International Venezuela, The Socialist Dystopia, v2: The region's worst humanitarian crisis in decades

Talked to my buddy today, told me he developed a skin condition and that they are more afraid of a pandemic than starving.

Government already stopped maintaining basic sanitation and drains are clogged, there is no medicine and if you manage to get medicine in the black market there is no doctors so you need to figure out what exactly do you have.

He said he has a skin condition that he thinks he got from working at a Maracaibo Lake oil rig, they werent given soap so they had to wash their cloths with just water so he was always covered in oil and the water was dirty to.

20 years ago a 40" flat screen television was so expensive that only rich people on MTV Cribs had them. A 40" television cost as much as a luxury car and more than some homes. Today a 40" television costs the same as a dinner and a movie for a couple.

CAPITALISM > communism
 
I dont enjoy seeing people ditch their home land because of failures made.

Stay and rebuild the right way.

I couldn't see Americans showing up at others doorsteps, they would rebuild right where there were
 
But muh 2015 stats are still relevant @Possum Jenkins

EDIT

Not only is Venezuela completely broke, is also massively into foreign debt.

https://www.reuters.com/article/us-...0-billion-debt-default-showdown-idUSKBN1HP2E5

And you know when the regime fails the first thing the new government will do is try to pay up the debt, which of course will make people call it "neoliberalism" @Pupi.

Muh 2016 stats are of well being and development, not inflation.

Do you ever get tired of being dishonest? And no, doubling and tripling down on it doesn't make it better.
 
Muh 2016 stats are of well being and development, not inflation.

Do you ever get tired of being dishonest? And no, doubling and tripling down on it doesn't make it better.

Yeah, because money isnt related to well-beign and development. I wonder if you would accept "monopoly money" from your employer instead of USDs.
 
Yeah, because money isnt related to well-beign and development. I wonder if you would accept "monopoly money" from your employer instead of USDs.

They're related doesn't mean they're the same thing.

The 2016 stats for actual well-being and development have them ahead of most Latin American countries no matter how many times you rehash and re-re-rehash your arguments with different words. Sorry.
 
They're related doesn't mean they're the same thing.

The 2016 stats for actual well-being and development have them ahead of most Latin American countries no matter how many times you rehash and re-re-rehash your arguments with different words. Sorry.

Again, try living without money and see how it goes.

And no, its not a rehashing, and you speaking from your ivory tower in a first world country where you earn money that its actually worth something its not only ignorant, its insulting.

Minimum wage in Venezuela is roughly 5 million Bs a MONTH

http://www.portafolio.co/internacional/maduro-anuncio-aumento-del-salario-minimo-en-venezuela-518295

A USD goes for 3.5 million Bolivars. Yup, its 3.5million Bolivars per USD, that means the minimum wage is USD$1.42 a month, thats a nickel a day. Please tell me how great Venezuela is when employed people earn a nickel
a day.

Go ahead and tell me that money isnt everything.

EDIT

Here is what my buddy sent me in a message yesterday.

Despues de pensar mucho en mis opciones, a lo largo del año voy a tener muchos gastos ya que me di cuenta que la unica forma de sacar los papeles que ocupo es pagandole a los del gobierno para que me dejen sacarlos (aparentemente la razon del porqué las paginas para sacar documentos y apostillar no funcionan es porque ese es su negocio, solo ellos pueden entrar)
para esto pensé en trabajar por internet, es algo que ya habia estado haciendo
con eso me mantenia despues de dejar mi trabajo en el taladro petrolero
pero el internet que tenia murio, y el que tengo ahora no sirve para eso
de echo el internet que traigo ahora mismo es un wifi de una compañia que queda no muy lejos de mi casa
y en fin, no tengo forma alguna de hacer dinero sin un internet decente y ese es un problema que tengo que solucionar lo mas pronto posible
saco el tema ahora mismo porque ya ayer me frustré demasiado
tratando de abrir unas miseras paginas para poder realizar trabajos
y fue imposible
aqui hay empresar que ofrecen servicios de internet, empresas privadas pero solo cobran en dolares
vendria necesitando un aproximado de 400dlrs para comprar lo necesario
y en esos 400 tambien estoy agregando comida y medicinas que no pude comprar la semana pasada por tener un precio demasiado exagerado, pero en fin
mi objetivo es conseguir internet, seguir trabajando en eso y poder mantenerme lo suficiente mientras ahorro para irme a otro lado
pero necesito llegar a esa meta, si puedes hacer un gofundme ps supongo que no tendria mas opcion, aunque no se que tan bien funcione eso
si logro poner un internet bueno espero ya no tener que pedir(edited)
otra cosa, no necesariamente necesitan conseguir los 400 completos
yo por mi parte voy a seguir buscando opciones y seguiré vendiendo cosas de ser necesario
esto es en lo que pude pensar, honestamente no se me ocurre nada mas
hay me dices lo que piensas, y perdon por enviarte todo ese muro de texto
 
IF the Venezuelan socialists did __________, this all would have been averted and the country would have been an utopia.

So sad they did do ____________.
 
Again, try living without money and see how it goes.

And no, its not a rehashing, and you speaking from your ivory tower in a first world country where you earn money that its actually worth something its not only ignorant, its insulting.

Minimum wage in Venezuela is roughly 5 million Bs a MONTH

http://www.portafolio.co/internacional/maduro-anuncio-aumento-del-salario-minimo-en-venezuela-518295

A USD goes for 3.5 million Bolivars. Yup, its 3.5million Bolivars per USD, that means the minimum wage is USD$1.42 a month, thats a nickel a day. Please tell me how great Venezuela is when employed people earn a nickel
a day.

Go ahead and tell me that money isnt everything.

EDIT

Here is what my buddy sent me in a message yesterday.

Despues de pensar mucho en mis opciones, a lo largo del año voy a tener muchos gastos ya que me di cuenta que la unica forma de sacar los papeles que ocupo es pagandole a los del gobierno para que me dejen sacarlos (aparentemente la razon del porqué las paginas para sacar documentos y apostillar no funcionan es porque ese es su negocio, solo ellos pueden entrar)
para esto pensé en trabajar por internet, es algo que ya habia estado haciendo
con eso me mantenia despues de dejar mi trabajo en el taladro petrolero
pero el internet que tenia murio, y el que tengo ahora no sirve para eso
de echo el internet que traigo ahora mismo es un wifi de una compañia que queda no muy lejos de mi casa
y en fin, no tengo forma alguna de hacer dinero sin un internet decente y ese es un problema que tengo que solucionar lo mas pronto posible
saco el tema ahora mismo porque ya ayer me frustré demasiado
tratando de abrir unas miseras paginas para poder realizar trabajos
y fue imposible
aqui hay empresar que ofrecen servicios de internet, empresas privadas pero solo cobran en dolares
vendria necesitando un aproximado de 400dlrs para comprar lo necesario
y en esos 400 tambien estoy agregando comida y medicinas que no pude comprar la semana pasada por tener un precio demasiado exagerado, pero en fin
mi objetivo es conseguir internet, seguir trabajando en eso y poder mantenerme lo suficiente mientras ahorro para irme a otro lado
pero necesito llegar a esa meta, si puedes hacer un gofundme ps supongo que no tendria mas opcion, aunque no se que tan bien funcione eso
si logro poner un internet bueno espero ya no tener que pedir(edited)
otra cosa, no necesariamente necesitan conseguir los 400 completos
yo por mi parte voy a seguir buscando opciones y seguiré vendiendo cosas de ser necesario
esto es en lo que pude pensar, honestamente no se me ocurre nada mas
hay me dices lo que piensas, y perdon por enviarte todo ese muro de texto

Tripling and quadrupling down will do nothing.

Venezuela has serious problems = inarguable

Venezuela is still better off than most Latin American countries = inarguable. (I got anecdotes to match yours' as well, btw)
 
Venezuela is still better off than most Latin American countries = inarguable. (I got anecdotes to match yours' as well, btw)

National minimum wage = not an anecdote.

Black market USD rate = not an anecdote.

Its not quadrupling, its not using anecdotes, i posted a newspiece showing the minimum wage of Venezuela as of now 5 million Bs. I also posted a dollar-Bs exchange site.

Its a FACT, that the minimu wage of Venezuela is 1.5 USD a month, and considering that 90% of the consumer products in Venezuela are imported you can easily see that there is no fucking way there is any nation that its in a worse state than Venezuela.

Again, you could live in Switzerland for all i care, if you only have $1.5 USD to go for a month you may as well be living in Norway or Uganda, your life is going to be shitty as f.

I can do more than a Venezuelan does a month by begging in the streets in any latin american country in a single day.
 
Venezuela has it shitty- another great discovery by Rod.

But if you want to argue that it's literally the worst on Earth, it's going to take a lot more. Mostly because Venezuela was doing well before.

In fact, most of the hyperinflation cases in the world aren't in the truly miserably poor countries. They've mostly taken place in Eastern Europe and Latin America

5057996aeab8ead83b000000-750-462.jpg


http://www.businessinsider.com/wors...story-2013-9#nicaragua-june-1986-march-1991-9

And if you're wondering, Venezuela would be #4 here, since their monthly inflation rate is calculated (by the ultra-right Cato Institute) to be at 167%

https://www.forbes.com/sites/steveh...the-imf-and-the-financial-press/#13fbd654103c
 
Venezuelan-Canadians are shocked and couldn't figure out why the Canadian government is denying visas for Venezuelan applicants who wants to come "visit".

Like, seriously? :rolleyes:

Venezuelan Canadians sound alarm over soaring visitor-visa refusal rates
Michelle Zilio | July 11, 2018

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Gabriela Prada, a doctor who lives in Gatineau, Que. says Canada's immigration system is discriminating against Venezuelans.

Venezuelan Canadians say family members hoping to visit Canada have been unfairly caught up in a soaring refusal rate for visitor visas, calling the federal government’s decision to deny them the necessary travel documents discriminatory.

It has become increasingly difficult in the past few years for people from abroad to visit Canada, according to a recent analysis of federal immigration data by The Globe and Mail. Statistics show the visitor visa refusal rate (excluding student visas) skyrocketed from 18 per cent of applications from all countries in 2012, to 30 per cent in early 2018. While the highest refusal rates are clustered in Africa and the Middle East, Venezuelan Canadians are now sounding the alarm over a similar trend in their home country.

The monthly number of rejected visitor-visa applications from Venezuela has more than doubled since the South American country started tumbling into a political and economic crisis. The Canadian government refused 216 visitor-visa applications from Venezuela in November, 2016; that number shot up to 468 in March, 2018. Although the refusal numbers fluctuated during that time – peaking at 634 in June, 2017 – the increase has been steady.

Gabriela Prada, a Venezuelan Canadian who lives in Gatineau, said she was shocked when Canada denied her mother and sister visitor visas this year, citing concerns they would not return to the deteriorating political situation in Venezuela. Ms. Prada said her family members were hoping to attend her daughter’s high-school graduation, with full intentions of returning to Venezuela after their visit – as they always have during prior visits to Canada. She insists they are legitimate travellers targeted by a discriminatory visa policy.

“They [the Canadian government] are penalizing people. They are treating everybody exactly the same,” Ms. Prada said. “What they are saying is because you live in this place, we are rejecting you.”

The federal Immigration Department said there have been no visa-policy changes for Venezuelan nationals. Spokeswoman Béatrice Fénelon said visa applications from around the world are assessed equally against the same criteria, including the purpose of the person’s trip, their economic situation and the stability of their home country.

“All applicants are given the opportunity to present their case by providing documentary evidence and any other relevant information to support their application,” Ms. Fénelon said in a statement. “Unless the officer is satisfied that the applicant is a genuine visitor, a TRV [temporary resident visa] cannot be issued.”

Alessandra Polga, a Toronto-based Venezuelan activist, said the increase in visa refusals contradicts Canada’s tough stance on the crisis in Venezuela. Foreign Affairs Minister Chrystia Freeland has issued numerous strongly worded statements condemning the role of President Nicolas Maduro’s regime in the deteriorating situation and slapped economic sanctions against dozens of Venezuelan officials.

Conservative immigration critic Michelle Rempel, whose Calgary riding is home to a large Venezuelan community, said a number of Venezuelan Canadians have approached her with similar complaints about visa refusals for family members. She said those applications were also rejected over concerns the individuals would not return to Venezuela, despite never having overstayed their visas in the past.

Ms. Rempel said the Venezuelan visa issue raises a larger concern about the Liberal government’s immigration policies, which have been gripped by a surge in asylum seekers crossing illegally into Canada along the U.S. border over the past year.

“If the government is making decisions saying that there is political instability [in Venezuela] and people may be making asylum claims, then we have to start looking at why we are prioritizing asylum claims from people who have already reached the United States,” Ms. Rempel said.

“We’re starting to get into these more existential questions about who we’re excluding from the country and who we’re excluding in terms of being able to make asylum claims writ large.”

NDP immigration critic Jenny Kwan said the overall increase in visitor-visa refusals doesn’t bode well for Canada’s international reputation as an open and welcoming country.

 
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More Venezuelans denied entry to Canada as country's political, economic crisis deepens
Kathleen Harris, Tom Parry · CBC News · Posted: Jun 01, 2018

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Opponents of Venezuelan President Nicolas Maduro protest the previous day's presidential election which Maduro won, in Caracas, Venezuela, Monday, May 21, 2018

A Gatineau, Que. doctor says Venezuelans caught in a deepening political and economic crisis at home are being unfairly being denied travel visas to Canada.

Gabriela Prada said she hoped her sister and mother could visit to attend her daughter's graduation, but their visa applications were turned down. A letter explaining the rationale for her sister's refusal cited family ties to Canada and turmoil in her home country.

"Given the deteriorating social, economic and political situations in Venezuela, I am not satisfied that you are a bona fide visitor who will depart Canada by the end of any authorized stay," the letter reads.

Prada said that decision is inappropriate and runs counter to Canada's foreign policy position that joins other countries in condemning the escalating humanitarian crisis in Venezuela.

"It is good for Canada to endorse other countries, but at the same time, it discriminates (against) Venezuelans' applications to come to Canada. The policies do not seem in line to me," she said.

Prada said family members have come to Canada several times in past and have never abused their visa privileges. Her sister and mother have no intention of staying in Canada, she added.

Several countries, including Colombia and Brazil, have tightened border controls as desperate Venezuelans flee hyperinflation and the deep, lingering recession gripping the once-prosperous South American country.

Venezuela's collapsing economy has led to shortages of food and basic goods, high unemployment and rampant crime.

In April, Prime Minister Justin Trudeau called the situation a "humanitarian crisis" and a source of grave concern to Canada and the world.

Figures from Immigration, Refugees and Citizenship Canada (IRCC) provided to CBC News show the number of visa applications from Venezuelans has remained steady over the last few years — but the rejection rate has increased.

In 2016, there were 11,919 applications, with 9,220 approved, 2,683 rejected and 93 withdrawn — a rejection rate of about 22 per cent.

Last year, nearly half of the 11,640 applications were rejected. And in the first three months of 2018, more than 54 per cent of the 2,307 applications have been denied.

A spokesman for Immigration Minister Ahmed Hussen said each case is assessed on its merits in a fair manner.

"Visa applications are assessed on a case-by-case basis on the specific facts presented by the applicant in each case," said Mathieu Genest. "Decisions are made by highly trained visa officers in accordance with Canadian immigration law. Visa officers are independent decision-makers."

Visa officers consider many factors to determine if an applicant is a genuine temporary resident, including the person's ties to the home country, the purpose of the visit, the person's family and economic situation, the overall economic and political stability of the home country and the nature of invitations from Canadian hosts.

'Considerable concern'

Alex Neve, secretary general of Amnesty International Canada, said visa requirements are a serious barrier for people trying to flee their country to seek refugee status in other countries.

"It would be of considerable concern if Venezuelans who might otherwise be eligible for Canadian visas are being denied simply because there is an assumption that, due to the country's human rights crisis, individuals in general are less likely to leave Canada to return home and might instead claim refugee status," he said.

"This is a time for Canada to be ensuring that Venezuelans who require protection from human right violations obtain it, particularly given the strong stand that the Canadian government has taken with respect to the country's deplorable current human rights record."

According to data from the Immigration and Refugee Board, 1,240 refugee claims involving Venezuelans were referred in 2017. Of the cases finalized last year, 388 were approved and 106 were denied. In the first quarter of 2018, there were 287 cases of Venezuelans referred to the IRB. Of the cases finalized in that period, 100 were approved and 76 were turned down.

 
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Mexico's new leftist government will not intervene in Venezuela and Nicaragua crises
REUTERS | July 9, 2018

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MEXICO CITY (Reuters) - The next government of Mexico, led by leftist President-elect Andres Manuel Lopez Obrador, will not intervene in the internal affairs of other nations, such as crisis-ridden Venezuela and Nicaragua, the country’s future foreign minister said on Monday.

Mexico’s current administration has taken a lead in regional efforts to pressure socialist Venezuelan President Nicolas Maduro into restoring democracy in the South American country, and has worked closely alongside the United States to stem north-bound Central American migration.

However, incoming Foreign Minister Marcelo Ebrard said in a radio interview on Monday that Mexico would now adopt a hands-off policy toward other nations. Lopez Obrador, the landslide winner in the July 1 vote, is due to take office on December 1.

“Mexico will follow a respectful foreign policy of non-intervention...and right now, we don’t expect to abandon that policy,” he said.

“That does not mean that we’re not concerned about the situation in one country or another, in this case Venezuela. We’re going to look into it and see how we can design, or help contribute, in the best way.”

Ebrard added that the non-intervention policy would extend to Nicaragua, which has seen clashes between the government and protesters that have left hundreds of people dead.

In May, the Lima group of Latin American countries plus Canada issued a statement saying it did not recognize the legitimacy of Venezuela’s presidential election, which was held the day before amid criticism over alleged irregularities.

The Lima Group includes Peru, Argentina, Brazil, Mexico, Panama, Paraguay, Saint Lucia, Canada, Colombia, Honduras, Costa Rica and Guatemala.

https://www.reuters.com/article/us-...aragua-crises-incoming-minister-idUSKBN1JZ2BC
 
Facing Venezuela’s 1,000,000 percent inflation, Maduro pushes a quack remedy
Francisco Toro | July 26, 2018

2EYBVOZBKM2LJIY23IY3E5NWHA.jpg

A man uses a wad of bolivars to buy groceries in Caracas, Venezuela, on June 20​


Hyperinflation is to economics what leprosy is to medicine: a hideous, cruel ailment that used to be widespread but is now well understood, easy to prevent and trivial to cure. Like leprosy, hyperinflation used to be common but is now rare and feels anachronistic. In both cases, there’s just no excuse for failing to cure it: It’s 2018, and researchers long ago figured out its mechanisms, its causes and the right way to treat it. And yet, in a handful of wretched places, both afflictions hang on, their presence a stinging indictment of those in charge.

On Wednesday night, President Nicolás Maduro announced his plan to tame Venezuela’s brutal hyperinflation, which the International Monetary Fund says is on track to top 1 million percent this year. The president announced that our nearly worthless currency, the bolivar, is to shed five zeroes. From September, Venezuelans will get a new “sovereign bolivar” for each 100,000 of their old bolivars.

Maduro’s speech was notable mostly for what it lacked: namely, any minimally credible plan to address the actual causes of hyperinflation. The president hardly mentioned Venezuela’s gargantuan budget deficit or the runaway rate at which its Central Bank creates new money out of thin air to finance it.

The omission is baffling: Economists on the left, right and center all know that to stop hyperinflation you have to stop covering budget deficits with newly printed money. It’s because this finding is now universally accepted that hyperinflation has become so rare. Maduro, it seems, never got the memo.

What little Maduro did have to say about tax policy belied the depth of his ignorance. He announced a tax holiday for Venezuela’s importers: a policy that will deepen the government’s budget deficit and its need to keep creating new money. Reducing the government’s already decimated tax base further still will fuel hyperinflation, not curb it.

Maduro’s speech was deeply dismaying. Trying to fix hyperinflation by lopping five zeroes off the currency and giving importers tax breaks is like trying to treat a leprosy patient by bleeding him with leeches. The prescription isn’t just bizarrely outdated; it’s also just plain wrong.

If you haven’t lived through hyperinflation, it’s hard to grasp the level of economic chaos it can bring. For Venezuelans, receiving wages in bolivars is a little like getting paid with ice on a sweltering summer day: Your salary decays from the instant you get your hands on it. The moment they’re paid, Venezuelans run to the nearest store, desperate to turn what little income they get into anything that will hold its value. Fewer than 1 in 10 can afford enough to eat amid the economic chaos the bolivar meltdown has brought.

Price distortions have reached hallucinogenic extremes. Today in Venezuela, 2 million bolivars will buy you either a single cup of coffee or half a million gallons of gasoline. (The government hasn’t allowed gas prices to rise significantly for several years, even as most other prices go insane.)

None of this is normal. Venezuela’s is the first episode of hyperinflation in Latin America this century and one of the worst in modern history. While our inflation rate reaches seven figures this year, the second-highest inflation rate on Earth is just around 100 percent — in war-ravaged South Sudan. No other country has an inflation rate above 50 percent. Even Syria, in the middle of a disastrous seven-year civil war, is seeing prices rise just 25 percent a year.

America faced hyperinflation once: in the middle of its Revolutionary War, as a desperate Continental Congress tried to print more and more money to fight the British. France, too, amid the chaos of war following its revolution. Germany suffered the same fate after its defeat in World War I. Normally it takes a catastrophe of that kind of scale to set off hyperinflation. But Venezuela has faced no war, only a government so incompetent that its policies are just as destructive.

The spectacle of the Venezuelan government trying to think up “solutions” to the problem is equal parts painful and bizarre. After touting his nonsensical importer-tax holiday, Maduro stressed that the new bolivar will somehow be “anchored” to the petro, Venezuela’s phantasmagoric state-sponsored, oil-backed cryptocurrency.

But the petro has been an unambiguous flop for Maduro. It has gained virtually no credibility in the cryptocurrency community. Despite breathless propaganda claims, analysis of its public blockchain shows it has attracted close to zero interest from buyers amid numerous red flags of corruption in its development. Announcing that the new bolivar will be anchored to the petro amounts to anchoring Venezuela to a scam.

Or, worse, to a ghost. Because hardly any petros have ever been transacted. The market for petros is so illiquid, it can hardly be said to exist as a currency at all. Anchoring our money to the petro is like offering a homeopathic infusion to someone dying of leprosy.

With no serious fiscal or monetary reform on the horizon, and with the government spewing demonstrable nonsense in its redenomination announcement, the direction of travel is clear. Shedding a few zeroes will do nothing to curb the dizzying rate at which Venezuela’s money sheds its value. Our country is dying of monetary leprosy, and our doctor is a demonstrable quack.


Francisco Toro is a Venezuelan contributing columnist for Post Opinions and chief content officer of the Group of 50.
 
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Former Finance Minister: Maduro in denial over Venezuela hyperinflation
July 27, 2018

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Venezuela's President Nicolas Maduro holds a bank note of the new Venezuela's currency Bolivar Soberano (Sovereign Bolivar) as he speaks during a meeting with ministers at Miraflores Palace in Caracas, Venezuela July 25, 2018.

MARACAIBO, Venezuela (Reuters) - Venezuelan President Nicolas Maduro has refused to recognize the country’s hyperinflationary problem and has no plan to address it, a former finance minister, who served under the late socialist leader Hugo Chavez, said in an interview.

The South American nation’s annualized inflation topped 46,000 percent in June, and the IMF estimates it will surge to 1 million percent by the end of the year as the socialist economic system continues to unravel.

Maduro, who says his country is the victim of an “economic war,” this week said the government was cutting five zeroes off prices, a move that critics say will do nothing to rein in soaring prices or ease chronic shortages of food and medicine.

“Ending any hyperinflation requires a monetary program, Venezuela will not escape it through rhetoric,” said Rodrigo Cabeza, who during his term as minister led an effort to remove three zeros from the country’s currency.

“What the government needs to realize is that hyperinflationary situations are created by governments,” he said, adding that indicates the root problem is indiscriminate expansion of the money supply.

Cabeza was named finance minister in 2007, at a time when rising global oil prices were swelling the OPEC nation’s coffers and allowing Chavez to provide generous subsidies for the poor and to finance imports of consumer goods.

The 2014 collapse of oil prices left the country unable to maintain that system, with the economy in free fall and Venezuelans increasingly emigrating to escape the crisis.

Cabeza comments come in the run-up to a congress of the ruling Socialist Party that starts this weekend, in which Maduro has promised to discuss new measures to improve the economy.

“There is no professional management of Venezuela’s economic policy,” said Cabeza, who says he has distanced himself from the Socialist Party’s leadership.

Venezuela stopped publishing inflation figures three years ago. Maduro says opposition businesses leaders are arbitrarily increasing prices as a way of undermining his government.

https://www.reuters.com/article/us-...flation-former-finance-minister-idUSKBN1KH2ED
 
Op/Ed: Venezuela’s inflation will hit 1 million percent. Thanks, socialism.
by Megan McArdle | July 27, 2018

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According to the International Monetary Fund, by the end of the year, the annual inflation rate in Venezuela will reach 1 million percent.

A number like that is hard to grasp. Simply put, a candy bar that cost $1 today would cost $10,000 at the end of a year. Anyone in that position would understandably rush to spend the money right now, on anything that might possibly hold its value. Everyone else would too. The entire economy becomes a giant game of monetary “hot potato.” Saving or planning becomes a sucker’s game.

Venezuela is not exactly a struggling undeveloped country; it has the world’s largest proven oil reserves. How the heck did this happen?

There are two answers, one technical and one political.

The technical answer is that hyperinflations occur because the government wants to spend much more money than it is collecting in taxes — so much more that no one is willing to lend it the money to cover the deficit. Instead, the government uses the central bank to finance the deficit. That puts more money in the economy, but since it’s chasing the same number of goods and services, prices rise to soak up all the extra cash. Unless the government manages to close its budget deficit, it must print even more money to buy the same amount of stuff . . .

Rinse and repeat a few times, and the inflation rate starts running into many zeros. The end generally arrives in one of two unpleasant ways: The government decides to stop the madness and implement a strenuous reform program, or the currency becomes so utterly devalued that churning out more of it is pointless. By the end of its hyperinflation, Zimbabwe was printing bank notes that ran into the trillions.

But it’s not a secret that this is where hyperinflation ends. Why did Venezuela embark on the road to destruction? And why does the government stay on it while the citizenry slowly starves?

In a word, socialism. After his election as president in 1998, Hugo Chávez pursued an increasingly aggressive socialist agenda, one that continued under his 2013 successor, Nicolás Maduro. Chávez nationalized foreign oil fields, along with other significant portions of the economy, and diverted investment funds from PDVSA, the state-owned oil company, into vastly expanded social spending.

Unfortunately, Venezuela’s heavy, sour crude oil was unusually hard to get out of the ground. Continual investment was needed to keep it flowing. So was the expertise of the banished foreign owners and the PDVSA engineers Chávez had purged for opposing this scheme. Production plunged; the only thing that kept Venezuela from disaster was a decade-long oil boom that offset falling production with rising prices.

Then came the 2008 financial crisis that crushed global demand for oil, followed by the onrush of U.S. shale oil, driving prices down further. And no one would loan money to Venezuela that couldn’t be repaid in oil. Meanwhile, unwilling to admit that socialism had failed, Venezuela made a fateful turn to the central bank.

Now, one could say that this is not an indictment of socialism so much as the particular Venezuelan implementation of it. But it’s striking how the precarious economics of socialism, including hyperinflations, are tied to petroleum. Many of the notable hyperinflations in history were tied to the collapse of the Soviet Union. And the story of the Soviet collapse is also a story about oil.

Central planning had wrecked the Soviets’ grain production by the 1960s, and collectivized industry didn’t produce anything that the rest of the world wanted to buy, leaving the Soviets unable to obtain hard currency to import grain. Oil sales propped up the Soviets until the mid-1980s , when prices crashed as new sources of oil came online (sound familiar?). The Soviet leadership was forced to liberalize to rescue the economy. The U.S.S.R.’s collapse soon followed.

Socialism, in other words, often seems to end up curiously synonymous with “petrostate.” The new breed of socialists cites Norway as a model, but saying “we should be like Norway” is equivalent to saying “we should be a very small country on top of a very large oil field.”

Without brute commodity extraction, you need capitalist markets to generate a surplus to distribute, which is why Denmark’s and Sweden’s economies have more in common with the U.S. system than with the platform of the Democratic Socialists of America. And as both Venezuela and the Soviet Union show, even oil may not be enough to save socialism from itself.

 
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Possibly the most depressing report I've read this month :(
From Riches To Rags: Venezuelans Become Latin America’s New Underclass
Story by Anthony Faiola , Photos by Jahi Chikwendiu | July 27, 2018

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Free-spending Venezuelans once crammed store aisles in foreign countries famously uttering “dame dos” — “I’ll take two.” But the citizens of what was once South America’s richest nation per capita are now confronting a devastating reversal of fortune, emerging as the region’s new underclass.

As their oil-rich country buckles under the weight of a failed socialist experiment, an estimated 5,000 people a day are departing the country in Latin America’s largest migrant outflow in decades.

Venezuelan professionals are abandoning hospitals and universities to scrounge livings as street vendors in Peru and janitors in Ecuador. Here in Trinidad and Tobago — a petroleum-producing Caribbean nation off Venezuela’s northern coast — Venezuelan lawyers are working as day laborers and sex workers. A former well-to-do bureaucrat who once spent a summer eating traditional shark sandwiches and drinking whisky on Trinidad’s Maracas Bay is now working as a maid.

The U.N. refugee agency has called on nations to offer protection to the Venezuelans, as they did for millions of Syrians fleeing civil war. But in a part of the world with massive gaps in protection for refugees, Venezuelans fleeing starvation at home are often trading one harrowing plight for another. Trinidad, for instance, has no asylum laws for refugees, leaving thousands of desperate Venezuelans here at risk of detention, deportation, police abuse and worse.

Sometimes much worse.

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Luz, left, and another Venezuelan woman are victims of sex trafficking in Trinidad. The women are now staying in a safe house with the help of a nonprofit. “We are helpless. All because of the crisis,” Luz said.

Luz, a 21-year-old Venezuelan single mother, came to Trinidad by boat with two friends in May, trusting a man with a soft Caribbean lilt who claimed to be from a Christian group offering aid and resettlement. Instead, she said, the three women were taken to a house and beaten before being abused by what appeared to be a pornography ring. Each woman, she said, was filmed while being raped by a series of men.

“We are helpless,” Luz said. “All because of the crisis.” She and the other two women escaped and are now in the care of a Catholic charity. The Washington Post does not generally identify victims of sexual abuse.

Carolina Jimenez, a senior official with Amnesty International, said, “Venezuela’s unprecedented situation has turned a domestic human rights crisis into a regional human rights crisis.”

“Countries in the region are not prepared to take in so many migrants and do not have the asylum systems needed to prevent job exploitation and human trafficking,” she said. “These people should be protected, but instead they are being taken advantage of.”

From the 1950s through the early 1980s, Venezuela was an economic dynamo — a nation with the world’s largest oil reserves and a beacon for immigrants from as far away as Italy and Spain. Then oil shocks and currency crises plunged the country into turmoil.

Hugo Chávez, who became president in 1999, adopted a form of socialism that resulted in many businesses collapsing or being nationalized. A purge of the state-run oil industry — a center of opposition to his rule — removed thousands of workers, who were often replaced by political supporters with little to no technical experience.

Venezuela’s slide turned into a free fall under President Nicolás Maduro — a former bus driver and union leader who inherited power after Chávez’s death in 2013. Critics say his government’s mismanagement and corruption and Maduro’s own ruthless bid to cement power — even as oil prices tumbled — have broken the nation.

Wealthy Venezuelans have been fleeing their homeland for years, landing in multimillion-dollar homes in Miami and Madrid. But as the economic crisis escalates, those leaving now are increasingly destitute, including members of a crippled middle class. The United Nations projects 2 million Venezuelans will exit their nation this year — on top of an exodus of 1.8 million over the past two years.

Those with means and visas are still venturing to the United States, where Venezuelans now make up the single largest pool of asylum seekers. Far more often, escaping Venezuelans are finding themselves in Latin American and Caribbean nations.

But in a region where many already live on the margins of society, governments are making it harder for Venezuelan refugees to stay.

Last year, Panama slapped new visa requirements on Venezuelans. This year, Colombia ended a program that allowed tens of thousands of Venezuelans to circulate in its border area. Chile welcomed tens of thousands of Venezuelans who showed up at its land border in 2017. But in April, it threw up new hurdles, requiring them to have a passport — something the vast majority do not possess — and to apply for asylum through Chilean consulates in Venezuela rather than at the border.

The regulations are “leaving Venezuelans with no choice but to work for pennies in the informal sector while being extremely vulnerable to exploitation and a high level of abuse,” said Geoff Ramsey, a Venezuela expert at the Washington Office on Latin America, a think tank.


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Tens of thousands of Venezuelans fleeing to the Caribbean — where many island nations lack asylum laws — face particular challenges. Mary Anne Goiri, spokeswoman for Venex, an aid group on the island of Curacao, said Venezuelan migrants there were being brutally exploited. In one case, she said, a restaurant owner had been holding the cash savings of one of his undocumented Venezuelan workers. When the employee asked for her money back, the owner beat her and called the police to have her detained, Goiri said.

Up to 45,000 Venezuelans, aid groups say, have crossed the narrow straits in recent years to Trinidad and Tobago, a country of 1.4 million. As many as 160 a week are still making the trip.

Irregular migration is criminalized here, and Venezuelans who arrive on smugglers’ boats face possible detention and fines. In April, Trinidad sparked international condemnation following the deportation of 82 Venezuelans.

“We cannot and will not allow U.N. spokespersons to convert us into a refugee camp,” Prime Minister Keith Rowley said after the incident.

In Trinidad, diplomats and international agencies say, there is also evidence of a worrying trend: Desperate Venezuelans, particularly women, have become commodities to be bought and sold.

In Trinidad, the International Organization for Migration, a United Nations body, has received 23 suspected cases of trafficked Venezuelans in the past three months — compared with no Venezuelan cases last year, according to Jewel Ali, the organization’s local director.

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Fransielvis Perez, 23, background center, works as a waitress late into the night at a pub in Port-of-Spain, Trinidad.

They include victims like Luz — who said she lost one of her three children in April after the hospital in her Venezuelan town ran out of medication to treat her daughter’s bacterial infection. When she was approached to come to Trinidad, the offer seemed too good to be true.

“But I told myself, I’m going anyway. I’m not going to lose the chance for my kids to be better off just because I had some doubts,” she said.

The ordeal — five weeks spent captive and repeatedly filmed being raped — had “damaged” her, she said. At one point, Luz said, she and a friend were tied up and raped side by side.

“We were looking at each other,” Luz said, tearing up. “We would cry. And I would tell her, ‘Sister, be strong, you have a daughter.’ I would just keep repeating that.”

The case has been documented by the U.N. refugee agency as a potential act of trafficking. Alana Wheeler, head of Trinidad’s counter-trafficking unit, said authorities were looking into Luz’s case and could not comment on an active investigation.

In a telephone interview from a detention center for migrants in the Trinidadian town of Arima, a 34-year-old single father said he came ashore in November after selling his possessions to pay for passage. He was arrested in June. Although he produced his asylum documents from the U.N. refugee agency — which give him a legal right to remain in the country — a policeman demanded $700, he said.

“I told him I didn’t have the money, so they took my belongings, what money I had and detained me,” said the man, who spoke on the condition of anonymity for fear of reprisals from the Trinidadian authorities.

Dozens of Venezuelans are being held at the facility, he said. He said guards are serving food by throwing it to the floor and that he had witnessed several Venezuelan inmates being beaten. One migrant with advanced cancer, he said, is receiving no medical attention. No soap, shampoo or clean clothes are being provided, he said.

Guards, he said, routinely humiliate the Venezuelans.

“They tell us, ‘Go back to your country, or we’re going to make your life impossible,’ ” the Venezuelan said.

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In Venezuela, Jhohanna Mota, 42, and her family — which includes her sons, Miguel Fermin Mota, 14, and Carlos Fermin Mota, 13 — lived in a large house. Now they all share a single rented room in San Juan, Trinidad.

Aid groups have documented similar cases. “They are being mistreated in jail, especially the women,” said the representative of a group that helps Venezuelan migrants, speaking on the condition of anonymity for fear of retaliation from the Trinidadian government.

Trinidad’s Ministry of National Security denied allegations of police abuse and extortion in an email, and insisted that no registered asylum seekers were being detained.

For many Venezuelans, life in Trinidad amounts to a jarring turnaround. Jhohanna Mota, a 42-year-old former secretary from coastal Venezuela, studied English in Trinidad in the 1990s. She spent Sundays at the beach and evenings at the discos. In 2016 — with inflation soaring and food growing scarce in Venezuela — she opted to abandon her three-bedroom house to come back to Trinidad with her two sons.

But it has not gone as planned. She said she worked under the table in a bakery for a year, doing 8½-hour shifts for $20 a day. Then she got fired. “My boss didn’t want to employ an ‘illegal,’ ” she said. She tried to legalize her stay but said she was duped into paying $800 for a visa that turned out to be fake.

She now faces a hearing and potential deportation proceedings. In the meantime, she is supporting her boys as a house cleaner — and is at risk of arrest for working without a job permit.

“Every time I walk out my door, I know I could end up in jail,” she said, weeping as her two boys sat in the hall of the building where they all now sleep in one rented room. “I think, ‘What will happen to my boys? Why am I doing this? How did we get here?’ ”


Rachelle Krygier in Caracas contributed to this report.

https://www.washingtonpost.com/news...ericas-new-underclass/?utm_term=.669d1c1dc502
 
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I can't wait for Democrat Socialists to be elected in November.

We need more of what's happened in Venezuela, in America.
 
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