Venezuela is imploding from years of socialism

Venezuela, an oil-rich country of more than 33.22 million in South America, is on the brink of economic collapse.
The culprit? Years of socialism, especially the 15-year presidency (1998-2013) of Hugo Chávez — the dictator who was Sean Penn’s best bud.
sean_penn_hugo_chavez_not_a_dictato
How bad is it in Venezuela?
Here are some bullets I’ve compiled from the Washington Post:

  • Instead of growing, Venezula’s economy shrank 10% in 2015 and is expected to shrink an additional 6% in 2016, according to the International Monetary Fund.
  • Inflation is now 720%.
  • Venezuela is expected to default on its debt in the very near future. The country is basically bankrupt.

What brought Venezuela’s economy to near-collapse, despite having the largest oil reserves in the world, is a combination of bad luck and worse policies:

  1. Under Hugo Chávez, the government was generous with welfare, from two-cent gasoline to free housing.
  2. But the spending was not matched by government revenue. Chávez turned the state-owned oil company from being professionally run to being barely run. People who knew what they were doing were replaced with people who were loyal to the regime. The state extracted profits from the oil company but skimped on investments to maintain the infrastructure and to blend or refine Venezuela’s extra-heavy crude — neither of which is cheap — before it can be sold. As a result, Venezuela could not churn out as much oil as it used to — its oil production fell 25% between 1999 and 2013.
  3. When the government ran out of money, it resorted to printing more money.
  4. Then in mid-2014, oil prices started collapsing, which meant even less revenue.
  5. So the government printed more money, which simply cheapened or devalued Venezuela’s currency by 93% in the past two years.

Source: dolartoday.com

Source: dolartoday.com

The results are hyper-inflation (720%!), scarcity and rationing of food and goods, and long lines for even basic commodities. Lines are so bad the government has even started rationing those, kicking people out of line based on the last digit of their national ID card.
Venezuelans line up in state-run supermarket
Beginning in February 2014, hundreds of thousands of Venezuelans have protested over high levels of criminal violence, inflation, and chronic scarcity of basic goods due to federal government policies. Those demonstrations and riots have resulted in 40 fatalities.
And it will only get worse, because Chávez’s successor, socialist president Nicolás Maduro, has changed the law so the opposition-controlled National Assembly can’t remove the central bank governor or appoint a new one. Maduro also picked someone who doesn’t even believe there’s such a thing as inflation to be the country’s economic czar. New economic minister, the far-left Luis Salas, said: “When a person goes to a shop and finds that prices have gone up, they are not in the presence of ‘inflation’.” Instead, Salas insists, it’s those “parasitic” capitalist businesses that are trying to push up profits as much as possible.
Matt O’Brien of the Washington Post dolefully concludes, “The only question now is whether Venezuela’s government or economy will completely collapse first. The key word there is ‘completely.’ Both are well into their death throes.”
Given the country’s proximity to the United States, I predict that in addition to Cubans and Puerto Ricans, America’s next swarm of illegal migrants and ‘refugees’ will come from Venezuela.
map of Venezuela in South America
A quote attributed to Albert Einstein says that the definition of insanity is doing the same thing over and over, but expecting different results.
By that definition, liberals/Progressive/socialists are insane because they keep advocating and doing the same thing, while expecting socialist policies to work. Venezuela is simply the latest example of that lunacy.
~Eowyn

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josephbc69
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This isn’t going to be a ‘first’ for Venezuela: it defaulted on tens of millions of Gubbmint Bonds during the last Depression, under a staunchly capitalist economy and gubbmint. Its most recent was in July 1998, when it defaulted on $270 million worth of domestic currency bonds.[https://www.davemanuel.com/2010/02/12/the-last-13-major-sovereign-bond-defaults/] And even earlier, in the 19th century, more powerful nations used their military to force nations to repay: ‘the United States’ “gunboat diplomacy” in Venezuela in the mid-1890’s’ is one such: https://en.wikipedia.org/wiki/Sovereign_default Now here is a nation’s leader who looks to me to be pondering most seriously, and he doesn’t fly to Hawai’i… Read more »

torq
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torq

look up Economic Hitman on you tube or the internet the guy used to go in for corporations and undermine governments, corrupt politicians and buy out state owned oil, electrical company’s, telephone, mining and other resources now all owned and controlled by huge forgien CORPORATIONS they have raped and pillaged all these countries into poverty enslaved the people into massive debt all through Economic Hitmen, cia and corporate FREE TRADE DEALS that only benefit the Global Corporations. The crooked leaders of these countries are paid good bribe salaries to continue the destruction of the country and peoples all while they… Read more »

Anonymous
Guest
Anonymous

Oil-producing nation (OPEC member, even) and still an economic basket case… those socialist policies are sure something, eh? (And Democrats still want that here… )comment image

joandarc
Guest
joandarc

I so admire Margaret Thatcher. Our country needs someone like her for president. God please help us!

TrailDust
Admin
TrailDust

Only foolish people elect a leader like Chavez. And once in power, neither he nor his successor could be removed.
How is it an entire nation could run out of toilet paper? I submit there are 2 reasons.
1. If the stores are not allowed to make a profit, then the reason to buy products for resale is no longer there. Result: empty shelves.
2. The Venezuelan government is so full of S**T there is no way to keep up with the demand.

DCG
Admin

But Sanders can make it work…#feelthebern!!!! /sarc

josephbc69
Guest

I appreciate & get yr sarcasm, but many weak-minded sheople won’t ‘get it’ and will think you’re serious, especially in these duplicitous electoral times as we are now in. I know he’s full of the usual crapola, just as you are, but youngsters fall for his BS, and we adults need to at least try our best to mentor the young’uns, IMO. Lord, but it’s a long & weary road!

josephbc69
Guest

I must apologise IMMEDIATELY, as my lousy vision makes it very hard for me to get my two-fingered typing right 100%!
I most certainly did NOT mean that you are as is Bernie Baby: ‘he’s full of the usual crapola, just as you are,’ but rather that you are fully aware of and understand his duplicity. Please forgive my lousy one-eyed typing, as all your posts are smart & savvy! Mea culpa, mea culpa!

DCG
Admin

No worries Joseph ?

josephbc69
Guest

Thank you!

dawes777
Guest
dawes777

No, Venezuela’s problems are not caused by Socialism, but by American capitalist psychopathic interventionalism, as America has done around the world throughout its history.
Hugo Chávez ‘was not’ a dictator. Period! He was elected by the people of his country. His death by cancer is strongly believed to have been caused by the CIA. See: 6 Latin American leaders who criticised US policies fall ill of cancer simultaneously – https://tinyurl.com/d28jtez .

TrailDust
Admin
TrailDust

dawes777, you are either uninformed or a knowing liar. Chavez was a monster who brought Cuban secret police in to oppress the citizens. And he offered shelter and military support to the murderous FARC who committed uncountable murders in neighboring Colombia.

josephbc69
Guest

Dear traildustfotm, I’m way too tired to make much sense, but if I get through tonight, I’ll do my best to address your topics. Sorry I can’t do better, as I’m battered by too many problems at once!

dawes777
Guest
dawes777

traildustfotm – Are you an agent-lackey of the American government or one of their subservient puppet-nations? If not, then with due respect to you as a fellow being, human or otherwise, but you clearly believe everything which is disgorged by the American government and mainstream media as being the Holy Grail. The opposite is the truth. Nothing, repeat nothing said by that entity or its paid-for media is true – unless it is in their perverted sociopathic and psychopathic interests. Anyone who believes in the integrity of the government lives in cloud-cuckoo land, and is therefore one of the sheeple… Read more »

joandarc
Guest
joandarc

You, Mr. “dawes777” are a hole with an “A” in it, quoting a wonderful Jesuit professor of mine towards people who are arrogant. You take yourself too seriously.

josephbc69
Guest

THE problem, dawes777, is that for whatever reasons, most of Venezuela’s crises stem from a terrible inbred tendency to corruption, period. GREED is all-too-human and simple to understand. There is a small number of VERY wealthy Venezuelans –its 1%– who could care less about the rest of the nation. Even though the nation is predominantly Christian and RC, this hasn’t kept it from being its own worst enemy. They have plenty of well-educated people, but nothing seems to have worked for it, although Chavez’s misguided policies made it appear that they were ‘getting their act together.’ NOT, no way. Here… Read more »

josephbc69
Guest

I’ve had a rough 48 hours, looking after my housemate w/a schizoid paranoid delusional crisis, but I will defend you asap tomorrow, against our beloved traildustfotm, who’s not yet known the full history of this beleaguered and poorly governed nation.
Not sure how much I can last w/my trials & tribulations, but I come from a long line of hardy old country mavericks!

Auntie Lulu
Guest
Auntie Lulu

I tried to read the above provided site regarding “6 Latin American leaders who criticized US policies” — the site would be shown for 30 seconds and then it was gone. I don’t know what was happening, but then we all know I am not a computer genius. Just as a matter of interest, I would have liked to read the article.

cartoonsstudio
Guest

I searched the article and had no problem with this link, hope you can read it
https://govtslaves.info/6-latin-american-leaders-who-criticised-us-policies-fall-ill-of-cancer-simultaneously/

dawes777
Guest
dawes777

Auntie Lulu – I had the same problem, with certain other ‘politically-informative websites.’ I then put the same search phrase into Internet Explorer and found the site OK. So it iseems that there are malevolent government entities working the search engines to disrupt information of truth.

Dave
Editor
Dave

Communism sucks and communists are suckers.

josephbc69
Guest

Yeppers, because as was Satan, it was lies from the get-go and all along the way, so nothing else can be expcted. See R Crossman’s, “The God that Failed”. I read it in HS, 19660, and I ‘got it’ right away!
https://en.wikipedia.org/wiki/The_God_that_Failed

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