Category Archives: News

News

Chavez marches Venezuela down the road to serfdom at gunpoint

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CNN reports that Chavez has devalued the Venezuelan bolivar.

In the wake of his decision to devalue Venezuela’s currency, President Hugo Chavez on Sunday said he would put the military on the streets to ensure that business owners don’t raise prices.

Speaking on his weekly television program, “Alo Presidente,” Chavez railed against merchants who re-price their items in reaction to Friday’s announcement that the Venezuelan bolivar currency, which had been fixed at 2.15 to the U.S. dollar since 2005, was devalued to 4.3 to the dollar. For food and medicine, Chavez announced a second fixed exchange rate for these “necessity” goods at 2.6 bolivares to the dollar.

“I want the national guard in the streets, with the people, to fight speculation,” Chavez said, calling re-pricing a form of robbery.

[…]He encouraged people to publicly denounce businesses where prices increase and threatened to expropriate businesses that do.

The government would transfer ownership of such businesses to the workers, Chavez said.

Yes, attacking and nationalizing businesses with the Venezuelan army will do a lot to create jobs and increase competition among product and service providers. Surely lower prices and increased quality will result from this consumer-friendly policy. And foreign investors will be rushing to Venezuela to invest so they can take 700 million Euro losses in a split second.

Investors Business Daily explains the result of devaluing a currency.

For starters, it’s a tax. “The government has decided to recognize the massive accumulated inflation in the country and is trying to increase the purchasing power of the (dwindling) dollars it has . .. (by selling) dollars to the private sector at a higher price,” explained Hausmann. “In the short run, this is like a tax on the sale of dollars.”

[…]”The poor have no way to protect themselves from devaluation,” said Johns Hopkins University’s Steve Hanke, who has advised previous Venezuelan leaders about currency. “Their only means are awkward and inefficient.”

Meanwhile, the “tax” on dollars “means a transfer of resources out of the private economy to the government’s coffers,” said Hausmann. “As a consequence, the rest of society will have less income.”

Teachers and doctors, already in short supply among the poor, will likely be hard hit, along with small businesses.

Worse, inflation’s likely to surge, another burden for the poor.

Inflation was already on its way to 30% before Friday’s devaluation. Food, which makes up 80% of what the poor buy, has been hit with a 20% immediate increase in price. This effectively lifts inflation for the poor to a devastating 50%.

Costs for other goods, such as car tires, will rise by 100%. A banker in Caracas tells IBD this will push average inflation to 60% — adding to accumulated inflation of 600% over the past decade, a brutal tax on poor Venezuelans.

The very complexity of the new currency scheme will be a nightmare for the poor, says Hanke.

“More regulations will lead to repression,” he said, citing the weakening freedom to spend money. More controls mean shortages.

I think that people who elect communists like Chavez need to be more careful about listening to honeyed words about the benefits of wealth redistribution. When you attack the rich, they stop hiring workers. And if you attack them enough, they leave your country. Communism causes poverty and famine. It always has, and always will. If you want to know where it ends, look at Cuba and North Korea. That’s where Venezuela is headed.

More on this story from Fausta here and here. ECM sent an article about scheduled blackouts here.

Is Obama any different from Chavez on economic policy?

Here they are shaking hands:

Is there such a thing as a secret handshake for communist dictators? Just asking. Not saying that Chavez or Obama are communist dictators. Just wondering if communist dictators have a secret handshake. A communist dictator handshake conducted by communist dictators to congratulate themselves on how well their ignorance of economics “helps” the poor to starve to death.

Here is the currency graph of the US dollar versus the Canadian dollar. A decline of about 20% in 12 months. (The current exchange rate is 1.03301)

How many Canadian dollars is 1 US dollar worth?
January     1.22664 CAD   (21 days average)
February    1.24684 CAD   (20 days average)
March       1.26275 CAD   (22 days average)
April       1.22697 CAD   (21 days average)
May         1.15311 CAD   (21 days average)
June        1.12458 CAD   (22 days average)
July        1.12350 CAD   (23 days average)
August      1.08796 CAD   (21 days average)
September   1.08182 CAD   (22 days average)
October     1.05427 CAD   (22 days average)
November    1.05978 CAD   (21 days average)
December    1.05366 CAD   (22 days average)

I wonder which one knows the least about economics. Chavez? Obama? Or my keyboard? Hmmmmn.

Here is my previous story about energy rationing in Venezuela.

News

MUST-READ: Why our schools are failing boys

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An article from the Canadian Broadcasting Corporation.

Excerpt:

According to the federal department of human resources and skills development, 18 per cent of young men 18-24 were in university in 2005-06. The equivalent figure for young women was 28 per cent.

At the same time, the high school dropout rate for male students has remained consistently higher in recent decades than that for girls, another indicator that our education system is failing our boys.

[…]I am blaming “the system” for this because we shouldn’t be blaming young male students for the difficulties they face in what is arguably an increasingly female-programmed educational culture.

[…]”Classrooms keep getting set up more and more around the verbal and less around the kinesthetic and active,” says Michael Gurian author of Boys and Girls Learn Differently. “They are increasingly becoming environments that favour the girls’ brain.”

And as enticing as the notion may be to some radical feminists, we simply cannot re-engineer the male brain. From a teacher’s perspective, at least, boys and girls are simply different.

[…]In fiction, they like text that is funny and they like material with action and description. They also seem to like to solve problems.

So why do we not treat this male brain as a springboard from which we can set the groundwork for a new generation of male scientists, engineers, teachers, journalists and businessmen? As a change from our current one-size-fits-all approach.

Please, read the whole thing. This is a news story in the state-run media of a secular Marxist-feminist welfare state, people. HOLY. SNARK.

(Actually, CBC is less crappy than other state-run media like NPR, BBC and ABC – just look at this recent CBC article by Rex Murphy that ECM sent me about Harper’s decision to prorogue the Parliament)

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News

Jennifer Roback Morse explains the California lawsuit against Prop 8

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Great post by the admirable Dr. Jennifer Roback Morse on MercatorNet. (H/T RuthBlog)

Excerpt:

California’s high-profile federal lawsuit against Proposition 8, which begins in court on January 11, appears to be about creating a federal case for same sex marriage. But in fact, much more is at stake. Lurking in the shadows of this case is a breathtaking expansion of judicial interference with perfectly valid elections. Whatever your views about Proposition 8, we surely should be able to agree that special interest groups can’t go into court to overturn elections they don’t like.

Ted Olsen and David Boies want to convince the court that the alleged anti-gay bias of Proposition 8 supporters should invalidate the election. But first, they have to find some such bias. This is why Olsen and Boies sought the trial court’s permission to demand confidential campaign documents. They want free reign to rummage around through the Prop 8 campaign’s computers and filing cabinets, looking for evidence of this supposed meanness. The trial judge had ruled that Prop 8 proponents had no First Amendment privilege, and therefore had to hand over all communications among members of the campaign and their contractors.

[…]The motives of the seven million Californians who voted Yes on 8 are irrelevant. The election was about adding 14 words to the California Constitution. The entire state of California knew perfectly well what those words were. The point of the campaign was to discuss the likely impact of those words. Olsen and Boies don’t like what the voters decided. Sorry. Self-government is about abiding by the results of lawful elections, whether you like the outcome or not.

And here is an op-ed by former Attorney General Ed Meese III in the New York Times. (H/T The Corner)

Excerpt:

Most troubling, Judge Walker has also ruled that the trial will investigate the Proposition 8 sponsors’ personal beliefs regarding marriage and sexuality. No doubt, the plaintiffs will aggressively exploit this opportunity to assert that the sponsors exhibited bigotry toward homosexuals, or that religious views motivated the adoption of Proposition 8. They’ll argue that prohibiting gay marriage is akin to racial discrimination.

To top it all off, Judge Walker has determined that this case will be the first in the Ninth Circuit to allow cameras in the courtroom, with the proceedings posted on YouTube. This will expose supporters of Proposition 8 who appear in the courtroom to the type of vandalism, harassment and bullying attacks already used by some of those who oppose the proposition.

The tolerance of the secular left. I hope some of my readers who believe in marriage are going to law school – and I want straight As on your transcripts, but keep a low profile! I recommend writing under a pseudonym, because the other side will go after anything you write to discredit you. Think about it.

My previous post about the threats and violence against Prop 8 supporters. And another post explains why prop 8 supporters favor traditional marriage.

By the way, comments on this post will be strictly moderated in order to respect Obama’s hate crimes law.