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Latin America

COLGATE4

(14,886 posts)

10. They can't. They don't have enough dollars. In addition, the economic dislocation is so

Reply to Ghost Dog (Reply #9)

Sat May 21, 2016, 11:05 AM

May 2016

severe that it would take a couple of years for things to even begin to return to normal. Venezuela's credit is so poor that China is their only source of funds, and the Chinese are now getting skittish. It's truly beyond the point of no return.

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Coca-Cola Forced To Stop Production In Venezuela [View all] Bacchus4.0 May 2016 OP

Car parts, barley, sugar... Ghost Dog May 2016 #1

They can't get the dollars to import raw materials Bacchus4.0 May 2016 #2

You say the likes of Toyota, Coca- Cola, and the country's Ghost Dog May 2016 #3

They don't in Venezuela. That's why Ford and Coca Cola closed shop Bacchus4.0 May 2016 #4

Oh, indeed, why, temporarily, operate at a loss? Ghost Dog May 2016 #6

Yes, they need to implement more domestic production but not collectivisation Bacchus4.0 May 2016 #13

How would the government be able to import things? hack89 May 2016 #14

It's not complicated. COLGATE4 May 2016 #5

Ok, thanks. So the government runs a variable- rate exchange control Ghost Dog May 2016 #7

They have several different rates. No other country is prepared to COLGATE4 May 2016 #8

What happens if the exchange controls are eased Ghost Dog May 2016 #9

They can't. They don't have enough dollars. In addition, the economic dislocation is so COLGATE4 May 2016 #10

Yes. But rather than a return to 'normal', Venezuela's economy Ghost Dog May 2016 #11

The VZ government was moving in that direction when Chavez was COLGATE4 May 2016 #12

That would require an enormous infusion of foreign capital hack89 May 2016 #16

US dollars are the currency of the global economy hack89 May 2016 #15