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Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by LarryDarrell on Wednesday August 22, 2018 @01:50PM (#17820490)
The situation in Venezuela makes my heart hurt. Reading about how Hugo Chavez destroyed PDVSA through ignorance and incompetence is a real life example of how much damage a populist strongman can do.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by Findeton on Wednesday August 22, 2018 @02:26PM (#17820752)
The problem is that many people believe government is the solution to everything. Surprisingly this is most true in latin-american countries where the government is not that strong. What I see when I visit those countries is that some sort of government is always there, but not the official one. Frontiers there are a wish list and the few that pay taxes get to pay it in the name of everyone else...
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by crocal on Wednesday August 22, 2018 @02:37PM (#17820858)
Me too. I worked on some good projects there a few years ago and now this. Is there somewhere a “for dummies” analysis / explanation of the chain of events and decisions that led to the current situation in Venezuela? I can’t fathom how it is possible even in the most corrupt place in the world to reach such a sorry state.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by scythe on Wednesday August 22, 2018 @03:42PM (#17821428)
The crucial mistake was the firing of tens of thousands of employees of the state oil company, PDVSA. Eviscerating the state oil business in an economy that depends on oil exports is, um, bad. With half of their employees replaced by Chavez yes-men, PDVSA made poor strategic decisions that left them with (almost) no new oil wells when the ones they had been using ran dry. To be specific, money that should have been used to dig new oil wells was diverted to poverty-reduction initiatives by the central government. Venezuela today has the world's largest proven oil reserves (thanks to recent offshore discoveries) and yet ranks low by exports.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by wonthegame on Wednesday August 22, 2018 @06:40PM (#17822891)
The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the govt paid for the social programs. Now that the rate is not in their favour and oil prices have crashed... now it makes it difficult to pay for your debt.

The US smelled blood and decided to help speed up the inevitable by adding sanctions. This increased the cost of their debt. Maduro is attempting to avoid further economic harm with the petro coin.

Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by scythe on Wednesday August 22, 2018 @07:14PM (#17823108)
>The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the govt paid for the social programs. Now that the rate is not in their favour and oil prices have crashed... now it makes it difficult to pay for your debt.

The "exchange rates" never could have made the government's pilfering of PDVSA revenues sustainable. Any properly-run business would save money for the possibility of a change in commodity prices. PDVSA under Chavez did not.

Exchange rates did not cause the collapse of Venezuela. Hugo Chavez's decision to ignore economic reality and substitute his own is what caused the collapse of Venezuela. No other oil-based economy got hit as hard as Venezuela by the oil price collapse because they maintained sustainable business practices.

>The US smelled blood and decided to help speed up the inevitable by adding sanctions

This is a joke, right? The US did not even sanction Venezuelan businesses, only the officials involved in looting the oil industry revenues. From Wiki:

>On March 9, 2015, the United States President, Barack Obama, signed and issued a presidential order declaring Venezuela a "threat to its national security" and ordered sanctions against seven Venezuelan officials. Venezuelan President Nicolás Maduro denounced the sanctions as an attempt to topple his socialist government. Washington said that the sanctions targeted individuals who were involved in the violation of Venezuelans' human rights, saying that "we are deeply concerned by the Venezuelan government's efforts to escalate intimidation of its political opponents".

The notion that US sanctions played any role in the collapse of Venezuela is an utter fantasy promulgated by the Venezuelan government and perpetuated by credulous Western champagne socialists.

Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by jayess on Wednesday August 22, 2018 @02:51PM (#17820969)
https://en.wikipedia.org/wiki/Economic_policy_of_the_Hugo_Ch...

In short: price controls, nationalization, high taxation, corruption, Cuban economic influence (read socialism/marxism), economic malinvestment, overspending, debt, and then printing money...

Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by natecham on Wednesday August 22, 2018 @06:22PM (#17822776)
I this article did a good job of summarizing the collapse (from the formation of OPEC in the early 60's to the present) https://foreignpolicy.com/2018/07/16/how-venezuela-struck-it...

Essentially they believed the oil price surge of the 70s would continue and failed the diversify the economy. This allowed Chavez to come along and take over in the late 90's on a socialist platform with promises to restore the economy. Chavez ignorant to production of oil and fighting to stay in power, gutted the state run PDVSA and severely inhibited production by diverting profits to fund his social programs. Eventually production and profits dipped, with the government deciding to print more money to keep social programs running.

Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by Zhenya on Wednesday August 22, 2018 @03:54PM (#17821564)
Populism isn't the problem here. Socialist /fascist policies of govt control of the means of production and the removal of the profit motive is what you see at play.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by alacombe on Wednesday August 22, 2018 @02:25PM (#17820748)
why "populist" ? I don't think the starving Venezuelans condone the system very much. Venezuelan policies are at foremost socialist.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by misja111 on Wednesday August 22, 2018 @03:07PM (#17821109)
The support for Chavez was immense, in particular amongst the poor Venezuelans.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by cryptonector on Wednesday August 22, 2018 @03:12PM (#17821149)
Until it wasn't, thus making it necessary to resort to fake elections.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by Carlton87 on Wednesday August 22, 2018 @02:29PM (#17820783)
Replace strongman with socialist and your statement makes much more sense.
Re:Venezuelans Skeptical of Maduro's Latest Measures to Salv... by SllX on Wednesday August 22, 2018 @02:32PM (#17820813)
A strongman socialist is still a strongman.