01/14/10 Baltimore, Maryland – The poor Venezuelans. But that’s the problem with democracy. Everyone gets what the majority of voters deserve. They voted for Chavez. Now, they have to pay for it.
The lawfully elected (insofar as these things are ever lawful) government of Venezuela cut the value of its currency in half. That was only a week or so ago. Then, there was “chaos” in the streets, according to press reports. “Inflation fear grips nation,” says The Washington Post story.
In response, Venezuelans are on a buying spree.
“What can the citizen do, but conclude that his money is best spent on a toaster [that] he really doesn’t need,” said the mayor of Caracas.
Señor Chavez has only done what Señor Bernanke and Señor Geithner have done, too. They have all so confused the situation that ordinary people have no way of knowing what to think…and no way of protecting themselves, other than by doing something stupid.
But wait…there’s more…
Now, the press is reporting that Caracas faces “rolling blackouts.”
Well, isn’t that just like dunderheaded government? Energy rich Venezuela is running out of juice. Good work, central planners!
How long will it be before New York runs out of power, too? Or Los Angeles? We don’t know…but give the feds a chance. They’ll make a mess of things; count on it.
Bill Bonner
Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America's most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind The Daily Reckoning. Dice Have No Memory: Big Bets & Bad Economics from Paris to the Pampas, the newest book from Bill Bonner, is the definitive compendium of Bill’s daily reckonings from more than a decade: 1999-2010.
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Friedman’s Chile under Pinochet is a much option… Free markets at the barrel of a gun. You’re so free when private corporations own everything and you have to get down on your hands and knees and beg for a drink of water.
Water…water!
No, silly – you give them Food Stamps.
Strong Earnings Growth Unlikely, say Bill Bonner.
I said I’d refer to your line above on all the big earnings. Well INTC blew away on top line, rev, margins and gave great guidance.
Wrong again, BB.
Harry-
INTC’s earnings are down 21% year over year. Is that your definition of blow away? I know that flat is the new up, but this isn’t even flat.
Do you get a discount on all those ‘ludes?
Harry must have a real woody for BB. I guess it’s easy to find fault with everybody else’s work and so difficult to start your own financial blog pontificating your thesis.
Maybe BB is wrong on a lot of things financially. If the economy came roaring back, all the unemployed got jobs, all the foreclosures and bank closings stopped, all the bailouts stopped and all the QE stopped along with a long sundry list of items that generally indicate that the economy is in a tailspin, I’m more than sure BB would be the first to conclude he was wrong.
But, until reality hits the fan(tasy) of an economic recovery, I doubt BB needs to apologize for being wrong. Especially to you.
JRod – to suggest INTC earnings weren’t great is delusional. Especially in the face of the “Great Depression 2″ that our host seems to think we’re enveloped in.
yrraH – For someone to come out and say “Strong Earnings Growth Unlikely” should be called out for making a ridiculous claim. A claim that was shot down within 24 hours of stating it.
Down 21% y/y—can’t argue with that can you?
In 2007 Intel made 1.18 a share. 2008 was .92 cents. 2009 was .77 cents. And I am the delusional one? The projections for next year do look better, but BB ain’t wrong until the earnings are real not projections.
And say hi to your uncle Larry Kudlow for me.
Hairy has BB’s picture on the ceiling above his bed. He talks to it when he’s lonely. Once long ago he was BB’s lover, but got dumped and can’t let go.
not-H,
Good one!
minor down day today… but don’t worry, great earnings and growth are coming (for Wall Street, at least)
If it is the problem with democracy, why didn’t preserve Berlin Wall in the first place ? If a system is not proven and problematic why go ahead full swing ?
Look in the eastern sky. Your counterpart, Great Jiang in the east, a capitalist clad in leftist suit, transformed a rural society into an ultra modern model – sent girls flying all over the world, god knows, you and I know; how they make a living. Alas ! 5000 years of civilisation meltdown to such such … can’t describe in words. Must be the greatest.. greatest helm man of all time. I salute ..
Mankind must be honest to himself before to others.
Do not pretend and do not extend and do not cover up, be sincere and get things right.
In Venezuela’s democracy, people should learn that first you steal from the rich and then you steal from the poor. What could be simpler?
Gee, Hair-ey, why don’t you start your own Anti-BB website and see how much internet traffic you get.
My bet is that Harry is really Jim Cramer from CNBC posting comments anonymously.
Harry – Nothing but execptional earnings reports will do considoring the current S&P 500 avergae PE is close to 22x earnings, it’s a shame that there is not a lot of money to be made in stocks even with great earnings reports because it’s already fully priced in advance, a crazy situation…
…Chavez cuts the value by half…
expect other countries to follow
sort of a ping, ping, pong like a pinball, from one country to another, then another, and we’re freaking doomed
Who cares about Venuezala running out of energy.,What about your average burger chomping, gas guzzling, reality tv show watching credit card happy american running out of cash? Now that’s some great entertainment! Grey skies are gonna clear up, put on a happy…
Watt a Luv-Fest,we got going on here. I like the J Cramer Theory. Bye the way. Watt a great Friday 4 the shorts on the S&P.W0o!!! *S*
The problem with democracy is that it doesn’t exist. At least here it doesn’t. This is a republic. No direct representation. Only representatives that do not represent.