Hugo Chavez, in a 2006 speech encouraged barter as a means of combatting the forces of capitalism.
“I exchange one cachama (a fresh water fish) for three bunches of bananas,” the Venezuelan President said. He immediately warned his ministers: “I want to see results: (The establishment of) community and barter markets.”
Apparently the demand had died off until just recently when the National Assembly commenced drafting a law aimed at boosting direct and indirect barter. The law would create community currencies, establish exchange rates, and provide merchants with means to obtain goods and services from the government in barter.
Jct: At least the Venezuelan barter networks won’t suffer the same counterfeiting that the great interest-free currency barter networks that saved Argentina earlier this decade were subject to because they did not have government support! Imagine, the government didn’t support the currencies that saved them. But Hugo is. Glad to see he’s back on track.
I hate to applaud anything that Chavez does. It seems like this is a case of him grasping at straws and realizing that perhaps other currencies, local currencies, regional currencies, can help him out of a hole. And it will, managed well. That’s the part I don’t like.