It doesn't take a crystal ball to see where this is going. The conventional wisdom reinforced institutionally is that Venezuela is "bankrupt." Even though the bolivar is nominally pegged to the dollar, Venezuela is potentially a currency sovereign and has huge energy reserves. When the ruble was under attack, Russia floated the currency. Venezuela can make that choice, too. So the claim that Venezuela is "running out of money," or becoming "insolvent" is bogus.
The obvious (neoliberal, neo-imperialist, neocolonialist) solution is to effect regime change to "save the Venezuelan people from a heartless dictator," which is an aim of economic sanctions, and then privatize Venezuela's resources, selling them off chiefly to US interests to "get money" to repair Venezuela's "broken" balance sheet.
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Moody’s Pegs Venezuela in “Deeper Phase” Of Financial Insolvency
Zainab Calcuttawala
2 comments:
Venezuela officially pegs its currency to euro. It means there is a probability that the government will choose to default in its local currency debts to defend the peg.
On the other hand, there is also a probability that it will not default, and will manage horribly its currency, as it is doing right now, by allowing the black market to grow and pretending that nothing is happening, instead of making a free float official.
There is no doubt that the US governmrnt and US media have their own agendas, and they will distort facts / lie to get public opinion on their side.
However, it doesn't change that fact that Venezuela's government is doing an awful job in promoting economic growth and social welfare. The administration is terrible and we should not hide this fact. Unfortunately, the population will pay the price.
OPEC mfers....
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