Spelling disaster to an already weak, unproductive, and inflationary economy, the hemisphere’s idiot, Venezuelan President Hugo Chavez, considers controlling the financial market next.
The failed socialist / Marxist / communist economic system often praised by the Left and Hollywood elites, is experiencing the same shortages on the supermarket shelves and rationing as it always has, only this time the strengthening of the dollar, facilitated by the falling of the Euro under the weight of debt there, has caused the bolivar to lose half its value in one day, increasing the cost of everything for Venezuelans. Not insignificant considering Venezuela has to import half of the products it consumes.
Consumer prices jumped 5.2 percent in April alone, driving the annual inflation rate to 30.4 percent – the highest in Latin America – according to the Central Bank and National Statistics Institute.
The Chavez regime is raiding brokerage houses with the threat of criminal action. Next is the demise of the industry, leaving it under complete control of the government. Sound familiar?
It remains unclear how local brokerages will continue turning a profit. Maria Fernandez, a local banking analyst, predicted the new regulations would lead some brokerage firms to bankruptcy.Many brokerages will be forced to impose “a significant reduction of employees” in order to survive, but others probably will close because the business “is no longer viable” for them.
Step-by-step and not by mere coincidence, the Obama administration is doing its part in usurping one piece of the financial industry after another. And we can expect the exact same result with the private health insurance industry here under Obamacare.
What ought to be disturbing is how, despite the example of Europe and Venezuela, this administration is taking us down the same road? The only thing left to do now is to decide whether President Obama’s political philosophy is more like the socialist Europe or the Marxist Venezuela. Then realize that there is no choice that is good for America.
How’s that hope and change working out for ya?
Link: Venezuela temporarily halts bond trading