Venezuela disaster?

[Allergic2BunnyEars]

Prepare for the worst: Venezuela is heading toward complete disaster

https://www.washingtonpost.com/opinions ... story.html


People wait in line to buy food in Caracas, Venezuela, on Feb. 6. (Meridith Kohut/Bloomberg)

THE POLITICAL drama in Venezuela, where a populist, authoritarian government is attempting to cling to power despite losing a legislative election by a landslide, tends to obscure a deeper crisis. Though it is awash in oil, the country of 30 million people is facing an economic collapse and a humanitarian disaster.

Venezuela already suffers from the world’s highest inflation rate — expected to rise from 275 percent to 720 percent this year — one of its higher murder rates and pervasive shortages of consumer goods, ranging from car parts to toilet paper. Power outages and the lack of raw materials are forcing surviving factories and shops to close or limit opening hours. According to a local survey cited by the Economist, the poverty rate is 76 percent, compared with 55 percent when Hugo Chávez, the late founder of the regime, took power in 1999.

Worst of all, the country is running desperately short of food and medicine. Venezuelans spend much of their time waiting in lines outside stores, but increasingly the shelves are bare. The head of the nation’s pharmaceutical association recently appealed to the World Health Organization for aid, saying that distribution of 70 percent of basic medicines was disrupted. The chairman of the largest domestic food producer has said that if the government does not quickly seek aid to import food, it “will cause grave harm to ordinary Venezuelans.”

The math behind these warnings is stark, as economist Ricardo Hausmann recently outlined in the Financial Times. At current oil prices, Venezuela will earn less than $18 billion from exports this year, while it owes $10 billion in payments on the $120 billion in debt it has racked up. That leaves $8 billion for imports, but even after contracting 20 percent, imports were $37 billion in 2015 — and Venezuela now imports most of its food. Even with a debt default that the markets expect, it’s hard to see where additional hard currency will come from: The country broke relations with the International Monetary Fund almost a decade ago, has no ability to obtain private loans and has nearly exhausted its liquid reserves. It already owes China, its latest benefactor, $50 billion.

Facing this calamity, the government of President Nicolás Maduro appears paralyzed. Mr. Maduro and one of his ministers have spoken of taking desperately needed common-sense measures, such as raising the price of state-retailed gasoline, now below 1 cent per gallon, and altering a currency exchange system under which the U.S. dollar is worth 150 times more on the black market than it is at the official rate. Day after day, however, the government does not act; in a Facebook post Wednesday, Mr. Maduro hinted at disputes among his ministers, one of whom argues that inflation does not exist.

Leaders of the opposition’s new parliamentary majority, who are locked in a public power struggle with the regime, are said to be negotiating with it behind the scenes. A pact between the two sides on emergency measures, coupled with an appeal to the IMF, is Venezuela’s best chance of rescue. Sadly, it doesn’t look likely — which is why its neighbors, and the United States, should be preparing for an implosion.

[BoxEater]

bring een dem vene women....it have rel wok for them here

[De Dragon]

At least acknowledge the source of said report.

[Allergic2BunnyEars]

At least acknowledge the source of said report.

Was a mistake. I usually include a link.

[EmilioA]

So 10 years from now , we going to be talking about the "little latin boys" who committing crime in T&T ?

[Dizzy28]

So where are they now though??
I thought they were already in disaster when they ran out of US$, toilet paper and all the other essential items.

[shake d livin wake d dead]

more weed guns and cocaine for trinidad...daz all

[Habit7]

Right now you can get a glock for a box of dead on the high seas.

[noshownogo]

Time to lock down our coastal boarders

[Dizzy28]

Right now you can get a glock for a box of dead on the high seas.

A snack pack or dinner special though??

[zoom rader]

Well expect more venny immigrants , better them that the Grenada and St Vincent mob

[Habit7]

Right now you can get a glock for a box of dead on the high seas.

A snack pack or dinner special though??

Dinner special ensures a full clip.

[Dizzy28]

Well expect more venny immigrants , better them that the Grenada and St Vincent mob

Given our dire demographic situation where the number of players within the economically active age of 18-59 is dropping we should welcome all the immigrants who wants to come.
The NIB has projected that the number of contributors to the NIS system peaks in 2016-2017 and then declines there after.

[shake d livin wake d dead]

Right now you can get a glock for a box of dead on the high seas.

A snack pack or dinner special though??

Dinner special ensures a full clip.

with toilet paper, flour and KFC....you can create your own armory

[VexXx Dogg]

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.

[zoom rader]

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.

Nationalisation help it. that's why governments should be running businesses

[tr1ad]

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

[Advent]

this is how it would have been if UNC continued as the elected Government..

[EmilioA]

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.

Nationalisation help it. that's why governments should be running businesses

PDVSA was always nationalized. You have to come up with a different reason.

[Dizzy28]

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.

Nationalisation help it. that's why governments should be running businesses

PDVSA was always nationalized. You have to come up with a different reason.

I think he was being sarcastic though!!

[EmilioA]

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.

[Allergic2BunnyEars]

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.

Nationalisation help it. that's why governments should be running businesses

PDVSA was always nationalized. You have to come up with a different reason.

You taking on zoom? You wasn't just battling him when he said that governments should NOt run businesses? ZR is a troll yuh know.

[BRZ]

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.

Nationalisation help it. that's why governments should be running businesses

PDVSA was always nationalized. You have to come up with a different reason.

You taking on zoom? You wasn't just battling him when he said that governments should NOt run businesses? ZR is a troll yuh know.

what an insult to Trolls............

[zoom rader]

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.

Nationalisation help it. that's why governments should be running businesses

PDVSA was always nationalized. You have to come up with a different reason.

Again you prove you are a dumb fcuk.



Factbox: Venezuela's nationalizations under Chavez

Venezuelan President Hugo Chavez was re-elected on Sunday to another six-year term, potentially extending his rule to two decades and cementing his status as a dominant figure in modern Latin American history.

In 14 years in office, Chavez has nationalized major swaths of the OPEC nation's economy as part of a socialist agenda.

Venezuelans expect more takeovers to come, possibly in the banking, health and food sectors.

Below are the main nationalizations under Chavez:

OIL

* In 2007, Chavez's government took a majority stake in four oil projects in the vast Orinoco heavy crude belt worth an estimated $30 billion in total.

Exxon Mobil Corp and ConocoPhillips quit the country as a result and filed arbitration claims. Late last year, an arbitration panel ordered Venezuela to pay Exxon $908 million, though a larger case is still ongoing.

France's Total SA and Norway's StatoilHydro ASA received about $1 billion in compensation after reducing their holdings. Britain's BP Plc and America's Chevron Corp remained as minority partners.

* In 2008, Chavez's administration implemented a windfall tax of 50 percent for prices over $70 per barrel, and 60 percent on oil over $100. Oil reached $147 that year, but soon slumped.

* In 2009, Chavez seized a major gas injection project belonging to Williams Cos Inc and a range of assets from local service companies. This year, the energy minister said the government would pay $420 million to Williams and one of its U.S. partners, Exterran Holdings, for the takeover.

* In June 2010, the government seized 11 oil rigs from Oklahoma-based Helmerich & Payne Inc.

AGRICULTURE

* In 2009, Chavez nationalized a rice mill operated by a local unit of U.S. food giant Cargill Inc.

* In October 2010, Venezuela nationalized Fertinitro, one of the world's biggest producers of nitrogen fertilizer, as well as Agroislena, a major local agricultural supply company. It also said it would take control of nearly 200,000 hectares (494,000 acres) of land owned by British meat company Vestey Foods.

* Vestey had already filed for arbitration over the earlier takeover of a ranch. Chavez said the latest deal with Vestey was a "friendly agreement."

* In 2005, Chavez began implementing a 2001 law letting the state expropriate unproductive farms or seize land without proper titles. He has redistributed millions of acres deemed idle to boost food production and ease rural poverty.

* Chavez's government has repeatedly threatened to seize Empresas Polar, Venezuela's biggest employer and largest brewer and food processor.

FINANCE

* In June 2010, Venezuela took over the mid-sized bank Banco Federal, citing liquidity problems and risk of fraud. The bank was closely linked to anti-government TV station Globovision.

* In 2009, Chavez paid $1 billion for Banco de Venezuela, a division of Spanish bank Grupo Santander.

* The government has closed a dozen small banks since November 2009 for what it said were operational irregularities. Some were reopened as state-run firms. Brokerages have also been closed and some employees jailed. Chavez has vowed to nationalize any bank that fails to meet government lending guidelines or is in financial trouble.

INDUSTRY

* In October 2010, Chavez ordered the takeover of the local operations of Owens Illinois Inc, which describes itself as the world's largest glass container maker.

* Chavez in April 2008 announced the government takeover of the cement sector, targeting Switzerland's Holcim Ltd, France's Lafarge SA, and Mexico's Cemex SAB de CV.

GOLD

* Chavez has considered bringing mining more firmly into state hands, and in 2009 the mining ministry seized Gold Reserve Inc's Brisas project, which sits on one of Latin America's largest gold veins. Gold Reserve immediately filed for arbitration with ICSID.

* In August 2011, Chavez said he was nationalizing the gold industry. Toronto-listed Rusoro Mining Ltd, owned by Russia's Agapov family, was the only large gold miner operating in Venezuela, and this year it filed for arbitration.

STEEL

* The government paid $2 billion in 2009 for Argentine-led Ternium SA's stake in Venezuela's largest steel mill.

TELECOMMUNICATIONS

* In 2007, the nation's largest telecommunications company CANTV was nationalized after the government bought out the U.S.-based Verizon Communications Inc's 28.5 percent stake for $572 million. Analysts said Verizon received fair compensations for its assets.

POWER

* In 2007, Venezuela expropriated the assets of U.S.-based AES Corp in Electricidad de Caracas, the nation's largest private power producer. The government paid AES $740 million for its 82 percent stake in the company. Analysts described the deal as fair for AES.

TRANSPORT

* In September 2011, the government nationalized a local ferry company, Conferry, which operates from the mainland to the resort island of Margarita. Conferry is owned by a wealthy family and began operating in 1959.

TOURISM

* In October 2011, Chavez said his government would seize private homes on the Los Roques archipelago in the Caribbean and use them for state-run tourism. The islands are among the nation's favorite and most expensive tourist spots, with pristine white beaches and coral reefs that teem with sea life.

(Reporting by Caracas newsroom; Editing by David Brunnstrom)

http://www.reuters.com/article/us-venez ... 1X20121008

[EmilioA]

This why I engage ZR . It forces him to do some work.

Mind you he hasnt yet linked nationalization to the economic hard times. Things were going fine until oil fell.

[zoom rader]

This why I engage ZR . It forces him to do some work.

Mind you he hasnt yet linked nationalization to the economic hard times. Things were going fine until oil fell.

No !

We have too many lazy fcuks on truner that know jack chit.

Nationalization encourages a lazy non producing workforce, think Wasa, Caroni, public servants. Trade Unions to blame for this aswell. USSR had the same chit going on.

The UK was in the same situation in the 1970 and early 1980s and Thatcher got rid of useless Nationalise boards, such as British Rail, Steel, Coal mines, British Airways, Post office Telecoms, British Leyland, Council housing and many others.

[pete]

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.

[mero]

Right now you can get a glock for a box of dead on the high seas.

Go with a bucket of dead and and try and trade for glocks and see wha happen nah

[88sins]

Nationalization encourages a lazy non producing workforce

decreased productivity isn't a nationalization issue, it''s a failure to govern/mismanagement issue. happens in private & public sectors alike

[fallen_angel]

we safe, god is a trini

god also say to love your neighbour, so we have to take in some vene women