Venezuela has an inflation problem. It ran up debt and printed money to cover the debt. The money printing caused inflation.
It is also a Communist country and that severely limits investment and trade. There is no private sector to create wealth. As a Communist country, they are limited to trading with Communist-Friendly countries like Russia China and Biden to sell their oil.
Debt to GDP is 260%. Their Trade Deficit is $5B. Imports include food and manufactured goods. Exports include crude oil sold to Biden. China is buying oil from Russia to support its war with Ukraine, Iran is selling oil to everybody to support its terrorist proxies attacking Israel and the tankers shipping goods through the Suez Canal.
Migrants fleeing Venezuela have stressed its neighbors resources.
Those who have remained in Venezuela can look forward to Biden being replaced by Trump in 2024. This will eliminate their oil exports to Biden. This puts pressure on China to become the primary customer for Venezuela’s oil.
Venezuela has no hope of reducing its Debt to GDP or its Inflation. The pipedream of Venezuela becoming the Saudi Arabia of South America is dead.
Venezuela is living on charity. Communist-Friendly NGOs are raising money for Venezuela.
Most observers cite anti-democratic governance, corruption, and mismanagement of the economy as causes of the crisis. Others attribute the crisis to the socialist nature of the government's policies, and the use of these policies to maintain political power.
I blame the voter of Venezuela who voted for “Free Stuff” and elected Chavez in 1999.
Norb Leahy, Dunwoody GA Tea
Party Leader
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