Venezuelan Economic Minister claims "inflation doesn't exist" as hyperinflation devastates the count - Polidicks

[img]http://s4.reutersmedia.net/resources/r/?m=02&d=20160107&t=2&i=1107764525&w=644&fh=&fw=&ll=&pl=&sq=&r=LYNXMPEC0619U[/img] [quote]Venezuela's new economy czar Luis Salas is tasked with controlling what is believed to be the world's highest rate of inflation, but comes to the job with an unusual perspective: that inflation does not really exist. President Nicolas Maduro on Wednesday tapped the 39-year-old sociologist as vice president for the economy amid soaring consumer prices and chronic product shortages, signaling a move toward orthodox socialism in the OPEC nation struggling under low oil prices. Essays written by Salas describe scarcity and spiraling prices as the result of exploitation by businesses rather than government policy, offering an academic underpinning to the "economic war" explanation that Maduro uses to describe the current malaise of recession, runaway prices and widespread product shortages. "Inflation does not exist in real life," he wrote in a 2015 pamphlet called "22 Keys to Understanding the Economic War." "When a person goes to a shop and finds that prices have gone up, they are not in the presence of 'inflation.'" Salas has argued against the idea that excessive printing of money causes inflation - an almost universally accepted tenet of macroeconomics. He insists prices rise primarily because corporations seek excessive profit margins.[/quote] [url]http://www.reuters.com/article/us-venezuela-economy-idUSKBN0UL27820160107[/url] I'm wondering how the hell Maduro and his other cronies can continue doing this, especially as oil prices push down towards $20 and makes importing goods all but impossible for the bankrupt government.

"It's not a problem if it doesn't exist."

Calling it now, with the Assembly against him, Maduro won't last any longer than this year.

[QUOTE=Big Bang;49509062]Calling it now, with the Assembly against him, Maduro won't last any longer than this year.[/QUOTE] I thought they already lost the election, what happened?

Probably thinks it's a capitalist conspiracy or something.

[QUOTE=download;49509091]Probably thinks it's a capitalist conspiracy or something.[/QUOTE] [quote]He insists prices rise primarily because corporations seek excessive profit margins.[/quote] Seems like it.

ded

[QUOTE=Octavius;49509475]Doesn't look like he's really denying the existence of inflation, seems to really just be an exaggerated rhetorical statement being taken the wrong way.[/QUOTE] IDK why you keep insisting on playing the devil's advocate on anything related to Venezuela, but no, he really said that, word by word, [url=http://www.fundayacucho.gob.ve/wp-content/uploads/2015/10/Folleto-Guerra-Economica.pdf]and you can read it yourself here[/url]. What indeed comes into question is that he is not precisely the Economic Minister, he is part of a group of about 6 or 7 ministries including shit as ridiculous as the newly created "Ministry for Urban Agriculture", there is one minister that is above him, who is an actual economist and businessman, Miguel Perez Abad, Minister of Industry and Commerce. Regardless, the fact that Maduro keeps pushing this absurd "economic war" agenda just goes to show how mismanaged and corrupt this government ultimately is. They will run our economy to the ground so long as they get to perpetuate themselves on the government.

[QUOTE=Octavius;49509475]Doesn't look like he's really denying the existence of inflation, seems to really just be an exaggerated rhetorical statement being taken the wrong way.[/QUOTE] "La inflación no existe en la vida real" these are his [i]exact[/i] words He is blaming the fact that prices increase by over 200% a year on capitalists. The economy is utterly ruined, crime rates have skyrocketed, many of the democratic institutions have been damaged and civil society has gone through a slow decline. Nutrition has gotten worse, poverty is rapidly getting worse, there isn't enough medicine, healthcare has effectively collapsed, the legal system is completely dysfunctional. Over a million people have left the country in the past 15 years. Venezuela consistently tops the "Misery Index" and has been downgraded to the worst possible credit ratings. The country is nearly bankrupt, there are persistent shortages of just about everything, and corruption has gotten several magnitudes worse. Yet somehow, for some reason, this is not the fault of an utterly incompetent and useless government, but instead due to the machinations of the "capitalists". What a shitty fucking excuse. Putting a Marxist in charge of the economy is like making an astrologer the head of astronomy.

[QUOTE=Sobotnik;49509028] I'm wondering how the hell Maduro and his other cronies can continue doing this, especially as oil prices push down towards $20 and makes importing goods all but impossible for the bankrupt government.[/QUOTE] Thanks to the average person. The same that decries any benefits of the EU in favour of curved banana's, that consider a solution to a deficit to "print more money", who has no understanding of the foreign debt the US has or virtually anything more complex in the economical, legal or political sphere. The average person lives on populist bullshit not bothering to do any research (or in some cases has no access to information)

I would like to note, that shortages aren't exactly due to inflation, they're due to something far, far worse, and that is the thing that is truly killing the country, rampant bureaucracy. The Maduro administration has killed any and all incentives to produce ANYTHING locally. Whatever is needed for the people is price locked and not ever inflation adjusted. This causes a severe, extreme distortion of prices that makes it absolutely impossible to produce anything and break even. Why are the prices locked then? Why are we bankrupting the country willingly by subsidizing our domestic oil consumption and making it pretty damn near free? Why are we allowing milk to be sold for pennies if that means you have to queue up every day of the week to buy it? Because this populism has gone far too long, and those who were two years old when Chavez took power, are now adults, and they have never seen or heard anything that wasn't this. They don't know there is anything different out there, they don't know their country could be better. Chavez did it, he managed it, he pulled off the long con. An entire generation of Venezuelans will be lost, all thanks the greed of a few miserable elites who sold them a dream, and they bought it with their leniency, their silence. An entire generation of Venezuelans who don't know why they're poor, and don't know they'll be poor for as long as they live, because of what their parents chose for them, because that one time, too many people chose wrong. And yet nobody in the whole damn world gives two fucks about the Venezuelan people. Fret all you want about your female representation in video games, about your racist halloween costumes, about how the Kardashians don't let you enjoy your Twitter timeline in peace, but thank God you weren't born Venezuelan, because that means you still have a future to enjoy.

[QUOTE=Big Bang;49511158]And yet nobody in the whole damn world gives two fucks about the Venezuelan people. Fret all you want about your female representation in video games, about your racist halloween costumes, about how the Kardashians don't let you enjoy your Twitter timeline in peace, but thank God you weren't born Venezuelan, because that means you still have a future to enjoy.[/QUOTE] Don't worry pal, the world just don't give a fuck about someone who aren't themselves. We are pretty much surrounded by similar problems, and no one is out there to give a hand. The only available path is left our countries behind, sadly.

[QUOTE=Sam Za Nemesis;49509061]South American governments have a Reality Distortion Field of their own and the less educated keep digging on it on their premise "It would be worse without us"[/QUOTE] And worse, people will defend these governments to death because of the few scraps they toss their way. Until they realize they can't buy any food and there's no toilet paper in the country.

Venezuella is just having a massive reconstruction fest, reenacting the Weimar Republic. RIP venezuella

[QUOTE=Big Bang;49511158]I would like to note, that shortages aren't exactly due to inflation, they're due to something far, far worse, and that is the thing that is truly killing the country, rampant bureaucracy. The Maduro administration has killed any and all incentives to produce ANYTHING locally. Whatever is needed for the people is price locked and not ever inflation adjusted. This causes a severe, extreme distortion of prices that makes it absolutely impossible to produce anything and break even. Why are the prices locked then? Why are we bankrupting the country willingly by subsidizing our domestic oil consumption and making it pretty damn near free? Why are we allowing milk to be sold for pennies if that means you have to queue up every day of the week to buy it? Because this populism has gone far too long, and those who were two years old when Chavez took power, are now adults, and they have never seen or heard anything that wasn't this. They don't know there is anything different out there, they don't know their country could be better. Chavez did it, he managed it, he pulled off the long con. An entire generation of Venezuelans will be lost, all thanks the greed of a few miserable elites who sold them a dream, and they bought it with their leniency, their silence. An entire generation of Venezuelans who don't know why they're poor, and don't know they'll be poor for as long as they live, because of what their parents chose for them, because that one time, too many people chose wrong. And yet nobody in the whole damn world gives two fucks about the Venezuelan people. Fret all you want about your female representation in video games, about your racist halloween costumes, about how the Kardashians don't let you enjoy your Twitter timeline in peace, but thank God you weren't born Venezuelan, because that means you still have a future to enjoy.[/QUOTE] Probably best to leave, mate. Your government's combination of ultra-nationalism, loonie socialism and populism has fucked your country.

Best to blame Maduro and his cronies instead of Socialism.

[QUOTE=Rangergxi;49514106]Best to blame Maduro and his cronies instead of Socialism.[/QUOTE] Nevermind the fact the country has been ruled for seventeen years by socialists who literally quote marx.

[QUOTE=download;49513520]Probably best to leave, mate. Your government's combination of ultra-nationalism, loonie socialism and populism has fucked your country.[/QUOTE] I can't. It's too late for me, the inflation has eaten up all of my savings, and I cannot convert them to dollars. They're useless outside of this country, I can't exactly ask for asylum, nor do I yet have an undergraduate degree. My best bet is to finish graduating and then leave with whatever I can save up in dollars, but with teacher strikes taking place every year my graduation date is getting farther and farther away from me.

is this where we start a fundraiser on Facepunch to evacuate Big Bang from Venezuela when he graduates i'd give money towards that

The value of paper money only exists in the mind. When is something valuable? Can you even prove value exists? Can you prove reality exists? Does Venezuela even exist? I haven't been there. Have you?

I can't help but feel a little sad and pity for the people of venezuela who are the real victims of the terrible economic management of the country. Citizen need an inclusive institution.

[QUOTE=Rangergxi;49514106]Best to blame Maduro and his cronies instead of Socialism.[/QUOTE] Considering it's the socialist policies that are causing the biggest problem right now (see Big Bang's post on the price controls), I'd say socialism is a big part of the problem.

[QUOTE=Cloak Raider;49514810]is this where we start a fundraiser on Facepunch to evacuate Big Bang from Venezuela when he graduates i'd give money towards that[/QUOTE]I'll go down to Venezuela and bring him back as my gay bride, but along the way we discover the true meaning of friendship and together with our wacky talking animal sidekicks we find true love not in each other, but with some random women we found along the way because our life will be an Adam Sandler movie and oh god please kill us both in the Mexican desert and free us from such a terrible existence. [editline]12th January 2016[/editline] On second thought let's just do it your way.

[QUOTE=JumpinJackFlash;49515347]I'll go down to Venezuela and bring him back as my gay bride, but along the way we discover the true meaning of friendship and together with our wacky talking animal sidekicks we find true love not in each other, but with some random women we found along the way because our life will be an Adam Sandler movie and oh god please kill us both in the Mexican desert and free us from such a terrible existence. [editline]12th January 2016[/editline] On second thought let's just do it your way.[/QUOTE] Uhhhh.