Venezuela Hyperinflation – Though completely outside the realm of possibility for an entertained, well fed, and oblivious American public dependent on ever-growing debt to make ends meet, there are serious economic, financial and monetary headwinds set to flip the entire system upside down. If there’s one thing we can learn from the collapse of monetary systems in Zimbabwe, Argentina, and most recently Venezuela, it’s that printing money only works until you lose the confidence of your creditors and the public at large, at which point the whole thing detonates with such velocity and speed that millions are left scrounging for even the most basic of necessities.
Venezuela Hyperinflation – Unfortunately socialism/communism has never worked. It started off on a large scale in Sparta around 400 BC.Socialism failed in Sparta and it has been failing ever since. The basic idea looks good on paper but because of human nature people don’t want to work to support people outside their family. That inherent flaw and the massive increase in government workers necessary cause a slow depletion of the wealth in a country. Margret Thacher said, ” Socialism works great until you run out of other peoples money.”
The Scandinavians are doing well now but their economies are supported by oil revenues just like Venezuela used to be. When they run out of oil within a few years they will abandon socialism/communism. Any country’s government can promise everything. Paying for it in the long haul is another issue and when the government outlays exceed the revenue the system collapses.
Venezuela Hyperinflation – Last year alone, Caracas had more violent deaths than Baghdad. Ryan Duffy traveled to Venezuela to investigate the country’s crime epidemic. While President Hugo Chavez has raked in billions from Venezuela’s oil boom, the crime rate in Caracas has skyrocketed. The crime epidemic has been so punishing that it could be the reason Hugo Chavez finally topples in the country’s upcoming elections.
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Venezuela Hyperinflation – Unfortunately most socialist people cannot understand economics. I believe socialism is nothing more than theft by government. The premise is absurd that a government can satisfy the needs of the people less expensively by creating a more massive government to do what the individual people already do better and for free because it is their life. If you look at a local grocery store (this is about food) the owner operator knows what sells and in what quantities at what time of the year.
Venezuela Hyperinflation – He has a relationship with his suppliers who know how much to grow to satisfy their buyers needs. The chicken farmer and cattle rancher are in the same relationship with the grocery store owner. Each of them is competent at their given task because they were most likely raised in the business. Now how do you take a bureaucrat who most likely couldn’t make it as a self employed businessman and expect him to properly manage the farming, poultry and cattle raising, slaughter, packaging and distribution with his salary, office, and transportation added on to the expenses. His involvement destroys the established food chain and sales.
Venezuela Hyperinflation – The second major problem is with the way bureaucracies function. Almost all bureaucrats are victims of the “Peter Principle” which is where they rise within any agency to their level of incompetence. If they start at the bottom as they demonstrate competence at their specific job they are raise to the next level. If they are competent at that level after a while they are raised again and so on until they obtain a position which is beyond their ability.
Venezuela Hyperinflation – That is where they stay. The bureaucratic system does not allow for demotion or firing for incompetence. Actually it is preferred because the incompetent employee won’t be able to go after his supervisors job because he is incompetent at his level which makes the supervisor happy. The supervisor who is at his level of incompetence always looks good to his supervisor because those below him are more incompetent than him. In the outside event a thinking and learning person gets into the system and starts climbing the ladder quickly that person will either quit because he has to work with incompetent people or be recognized and branded as a danger to upper management who will get him fired or pigeon holed by a series of minor infractions set up by his supervisors.
Venezuela Hyperinflation – In my experience no government agency is run with the public in mind. They are run for the employees of the agency and the amount that can be skimmed by the upper management and the politicians who fund the bureau. If you want to see all of this at one time in one place go to a California department of motor vehicles and try to get anything done in less than hours. They are so inefficient they are losing money at the outrageous fees they charge. I have a 2002 Dodge 3/4 ton P/U and my registration is $308 per year and somehow they lose money providing what other states can provide for $35 and not lose money.
Venezuela Hyperinflation – From above, Caracas’ skyline still hints at the opulence that once characterised oil-rich Venezuela, but at ground level there’s no hiding today’s reality: people are queuing all night for food and medicine; inflation is with over 700 percent the highest in the world; and murders and kidnappings are spiralling out of control.
Venezuelans who can, are fleeing their country, once a magnet for immigrants.
And with a political confrontation mounting steadily, many warn that the nation with one of the world’s largest oil reserves is on the edge of an abyss.
Political violence against opponents of the populist government of President Nicolas Maduro is intensifying, but it’s common crime which is terrifying most Venezuelans, no matter what their beliefs or social class.
Venezuela is now one of world’s most dangerous countries, and its capital, Caracas, the city with one of the highest murder rates in the world, according to a recent study.
Violent crime is rampant and the police are unable to stop – or don’t want to intervene – people from looting, or others from killing for a bag of food.
The looting of bakeries, pharmacies and especially supermarkets is spreading throughout the country. At long queues of people waiting to buy food, the army is deployed to maintain order.
Talk to Al Jazeera travels to the Venezuelan capital, where many airlines are now refusing to fly. Al Jazeera’s Lucia Newman speaks to five Venezuelans about life in the midst of the country’s mounting turmoil.