Thursday, March 10, 2016

Socialist Venezuela is Toast

If Americans Love Socialism So Much, Why Don’t They Move to Venezuela? Hey wanna see what living under socialism looks like? Go ahead…Take a look. Look at what’s happening in Venezuela, where the President is hiking gas prices 6000% to put a band aid on its crumbling economy:

Venezuelan President Nicolas Maduro on Wednesday announced a staggering 6,000 percent hike in petrol prices and a sharp devaluation of the currency to shore up the oil-rich nation’s battered economy. Venezuela, which gets 95 percent of its export revenue through oil, has been hit hard by the collapse in the price of the commodity, which has fallen to $34 a barrel from $90 a barrel two years ago.

The move would raise the price of premium gasoline to 6 bolivars a liter from 0.1 bolivar a liter, and regular gasoline to 1 bolivar a liter from 0.07 bolivar. Additionally, starting Thursday, the official exchange rate used for food and medicine imports will be weakened to 10 bolivars per dollar from the current 6.3, while a second parallel floating rate will be allowed to operate alongside.

“This is a necessary action, for which I take responsibility,” Maduro said Wednesday in a televised address. “The time has come to establish a system that guarantees access to hydrocarbons at a fair price but that also guarantees the funding of investment in producing that gasoline.”

Guess what. You’re not going to hear Bernie Sanders pointing to Venezuela as a winning example of socialism.
But it’s a great example of what happens when the government attempts to control a major portion of the economy.

Just as Bernie proposes controlling health care and education.


Comments

Venezuela needs $50 billion a month to operate, but only gets $25 billion a month selling oil to China. Like Greece, they lack cash.  Unlike Greece, nobody will lend them any money. They ran out of cash and welfare stopped. They have no cash for groceries, so stores are empty. It’s unclear what their population is doing to survive. This story is being repressed.

Norb Leahy, Dunwoody GA Tea Party Leader


No comments: