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In reply to the discussion: Venezuelan president tries out new powers [View all]hack89
(39,171 posts)13. Factories are not going to magically appear out of nowhere
And only a fool would invest in a VZ factory knowing that the government can and will take it away on a whim.
The core economic problem VZ faces is capital flight as it's citizens desperately try to get their money into a safe haven where skyrocketing inflation won't destroy its value. To combat this, Hugo implemented currency controls in 2003 that have led their present economic meltdown. The government tightly controls the amount of dollars which means that businesses have to buy dollars on the black market if they want to buy goods to import. This means either higher costs or companies going out of business.
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Wasn't there a Republican politician that was talking about a coup just the other day?
Ash_F
Nov 2013
#10
I just refuse to judge him and his running of his country as an outsider not knowing all
Arcanetrance
Nov 2013
#9
True, I think they have taken over many foreign businesses in the last few years
davidpdx
Nov 2013
#33
No, it will create product shortages. Which are already happening due to price controls.
geek tragedy
Nov 2013
#14
My understanding was that the government owned much of the manufacturing and industry in general
Arcanetrance
Nov 2013
#16
They do have a debt/GDP ratio half that of the US and have trading surpluses
Theyletmeeatcake2
Nov 2013
#28
They are the 5th highest oil producing country. It should be much better than that.
stevenleser
Nov 2013
#44
Not sure about that as their oil production continues to drop precipitously
stevenleser
Nov 2013
#52
Yes indeed, don't give those poor people money as they don't know how to use it properly
Theyletmeeatcake2
Nov 2013
#25