Here is a stable economic system….
We have been following the unfolding disaster in Venezuela where the socialist dream of Hugo Chavez and his dim-witted successor Nicolas Maduro has reduced a major nation to virtual starvation. The central planning of Maduro’s nation has destroyed the oil-based economy and triggered inflation that is projected to reach one million percent within the year.
Source: Venezuela’s Inflation Rate Hit 80,000 Percent In 2018
Make no mistake, this “loan” is not being made to assist Venezuela. It is with the intent to economically enslave the country so China can exert control over it. The US is guilty of doing this as well, but it should be alarming this is happening from China in the Americas.
For a brief period earlier this year, it appeared that Beijing had finally had enough of supporting its “ideological allies” in Caracas when it decided to limit its “exposure” to Venezuela after the country struggled to make interest payments on a $19 billion loan.
Source: China Offers Venezuela $5 Billion Loan To Support ‘Ideological Ally’ Maduro
The “dream” of socialism has once again collided with the realities of economics, after nearly 40% of stores in Venezuela have been forced to close following a mandated 3,000% increase in minimum wages by the Maduro government, according to the Miami Herald , citing the National Council of Commerce and Services of Venezuela.
Source: 40% Of Venezuela Stores Go Bust After 3,000% Minimum Wage Hike
Venezuela In Chaos After Maduro Announces Massive 95% Devaluation, New FX Rate Tied To Cryptocurrency
Chaos and confusion erupted across Venezuela, and most stores were shuttered on Saturday, after president Nicolas Maduro announced that the government would enact a massive currency devaluation, implement a new minimum wage, hike taxes, and also raise gasoline prices for most citizens even as the country struggles with the greatest hyperinflation on record, surpassing even that of the Weimar Republic.
As a result of the enacted actions, the new version of the bolivar will be pegged to the value of the state cryptocurrency, the etro, which according to Bloomberg amounts to a 95% devaluation of the official rate, and will trade in line with where the black market was; the government will also raise the minimum wage more than 3,000 percent, which works out to about $30 a month.
Maduro said the new currency, set to enter circulation on Monday, will be called the “sovereign bolivar” and will be based on the petro, which is valued at $60 or 3,600 sovereign bolivars, after the redenomination planned for August 20 slashes five zeroes off the national currency. The minimum wage will be set at half that, 1,800 sovereign bolivars. The government would cover the minimum wage increase at small and medium-size companies for 90 days, Maduro added. It was not clear what happens after
— Read on www.zerohedge.com/news/2018-08-19/venezuela-chaos-after-maduro-announces-massive-95-devaluation-new-fx-rate-tied
Can the incompetence and mismanagement get any worse?
This chart clearly demonstrates Venezuela’s stark economic problems. Instead of fixing the problems (socialism), Venezuela is literally attempting to pull a rabbit out of the hat by giving out rabbits to be bred and used for food. With brilliant policies like that, I can’t imagine why their inflation rate remains so high!
Venezuela’s political crisis deepened Friday as the controversial constitutional assembly declared that it is the country’s sole legislative body, essentially dissolving the democratically elected congress. “All public bodies are subordinated to the National Constitutional Assembly,” said Delcy Rodriguez, the body’s president. “No other power can impede our decisions.” The move was hardly a surprise.
Source: Venezuela’s political crisis deepens as its legislature is essentially dissolved
Guayana City, Venezuela—Once the Latin American country with the highest growth rate, now the poorest in the hemisphere, Venezuela is in free fall. Hundreds are dying from diseases, some of them all but eradicated, because of a shortage of medicines and vaccines.
Source: Venezuela: At The Edge of a Deeper Chasm