When the army is distributing medical supplies in a country it’s pretty safe to say that things are not going well. Venezuela is a tragedy.
An excellent report.
Socialism is imploding in South America. People have died and are dying because of the “system” on the continent. What was once called “The Pink Tide,” the rise of socialist leaders in Venezuela, Brazil, Argentina, Ecuador, and Bolivia at the turn of the century has become a nightmare. The Pink Tide has evaporated with economic dysfunction, hunger, chaos, and state dependent cronies scurrying on the mud flats in its wake.
Nicholas Maduro with the now suspended (also socialist) president of Brazil Dilma Rouseff.
An excellent report from France 24.
Socialism is subsidized by real wealth. In Venezuela’s case it was oil wealth. That was the “fat” which made fake prices and closed markets possible, for a time. But as real wealth disappears and is not replenished socialism quickly erodes. Unfortunately those running the socialist machine, the cronies (socialism and crony capitalism are cousins if not one and the same,
Venezuela is seeing some challenges. But this is what happens when planners try to deny the natural tendency of prices to ebb and flow.
It is a large serving though, so keep that in mind.
The central planners in Venezuela have really done a number on their economy. We’ve been following the meltdown there for a while. Slowly but surely the place has fallen apart. No soap. No toilet paper. No french fries. No beer.
That’s right, no beer. At least the last time we checked in the national brewery was on the edge of collapse.
All the paper bugs out there can say whatever they want. Gold is a “barbaric relic.” It’s just a yellow rock. Yet, when the dung hits the fan, it’s the gold which gets sold. (Or in this case pawned.) As true for the degenerate gambler in Atlantic City as it is for the degenerate politicos in in Venezuela.
Whether a state has a more corporatist flavor or a more “socialist” flavor (crony systems typically have both) it is the denial of prices, the denial of reality, which leads ultimately to disaster. If the pricing mechanism isn’t allowed to work distortions in the economy arise. Distortions make the system wobbly, and sooner or later the system is off the rails.
And out of toilet paper.
Socialism is inherently a crony capitalist system. Basically a true socialist state is a uni-corporate entity. It is a monopoly (more or less) of goods and services (and most importantly force) where the cronies control the means of production. The Soviet Union for instance was basically one giant, very poorly run corporation which killed (often literally) any competitors which challenged it.
Some people swear that this is all instigated by the CIA. Who knows? It’s possible. But the goververnment in Caracas is so economically clueless that outside instigation doesn’t seem to be neccecary. It looks to be a classic socialist economic implosion to me.