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Venezuela's "Death Spiral"
 [ZEROHEDGE] "The trouble with Socialism is that eventually you run out of other people's money."When President Nicolas Maduro inherited the Venezuelan Socialist "dream", in April of 2013, just one month after Chavez died, he was facing a mere 53% inflation rate. Today the Venezuelan bolivar is virtually worthless, and inflation is creeping to 500% with expectations of much more. A recent Washington Post report stated: " ...markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt. It is not easy for a nation to go bankrupt with the largest oil reserves in the world, but Venezuela has managed it. How? Well, a combination of bad luck and worse policies. The first step was when Hugo Chavez's socialist government started spending more money on the poor, with everything from two-cent gasoline to free housing. That may all seem like it's a good idea in general -- but only as long as there's money to spend. And by 2005 or so, Venezuela didn't have any." Posted by: Fred 2016-09-15 |
| http://www.rantburg.com/poparticle.php?ID=467549 |