November 13, 2013

COMMUNISM/SOCIALISM ALWAYS ENDS THIS WAY, AS THE COVERT LOOTING BECOMES OVERT: Venezuela’s Economic War With Itself.

The detained reporter was looking into upcoming municipal elections and the chronic shortages of basic goods that have plagued Venezuela. And the “military occupation” of an electronics retailer comes ahead of those elections, in which Maduro’s party is not expected to do well.

The roots of both of these issues go back to Chavismo, the left-wing ideology of former president Hugo Chavez, who used Venezuela’s oil revenues to support huge social spending. Unfortunately, Venezuela’s heavy, sulfurous crude requires a lot of continual investment to keep it coming out of the ground, and much of that investment has been diverted. Since Chavez took office, Venezuela has been pumping less and less of the stuff. . . .

As oil prices fell, the government inevitably ran into political trouble, which it has tried to manage with ill-considered economic interventions such as price controls. Shortages of basic household goods are common, and currency restrictions have sent the price of airline tickets soaring as Venezuelans resort to vacations as a way to get a hold of scarce foreign currency.

These restrictions tend to fall apart, creating the need for even more extreme measures.

Sooner or later, you run out of other people’s money. But hey, when Chavez died his family was somehow worth billions. Because he cared for the poor, you know.

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