Venezuela news

[jbird4049]

What I believe got Venezuela into trouble was that they didn't invest in anything, when they had money. So, instead of investing in other industries they instead double down on oil and when the price of oil drop, they got screwed big time.

That, and greed with some stupidity.

[Okeefenokee]

What I believe got Venezuela into trouble was that they didn't invest in anything, when they had money. So, instead of investing in other industries they instead double down on oil and when the price of oil drop, they got screwed big time.

That, and greed with some stupidity.

don't forget to blame America.

[jbird4049]

What I believe got Venezuela into trouble was that they didn't invest in anything, when they had money. So, instead of investing in other industries they instead double down on oil and when the price of oil drop, they got screwed big time.

because America.

What? I don't think anyone in this thread is blaming America for Venezuela's current mess. They did it to themselves.

It's true that our country has seriously screwed almost every other country in Latin American. But most countries in the Americas run, or at least they did using the old(Rulers when the Spanish and Portuguese conquests) Bourbons' method of never forgetting anything, but never learning anything either. They keep doing the same ineffectual government that crushed all the peasants and any attempt at reforms or revolt. Over and over and over again for 400+ years.

[Okeefenokee]

What I believe got Venezuela into trouble was that they didn't invest in anything, when they had money. So, instead of investing in other industries they instead double down on oil and when the price of oil drop, they got screwed big time.

because America.

What? I don't think anyone in this thread is blaming America for Venezuela's current mess. They did it to themselves.

It's true that our country has seriously screwed almost every other country in Latin American. But most countries in the Americas run, or at least they did using the old(Rulers when the Spanish and Portuguese conquests) Bourbons' method of never forgetting anything, but never learning anything either. They keep doing the same ineffectual government that crushed all the peasants and any attempt at reforms or revolt. Over and over and over again for 400+ years.

You yourself were making that very claim.

[Okeefenokee]

[Hastur]

Not even ultra liberal NPR has any problems with assigning blame for the situation in Venezuela.

Things are pretty bad right now in Venezuela. Grocery stores don't have enough food. Hospitals don't have basic supplies, like gauze. Child mortality is spiking. Businesses are shuttering.

It's one of the epic economic collapses of our time. And it was totally avoidable.

Venezuela used to be a relatively rich country. It has just about all the economic advantages a country could ask for: beautiful beaches and mountains ready for tourism, fertile land good for farming, an educated population, and oil, lots and lots of oil.

During the boom years, the Venezuelan government made some choices that add up to an economic time bomb.

Venezuela didn't save its oil money. It used it to subsidize goods and services for the people, but in some unusual ways. Another choice: instead of making stuff at home, Venezuela imported almost everything it could. The government also kept tight control on the exchange rate between Venezuelan bolivars and U.S. dollars.

As long as the price of oil was high, there weren't serious problems. Then oil prices came down.

Today on the show, we have an economic horror story about a country that made all the wrong decisions with its oil money. It's a window into the fundamental way that money works and how when you try to control it, you can lose everything.

http://www.npr.org/sections/money/2016/ ... a-imploded

[Hanarchy Montanarchy]

They should have followed Argentina's example and let their currency fall into the toilet (on the recommendation of the World Bank) until they had to beg for debt forgiveness (from the World Bank).

Or Brazil's example, whose currency got so bad they had to invent a different kind of currency... and beg for debt forgiveness, if I recall correctly. Great examples of markets working for everyone Brazil and Argentina... where only many people starve instead of most.

[Hastur]

They should have followed Argentina's example and let their currency fall into the toilet (on the recommendation of the World Bank) until they had to beg for debt forgiveness (from the World Bank).

Or Brazil's example, whose currency got so bad they had to invent a different kind of currency... and beg for debt forgiveness, if I recall correctly. Great examples of markets working for everyone Brazil and Argentina... where only many people starve instead of most.

The biggest advantage of having your own currency is the ability to wipe out dept by devaluing. That is why the Euro sucks for Greece. Venezuela's problem isn't dept though. It's Socialism. And gross incompetence of the leaders. Sorry - that's the same thing...

[Hanarchy Montanarchy]

They should have followed Argentina's example and let their currency fall into the toilet (on the recommendation of the World Bank) until they had to beg for debt forgiveness (from the World Bank).

Or Brazil's example, whose currency got so bad they had to invent a different kind of currency... and beg for debt forgiveness, if I recall correctly. Great examples of markets working for everyone Brazil and Argentina... where only many people starve instead of most.

The biggest advantage of having your own currency is the ability to wipe out dept by devaluing. That is why the Euro sucks for Greece. Venezuela's problem isn't dept though. It's Socialism. And gross incompetence of the leaders. Sorry - that's the same thing...

That is what the World Bank recommends doing. Venezuela's problem isn't debt because money doesn't get loaned freely to left governments, and no one bails them out in a crisis.

I am not saying anyone should, but Venezuela's currency and economic crises is certainly not unique in Latin America.

Stupid Venezuela, spending your money when you had it on subsidizing your population. Should have locked it all away so people were used to living and starving in favelas so the shock of abject poverty wouldn't be so painful.

[Ph64]

Stupid Venezuela, spending your money when you had it on subsidizing your population. Should have locked it all away so people were used to living and starving in favelas so the shock of abject poverty wouldn't be so painful.

Or how about while they had it they could have used it to start dairy farms to make milk, butter, cheese, etc, instead of importing it? And maybe started textile manufacturing plants, or any number of other things that would have created jobs for people, made your economy more self-sustainable, and maybe even had something else to export besides oil?