Chavez attempts to seize French retail stores in Venezuala

[Statistical]

President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half. "Until when are we going to allow this to happen?" Mr. Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito SA, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A.

The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added. Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Mr. Chavez's orders that retailers were not to adjust prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of 2.15 bolivars.

------------------------------------------------------------------------

http://online.wsj.com/article/SB10001424052748703569004575009420323919964.html?mod=WSJ_business_EuropeNewsBucket

Chavez is insane. He devalues the currency by 50% (to essentially erase half of venezualas debt, "sorry suckers who loaned us money you get half back"). That is itself is stupid/irrational because the speed and scope of the devaluation has caused catastrophic damage to Venezualas economy. Sure you can devalue a currency but generally it is 10%-20% over course of a decade not 50% overnight. The fact that he even considered such a move shows he has no grasp on how macro economics work. There is no free lunch. Devalue your currency by 50% to erase half your debt? If you could do it with no cosequence everyone would. Hell why not devalue the dollar 99.9% and we have in effect a $140B national debt (blam $13.9T disapears overnight). We didn't do that? Why? Oh yeah there are massive and horrible consequences for such a massive devaluation.

But to compound his stupidity he then expects prices to stay the same? Hello dumbass you just created an artificial 100% inflation overnight. You didn't think prices were going to rise. So stores should sell things at BELOW COST and lose money on every product sold just because he says so?

Why not ask the for the Sun to go down but the sky not get dark at the same time.

I know some on DU like him but the man is an idiot and a dangerous one.

[timeforpeace]

1. Making friends one dictatorial decision at a time.

[Statistical]

2. Well it looks like majority of DU agrees with Chavez on illegally seizing private property.

Say anything bad about Chavez even if it is pointing out the truth and you get unrecced below 0.

[JustABozoOnThisBus]

3. He's not illegally seizing private property

He's creating a law to make it legal to seize private property.

There's a difference. I think. Maybe.

Well, maybe not to the property owner.

:hi:

[Statistical]

4. If most countries where rule of law matters making a law after the fact is illegal.

You could make a law affecting future business decisions but to make a law that punitively seizes property based on business decisions that WERE LEGAL at the time is tyranny.

Imagine if an OTC drug you take was made illegal. No problems right, you stop taking it. Now imagine the law was applied retroactively and they pulled records and cops came and arrested you for taking a drug that was legal at the time.

http://en.wikipedia.org/wiki/Ex_post_facto_law

If people & business can't feel confident that following the law as written today won't get them retroactively punished then you have no justice.

[timeforpeace]

5. Pissing off France under Chirac? No biggie. Under Sarkozy? Oops.