A country that has 1,000,000% inflation, lack of jobs, price of basic commodities is changing everyday.
Drives of it’s citizens are fleeing to neighbouring countries in quest for survival.
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Zimbabwe ilifika hapo kweli?
It has happened before Germany in the 1920s and Zimbabwe in 2008
https://www.forbes.com/sites/garthfriesen/2018/08/07/the-path-to-hyperinflation-what-happened-to-venezuela
Venezuela suffered the worst from former President Obama targeted assault on oil prices to reign in Russian reemergence. USA as the biggest oil importer simply stopped importing oil and use its domestic supply. Saudi Arabia suffered until it forced a change at the monarchy. They later renegotiated with the usa, sold it soul and future to keep its status quo. Nigeria nearly went broke, economic growth dropped to -2 and they devalued its currency to a fraction of its value. Up to now they have forex shortfalls and any large forex outflows must be approved by government. A lot of companies have suffered including KQ as they have money stuck their they can’t get out. Smuggling of $$$ is rampant. Angola heavy petrodollar spending stopped dramatically. To meet obligations they start oil for loans with China. That’s how they survived but it led to the change at the top as well. Venezuela suffered the most, it had gone from a pure capitalist system to a social system for 15 years as government subsidies everything for its citizens. It could do so due to petrodollars. From food, water, power, education, healthcare, pension etc. The citizens lived well and spoilt. When oil tanked, government was forced to seize all subsidies and the people suffered quickly. Even worse usa started a currency warfare with them, blocking their banks access to international markets. The end result is millions of previous well to do citizens are suffering from hyper inflation. Diminished Treasury and a currency crash at the same time.
For a country that has the world’s largest oil reserves,its sad to see them on their knees. oil is the only game in town. It makes up over 95% of Venezuela’s revenue from its exports. If it doesn’t sell oil, the country doesn’t have money to spend. They’re running out of cash quickly. It doesn’t have enough money to pay its bills for too long. It owes $15 billion between now and the end of 2017, while the nation’s central bank only has $11.8 billion in reserves ’
just an overview of commodities cost:-
https://cdn.newsapi.com.au/image/v1/bc6e4a2c0ec6d10c4d7729217edd4ddehttps://cdn.newsapi.com.au/image/v1/083f6e5efe002e9e8cd64a5e11c2bf97https://static.euronews.com/articles/wires/04/29/81/58/602x338_with-inflation-soaring-venezuela-prices-shed-five-zeros.jpg
Maduro is incompetent.
Haha. I really laugh when I read your pro capitalist, pro uncle Sam comments.
The only reason Chavez is bad is the same Che and Castro are bad. They are against status quo.
Babylon will burn to the ground one day.
Iran is headed that way. With the currency value tanking 12.5% in a single day in July against the dollar, Iran is a time bomb waiting to happen. People in Venezuela are starting to use Bitcoin instead to get freedom from their government issued currency. Sadly, the government is cracking down on mining rigs and incarcerating bitcoin miners who could give freedom from the people.
At one time the richest country in South America. Niliona an ageing sickly couple wameweka banana na pumpkin peels ndio supper huko Caracas. Peels. Ni kubaya huko.
I was curious after I saw this story so I just finished doing some digging. And just like I suspected I encountered the term economic sanctions.
I knew it didn’t feel natural that a country can spiral downwards so fast without being in a war.
It will be interesting to watch what happens next.
Not socialism. There is a middle ground and good examples all over the world. Do you know how good free healthcare is? Or financial institution regulations, subsidies for low income earners, a living wage for all, etc.
It is not utopia my friend. It exists.
The you es places sanctions on any country which disagrees with their whims and policies. Weird considering that other countries have not risen against them over the years.
You speak from a point of privilege. Living wage should be universal. Imagine a grown up with family and kids earning $7 per hour. The problem with American capitalism and Kenyan capitalism is that there are human beings that cannot live a descent lives while others have excess. What does 1 human being need 1 Billion dollars for?
Tax the rich. As it is, I’m paying very high taxes, but I appreciate the benefits when I see my taxes being put to good use. I dont see why if a poor person is sick they should die because of lack of money. Poverty is not always a choice.
Did you support Obamacare ?
Ukichengwa, unaitikia, there is no reason why you should kwamilia and have your citizens suffer to prove a point. Kuwa kama Nyerere, alichengwa akawacha kiti
Are you a Republican? Coz these sound like republican taking points. And they are not genuine by the way. If you don’t believe in socialism then you shouldn’t support paying taxes towards the fire department or roads.
Shida ya Venezuela is they relied heavily on oil to run the country. Imported heavily so when the oil prices tanked it took the country with it.
Venezuela Debt to GDP ratio is much lower than Kenya.Ours is exactly the same as Argentina which is now in real trouble.
Purely failed socialist policy. Chavez partially meant good to subsidize the poor. But he based it on gas prices ,which fluctuate. And set up poor reserves for times when prices would be low. Those subsidies could not be met when gas prices fell. He also introduced price controls on basic commodity items eg flour. Problem is the prices of those commodities are below production costs. Local producers simply stopped making them.
Maduro then started printing money to offset the budget deficit once oil prices began to fall. Result is scaring off international lenders and began a cycle of inflation.
You go to Uni and there you’re being gouged by Sally Mae. Post secondary education should also be accessible to all. Inequality once again rearing its head. In Kenya, I am more likely to succeed because my parents took me to group of schools. My peers are not as fortunate. Should it be this way?
Socialism Cuban way is extreme. Go to Scandinavian countries. Ever heard of the Norwegian Sovereign fund? Look it up and see the benefits of high taxes.
American capitalism is exploitative and inhumane. We can have a good balance of both. Tax the rich, empower the poor and reduce the inequality.
Hapa enyewe venezuela wangetii tu economic sanctions ndio zinawamaliza
