Friday, February 27, 2015

Venezuela: Trading Oil for Toilet Paper?

Some of you may be old enough to remember news reports of toilet paper shortages in the Soviet Union. Such shortages of basic necessities is a natural result of socialism. And so I note this story from Bloomberg Business on Venezuela:
Venezuela, plagued with shortages of basic goods, was offered a reprieve by the Prime Minister of neighboring Trinidad & Tobago: exchange oil for tissue paper. 
Prime Minister Kamla Persad-Bissessar suggested an oil-for-tissue swap in a news conference Tuesday following a meeting in Port of Spain with Venezuelan President Nicolas Maduro. She said the deal would benefit both countries. 
“The concept of commodity sharing is simple -– the Government of Trinidad and Tobago will purchase goods identified by the Government of Venezuela from T&T’s manufacturers, such as tissue paper, gasoline, and parts for machinery,” Persad-Bissessar said. 
In Venezuela, which has the world’s largest oil reserves, citizens line up outside supermarkets for hours seeking a bag of clothing detergent, toilet paper or cooking oil. Price controls and a lack of dollars for importers have emptied stores of many basic goods, a situation Maduro blames on hoarders conducting an “economic war” against his socialist government.

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Weekend Reading -- A New Weekend Knowledge Dump

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