Mostrando entradas con la etiqueta hyperinflation. Mostrar todas las entradas
Mostrando entradas con la etiqueta hyperinflation. Mostrar todas las entradas

domingo, 1 de julio de 2018

Ova over oil...






Un oeuf is enough as the old classic goes, but in Venezuela the cost of one egg is the same as 126 litres of petrol (3.33 lorry loads) ... no, you didn't misread that. Ludicrous. "La crisis venezolana es una férrea traducción del incoherente manejo que el régimen chavista y madurista le ha dado a la economía del país durante los últimos 20 años, que hoy se encuentra desquiciada y desequilibrada" [LINK]...more or less: 'The Venezuelan crisis is a fierce representation of the incoherent management that the Chavista and [now] Madurista regime has given to the country's economy during the last 20 years, which today is deranged and unbalanced.' Deranged, I'll say; believe it or not...according to Calisa in Venezuela al Diá, Venezuelan Economist José Toro Hardy has reported* that "A petrol truck takes 38,000 litres; 1L of 91 octane petrol costs 1 Bolivar per litre [yes, one Bolivar]; therefore the cost of the truck-load is Bs38,000. Meanwhile a tray of 30 eggs costs Bs3,800,000 (they tell me that it is already more expensive). That leads to the unusual conclusion that the equivalent of the cost of the tray of eggs you could pay for 100 trucks of gasoline." Making an egg the cost of more than three truck-loads of petrol. Unusual? he also calls it 'Awful'; in fact it's fucking obscene and ridiculous.



I was so wrong in early 2006; but also so right later that year: lot has flowed under the bridge since Orinoco oil overflowing..."The Orinoco river oil strip will become the world's greatest reservoir of petroleum for the next years". This may explain why Chavez seemed so cocky and triumphant as he strutted his stuff on his world tour in the last few weeks. In my opinion it only makes him more of a danger."



* Full article: Banca y Negocio. 

Ova over oil...


Un oeuf is enough as the old classic goes, but in Venezuela the cost of one egg is the same as 126 litres of petrol (3.33 lorry loads) ... no, you didn't misread that. Ludicrous. "La crisis venezolana es una férrea traducción del incoherente manejo que el régimen chavista y madurista le ha dado a la economía del país durante los últimos 20 años, que hoy se encuentra desquiciada y desequilibrada" [LINK]...more or less: 'The Venezuelan crisis is a fierce representation of the incoherent management that the Chavista and [now] Madurista regime has given to the country's economy during the last 20 years, which today is deranged and unbalanced.' Deranged, I'll say; believe it or not...according to Calisa in Venezuela al Diá, Venezuelan Economist José Toro Hardy has reported* that "A petrol truck takes 38,000 litres; 1L of 91 octane petrol costs 1 Bolivar per litre [yes, one Bolivar]; therefore the cost of the truck-load is Bs38,000. Meanwhile a tray of 30 eggs costs Bs3,800,000 (they tell me that it is already more expensive). That leads to the unusual conclusion that the equivalent of the cost of the tray of eggs you could pay for 100 trucks of gasoline." Making an egg the cost of more than three truck-loads of petrol. Unusual? he also calls it 'Awful'; in fact it's fucking obscene and ridiculous.

I was so wrong in early 2006; but also so right later that year: lot has flowed under the bridge since Orinoco oil overflowing..."The Orinoco river oil strip will become the world's greatest reservoir of petroleum for the next years". This may explain why Chavez seemed so cocky and triumphant as he strutted his stuff on his world tour in the last few weeks. In my opinion it only makes him more of a danger."

* Full article: Banca y Negocio. 

martes, 31 de diciembre de 2013

Orinoco outflow II...






Milosevic, Mugabe and Maduro: 3M but not the Scotch tape or Post-it kind; the Malign Marxist Manifesto kind. The first two Communist followers had hyperinflation and survived in power; the latter Communist follower has very high inflation (not yet hyper?**) and is surviving, mainly through communication hegemony and legal government assisted looting to 'guarantee that everybody has a plasma television and the latest-generation fridge'. At present, the implied annual inflation rate is between 250 and 300% and [edit] between a fifth and a third of all products are not even available in the shops (yes, think about that). The World Bank "Doing Business" rankings for 2014 (online rankings, full report pdf file) puts Venezuela 181st out of 189, dismal, unbelievable and below the likes of Haiti, the aforementioned Zimbabwe and Afghanistan (164th).



** The "Hyperinflation or not?" row is interesting: Steve H. Hanke has his own reasoning and excepted definition but he also has those who disagree and cite other definitions. To me it seems a moot point as whatever the definition of hyperinflation, everyone agrees that Venezuela is in deep trouble and sinking fast:"So, don’t hold your breath waiting for an uprising in Venezuela because of high inflation and economic misery. Short of $50 per barrel oil, the Titanic called Venezuela might stay afloat for longer than you think, before it inevitably sinks".

Certainly worth reading Steve H. Hanke, The Troubled Currencies Project, Cato Institute - Johns Hopkins University. Retrieved on 12/31/2013 from http://www.cato.org/research/troubled-currencies-project. (click on image).

Orinoco outflow II...


Milosevic, Mugabe and Maduro: 3M but not the Scotch tape or Post-it kind; the Malign Marxist Manifesto kind. The first two Communist followers had hyperinflation and survived in power; the latter Communist follower has very high inflation (not yet hyper?**) and is surviving, mainly through communication hegemony and legal government assisted looting to 'guarantee that everybody has a plasma television and the latest-generation fridge'. At present, the implied annual inflation rate is between 250 and 300% and [edit] between a fifth and a third of all products are not even available in the shops (yes, think about that). The World Bank "Doing Business" rankings for 2014 (online rankings, full report pdf file) puts Venezuela 181st out of 189, dismal, unbelievable and below the likes of Haiti, the aforementioned Zimbabwe and Afghanistan (164th).

** The "Hyperinflation or not?" row is interesting: Steve H. Hanke has his own reasoning and excepted definition but he also has those who disagree and cite other definitions. To me it seems a moot point as whatever the definition of hyperinflation, everyone agrees that Venezuela is in deep trouble and sinking fast:"So, don’t hold your breath waiting for an uprising in Venezuela because of high inflation and economic misery. Short of $50 per barrel oil, the Titanic called Venezuela might stay afloat for longer than you think, before it inevitably sinks". Certainly worth reading Steve H. Hanke, The Troubled Currencies Project, Cato Institute - Johns Hopkins University. Retrieved on 12/31/2013 from http://www.cato.org/research/troubled-currencies-project. (click on image).