Monday, January 22, 2007

Oil price plunge starting to hurt Chavez

Chavez's pet project spending and piling on recurring costs haven't decreased, but Chavez is showing signs that he is starting to run out of money to fund them. He has announced he is increasing the price of domestic gasoline produced by the state owned oil company. When asked about the effect on the poor, his ignorant response was that the poor don't drive cars, so it won't really affect them. Transportation of goods affects the poor in every aspect, and increasing the cost to transport goods will hurt the poor. On top of the 17% inflation rate which Chavez is doing nothing to alleviate, it's not a good time to be a Venezuelan. If you are able to keep ahead of the curve economically, you will be labeled as one of the rich elite by Chavez and have your property confiscated. Communism is not yet dead, but Chavez is proving why it is dying.