Venezuela Repeals the Laws of Supply and Demand
1. Under President Hugo Chavez, Venezuela's central bank has doubled the money supply over the last four years.
3. In response to the high inflation, the Venezuelan government just announced it is expanding price controls to cover many basic consumer items like toothpaste, coffee, toilet paper and deodorant to prevent "monopolies from ransacking the people."
4. The move to expand price controls sparked panic buying by consumers, which is causing shortages of many products.
5. The Venezuelan government is accusing people of panic buying with the intent to hoard consumer items and capitalize on the shortages by selling products in the future at higher prices on the black market.