That the Venezuelan Government is going to make a mistake we know. They can’t stumble over an economic idea without getting the wrong end of it. That’s what has pushed Latin America’s richest country into absolute poverty, destitution and despondency – economic idiocy. Our only interesting question, ever, is which mistake are they going to make?
We might have a clue with this one:
The Venezuelan government has seized control of a plant belonging to Smurfit Kappa, the Irish packaging company has confirmed.
On 21 August, the plant was seized and two managers were arrested.
Venezuela claims that Smurfit Kappa engaged in price speculation, smuggling and refusing to sell to local businesses.
It has demanded that the Irish firm immediately adjust all prices for its products.
The seizure of the plant will last for 90 days.
They’ve seized a printing plant. Something we might even – if we thought like fools that is – think might be useful in a country with a 1,000,000 percent inflation rate. But then there’s the mistake, isn’t it?
Someone really needs to tell Nicolas Maduro that a paper bag printing plant is different from a bank note printing plant. On such misunderstandings is the ruination of a nation built.
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It doesn't matter what Maduro might have done with the printing plant. Once he extincts the local knowledge and replaces it with political loyalty, it will function as poorly as the oil refineries.
By the way, "price speculation" has included any attempt to adapt to the deliberate wrecking of the currency. Anyone who achieves and tries to save what they have created is a target.
They are indeed different. The paper bags hold their value...
I think Maduro's definition of price speculation is: pricing your goods to cover the cost of supplies and manufacture.
Maybe the plant can be used to make toilet paper?