Great article from Forbes
Congratulations To Bolivarian Socialism: Venezuela's Maduro Now Blames Everyone But Himself
From the article:
Because, absent simply insane economic policies there’s absolutely no reason why this should have happened.
No, the oil price crash does not excuse it: the country ran out of toilet paper when oil was still over $100 a barrel. And ran out of most other things before that too: this is simply and purely the result of people who know nothing at all about how economies work getting their hands on the policy levers.
BOOOOOOOOOOOOOOOOOOOOOOOOOM
The ******* moron thinks OPEC picked on "Venzuela." Not on all of the other countries that drill and produce oil. Just Venezuela.
LOL.
He must have read something written by Sean Penn.
1. Venezuela has gone from being dependent on oil to being extremely dependent on oil.
Former minister
Gerver Torres points out that in 1998 oil represented 77 percent of Venezuela's exports but by 2011 oil represented 96 percent of exports. That means today only around 4 percent of the goods that Venezuela exports are non-oil products! The Venezuelan economy relies almost exclusively on the price of oil and the ability of the government to spend oil revenues. This will take years to reverse because of item two below.
2. The Chavez government has crippled private businesses and national industry through expropriations and nationalizations.
The Chavez government has expropriated or nationalized numerous companies (no one seems to be able to count them all) involved in various sectors including aluminum, cement, gold, iron, steel, farming, transportation, electricity, food production, banking, paper and the media. The number of private companies in industry has dropped from 14,000 in 1998 to only 9,000 in 2011, according to Torres.
Companies need investment to grow and hire new workers. One of the biggest failures of the Chavez government has been to drive away both domestic and foreign investors. In 2011 Latin America enjoyed a record of more than $150 billion in foreign investment with Brazil receiving $67 billion. Venezuela's neighbor Colombia received $13 billion while Venezuela received only $5 billion. To avoid expropriation and find investment a number of Venezuelan companies have moved to Colombia, Panama and the United States.
3. The Venezuelan currency is a mess.
The new currency, the Bolivar fuerte, is anything but strong. The Bolivar fuerte has lost nearly two-thirds of its value since it was launched in 2008. Many analysts expect Venezuela will have to go through a painful devaluation sometime this year or next. This will further reduce the value of wages and sharply increase the costs of imports of basic staple goods. Life will get tougher for most Venezuelans but Chavez probably won't be around to see it.
4. Prices in Venezuela have gone up by 23 percent a year for more than ten years.
Inflation in Venezuela has averaged 23 percent during 1999-2011 compared to a Latin American average of 4.6 percent. Imagine what life would be like if the price of groceries went up 23 percent every year. This craziness combined with stringent price controls has completely distorted the economy, creating black markets and shortages. In 2012 Venezuela will again have one of the highest inflation rates in the world.
5.Under Chavez Venezuela has become one of the most violent countries on the planet.
The murder rate per 100,000 citizens has risen from 25 in 1999 to 45.1 in 2011. This is not an economic stat per se but violence has an economic impact. It is more challenging and dangerous than ever to do business and go to work in Venezuela. When you consider these points, it's hard to call the economic legacy of Chavez and his band of 21st Century Socialists a good one.
As Chavez destroyed the richest economy in Latin America
How Socialism Has Destroyed Venezuela
The Facts about Venezuela
Why Hugo Chavez Was Bad for Venezuela
Now, trust me I know these articles and facts will not dent the mind of the pathetic left wing loser American socialist (the dumbest people on the planet and it is not close). Hope some of those help out.
OPEC?
Good Lord they are useless.