Fascinating & depressing situation in Venezuela: No water, a dead main currency, and a state-approved scam cryptocurrency

[Dan Druff]

First off, there's a crisis in Venezuela right now, and it's getting relatively little attention.

Tap water is very hard to come by, forcing people to band together to hire a company to dig wells near their properties, or to literally spend all day filling up empty jugs at trickling springs in the area.

Most days, water doesn't flow at all.

This affects both the rich and the poor, except the rich can afford to drill wells to supplement their almost nonexistent water supply.

People can't take showers, they can't wash their clothes, and they can't wash dishes. Armed soldiers are sent out to the streets to quell protests about the water situation.

Not surprisingly, this crisis is the result of an incompetent and corrupt communist government. They once had a world-class water system, bringing ample water from far-off reservoirs over huge mountains, but over time, those pipes have cracked and broken due to lack of maintenance.

Late at night, if surprise water shows up in local pipes, people bang on each other's doors to quickly fill up their containers or inflatable water supply pools, before the water vanishes again.

In the meantime, the currency is a disaster.

The Venezuelan Bolivar Fuerte -- the second incarnation of the Bolivar, has suffered from hyperinflation this year. In early February, one Bolivar Fuerte was worth about 10 US cents. Nowadays, one million Bolivar Fuertes will get you 4 US dollars. Not joking.

The government's response has been twofold.

They've lopped off 5 zeroes from the Bolivar Fuerte and created a new currency callled Bolivar Soleano, which took effect on August 20. 100,000 Bolivar Fuerte will get you one Bolivar Soleano. However, hyperinflation is continuing, and this new currency isn't likely to change much.

Earlier this year, they also introduced a supposed cryptocurrency called the Petro. It is supposedly tied to Venezuelan oil reserves, but there is no proof that's true. The Petro has been called a "scam" and "created out of thin air" by nearly everyone observing from the outside, including the cryptocurrency community. In March, Donald Trump issued an executive order forbidding Americans from buying the Petro, citing that it's a way Venezuela is trying to dodge US sanctions. It seems that Trump has a point, as the Petro was created with the help of Russia for exactly that purpose.

Anyway, it's a complete mess over there, and is yet another example of communism failing to work in practice.

[snake_in_the_ass]

The goldbugs are the original HODLers. These are people who buy gold coins thinking the USD is going to collapse and go to zero. In the case of Venezuela, this actually happened. It has gone from 13,000 bolivar in January to 300,000,000 today.

[Lord of the Fraud]

Amazing to think that Venezuela has the largest oil reserves of anywhere else in the world. Even more than Suadi Arabia.

Toilet paper literally cost more than its equivalent weight in local currency.


Not saying their corrupt governments (past & present) haven't played a huge part in the downfall of that country. But them telling the world's largest pirate-state (America) to keep its thieving grubby hands off its natural resources, is one surefire way to isolation and poverty of its citizens.

[MrTickle]

How is this “communism failing in practice”? Venezuela is communism in name only.

[CrackPipes and Kakfights]

Seems like yesterday that we were seeing commercials sponsored by the Venezuelan government and Joe Kennedy (I think) donating free heating oil to the poor, needy folks of New England.

The mental image I have now is a bewildered looking Manuel saying to his boss: Que?

[donkdowndonedied]

How is this “communism failing in practice”? Venezuela is communism in name only.

And I'd add.. where has a free market economy actually ever thrived for 100+ years ? Afghanistan? I'm not saying it hasn't happened.. i'm just curious.

Any type of government that issues a currency can also print as much as it desires... This is like cryptocurrency 101. It has nothing to do with capitalism vs socialism.

[sonatine]

i consider myself reasonably well versed in foreign affairs but to this day i have no idea why we are destroying venezuela, and i have even less of an idea why there is so little international relief taking place.

2002-era taliban villages were treated better than the world is treating venezuelans right now.

[sonatine]

absolutely not hyperbole:

if i had a boat capable of making the journey and didnt need to work for a living, id spend every minute of my fucking life sailing back and forth from venezuelan ports, delivering crates of baby formulae, antibiotics, fucking toilet paper, whatever, and do it for free, because this is bullshit.

sanctions? really? no venezuelan ever called me n-word.

[Mintjewlips]

It's a sad situation, looking at Venezuela's history it's even more depressing, especially considering that some of the factors that brought down a great economy are well and alive in this country.

It's truly a lesson in humility and reality............

[GrenadaRoger]

absolutely not hyperbole:

if i had a boat capable of making the journey and didnt need to work for a living, id spend every minute of my fucking life sailing back and forth from venezuelan ports, delivering crates of baby formulae, antibiotics, fucking toilet paper, whatever, and do it for free, because this is bullshit.

sanctions? really? no venezuelan ever called me n-word.

you know who would meet you at the dock: army or police or criminal gangs, who would take the supplies and sell them on the black market--that is what is happening now...your noble intentions would go to line the pockets of corrupt government employees or outright criminals

the average citizen in Venezuela has lost 18 pounds this year, food shortages the cause

I wouldn't blame socialism/communism as the cause of the current collapse...rather government corruption with the inability have oil sales keep the system running, the prices for oil are too low to support the public handouts that got Chavez elected/in power about 15 years ago...socialism was merely the gateway...as long as the government keeps control of the police and army, there will be no change

[Dan Druff]

Venezuela has strayed from its communist roots, yes, but that foundation was the cause of the current situation. Because of the immense power granted to the state, it becomes incredibly easy for corruption, totalitarism, and dictatorships to arise.

The state owns almost all oil, iron, gas, power, water, and telecommunications companies.

Venezuela will remain a disaster for as long as a socialist/communist type government remains in place.

I do feel sorry for the citizens there, most of whom simply want to live with basic needs as safety like anyone else.

[ErickAA]

i consider myself reasonably well versed in foreign affairs but to this day i have no idea why we are destroying venezuela, and i have even less of an idea why there is so little international relief taking place.

2002-era taliban villages were treated better than the world is treating venezuelans right now.

I only see news on the plight of Venezuela on right wing websites. Therefore, it is clear the left leaning MSM (domestic and international) and left leaning govts don't want to highlight a failed socialist government because it does not fit their preferred narrative: socialist/heavy handed central govt = good; free market/capitalist = bad.

So they are willing to completely ignore the catastrophe, pretend it isn't happening, and sacrifice the millions of people in Venezuela to prop up their preferred world narrative.

[snake_in_the_ass]

Who is that idiot that said he was going to Haiti to donate one of kidneys several years ago? Maybe he can donate his other one to someone in Venezuela.

[PLOL]

Crazy to think this would be America if we elected Bernie Sanders

[sonatine]

so you guys are saying that if america embraced socialism, an economic superpower thousands of miles away that we never fucked with would slam us with crippling sanctions?

fascinating.

[MumblesBadly]

i consider myself reasonably well versed in foreign affairs but to this day i have no idea why we are destroying venezuela, and i have even less of an idea why there is so little international relief taking place.

2002-era taliban villages were treated better than the world is treating venezuelans right now.

I only see news on the plight of Venezuela on right wing websites. Therefore, it is clear the left leaning MSM (domestic and international) and left leaning govts don't want to highlight a failed socialist government because it does not fit their preferred narrative: socialist/heavy handed central govt = good; free market/capitalist = bad.

So they are willing to completely ignore the catastrophe, pretend it isn't happening, and sacrifice the millions of people in Venezuela to prop up their preferred world narrative.

I call Bullshit!



CNN published this article about the crisis last year.

5 reasons why we should care about the crisis in Venezuela
https://www.cnn.com/2017/08/03/ameri...rnd/index.html

And The Young Turks has been reporting on the crisis for some time now, and calling out the repression of the people by the Maduro government. Here’s an example from last year.



And MSNBC reports on the crisis . Here’s one from earlier this month:

What happened in Venezuela this weekend?
https://www.msnbc.com/katy-tur/watch...411542?v=raila

#WillfullyIgnorantMuch?

[ErickAA]

so you guys are saying that if america embraced socialism, an economic superpower thousands of miles away that we never fucked with would slam us with crippling sanctions?

fascinating.

No, but the top 1% running the show would oppose the resource distribution, and the inevitable outcome would probably be economic chaos and everyone being the worse off for it for the foreseeable future.

I am not even arguing that we shouldn't theoretically try to distribute wealth/resources better. But things have gone so far I don't see any way of going about it that wouldn't make things much worse in the short term, and possibly long term, and I dunno it I want to risk it.

Obviously part of this is pragmatism on my part, as I am basically upper middle class so I have a lot to lose and not really a lot to gain. But from a worldwide perspective this is pretty much everyone in the United States, so noone here is truly incentivized to burn it all down.

[ErickAA]

I only see news on the plight of Venezuela on right wing websites. Therefore, it is clear the left leaning MSM (domestic and international) and left leaning govts don't want to highlight a failed socialist government because it does not fit their preferred narrative: socialist/heavy handed central govt = good; free market/capitalist = bad.

So they are willing to completely ignore the catastrophe, pretend it isn't happening, and sacrifice the millions of people in Venezuela to prop up their preferred world narrative.

Bullshit! The Young Turks has been reporting on the crisis for some time now, and calling out the repression of the people by the Maduro government. Here’s an example from last year.

So you are giving an example of a group that isn't MSM or a left-leaning govt to challenge my statement the MSM and left leaning govts are suppressing news of the crisis.

K.

[sonatine]

so you guys are saying that if america embraced socialism, an economic superpower thousands of miles away that we never fucked with would slam us with crippling sanctions?

fascinating.

No, but the top 1% running the show would oppose the resource distribution, and the inevitable outcome would probably be economic chaos and everyone being the worse off for it for the foreseeable future.

I am not even arguing that we shouldn't theoretically try to distribute wealth/resources better. But things have gone so far I don't see any way of going about it that wouldn't make things much worse in the short term, and possibly long term, and I dunno it I want to risk it.

Obviously part of this is pragmatism on my part, as I am basically upper middle class so I have a lot to lose and not really a lot to gain. But from a worldwide perspective this is pretty much everyone in the United States, so noone here is truly incentivized to burn it all down.

Yeah this is totally one of those issues we essentially see eye to eye on.

Again my principle concern remains; why are we fucking with Venezuela? Why do we have sanctions imposed? Why arent we airlifting in aid and perhaps more importantly, why isnt anyone else airlifting in aid? Its all so fucked up.

[PLOL]

No, but the top 1% running the show would oppose the resource distribution, and the inevitable outcome would probably be economic chaos and everyone being the worse off for it for the foreseeable future.

I am not even arguing that we shouldn't theoretically try to distribute wealth/resources better. But things have gone so far I don't see any way of going about it that wouldn't make things much worse in the short term, and possibly long term, and I dunno it I want to risk it.

Obviously part of this is pragmatism on my part, as I am basically upper middle class so I have a lot to lose and not really a lot to gain. But from a worldwide perspective this is pretty much everyone in the United States, so noone here is truly incentivized to burn it all down.

Yeah this is totally one of those issues we essentially see eye to eye on.

Again my principle concern remains; why are we fucking with Venezuela? Why do we have sanctions imposed? Why arent we airlifting in aid and perhaps more importantly, why isnt anyone else airlifting in aid? Its all so fucked up.

America First