% on…
In 1938, when President Lazaro Cardenas nationalized the oil industry in Mexico, everyone said it was the right move. After all, there were some pretty gamy capitalists from the U.S., Britain, France and Spain operating in the country, and getting them out and creating a national oil company, even if it meant expropriations, seemed like a good idea at the time. Today, amid a global oil boom, Mexico can barely keep up with its usual production, and it certainly can produce no additional oil or other energy. It now actually imports natural gas from the U.S., and though it is…
RIA Novosti recently reported that from January through September of this year Russia received about $17.4 billion in foreign direct investment (FDI) and slightly more, about $17.9 billion, in the form of international financial organizations’ loans and trade credits. At about $2 billion per month, we can project that Russia will have no more than $24 billion in FDI by year????????s end. Russia is a nation of about 140 million people. That means that Russia has an annual per capita FDI of roughly $170 per person. Virtually all of this investment is attributable to investment in Russia????????s energy sector, specifically…
Peter Mork at Economics with a Face has some intelligent observations about ongoing efforts in certain European cities to eliminate all – repeat ALL – traffic rules in the name of fewer traffic accidents, an idea that scares the heck out anyone who first hears about it. But it turns out, it’s not that crazy an idea at all. Rule-free traffic, seen in some third-world cities, where no one thought to set any rules, turns out to work very nicely. Now Europe’s working on it the concept. Someone apparently went and looked at how well things worked on this matter…
OK, it was a ratbag of a bill. It lumped in everything that possibly could be lumped in, good with bad. Excellent, friendly deserving nations, like Vietnam, Colombia and Peru, (in short, our equals), got much of what they needed. Nations ruled by disgusting, undeserving, ungrateful governments, like Ecuador and Bolivia got plenty too. Messes like Haiti got the golden goose handed to them. Offshore drilling passed. Everyone got something, in what was kind of the last congressional pinata before the Roundheads (Democrats) take over. But boy it was sloppy. All told, I am happier with things this way than…
In the wake of Venezuelan President Hugo Chavez’s thundrous electoral victory on Sunday, he’s back in action, legislating new taxes on Venezuela’s battered middle class. For his first move, he’s decided to tax toilet seats as an “inessential item.” I guess the Venezuelans, some of whom elected him, are now supposed to just go without. Bloomberg reports: The announcement by the government follows the Dec. 3 re- election of Chavez, who had said in September that a tax on whisky mimics a tax on ééoligarchs.” The top surcharge of 35 percent will apply to whiskey, vodka, cigars, candles and toilet…
Congress has just wrapped up a huge free trade package! They actually are allowing it to go to the floor for a vote around 4 p.m. Eastern! They darn well better pass it! Not only will Peru, Colombia and Vietnam get some kind of trade relief for the next year (it’s temporary for the first two, but this is better than nothing), pretty much everyone else who wants free trade – The Caribbean, the African states, Ecuador & Bolivia, and Haiti – will get it too! This is fine! Better everyone in than nobody in. If that is what it…
Inflation, as Milton Friedman said, is a monetary phenomenon. The only way you get inflation is to print out money like there’s no tomorrow. Because when you do that, there IS no tomorrow, money-printing destroys savings and with it, future investment. Which would have great implications for a nation’s stability and passage to or from democracy. Slobo of Yugoslavia, for instance, achieved his greatest repression, after he triggered the worst money-printing orgy in history, printing literally at the speed of inflation for a 313,000,000% rate. A dark curtain of tyranny descended over the country after that. You can read about…
Milton Friedman, Democratic Revolutionary Source: John Petrie’s Milton Friedman Quotation Page The great Milton Friedman died yesterday in San Francisco. His ideas changed the world the most in our era. When we say ‘free markets,’ we think of him. I can think of no one whose ideas made more revolution and genuinely changed the world more for the better. He was the biggest democratic revolutionary of our age. Friedman won the Nobel Prize for Economics in 1976. He brought forward free market ideas that were grounded in an Aristotelian understanding of human nature. Among his great ideas are that profit…
Monday the trade Neanderthals in Congress rejected endorsement of Vietnam’s entry into the World Trade Organization. It was slopped through a lame-duck committee and Congressional Republicans and Democrats voted against bringing Vietnam into the world trading system. They wanted to shut Vietnam out. And keep all the trade to themselves. Problem is, it takes two to trade, so we all are dimished by keeping a good trading partner out. Vietnam went from zero trade ten years ago to our 16th largest trading partner. What a lousy way to treat a country we’ve made money off of and they’ve done the…
Can you imagine what it’s like to collect a bill from Castro? The guy defaults all the time, he owes about $6 billion in defaulted loans to banks all over the world, if I recall correctly. For some reason, though, Swiss banks have continued to do business with the Cuban government, perhaps because that’s where the Castro fortune is stashed. Well, they aren’t anymore. Val at Babalu, citing Child Of The Revolution (an excellent blog) has the scoop on the reason why: “it costs too much to ensure that Cuba respects and conforms to legal and financial regulations” Hear that?…
Andres Oppenheimer of The Miami Herald, in a public service, has done us all a favor by identifying the Dirty Dozen of the new congress, the creeps who would keep free trade from enriching and helping the nations of the Americas. These are the poverty-enforcers, the anti-Latin Americans, the rust-belt oppressors, hobbled by their own wilfull ignorance of economics (I can’t even excuse that ignorance, there is no excuse for that kind of unwillingness to know about the benefits of trade in this day and age). These are the dogs who would keep Latin America down, keep it out of…
I have had long running arguments with naivos even close to the oil industry that Hugo Chavez of Venezuela intended to turn not just Venezuela’s state oil company into a worker-ant collective but Western oil majors’ Venezuelan operations into them as well. Today, I stand vindicated. Today, workers from Chevron, Repsol, Shell, Exxon, Total and others must put on red t-shirts and stand at attention, worker-ant-style, wave their fists and shout pro-Chavez slogans for their new Chavista masters, who’ve taken over their firms in broken contracts. No wonder Venezuelan oil production is a mess. They have to have Chavista indoctrination…
The U.S. has a new congress and boy is it hostile to the concept of free trade. Sadly, the Republicans in power were just barely there on this issue and the Democrats to a lesser extent, but not exactly absent. Now, with a Democrat-dominated House and Senate, it’s going to be very tough to get trade treaties already signed ratified. At stake are the ratification of trade pacts with the remaining CAFTA states that haven’t got all their papers and regulations in order, with Colombia, and with Peru. Peru’s a really important one. This nation elected Alan Garcia on an…
Alek Boyd has been doing some fantastic reporting on the state of poor society in Venezuela, actually talking to people and seeing what it’s like in their often ignored world. Are you aware that Venezuela’s poor are poorer than any other western hemispheric nation’s poor? I mean places like Haiti, Nicaragua, Brazil and Bolivia? I sure wasn’t. But apparently, it’s true. And it’s not surprising. Take a huge oil economy that drives out all other trade. Couple it with unchecked illegal immigration, rendering millions of people without legal papers. Add onto it layers of socialism which preceded Chavez, which taxes…
Doctor Zin at Regime Change Iran has found a megatrend piece that’s so arresting it can’t help but make you stop and think. World oil prices right now are dropping like a stone. If they go below $50 a barrel and stay there, Venezuela’s Hugo Chavez, Iran’s Mahmoud Ahmadinejad and Russia’s Vladimir Putin are in for hard times. They won’t be able to maintain their political popularity because in all case, that popularity is derived from pork-barrel spending and government handouts. If they lose popularity, will that make them more, or less, aggressive against their own internal opposition and the…
The Culebra Cut stretch of the 50-mile Panama Canal Source: AFP Getty, via Houston Chronicle Panama’s great referendum on expanding the mighty Panama Canal, to accomodate two times’ as much ship traffic, is taking place today. 1.7 million Panamanians are registered to vote on the $5.3 billion upgrade, essentially a bond project to be financed with crossing fees. Local muni-bond initiative as is, it will affect billions of people around the world. Some 70% of Panamanians are polled to favor it ahead of the vote. Panamanian babes pass a sign urging passage of the Canal referendum Source: AFP Getty, via…
The mighty Panama Canal route links trade between 2 huge oceans Source: The Financial Times Tiny little Panama, a jungly nation with a population only as big as Singapore’s, is about to do something spectacularly great for the entire world on Sunday. This itty bitty state has a masterplan to shower friendship and prosperity to huge swathes of the world, north and south and east and west, doing more for the cause of peace and unity than just about any other nation on earth. The world is going to be different after Sunday. On Sunday, Panama’s voters among its 4…
Louis Goodman over the the Foreign Policy blog takes a look at this year’s winner of the Nobel Prize, and discovers that the prizes for less science-centric, more socio-culture specific areas are going to people from the developing world. At first glance, this year’s crop of Nobel prizes came out quite nicely for the United States. Americans, after all, swept the prizes in medicine, physics, chemistry and economics. But a closer look suggests room for improvement. Americans dominate in the “easy” sciences????????fields where it is comparatively less difficult to establish consensus????????but lag in the arguably more complex realms of advancing…
Defying the laws of economics, Venezuelan dictator Hugo Chavez started state-run groceries for poor people to buy food at cut-rate prices. He never imagined that the little darlings he claims to champion over Big Bad Corporations might take the cheap food, buy a ton of it, and then turn around and sell it at higher prices on the street, making a tidy profit. Never occurred to him that capitalism could be practiced by poor people, too. So over in Venezuela, market economics have taken rein from Chavez’s much-touted cheap food, whether Chavez likes it or not, as poor Chiclet-sellers, known…
There is something majestic about the power of the markets. No dictator, anywhere can control them. They do what they do, based on thousands of decisions by thousands of individuals, acting on a collective wisdom. No central planning can match this people’s verdict in reflecting the here and now, or the future. That’s a people-power Hugo Chavez repeatedly disparages and discounts even as he claims to represent the aspirations of the people. Today, it wasn’t George Bush who spoke but the People of the United States who issued a majestic market verdict on him. That was evident in action taken…