Chronicles in Socialist Success Stories - Venezuela Endlessly Circles the Drain

[maxparrish]

What makes Venezuela a source of endless amusement (and tragedy) is that unlike most of the under-developed world of statist economics, the agony seems insoluble. The military has been purged and is completely loyal to the Chavesta's, so the usual coup is not an option. The economy's disastrous welfare-state socialism will always have a major stipend in oil money and payoff in enough votes, keeping at the country on endless life support - the economic body is barely alive and in agony, but otherwise brain dead.

The toilet paper is gone, soon to be followed by what remains of the international reserves. Its currency is imploding:

http://blogs.barrons.com/emergingma...as-bolivar-weakens/?mod=yahoobarrons&ru=yahoo

Russ Dallen, who contributes to a newsletter for investors, and writes about Latin America, writes today that “Venezuela’s situation continues to unravel at increasing speed as the bolivar tumbled 30% over just the last week, while the country’s international reserves simultaneously hit a new 12-year low, closing at $17.5 billion.” He says the weak currency and decline in reserves means the country is “essentially running on fumes.” He writes:

“Venezuela’s reserves have now fallen 21% since the beginning of the year, but more importantly $6.7 billion from their high just 2 months ago – a high that not only included $2.8 billion from mortgaging Citgo, $1.9 billion from the selling of $4 billion of oil receivables from the Dominican Republic, and the transfer of previously unreported China Fonden funds into the reserves.”

Moody's view is equally pessimistic:

http://blogs.barrons.com/emergingma...still-possible-despite-imf-money-moodys-says/

We believe the sovereign will likely be able to close its 2015 external funding gap. Nevertheless, should oil prices remain at current levels through 2016, the sovereign could run down its external assets, heightening the probability of a default despite the authorities’ strong willingness to meet debt payments…

Total international reserves have fallen steeply in recent months, to $17.9 billion in mid-May, their lowest level since 2003.

Is the narco socialist experiment great or what?

 

[Tom Sawyer]

Is the narco socialist experiment great or what?

Well, it wasn't real socialism.

 

[Nice Squirrel]

Is the narco socialist experiment great or what?

And by "narco", you mean "petro".

 

[dismal]

I think we know who's responsible:

Show

 

[untermensche]

Obviously, like their austerity measures in Europe, capitalists aren't alone in the ability to make a bad situation worse.

 

[maxparrish]

Is the narco socialist experiment great or what?

And by "narco", you mean "petro".

Okay, I mean narco-petro socialism:

http://www.wsj.com/articles/venezue...ng-country-into-global-cocaine-hub-1431977784

A leading target, according to a Justice Department official and other American authorities, is National Assembly President Diosdado Cabello, considered the country’s second most-powerful man....

“There is extensive evidence to justify that he is one of the heads, if not the head, of the cartel,” said the Justice Department official, speaking of a group of military officers and top officials suspected of being involved in the drug trade. “He certainly is a main target.”

Representatives of Mr. Cabello and other officials didn’t return phone calls and emails requesting comment. In the past, Venezuelan authorities have rejected allegations of high-ranking involvement in the drug trade... Mr. Cabello said he solicited a court-ordered travel ban on 22 executives and journalists from three Venezuelan news outlets that he has sued for publishing stories about the drug allegations earlier this year. “They accuse me of being a drug trafficker without a single piece of evidence and now I’m the bad guy,” Mr. Cabello said. “I feel offended, and none of them even said they’re sorry.”

The Obama administration isn’t directing or coordinating the investigations, which are being run by federal prosecutors who have wide leeway to target criminal suspects. But if the probes result in publicly disclosed indictments of Mr. Cabello and others, the resulting furor in Venezuela would likely plunge relations between the two countries into their most serious crisis since the late populist Hugo Chávez took office 16 years ago.
“It would be seismic,” said a U.S. official, of the expected Venezuelan reaction. “They will blame a vast right-wing conspiracy.”

U.S. authorities say they are far along in their investigations. ...

The investigations are a response to an explosion in drug trafficking in the oil-rich country, U.S. officials say. Under pressure in Colombia, where authorities aggressively battled the drug trade with $10 billion in U.S. aid since 2000, many Colombian traffickers moved operations to neighboring Venezuela, where U.S. law-enforcement officials say they found a government and military eager to permit and ultimately control cocaine smuggling through the country.
“Most of the high-end traffickers moved to Venezuela in that time,” said Joaquín Pérez, a Miami attorney who represents key Colombian traffickers who have acknowledged operating out of Venezuela....

Mildred Camero, who had been Mr. Chávez’s drug czar until being forced out abruptly in 2005, said Venezuela has “a government of narcotraffickers and money launderers.” She recently collaborated on a book, “Chavismo, Narcotrafficking and Militarism,” in which she alleged that drug-related corruption had penetrated the state, naming more than a dozen officials, including nine generals, who allegedly worked with smugglers. ,,,

 

[untermensche]

What advise do we have to raise Venezuela to the thriving economy of say capitalist Mexico?

Everybody's doing great there, right?

 

[dismal]

What advise do we have to raise Venezuela to the thriving economy of say capitalist Mexico?

Everybody's doing great there, right?

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

 

[Jimmy Higgins]

Am I the only one who doesn't understand why these posts keep popping up? Yes, Venezuala has serious economic issues. Money was squandered, external investment gone. It seems like an extrapolation is being attempted... see! Socialism is bad... therefore minimum wage in the US is bad.

What advise do we have to raise Venezuela to the thriving economy of say capitalist Mexico?

Everybody's doing great there, right?

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

Wouldn't that be 1920's United States? Capitalism run amok that is, not being run by the oil magnates.

 

[dismal]

Am I the only one who doesn't understand why these posts keep popping up?

I always wonder why whenever a thread about Venezuela pops up some people always pop up in that thread to question why anyone would talk about Venezuela.

 

[Nice Squirrel]

Am I the only one who doesn't understand why these posts keep popping up?

I always wonder why whenever a thread about Venezuela pops up some people always pop up in that thread to question why anyone would talk about Venezuela.

Not as much as how silent it is when I talk about capitalist countries like the Central African Republic, Bolivia, East Timor, etc...

 

[dismal]

I always wonder why whenever a thread about Venezuela pops up some people always pop up in that thread to question why anyone would talk about Venezuela.

Not as much as how silent it is when I talk about capitalist countries like the Central African Republic, Bolivia, East Timor, etc...

I almost started a thread on Botswana once but I figured people would just show up and say "why are you talking about Botswana."

 

[arkirk]

Not as much as how silent it is when I talk about capitalist countries like the Central African Republic, Bolivia, East Timor, etc...

I almost started a thread on Botswana once but I figured people would just show up and say "why are you talking about Botswana."

Come now, children; let's quit arguing about which is the worst country in the world and needs to be taken down next! This is all a matter of seeing who can muster the greatest U.S. hubris toward those countries run by people who are not WHITE. I am always amazed at how little magnanimity is available toward people trying to find their way through problems that often date back to neoliberal domination. That is the case in every country both of you are taking shots at.

 

[untermensche]

What advise do we have to raise Venezuela to the thriving economy of say capitalist Mexico?

Everybody's doing great there, right?

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

I thought socialism was nationalization of production?

The nationalization of resources is just wise and fair.

But of course some oppose those things.

 

[dismal]

.

I almost started a thread on Botswana once but I figured people would just show up and say "why are you talking about Botswana."

Come now, children; let's quit arguing about which is the worst country in the world and needs to be taken down next! This is all a matter of seeing who can muster the greatest U.S. hubris toward those countries run by people who are not WHITE. I am always amazed at how little magnanimity is available toward people trying to find their way through problems that often date back to neoliberal domination. That is the case in every country both of you are taking shots at.

Botswana's not bad. Botswana kicks ass.

- - - Updated - - -

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

I thought socialism was nationalization of production?

The nationalization of resources is just wise and fair.

But of course some oppose those things.

You mean like anarchists?

 

[untermensche]

.

Come now, children; let's quit arguing about which is the worst country in the world and needs to be taken down next! This is all a matter of seeing who can muster the greatest U.S. hubris toward those countries run by people who are not WHITE. I am always amazed at how little magnanimity is available toward people trying to find their way through problems that often date back to neoliberal domination. That is the case in every country both of you are taking shots at.

Botswana's not bad. Botswana kicks ass.

- - - Updated - - -

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

I thought socialism was nationalization of production?

The nationalization of resources is just wise and fair.

But of course some oppose those things.

You mean like anarchists?

We are miles from Anarchism.

All that is possible presently is to try to make capitalism less destructive.

We are losing that battle.

 

[Jimmy Higgins]

Am I the only one who doesn't understand why these posts keep popping up?

I always wonder why whenever a thread about Venezuela pops up some people always pop up in that thread to question why anyone would talk about Venezuela.

Only if that was all I had posted. Jesus fucking Christ, look up the term "rhetorical question" will you?!

 

[dismal]

.

Botswana's not bad. Botswana kicks ass.

- - - Updated - - -

Perhaps a country that hasn't been run by oil industry nationalizing socialists for most of the last century would be a better example of capitalism run amok?

I thought socialism was nationalization of production?

The nationalization of resources is just wise and fair.

But of course some oppose those things.

You mean like anarchists?

We are miles from Anarchism.

All that is possible presently is to try to make capitalism less destructive.

We are losing that battle.

Since we are miles from anarchism anarchist love nationalizing things. No question mark.

 

[dismal]

I always wonder why whenever a thread about Venezuela pops up some people always pop up in that thread to question why anyone would talk about Venezuela.

Only if that was all I had posted.

Yes, if only. Or only if. If you will.

 

[Loren Pechtel]

Am I the only one who doesn't understand why these posts keep popping up? Yes, Venezuala has serious economic issues. Money was squandered, external investment gone. It seems like an extrapolation is being attempted... see! Socialism is bad... therefore minimum wage in the US is bad.

They keep popping up because some of our far-left residents used to keep crowing about how Venezuela was doing. There isn't a direct reference to the old stuff because that would class as calling-out and be edited.