The Problem With Democracy

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.

The Daily Reckoning