Venezuela ??

[WalterTrull]

Just caught a news item on TV showing people marching and empty shelves and no medicines in Venezuela. Apparently, their economy is collapsing and the US has pledged many millions to help. The newscaster said that Venezuela has refused any outside help. Does anyone understand the political situation there? Can you explain (in layman's terms) why outside help is refused?

 

[YmirGF]

Just caught a news item on TV showing people marching and empty shelves and no medicines in Venezuela. Apparently, their economy is collapsing and the US has pledged many millions to help. The newscaster said that Venezuela has refused any outside help. Does anyone understand the political situation there? Can you explain (in layman's terms) why outside help is refused?

That the Maduro government is insane and has totally lost touch with the people it pretends to represent?

 

[Trackdayguy]

Just caught a news item on TV showing people marching and empty shelves and no medicines in Venezuela. Apparently, their economy is collapsing and the US has pledged many millions to help. The newscaster said that Venezuela has refused any outside help. Does anyone understand the political situation there? Can you explain (in layman's terms) why outside help is refused?

I would hazard a guess that usually when money is given it has strings attached.

 

[Stevicus]

Just caught a news item on TV showing people marching and empty shelves and no medicines in Venezuela. Apparently, their economy is collapsing and the US has pledged many millions to help. The newscaster said that Venezuela has refused any outside help. Does anyone understand the political situation there? Can you explain (in layman's terms) why outside help is refused?

I'm not sure. Although I recall a time when Venezuela was considered one of the more stable and prosperous countries in a region torn by strife, violence, and political unrest.

 

[YmirGF]

I would hazard a guess that usually when money is given it has strings attached.

Probably. Heaven forbid the Maduro regime admit it has screwed up the Venezuelan economy on an epic scale.

 

[sun rise]

Probably. Heaven forbid the Maduro regime admit it has screwed up the Venezuelan economy on an epic scale.

Following the downward spiral of his predecessor. I don't know how many times we need proof that form of command economy does not work. But given the head in sand in the USA about tax cuts, Trump lying etc, I guess we're no better than them except in our choice of refusing to pay attention to what works and what does not work.

 

[YmirGF]

I'm not sure. Although I recall a time when Venezuela was considered one of the more stable and prosperous countries in a region torn by strife, violence, and political unrest.

But that only lasted until the effects began to be felt by the changes imposed by the adorable Hugo Chávez. Chávez saddled the economy whereas Maduro has ridden the remaining dead horse into the sunset.

 

[Trackdayguy]

Clearly the man couldn't lead his way out of a paper bag.

 

[Stevicus]

But that only lasted until the effects began to be felt by the changes imposed by the adorable Hugo Chávez. Chávez saddled the economy whereas Maduro has ridden the remaining dead horse into the sunset.

It's kind of baffling to me in a way. A lot of our involvement in Latin America has been to try to fight communists, in Chile, Bolivia, Peru, Colombia, Central America - while Cuba and Nicaragua were considered defeats from our point of view. Then there were all the drug wars in Colombia, Mexico, Panama (Noriega). The U.S. has constantly maintained a vigilant, almost paranoid attitude regarding the nations of Latin America. But you never heard about Venezuela in the constant turmoil. They were stable and prosperous, or so we thought.

How could one man have caused such a massive collapse and 180° turn in such a short period of time?

 

[YmirGF]

How could one man have caused such a massive collapse and 180° turn in such a short period of time?

It IS a fascinating question with no simple answers. My guess is the problem started with a popular ideologue ushered into power who knew next to nothing about economics and took advice from people who were not only equally ignorant of economics but also unflinching political ideologues.

 

[Sunstone]

Probably. Heaven forbid the Maduro regime admit it has screwed up the Venezuelan economy on an epic scale.

Paul, there have been reports that the Maduro Government's screwing up the economy has been greatly "encouraged" by covet US activities. I don't know how true those reports are -- especially since the US has a long and noble history of not meddling in Latin and South American countries.

 

[Nakosis]

Shortages

Lack of ability to pay for imports with Bolivares and declining oil revenues has led to shortage of goods and government rationing of the limited amount of products available. Venezuelans have grown used to standing in long lines waiting for the opportunity to buy daily essentials. The black market has managed to provide some goods to Venezuelans but at an even higher price than the government set prices. Black market purchases are illegal and participating in the market provides the risk of government arrest or perhaps worse, kidnapping and robbery by market participants.

Ironically, Venezuela is so broke, that according to a Bloomberg report, the government is short of money to print money so a cash shortage is also developing.
BGASC Metals - Causes of Venezuela’s Hyper-Inflation

So why is there an oil surplus?

Rising U.S. output threatens global oil market balance in 2018

 

[LuisDantas]

Venezuela has been, for years now, a favorite sobering tale for the Brazilian Right to point out as the "failure of the Left". The part about the collapse is very much real, to the point that the refugees here in Brazil have become a significant worry.

Maduro has a very anti-American discourse, and I am certain that he is clinging to it at this time of disaster more than ever, since it is one of the very few reasons he can offer for people to keep tolerating him. The "USA is evil" discourse is very popular in South America, albeit not very uniformly and certainly not very mature at all.

I do not expect that Maduro hopes to survive (politically and perhaps otherwise) if any significant USA help is accepted by Venezuela. The idea alone would anihilate his credibility, such as it is. Difficult as it may be, he certainly prefers to try and weather the situation by itself or with the help of foreign governments that are perceived as having proper "anti-imperialist" credentials.

 

[Kenny]

Just caught a news item on TV showing people marching and empty shelves and no medicines in Venezuela. Apparently, their economy is collapsing and the US has pledged many millions to help. The newscaster said that Venezuela has refused any outside help. Does anyone understand the political situation there? Can you explain (in layman's terms) why outside help is refused?

Yes. My wife was born in Venezuela and I lived there for 13 years.

It is refused because it would weaken Dictador Maduro's position. As my Cuban friends said (who still live in Cuba), it has been a play by play repeat that Castro used. Maduro's predecessor, Chavez, was called Castro Jr.

By having people struggling for basic needs, it solidifies his ability to make government the only answer. The standard public relations mantra is "Look what the Americans are doing". However absurd it may sound, the government is controlling almost all of the news outlets and is propagated as "Covert American influence".

 

[metis]

How could one man have caused such a massive collapse and 180° turn in such a short period of time?

When oil prices tanked and having so many loans due to trying to do too much in a short period of time.

 

[Kenny]

I
How could one man have caused such a massive collapse and 180° turn in such a short period of time?

It was actually, physically, two men. Chaves came first for many years. But not hard to understand as its foundation was the corrupt politicians of the previous parties over the last 40 years.

If I were to say as an analogy it in terms of Republicans and Democrats, both parties kept giving promises and when in office ended up raping the country and its people while favoring the rich, it reached a boiling point. Then the masses heard a Communist mantra of "WE WILL TEACH ALL OF THEM A LESSON, PUT US IN POWER AND WE WILL TAKE FROM THE RICH AND GIVE YOU WHAT IS RIGHT".

They ate it up.

And when the Communists got in power, they filled their pockets, raped the rich and the poor too. They only people that had any special favors and perks were the ones that said and acted in the spirit of Communism.

 

[Kenny]

When oil prices tanked and having so many loans due to trying to do too much in a short period of time.

Having extended family in Venezuela, it actually happened way before any oil prices tanked. They were actually giving free oil to Cuba in exchange for Cubans coming over to Venezuela for indoctrination purposes. They also were giving to Iran and other left leaning countries. (not necessarily oil) They were already creating shortages and making people more Government dependent.

 

[metis]

Having extended family in Venezuela, it actually happened way before any oil prices tanked. They were actually giving free oil to Cuba in exchange for Cubans coming over to Venezuela for indoctrination purposes. They were already creating shortages and making people more Government dependent.

Oh, I can understand that, but these other factors also have been at play.

 

[Estro Felino]

To sum things up:

- Chàvez decides to destroy the monopoly on all the economic sectors of the country held by a corrupt élite: the process of nationalization makes the Venezuelan government very powerful and creates social wealth. The successful socialist regime is very similar to Gaddafi's policies.

- The oil price collapses...that is a fatal blow for the economy, given that too little income is produced from exportation. The bolivar value drops...and to pay imported goods too much money is issued. Hyperinflation starts.

- The corrupt élite helped by American big corporations starts boycotting the enterprises controlled by the state.

- Even if employment keeps rising...hyperinflation makes impossible to import all the goods necessary for a dignifying life.

Conclusion: Gaddafi-style-socialism is excellent in my eyes...but cannot work out with a big population and with so few productive sectors.


I believe that Latin America countries have an anthropological problem...that is, the ethnic factor plays an essential role. That is why Argentina and Uruguay are the richest countries in LA with no problems of overpopulation: Because 90 % of the population is criolla...that is, European...so there is social cooperation and cohesion.
In Venezuela we have a slice of the population which is criolla and does anything to discriminate mestizos: they own banks, enterprises and bribe a powerful military apparatus.
The Revoluciòn Bolivariana has been trying to revolutionize society ...by forcing the criollas élites to bow to the public interest...but their racial hatred has created a huge fracture which is the reason why corruption and American infiltration will never end.

 

[Estro Felino]

I do not expect that Maduro hopes to survive (politically and perhaps otherwise) if any significant USA help is accepted by Venezuela. The idea alone would anihilate his credibility, such as it is. Difficult as it may be, he certainly prefers to try and weather the situation by itself or with the help of foreign governments that are perceived as having proper "anti-imperialist" credentials.

Maduro es un inmaduro...lol...

as I said in the other thread, socialism won't work unless you fix the society first