I have looked at the economy in Venezuela for years. I say in 2014 that the government addiction to Oil would be the demise of the Venezuelan government. Venezuela needs a substantial amount of Oil revenue income. Required to have an oil price above $110 a barrel Currently the oil price is about $66 a barrel. It will not save the government that has crossed the point of no return with the official exchange rate to the US Dollar being 1:10 and the black market rate calculated through Bitcoin is 1:228,265.
This is very different from the 1:10 ratio versus the Venezuelan government has told it's populace. Many of the productive Venezuelans have fled the country. Leaving the state with less taxable income. The printing of Bolivares started after the drop in the government's primary source of income oil.
They had borrowed over $42B in USD denominated bonds, and as they started to print Bolivares to afford their expenses, the Bolivares Fuerte started to drop its value rapidly.
Obama issued an executive order as banks like Citibank have borrowed the Venezuelan government a lot of money that will never be paid back.
Venezuela has been struck with severe shortage issues in the economy due to the Government running imports and exports of goods. The population have lost over 20 pounds of weight. Drinking from gutters, eating zoo animals, firebombing sugar trucks and stoning animals to survive.
Venezuela has gone from being a great country to a national wide slum created by government regulation. If you don't believe me, see the video from some good friends @JeffBerwick, and Luke from We Are Change. They went to one of the murder capitals of the world Caracas, risked their lives to cover what was the start of the hyperinflation I predicted back in 2014.
With 8 of the top 20 cities in the world for murders per capita. Venezuela where the government policies made the country unsafe with the gun free zones and many other policies. We see this in St. Louis, Detroit, Baltimore and New Orleans. The bigger the government is, the more poor people become as the Government steals money from the populace.
When you hit great hyperinflation, there is nowhere back for the economy. Venezuela should just declare bankruptcy and get it over with. The major problems I mentioned above is the American banks that have borrowed a substantial amount of money to the Venezuelan Government. When the government become too big vs. the private sector, it always collapses, and this was the case in Venezuela. If you took away the Oil revenues, the government was one of the biggest ones in the world, except some communist countries like North Korea and Cuba.
I wrote in my book The End of Freedom: How Our Monetary System Enslaves Us that the Venezuelan Bolivar would either seize exists, be devalued or there would be civil war. The devaluation and hyperinflation are where we are right now. The government is bankrupt. Even though mainstream media and bankers say that they are not, but the proof is in the massive hyperinflation that has now taken a foothold with a point of no return.
https://www.amazon.com/End-Freedom-Monetary-prepperss-surviving-ebook/dp/B016SECTSW
The crisis of Venezuela will not stop until people remove the government, create Voluntaryist states where people can live in separate societies without aggressing against each other. Communists, Anarcho-Capitalists, Rewilders, Resource-Based Economies can live in peace and harmony. When you have a simple law, a NON-Aggression Principle so no one needs to attack each other. The straightforward rule of life. It is a lot more to it than that, but I will be writing about this in a post.
Nation states are recently struggling with overextension of debt and their size. They are a dying paradigm that is on the verge to be written about in the history books as a failed project among the many kingdoms in the past and current that are getting close to their endgame.
Maduro has destroyed millions of, and he is acting like a dictator having thugs threaten and kill any opposition to his regime. The US has recently said that a potential invasion might be on the books.
If this happens, it is just the regular US Empire agenda of replacing assets that have become liabilities with new assets until they become a liability again. This puppetry from the US government is just the game to expand their state further to uphold the rebellion against their falling US dollar.
We can only hope that Venezuela will fall without the US and other intervention. Like we slowly see with the North Korean dictatorship.
Please check the videos Josh and I have made the last years as well:
Peace, Love and Voluntaryism,
John
Thank you so much for spreading and speaking what we are currently living in our country. It's horrible, I do not wish anyone the same situation as we are living in. Thank you for being well informed and telling the reality.
Hang in there. We're thinking of all of you in Venezuela and we hope you can take this knowledge and become truly prosperous once again.
Do not be ignorant.
https://steemit.com/press/@ovni/steps-to-evaluate-the-news-or-any-other-information-you-find-on-the-internet
I will not give you my vote, but I leave you a reflection of nature.
That's very sad to read... N°1 oil reserves in the world.... And yet they have to import oil... In the other hand, the country has been bullied by the us badly because rejecting the petrodollar... Which at the end, is what keeps the US empire alive and away from defaulting its massive debt and becoming Venezuela 2.0
nice information about Venezuela... please see my last post, from Venezuela https://steemit.com/travel/@palmimusic/original-art-photography-series-by-palmimusic-3-unforgettable-trip vote if you like it
How about getting an interview with somebody from Venezuela? Ask the their perspective and what they wish they had when stuff went down.
Great idea. Any Venezuelans that have experienced what is going on currently will be greatly appreciates. Josh spoke with a guy in Vancouver Canada that fled the country before the hyperinflation hit.
what is their cost per barrel to produce oil?
As I recall there is a bit more to that. Venezuela produce heavy crude which only a small amount of refinery can process. The other option is they have to import US light crude to mix and sell. The refineries close by IIRC are either in USA or a USA joint venture so politics probably play a part too.
In Canada it is only $25 per barrel, probably the same.
It varies immensely, Canadian tar sand oil can cost more than $25 a barrel to produce. Venezuela about a dollar more than that, whereas here in the US we pay about $20 and in the Middle East they pay less than $10. At $65 they should be turning a decent profit, sad that their government is so corrupt.
Is there actually any no corrupt government no directed by banksters in the world?
Well, there's Bolivia, Iceland.... that's about it. Unless you include all those run by drug cartels. And N. Korea.
Good points. I don't recall anything about Bolivia, but I do remember Iceland and Greece went into financial difficulty at the same time. Here we are 10 years down the road. Greece is still asking for handouts. Iceland went through a few years of pain and now they are fine because they told the banksters "no thanks."
Bolovia had a bit of a revolution when an international company bought all water, including the rain, and that was the final straw so they elected an indigenous person as president and are no longer welcome foreign corporations or banks to do business there.
Thank you a very interesting article John. I've heard two sides of the Chavez story. One that is was a villain and the other that he was a great Venezuelan. Maybe the truth lies somewhere in the middle. I'm curious what your opinion of Chavez is if you care to share. Thanks again!
Chávez destroyed the country and Maduro put the last nail on the coffin... A great venezuelan doesn't randomly kill people including civilians and children just to rise to power, and that's what he did with his military coup attempts. Whoever tells you Chávez was great is getting benefits from the government in some way.
good article ,,, count on my vote theeconomictruth jhon, I can tell you something
steemtruth, because I feel I must answer you, ", chavez was the beginning of the end in Venezuela ,,,, he started talking about town, falling in love, then already deep in power, he pulled out his claws, and when he felt threatened to leave of power, used all kinds of garbage to take hold in power ,,, it will remain in the history of this country as the worst thing that could have happened to us ,,,,
Thank you for your insight!
https://steemit.com/press/@ovni/steps-to-evaluate-the-news-or-any-other-information-you-find-on-the-internet
I will not give you my vote, but I leave you a reflection of nature.