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djaggs wrote:More proof that socialism does not work. Never has, never will.
Venezuela crisis: Three killed at anti-government protests
At least three people have been killed in Venezuela in protests against the government of President Nicolas Maduro.
A teenager in the capital Caracas and a woman in San Cristobal, near the Colombian border, were shot dead.
A national guardsman was killed south of the capital.
Tens of thousands of people rallied to demand new presidential elections and the release of jailed opposition politicians. Mr Maduro accused the opposition of attacking police.
What happened?
Opposition groups had called on their supporters to take part in anti-government protests across the country on Wednesday.
In the capital, Caracas, tens of thousands marched towards the Ombudsman's office from different points in the city.
Some of the marches turned violent, with protesters throwing stones and members of the security forces firing tear gas and rubber bullets.
Tens of thousands of government supporters also gathered for a rival rally in Caracas at which President Maduro spoke.
djaggs wrote:More proof that socialism does not work. Never has, never will.
EmilioA wrote:VexXx Dogg wrote:Why did their economy crash? What can we learn from them?
Given that we are in such close proximity, what potential threats do we face?
I wouldn't venture into how we can help them, because our own economy is limping - we have to fix home first.
1. Venezuela is even more oil dependent than we are. For us Oil and NG contribute something like 60% of our revenue. For Venezuela it was closer to 90%. So falling prices hurt them more than us.
2. The real problem in Venezuela isnt nationalization as ZR is obsessed with, its the controls on currency, imports and prices. Take the example of toilet paper . Lets say its costs 90 cents to manufacture and market a single roll. Ok so you price it at 99 cents. Then over time thanks to a falling currency it becomes more expensive to make. Now its cost a full dollar to make and sell. ordinarily you raise your price to $1.10 but in Venezuela price controls mean you cant. Youre stuck at 99cents which is less than the cost of making it. So what do you do ? You stop making it becuase it now a loss.
Multiply that across the economy and suddenly industry seizes up. That was the situation last year with TVs and Washing machines selling for less than cost so they stopped making them.
3. Venezuela also has import controls , making it virtually impossible to import products which are also made domestically. So then cant even buy cheap Chinese sheit to offset the problem.
4. Finally the currency is fixed and overvalued ,so instead of serving as release valve its just keeps the pressure in resulting in runaway inflation as the currency becomes worthless.
zoom rader wrote:djaggs wrote:More proof that socialism does not work. Never has, never will.
It have a few clowns on here looking for proof. They most likely believe that government should be running businesses
The_Honourable wrote:How Chávez and Maduro have impoverished Venezuela
IT IS hard to convey the severity of Venezuela’s unfolding crisis. Its extent is astounding: the economy shrank by 10% last year, and will be 23% smaller than in 2013 by the end of this year, according to IMF forecasts. Inflation may exceed 1,600% this year. The human details are more poignant: over the past year around three-quarters of Venezuelans have lost weight, averaging 8.7kg per person, because of a scarcity of food. No war, foreign or civil, is to blame for this catastrophe. Venezuela did this to itself. And its woes are deepening, as the regime of President Nicolás Maduro lurches towards dictatorship. Fifty years ago, Venezuela was an example to the rest of Latin America, a relatively stable democracy and not much poorer than Britain. How did this tragedy occur?
Read more: http://www.economist.com/news/finance-a ... weight-how
tr1ad wrote:VexXx Dogg wrote:Why did their economy crash? What can we learn from them?
Given that we are in such close proximity, what potential threats do we face?
I wouldn't venture into how we can help them, because our own economy is limping - we have to fix home first.
learn from them?
if we people eh careful we would end up just like guyana or venezuela
granted in a very short time, guyana and suriname would be booming just as how trinidad once was
pete wrote:I read that part of the problem they faced and why they ran out of things like toilet paper is they only issued US to certain people.. black market went out of control so eventually the companies making toilet paper etc could make more money by just selling the US they were issued than buying raw materials to manufacture the toilet paper and sell.
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