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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsVenezuela's Collapse Is the Worst Outside of War in Decades, Economists Say
Venezuelas Collapse Is the Worst Outside of War in Decades, Economists SayButchers have stopped selling meat cuts in favor of offal, fat shavings and cow hooves, the only animal protein many of their customers can afford.
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https://www.nytimes.com/2019/05/17/world/americas/venezuela-economy.html?action=click&module=Top%20Stories&pgtype=Homepage
MARACAIBO, Venezuela Zimbabwes collapse under Robert Mugabe. The fall of the Soviet Union. Cubas disastrous unraveling in the 1990s.
The crumbling of Venezuelas economy has now outpaced them all.
Venezuelas fall is the single largest economic collapse outside of war in at least 45 years, economists say.
Its really hard to think of a human tragedy of this scale outside civil war, said Kenneth Rogoff, an economics professor at Harvard University and former chief economist at the International Monetary Fund. This will be a touchstone of disastrous policies for decades to come.
But Venezuela, at one point Latin Americas wealthiest country, has not been shattered by armed conflict. Instead, economists say, the poor governance, corruption and misguided policies of President Nicolás Maduro and his predecessor, Hugo Chávez, have fueled runaway inflation, shuttered businesses and brought the country to its knees. And in recent months, the Trump administration has imposed stiff sanctions to try to cripple it further.
As the countrys economy plummeted, armed gangs took control of entire towns, public services collapsed and the purchasing power of most Venezuelans has been reduced to a couple of kilograms of flour a month.
In markets, butchers hit by regular blackouts jostle to sell decomposing stock by sunset. Former laborers scavenge through garbage piles for leftovers and recyclable plastic. Dejected retailers make dozens of trips to the bank in hopes of depositing several pounds worth of bills made worthless by hyperinflation.
Here in Maracaibo, a city of two million on the border with Colombia, nearly all of the butchers in the main market have stopped selling meat cuts in favor of offal and leftovers like fat shavings and cow hooves, the only animal protein many of their customers can still afford.
malaise
(269,211 posts)and it's been going on since Chavez wanted more of his oil revenue.
The IMF is no innocent party here.
Kaleva
(36,357 posts)"Venezuela slashes oil shipments to Cuba, Caribbean in half "
The oil agreements have been a heavy burden for Venezuela. These deliveries reached 400,000 bpd at their peak in 2012, though Venezuela only received payment for 200,000 bpd, said the Barclays report, citing figures from Petrologistics, the firm that follows tanker movements. In the last decade, the agreements have cost Venezuela up to $50 billion, added the report, titled Reducing Generosity.
Read more here: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article16381898.html#storylink=cpy
malaise
(269,211 posts)We received cheap oil from Venezuela and loved it.
EX500rider
(10,874 posts)Kaleva
(36,357 posts)malaise
(269,211 posts)Whatever - Venezuela is a sovereign country - you've fucked up enough of the planet
EX500rider
(10,874 posts)US bought the majority of their oil and was their biggest trading partner for imports AND exports so the US certainly did not "sabotage" their economy.
And Chavez got all the oil revenue but you can't charge what you like but what the current worldwide price is for your oil.
What did the IMF do exactly to Venz's economy?
Blue_Tires
(55,445 posts)because Code Pink and The Intercept and Democracy Now! and Noam Chomsky keep on telling me what a swell guy Maduro is, and how much everyone loves him?
progree
(10,924 posts)Scurrilous
(38,687 posts)Takes me back....
JCMach1
(27,575 posts)there are a number of countries this will happen to as we move away from an oil economy...
Nigeria, KSA, Russia, Iraq, Iran, etc.
EX500rider
(10,874 posts)Over printed money causing the massive inflation
Seized domestic and foreign companies driving off investment
Fired competent oil workers and put in lackeys, causing oil production to tank
Didn't invest in infrastructure so they have rolling and massive blackouts
Put in bizarre multi level currency controls, drying up dollars needed to buy imports
Seized productive farms and gave them out to loyalist non-farmers, domestic food production tanked
etc