The Bankwatch

Tracking the consumer evolution of financial services

The self levelling effect on tinpot dictators catches up eventually

Often I find news headlines are framed in political and ‘we are good and they are bad’ headlines but it is both reassuring and interesting to actually see the impacts of tinpot dictators on their countries, and how corrupt behaviour produces results is a leveling effect on the world. 

This from a longer piece outlining how lack of attention and investment means Venezuela is running out of electricity.  His answer of course is to arrest everyone. 

Colombia, Venezuela: Offering Power — For a Price | Stratfor (Subscription)

While blaming the crisis exclusively on the weather (and ignoring years of lack of investment and government mismanagement of the electricity sector), Venezuelan President Hugo Chavez has made repeated calls to his citizens to cut their shower time to three minutes, turn the lights off and reduce work hours to get through the crisis. Those that do not reduce their electricity demand have been threatened with fines and arrest. According to la Gaceta Oficial, an official government newsletter, Caracas Electricity (EDC) will initiate 24-hour power cuts to the 8,000 businesses in Caracas that have been deemed heavy electricity consumers and have failed to meet the government’s demand to cut consumption by 20 percent.

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This stuff is important because we are in a global economy.  A butterfly flaps its wings here and the impact … etc etc.  If you are running a bank, the cause and effect of everything is important.  It is important because Chavez actions impact currency, oil, interest rates and inflation.  It all matters.

Written by Colin Henderson

March 7, 2010 at 16:34

Posted in Uncategorized

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