Venezuela is on the brink of a complete economic collapse
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. Indeed, Venezuela's ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it's hard to see that getting any better for them any time soon or ever. Incumbents, after all, don't tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It's no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.
That's not an easy thing to do when you have the largest oil reserves in the world, but Venezuela has managed it. How? Well, a combination of bad luck and worse policies. The first step was when Hugo Chávez's socialist government started spending more money on the poor, with everything from two-cent gasoline to free housing. Now, there's nothing wrong with that in fact, it's a good idea in general but only as long as you actually, well, have the money to spend. And by 2005 or so, Venezuela didn't.
I totally understand VZ's intent to provide for the poor but they would have done it better had they had spent the money in an effort to diversify the economy rather than just spending money.
We keep hearing so much on worker-owner factories and industries but the government failed to make those ideas a reality.
that Russia knows how to utilize, and Putin, whatever you think of him, is not a bombastic blowhard. Chavez's ideas of providing for the poor were excellent but the implementation was not the best.
The average person in Venezuela doesn't deserve any of it.
Ten parts oil prices, eight parts corruption, fifteen parts incompetence at the highest levels, and one part economic warfare.
Stir... stand back... watch implosion
They couldn't see this coming the last five years?
I hope they can manage to fix this and have a thriving democratic socialist nation.