Finally these Venezuelan USD zombies have capitulated it took quite a while. Indicates Mexico still has a long way to go down for same. We will have to see a lot more social collapse in Mexico and they will have to be denied maybe another $20B+ here. Not a sure thing but imo still possible for Mexico to go full zombie.
ON THE BRINK: Venezuela devalues currency in crisis dollar sale... https://t.co/UflqEjAZPG #drudge-report— Pete Santilli (@PTSantilli) June 1, 2017
The problem in the first place, starting from the currency, is that they are trying to price fix the whole system. It just doesn't work under the current circumstances.
ReplyDeleteIf you do that the black market takes over and then you have absurd situation like this in Venezuela with shortages etc.
The second problem is this does not fix magically the "Dutch disease", incompetence government failed to achieve some import independence (which is funny because Venezuela is awash of natural resources of every kind). Maybe they should get some advisers from Russia instead of desperately trying to get dollars to buy things abroad.
We all know how this end... either a civil war and eventually Bolivarian forces throw out, or a collapse of the government without the need of any war (looks like going this way). Followed by a neoliberal government and implementation of whatever stupid economic policy like Argentina, Brazil, etc.
Result is slightly better than now, but still under constant state of crisis. Until the citizens in those countries wise up and put useful people in place this is what they will get.
Venezuela, Brazil, Argentina, the future isn't looking bright for any of these places unfortunately. Incompetence, currency problems, and more in these places as well, like what you're saying, Ignacio. The US could come in and help overthrow some of these leaders too if it really gets bad.
ReplyDeleteIdeology before competence. Works every time, doesn't it?
ReplyDeleteThe socialist utopia turns to ruin. I read that they relied too much on the oil and didn't diversify. And also, Chávez, gave loads of it away cheap. But is the collapse of the Venezuelan economy mainly due to socialist mismanagement, or are there other factors at play. You bet if Corby's Labour Party gets elected the establishment and the City of London will try everything to destroy the economy. Well, if they get caught, they should put on trail for treason.
ReplyDeleteKaivey it is incompetence in real terms.. the "socialism!" Schtick is BS just as the "neo liberal conspiracy!" Is bs...
ReplyDelete