By Daniel Lang
It’s quite frankly amazing that the socialist government running Venezuela is still standing. That country is a testament to the ability of humans to put up with unimaginable poverty and tyranny without flipping their lids and lynching their leaders.
But alas, socialist governments can only last so long, even when their subjects aren’t actively trying to overthrow them. At a certain point these types of governments simply run out of money, which is what it appears is going to happen in Venezuela.
The Venezuelan government only has $10.5 billion left in foreign reserves, which the government has been using in recent years to pay outstanding debts. In 2015 Venezuela had twice that amount, and it had over $30 billion six years ago. And what’s left of this nation’s reserves is expected to rapidly diminish in the months ahead. Venezuela will have to pay $2.1 billion by this April, and a total of $7.2 billion by the end of the year. Only about $7.7 billion worth of their gold reserves are left after the government had to send some of their bullion to Switzerland last year.
And unlike most countries, Venezuela can’t simply accumulate more debt and inflate their currency. They can’t kick the can down the road anymore. The currency is already practically worthless, and they’ve been struggling to pay their debts for several years. Inflation is expected to increase by 1,660% this year and another 2,880% next year. Unless the price of oil goes up again in the next year or so, then it appears that the Maduro regime will have to default on its debts, which will likely lead to a collapse of the government.
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“When people who earn more than the average have their “surplus”, or the greater part of it, seized from them in taxes, and when people who earn less than the average have the deficiency, or the greater part of it, turned over to them in hand-outs and doles, the production of all must sharply decline; for the energetic and able lose their incentive to produce more than the average and the slothful and unskilled lose their incentive to improve their condition.”- Henry Hazlitt
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Historical patterns embodied in the Iron Law of Politics give rise to Statism on Steroids, fulfilling the wet dreams of Control Freak Megalomaniac Psychopaths.
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Sounds like Venezuela would be a great place to retire.
The sooner all the zentral bankz collapse and shutter the doors, the sooner a thousand years of peace and prosperity will commence.
The have enormous oil reserves and they can’t feed their people.
Venezuelan government has been slowly strangled by the Bush-Clinton-Obama subterfuge. Bush would gladly have destroyed Chavez and Venezuela swiftly, similar to Qadaffi, for not complying with Bush Sr.´s demand to relinquish control of the nation´s oil to the Carlyle Group. However, South America had no NATO-type organization led by a fraudulent frenchman named Sarkozy to follow Bush´s orders. The subterfuge sanctions applied by the US Gov to Venezuela is another example of a fraudulent, semi-war against Venezuela for which the “4 generations of treason” family is responsible.
Right!! How can the author of this article totally ignore what we have done to that country?
Mainly because he doesn’t have a clue
If president Trump would cease the strangling of Venezuela, and start buying their oil at market value, Venezuela would recover within a year. Moreover, the wasteful and environmentally-destructive pipeline from Canada to Houston would be avoided.
Anyway, US taxpayers will end up bailing-out the Wall St. bandits behind the foolish action, pay billions in damages. Polluting the major Aquifer in the mid-west appears to be the subterfuge goal of the evil beings who have driven the subterfuge.
Os sucessivos governos dos USA tentaram destruir o Chavez, que promoveu uma grande mudança social na Venezuela, trazendo benefícios para todo o povo venezuelano, contrariando o principio sionista filho-da-puta que todos devem ser vassalos dos “povos escolhidos” e “excepcionais”… como o Chavez não aceitou a imposição das “normas” ditadas pelos filhos-da-puta, a mídia escrota e vagabunda, aliada à tradicional oligarquia escravagista da Venezuela, tentou de todas as formas remover o presidente Chavez, cujas políticas em beneficio do povo contrariaram o “estado bandido” neoliberal…
não conseguiram e após sua morte prematura(muito suspeita, por sinal…), estão tentando remover o Maduro… só que a grande maioria do povo venezuelano não concorda com esse golpe… um grande país, um grande povo, com certeza irão encontrar um modo de resolver os problemas pelos quais o país atravessa, provocados por fatores exógenos implantados pelas mesma minorias que ainda estão atuando contra o povo…
The situation in Venezuela is dire. If Maduro calls to nationalize food supplies to feed the hungry people, the barbarians are at the gates ready to invade: A whole US battalion is ready to invade in minutes. If the government doesn’t, it will fall and the right wing will take power & institute the Shock Doctrine; destroying all social programs. Venezuela is between a rock & a hard place.
Vulture capitalists are waiting in the wings ringing their filthy hands ,ready to purchase all assets for $0.10 on the dollar.
Do some research what the Chavez government did for the population of Venezuela ,in terms of housing ,education and health care .I guess these things don’t count because they are not valued in dollar terms. I would have thought better journalism from the daily sheeple..Sheech .
Last I read, healthcare was free and people were dying in filthy hospitals with no medicine or bandages. It seems that Chavez did not do healtcare much good.
Maybe you should check the credentials of what yo are reading .
A great example of what happens when socialism takes over. Those poor people! While not all of their problems are self imposed the vast majority are. Don’t forget that they have more oil reserves than Saudi Arabia. By the way, if they want to free up cash, maybe they should stop spending so lavishly on their elite, their police state and the bankers. Did you know that during Chavez’s reign the bankers got 695% return of their money? Socialism always takes care of its banker bosses first and foremost.
Right on drbhelthi. Also, the author mindlessly repeats the socialist government “tyranny” claim that’s the US government’s favorite and baseless accusation on the state of Venezuela. What an ignorant article.