Sunday, August 5, 2018

Venezuela is Unsustainable


Venezuela's Maduro Admits Socialist Model Has Failed, by Tyler Durden, 8/2/18,


Venezuela's President Nicolas Maduro admitted that his socialist economic model has "failed" amid food and medicine shortages as well as a failing infrastructure highlighted by Tuesday's power failure to 80% of Caracas.

Compounding matters is the IMF's Weimar-topping hyperinflation forecast of 1,000,000% by year end, and a GDP set to plummet 18% this year, as the government continues to simply print money to in hopes of filling the void of what was once the country's economy.

"The production models we've tried so far have failed and the responsibility is ours, mine and yours," Maduro told his ruling PSUV party congress. "Enough with the whining... we need to produce... we need to make Venezuela an economic power." "No more whining, I want solutions comrades!"

Venezuela's socialist government has nationalized a wide swath of industries across the country over the past several years, such as steel and cement plants, food processing, distribution and more. In order to try and control inflation, the country has fixed prices on various goods while imposing tight regulations surrounding foreign exchange.

Maduro plans to increase oil production to "six million barrels a day by 2025 or before," amid a crash in output from a high of 3.2 million barrels a day in 2008 to just 1.5 million this year, a 30-year low. Venezuela's crude oil sales comprise approximately 96% of the country's revenue.


Comments

Socialism is unsustainable. The kind of politicians who run for elections in socialist countries is simply rearranging the deck chairs on the Titanic. Even with all the oil and gas reserves, Venezuela was unable to sustain a socialist government.  Chavez was not competent to run Venezuela’s finances. Maduro and his lieutenants were not competent to run their oil and gas business to pay down Chavez’ debt.

Norb Leahy, Dunwoody GA Tea Party Leader  

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