Democrats are offering the same deal to US voters that Chavez made to
Venezuelan voters in 1998. It doesn’t take long to go broke. See below:
Venezuela’s Great Dream Was Always a Scam, by Bill Bonner, 1/24/19.
“Soldiers revolt…”“Millions
on verge of starvation…” “Biggest mass exodus in history of the Americas…” What
a glorious show! Right before our eyes… a real-life, real-time experiment……all
the conceits… the pretensions… the balderdash… the claptrap…all laid out for
the world to see.
And now, stretched out in
front of us like a drug dealer in the morgue, is a Great Dream busted up so
thoroughly that there can be no doubt – it was a scam from the get-go.
You put a pot on the burner.
Eventually, it boils. And Caracas was boiling last night. Earlier in the day, a
direct challenge to Nicolás Maduro’s presidency. Juan Guaidó – president of
Venezuela’s National Assembly – declared himself the legitimate president of
the country.
Government is always a way
for the few to exploit the many. But it’s not always the same few.
The background: Hugo Chávez
won the popular vote in 1998. Venezuela was a rich country then, buoyed by what
seemed to be an inexhaustible inflow of oil revenues.
Mr. Chávez combined some of
the worst features of AOC and DJT. He was a “strongman” know-it-all claiming to
represent the little guy. And he had all the popular delusions – that deficits
don’t matter… that the feds should give free education and free medical care…
and that you can “stimulate” the economy and “grow your way out of debt” by
spending money you don’t have.
Mr. Chávez realized, like
Mr. Trump, that there were a lot more poor voters, than rich voters and that
they were fed up with corrupt, crony capitalism.
He proposed, like Ms.
Ocasio-Cortez, various larcenous programs of the socialist genre, designed to
shore up his support among the masses. Among the programs: land seizures, price
controls, and nationalizing major industries.
These were a big hit. His
approval rating rose to 80%. But inevitably, there were some who were jealous
of his power… others who were afraid of it… and a few who saw that his policies
would destroy the country.
They rose up against Chávez
in 2002. But the revolt fizzled and Chávez was soon back in power.
In 2006, he won a third
term, again with a substantial majority, and further consolidated his power
until he died in 2013. From there, Nicolás Maduro, an ally of Chávez, took
control and continued in the same doomed direction as his predecessor.
Then, oil was still trading
over $100 a barrel. But no amount of money is so great that it can’t be wasted
and stolen. And when the price of a barrel of oil fell under $50 in 2015, the
EZ money wasn’t so EZ anymore and the country pitched over and headed for the
rocks.
Would the zombies give up
their rich loot? Would the cronies return their ill-gotten cash? Would the
Venezuelan government cut spending in order to protect the bolívar? Of course not. That’s not
the way it works… neither in Caracas nor in Washington.
Instead, those in charge
resorted to the familiar refuge of scoundrels – borrowing… and printing.
Government debt rose from
25% of GDP in 2009 to an estimated 160% for 2018. (By comparison, the U.S.
debt-to-GDP ratio is 105%.)
Inflation grew steadily
worse. The bolívar, like the dollar, is fake money (with no gold backing). This
year, the inflation rate is expected to hit 1.3 million percent. Which is where
most people stop counting and pack their bags. And that’s what many are doing.
They’re taking to the
highway… making their way to the border as best they can. Fortunately for them,
their neighbors have erected no walls to keep them out, so they make their
escape to Colombia, Brazil, or Guyana… and do their best to survive.
Yes, it is a rather typical
financial disaster… caused by the usual promises and hallucinations… and
enforced by the usual cops and criminals.
And now it seems to be
coming upon a denouement… a climax… wherein the rulers who have bled the
country dry must now move on… and allow a new set of rulers to do their work.
A Reuters report out
yesterday: Demonstrators clogged avenues in eastern Caracas, chanting “Get out,
Maduro” and “Guaido, Presidente,” while waving national flags. Police fired
tear gas to disperse protesters in several areas, after a rally on Tuesday
evening left a reported four people dead.
The 35-year-old Guaido has
energized the opposition with a campaign to declare Maduro a usurper after
elections last year widely regarded as fraudulent, and has promised a
transition to a new government in a nation suffering a hyperinflationary
economic collapse.
“I swear to assume all the
powers of the presidency to secure an end to the usurpation [by Nicolás
Maduro],” said Guaido, recently elected head of congress, before an exuberant
crowd.
Almost immediately, the U.S.
threw its lot in with the new government. Mr. Trump said he would recognize Mr.
Guaido as the legitimate ruler. His VP, Mike Pence, made the remarkable claim
that the Venezuelans were funding the refugee caravan headed to the U.S.
border…
Piling on, gratuitously and
comically, Senator Rick Scott of Florida, says Venezuela should be designated a
terrorist state and its president, Nicolás Maduro, “is clearly a terrorist.”
What makes consensual
democracy tolerable – barely – is the consensual part, not the democracy.
Even the most incompetent,
ignorant jackass can get himself elected, as proven often and illustrated
widely. Then, the aspiring, ambitious leader tries to dump the “consensual”
part as soon as possible.
Hitler did it with his
Enabling Act of 1933. Chávez began a series of enabling acts and constitutional
reforms soon after he was elected.
By 2010, the
nationalizations, price controls, and deficits were already battering the
little guys. But by then, the need for consensus was gone. Chávez and his
successor, Maduro, could do pretty much whatever they wanted… up to a point. That
point may have been reached yesterday.
Comments
Voters who wanted
“free stuff” destroyed Venezuela in 1998 and the clean-up will be expensive and
messy. There is a long line of creditors
with grievances. Exxon Mobile lost its
equipment and property when Chavez nationalized the oil business. Wall Street wants their unwise $50 billion
loan repaid. Neighboring countries want Venezuelan refugees to go home.
On the other side,
China and Russia want their $50 billion loans repaid and will not leave
Venezuela until this is resolved. They are currently repaying these loans to
themselves with Venezuelan oil.
If the Venezuelan
government can be restored, it will need to resurrect the legislature and the
courts that were disbanded. Elections will need to be held to comply with the
Venezuelan Constitution. The Military will need to be purged and reconnected to
the government. The government will need to contend with lots of issues. Loans
will need to be renegotiated. The Private Sector will need to be restored. Property Rights and the Rule of Law will need
to be restored. Socialism will need to be replaced by free markets.
There are 16 Political
Parties in Venezuela to ensure chaos. There should be no more than 3 political
parties to choose from. Nationalization of industries should be prohibited and
the Communist Party should be outlawed. The role of the central government
should be severely limited to ensure maximum economic and personal freedom.
The humanitarian
crisis part of this restoration will need to be funded by cutting back on the
military and bureaucracy and opening soup kitchens. Farmers will need to be
paid for their produce. Socialist Regulations will need to be gutted. The US
and other friendly nations should increase their imports from Venezuela until
their economy is functioning.
The economic
restoration part will require capital.
Exxon Mobile may need to join the Chinese and Russians to restore the
oil business. Unraveling Socialism can take decades dedicated to increasing
production and ending corruption.
Norb Leahy, Dunwoody
GA Tea Party Leader
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