Oil Prices Push Venezuela To Brink Of Economic Collapse

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Oil prices push Venezuela to brink of economic collapse

The ongoing plunge in global oil prices is pushing Venezuela toward economic collapse just as President Nicolas Maduro – the hand-picked successor to the late socialist Hugo Chavez – faces mounting international criticism for jailing opposition figures after months of street protests. Where Chavez once drew praise from the world’s leftist elite for using the high…

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52 COMMENTS

  1. Yes, the buy gold from russia or china or south africa. I don’t see any problem with this. Islands in the caribbean only have sand and sea water, and yet they also back their currency with gold, stored at their central bank.

  2. If you think there is enough gold in either of those countries to back every ruble or renminbi printed you really are a fool. The only reason those countries need a precious metal backup of any kind is that they both realize no one has any faith in their currency. Why? Because there isn’t enough faith in their economic fundamentals. Go back and sit on the porch. You can’t play with the big boys.

  3. I agree with you RDA, but that is also called “survival of the fittest” , the ones that can’t will just go by the wayside…

  4. All money is ‘fake’ pal ! The issue is more about a gangster regime stuffing its own offshore accounts, while chanting rubbishy ‘leftist’ slogans, waving ridiculous red banners around for 16 years with which an uneducated populace have been hynotised into a phoney ‘socialism’, while the gangster élite live like extremely happy capitalists for the most part. The entire circus show is, as usual, more about ‘power’ & personal wealth & status, than ideology. But in the process, an amazingly wonderful country has been ruined; perhaps permanently !

  5. well the person to “explain” that, CAP, is no longer around I’m afraid. But the words he used were ” ‘esto’ (meaning his country), con este mestizaje no lo arreglará nadie…’esto’ hay que terminar por hecharlo a perder”..” (!?). I was actually present when he made that remark and as it was some months prior to his 1st. Presidency. I found it ‘somehwat’ surprising, to say the least !

  6. Backed by economy? I am laughing !!!!……please, even the Arabs buy gold in order to back their currency. China just purchased several truckloads of gold from Russia, for the same reason.

  7. Very well, but by the time you spend to teach them to be independent, they already starved out. You feed them and teach them at the same time. That’s how they are around to vote for the Man.

  8. Backed with gold? Did you just step out of a time machine from 1933? The dollar is backed by the economy of the United States, not gold. You have clearly demonstrated with your own words that you have no idea what you are talking about.

  9. Why not Mendoza? He is educated, involved, and currently available. Latin America has a history of elevating past political prisoners to high office. Mendoza would almost certainly do a better job than Maduro, as he does not wear socialist blinders.

  10. What are you talking about?….whenever you print one dollar bill, you have to back that “bank note” with gold. That gold is located at the Central Bank or the Treasury Department. The United States has Zillion of dollar bills in the streets, that are not supported by any gold, there is not enough gold stored at the Treasury Department to support them, that is what I mean. You have a fake economy ready to collapse.

  11. That is insanity. Goa and Kerala are not communist states. There is no central ownership of all property, no command centralized economy, no monolithic proletariat government. Goa and Kerala operate under the government of India constitutional order. They are no more communist than Vermont of California can be communist.

  12. Perro Sarnoso you have no clue of what you are talking about. The key fact is not the total debt, but the debt ratio vs the CNP. The ration identify the ability of a country to pay its debt. For example the UK ration of debt to GDP is 90%, Japan is 226%, Germany is 79.9% and theh US is 72.5%. On the other hand Russia’s is just 12% and China31%. These are 2012 number. That follows as pattern in which western industrialized countries with mature economies have high ratios and developing high charging economies countries like China and India have a smaller ratio. That will change as those economies mature and the start spending more resources on their citizens, my point being that it will take a lot of money and time to bring millions of Chinese and Indian to a quality of life at the level of the west. By the way, two thirds of the American debt is owed to American citizens, the norther third to foreign entities, mainly China and Japan. For the sake of self preservation, I think China has a vested interest inn preserving the dollar and the American economy in good stead.

  13. They did not lift ANYONE out of poverty! That was only smoke and mirrors just like Obanana uses! You have to teach them how to “fish” (work??) instead of “giving” them the fish (without working)…

  14. Revolutions happen all the time in Latin America. The Chinese entering the equation is somewhat unusual. I wonder what the Monroe Doctrine would say about the Chinese in the Western Hemisphere? Interesting if Venezuela defaults, the Chinese might just come in and take the oil. With an unstable, new government, desperate for revenue, it would be very easy for them to become “influenced,” by the Chinese. The author does have a point. The Chinese might just say, enough of this, and pull out completely. There is plenty of oil, and a 4 billion dollar hit can easily be absorbed in their economy. So, let’s see. We should see unrest next year. Have a great day!

  15. The debt of the United States is equal to the debt of Russia and the European Union combined, and yet there is not inflation in the United States. That is very weird.
    The only answer to this, is that the United States is printing trillion of dollars in worthless currency.

  16. If the “Right Winged Conservatives” are so bad, why then were the lefties booted out of office all over America in the last election? Dipshit!

  17. A poor under educated population which voted in a socialist government.
    Twisting President Kennedy’s quote….A heavily anchored ship is swamped by a rising tide.

  18. Where to start… The value of the US dollar is rising against all major currencies. On the Venezuela black market last I heard it takes 180 Bolivars to buy 1 dollar. Now which money is fake?

  19. At least Venezuela is not printing trillion and trillion of fake dollar bills, as the United States is doing in order to support a faked economy…!!…Good luck Gringos.

  20. Yep. 100 million+ deaths in the Twentieth Century was due only to Christian and bourgeois interference. China, the Soviet Union, Vietnam and Cambodia just didn’t go about it in the correct manner. Next time I just know we’ll get it right!

  21. Socialist? We called them communists- the evil, vile scum that has murdered more people than any other religion. We used to shoot them on site. Need to start again.

  22. You do realize your statement reeks of elitism? It cannot be done correctly because human nature is such that those in control (which is what you’re suggesting) are fallible and can be counted on to be corrupted. One only needs to look at the politicians here in the U.S. to see well intentioned people who have never had a job outside of government, ending up as multimillionaires.

  23. It never fails. Right wing conservatives seem to think they have no responsibility for the poor in their countries, including but not limited to the United States. They would rather spend their money on estates with electrified fences and personal security details than pay a fair amount of taxes so the state can be viable. It has been this way in central and south america ever since the Spanish conquered the areas, stole all the gold and all the good land and murdered or enslaved the local native populations.

  24. But communist governments can work if they are done correctly AND not interfered with by the conservative faction(s) who have an interest in seeing them fail. Goa and Kerala states in India are excellent examples of communist states that have been wildly successful for over 50 years now.

  25. Many of the successful Venezuelans have already left the country. Many of them went to Miami and some of them came here to Panama and various other countries. They need to totally collapse to teach them that Communistic styles of governments simply don’t work.

  26. You are correct. Chavez was just fortunate oil was high while he was in office. He always had problems with everything else. Murder was high, store shelves were empty, liberties dissolved, their electrical grid was/is outdated and inefficient, Crime is rampant.

  27. I guess just giving away your oil wealth away during the boom times (by artificially lowering the price of gasoline) in your nation wasn’t the brightest of idea by the socialist left that has run Venezuela into the ground economically. Nevermind that their economy was already in the doldrums prior to the price of oil tanking due to Maduro’s price controls and other socialist centralized government planning bullshit which basically gutted their economy and put it in critical condition and on life support. Now it’s just a matter of time before their economy goes completely flatline because that is what socialism does, it destroys productive and growing economies by gutting the private sector that can actually produce real and tangible wealth.

  28. To change Venezuela the first priority would be to change the Venezuelans themselves who have to a very large degree embraced and participated in corruption for decades. The ex-President, Carlos Andres Perez once said – “no-one can fix this (country), the only option is to screw it”. He was referring to the type of people and the results of their racial mix. It seems Chavez’ and his ridiculous circus act enthusiastically supported by his kleptocratic, corrupt and deliberately inefficient group of “socialist” bandoleros have done the job which even Carlos Andres Perez, who was no choirboy, could or would not complete. Venezuela is already a failed state, in fact has been one at least since 1999. Without proper education, without independent judiciary, with far too many cooks (and crooks) stirring the political broth, with rampant corruption at every level and the allure of drug traffiking on an industrial scale, who can save this once beautiful country from total collapse? Perhaps they should try to resucitate Gen. Pinochet and convince him to cross the Andes to become the next Bolivar. But even Simon Bolivar would probably balk at this task now.

  29. Good reporting but do not sell short Venezuela’s available human resources The country has several experienced savvy democrats who can replaced Maduro’s Communist regime–Leopoldo Lopez is my first choice, Maria Corina Machado , Enrique Capriles and Antonio Ledezma. The country is well stocked with high caliber trained professionals who can overhaul the disastrous economic and financial mess created by Chavez, Maduro and the Castros. Ricardo Hausman, Harvard professor and former Finance Minister, Moises Naim, Gerver Torres, Luis Giusti, former President of Pdvsa are a few who come to mind. There are many more in the country and abroad who you can do an efficient restoration job compared to the bunch of ideological incompetents who are now running the place.

  30. Mauro should have the following tattooed to his forehead “China is for the Chinese” Of course, the incredible stupidity of the Chavez and Mauro policies over the past 20 years were a continuation of the policies from the previous 50 years,…none of them well thought out.

  31. What Venezuela needs is a good occupy movement, like here in the States. Then add in a mix of IS (ISIS). An Al Sharpton or two, Fairycon, msnbc, and some fauxnews haters Oh Yeah. Sweet!

  32. Economic collapse was already going to happen, the low oil price is just making it sooner than later. Socialism has created a population dependent on the government. The people who actually work are leaving for other countries that need their skills. Venezuelan oil men are now working in neighboring countries or around the world.

  33. maduro was just unlucky, chavez planted the seeds for this failure and maduro jumped on the bandwagon. Best think to do is to let it collapse, that way it can be used as an example that there is no such thing as a free lunch. There will be positive proof if that does happen

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