Tuesday, February 18, 2014

Venezuela, Not Only Crashing on a Social Level, but Economically has Collapsed

The difference between Venezuela and a country in the middle-east, is only toward what language the dictators are speaking to the masses. The problems caused by the legacy of Hugo Chavez towards the history of Venezuela are uncountable because they go from violations to human rights as the country lacks on the basic items of the household goods; people disappearing, murder, the opposition being silenced and thus no free speech.

Venezuela is not turning, it already turned into some kind of dystopic paradise only for the chosen of the inner party of Maduro. With the incarceration of Leopoldo Lopez, it is almost a parallel between the pseudo-victory of The Brotherhood in 1984 where they, and their leader Emmanuel Goldstein became the pariahs of the supporters. The reason of the pseudo-victory it's that even Leopoldo is behind bars and probably Maduro will order his execution, the opposition is stir up and there is an example that protesters will follow.

On an economical level, one of the most recent factories that closed due the many inconveniences toward how the economy there had crashed, beyond a level of a close proximity; was Toyota de Venezuela that ceased production last Thursday. Their argument was that they couldn't bring to the country the parts that they need to keep the factory updated.

Leopoldo Lopez
It's just almost impossible to think but yet not difficult to realize it, on why the factory ceased; as the import policies left by Chavez almost prohibit a free trade with countries that aren't friends with the Republic. North America plays an ambiguous role, as they are hated, much as the people from Airstrip One hated Emanuel Goldstein. People see the Yankees much in the same light, but Maduro and as well his predecessor see it as a destination for tourism.

It's hard to imagine that many car maker has in a "economy" where petrol cost the equivalent of a US¢1 a gallon. As it was said in the previous paragraph, the government is blocking imports because oil prices are flat, thus they are monopolizing the economy creating a stagnated economy with traces of inflation.

According to BP, the country has the largest world's oil reserves, when Chavez was int he power, due the socialist policies that he implemented the price of the oil barrel in the international market rose more than US$100 in less than 15 years, but it gave the government complacency, as oil production stagnated at about 2.7 million barrels a day, because there was no external or internal investment beyond his inner party. Now, a year after his death, revenues are falling at about US$80 billion to US$100 bn a year.

Still with that amount, it's almost an unlimited lifetime opportunity for the individuals who are controlling the mess he left behind, and them living the good life while the people are suffering and jobs are diminishing. The different economical coups that Maduro, Chavez and their cabinets executed on the worldwide economy can take more than 50 years to repair, because of them and their monopoly of the petrol in the region, the the basic household items (grocery) rose on the price as many countries used to bought petrol to Venezuela, and at after the 15 years of the Socialist Revolution, the only revolution that the socialist on that country got are to fill their pockets with cash; while the countries who lack on reserves have to import gasoline from outside the continent.