Watching Venezuela Implode

kazooka wrote:
RolandofGilead wrote:

Chavez died? Totally forgot about that.

It was inevitable once he was born. :p

Fixed for great justice!

Venezuelan government now trying to crack down on websites that carry information on the black-market exchange rate, and attempting to set price controls on used cars.

I think at this point I'll be surprised if the regime lasts out another year - they are accelerating the economic distortions and becoming increasingly heavy-handed in the enforcement of Maduro's decrees.

They are desperate.

f*ck this country

I'm beyond depressed, while in the middle of a work crisis news like this make me ask myself why bother trying to fix things at all, there's no "life" to build here.

Wow, that really bites. Is the crime really that bad?

Maduro's entire cabinet resigned, and he's started to replace them. Meanwhile, the preliminary numbers indicate that Venezuela was in recession in 2013. Those numbers are almost certainly rosy, given that they use the government numbers for inflation. The Venezuelan government is projecting 4% GDP growth for 2014, which is laughable unless there are dramatic policy changes.

@malor, yup, it's pretty bad, today my absent-minded brother left the garage door open, my mother threw a fit and his answer was "oh no, relax, malandros (local term for criminals here) aren't up this early in the morning" 3 hours later he was arriving home and the neighboor next door was running down the street because he saw her sister from the roof being choked and mugged further down the street, we called the police and all, but to no avail, her phone was stolen and she has to be "happy" because she wasn't stabbed or anything worse.

One of the worst economic indicators just showed up - the Venezuela government has stopped releasing standard economic information, such as inflation statistics.

We need that to know they have been in trouble for years? I didn't think people trusted their numbers in the first place...

No one did, except the American news media - but giving up the pretense is a very bad sign. It's only happened in places like Zimbabwe, and it usually happens just before things go completely to hell.

I don't think even the media had a good view of Venezuela. But yeah, they are pretty screwed.

This is what printing money to 'solve problems' does. This is the end game: a few people, the ones nearest the presses, get extremely rich, and nearly everyone else is crushed into poverty.

Malor wrote:

This is what printing money to 'solve problems' does. This is the end game: a few people, the ones nearest the presses, get extremely rich, and nearly everyone else is crushed into poverty.

You've been so good the last few updates Malor...

Read back over the thread: look at the predictions of what would happen, versus what's actually happening. We were right.

Venezeulan newspapers are struggling with paper shortages. And gas prices are about to increase several hundred percent, though they are still extremely low.

Government-imposed price controls, and the ensuing shortages, is when the economic damage from inflationism starts to get really serious.

Airlines are starting to drop their routes to Venezuela after months of delays in converting bolivars to dollars. Meanwhile, Maduro has decreed the "Organic Law of Fair Prices", which creates a new bureaucracy that requires all businesses to submit huge amounts of information on their costs and operations, and will set their prices and profit margins for them.

Depending on how aggressively this is enforced, it may be the final straw that leads to economic collapse - there is no possible way that this government bureaucracy can gather enough information to run every business in the country. However, I suspect that this will simply lead to more corruption as businesses pay off inspectors in order to keep running or go underground into the gray/black markets.

All this pain and increasing authoritarianism, when the actual solution is to stop printing money to fund government operations.

This is why I say there is no limit to how much damage inflationism can do. A debt deflation is very painful, but the pain eventually stops: the core of the economy, the most necessary services, will survive. Inflationism has no inherent upper limit: it never stops getting worse.

A slow (but accelerating) endless erosion is much worse than a sudden crash.

Malor wrote:

Inflationism has no inherent upper limit: it never stops getting worse.

You probably need to clarify what you think inflationism is; otherwise, it's easy to assume you mean that that American economy will fall in the same way as Venezuela, even though it's set up to avoid *large* amounts of inflation. If that's the case, then an explanation of why it hasn't happened yet would be good, if you want to pursue the thought here.

Separating inflationism as a cause of problems from government policies and events like natural disasters and shifting resources would be a bonus.

Last night a coworker of mine was assaulted along with her family, the father was shot and killed.

f*ck Maduro, f*ck Chavez, f*ck f*ck f*ck f*ck f*ck

I'm sorry to hear that, Feeank.

Thanks pal.

Time to get out, dude...

Yeah, I'll be honest, man. If you have an extraction plan I would be willing to contribute to a "Get Feeank the hell out of Dodge" fundraiser.

Thanks for the support and pms guys, I'm not really that close to this girl as she works in a different floor and a different branch of the company, but she seems like the sweetest person and it saddens me that she has to go through such a brutal, senseless tragedy because our "goverment" is bent on letting crime run amok to force the critical, educated minorities out of the country.

Video of the protests is available from Peruvian TV - apparently the Venezuelan Board of Social Responsibility in Radio and Television is censoring virtually everything inside Venezuela.

A Colombian news station was taken off the air for airing video of the protests, and the Venezuelan government has blocked access to Twitter images and videos.

This leads me to believe the protests are much larger and more serious than we think.