Courtesy of Mish.
Economic illiteracy has absolutely no bounds. The top example of the day comes from Belarus.
For those unfamiliar with the country, this map of Belarus will help put things into perspective.
For the economic illiteracy of the day, please consider Belarus Imposes Moratorium on Rising Consumer Prices.
“The moratorium is aimed at preventing consumer prices from rising and ensuring a wide range of goods in the consumer market, explains the Council of Ministers press office.”
Reader Richard who sent me the link suggested the article sounds like The Onion.
Indeed it does. But it appears to be the real deal. In addition, “The State Customs Committee and the interior ministry have been strictly ordered to effectively prevent illegal imports of goods,” as if that will stop prices from rising.
“The government’s decision to impose a 30-percent fee on foreign exchange purchases, which was announced on Friday and in fact meant a 23-percent fall in the Belarusian rubel’s value, led to a rush to buy consumer durables, especially imported ones.”
Get Out While You Can
Foreign exchange fees of 30% may sound excessive but any government stupid enough to take the above actions will see their currency drop to worthless in short order.
Price controls never work, they only exaggerate shortages, then huge growth in black markets.
“Get out while you can, any way you can, if you still can” is my message.
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