Daniel Fernández Méndez
The country of Venezuela is dangerously approaching hyperinflation. At 2015’s year-end, official figures had yearly inflation at or above 180 percent (some private sector sources estimated it at 330 percent). The technical definition of hyperinflation is when inflation is at 50 percent or more per month, meaning that Venezuela is not yet at this point, but does seem to be approaching at an accelerated pace. The South American country finds itself with inflation rates at their worst in its history (1996 saw 103 percent yearly inflation) and the highest in the world (Ukraine is second with 50 percent yearly inflation).......Most certainly, Venezuela finds itself in hyperinflation for which there exist only two solutions; drastically reduce spending and the deficit and execute monetary reform or lose the bolivar and adopt the dollar. Both are equally unpopular for the government of Venezuela, but the difference is that if the first option (the deficit) goes unattended, the second (dollarization) is inevitable. Then, one of the most anti-US governments in the world will have to accept the US dollar as its only remedy against hyperinflation........To Read More.....
My Take - Actually - the need to turn Northward to the United States for help is as inevitable as the turning of the day. Venezuela's government wasted untold amounts of money from their oil reserves promoting insane leftist schemes in and around South America. That oil is very crude and filled with all sort of contaminates requiring expensive refining. The fact is no one really needs their oil and the price has dropped like a stone. They can't just sell it everywhere as there are only a few refineries capable of refining it.....and most if not all are in the U.S.
On the other hand shale oil from fracking isn't just sweet and light - it's ultra sweet and ultra light and is easily refined into products like gasoline. The day is coming when Venezuela may be the only oil producing nation that can't sell it's oil to anyone.
Venezuela is geographically bound to their neighbors in the North because there is little infrastructure to the South....no roads, no rail system and the tropic geography is very difficult to their South, and very thinly populated. They are incapable of integrating to the South. Even roads to their neighbor Columbia to the West are at best crude. This is a country that's so broke it can't even afford to buy the paper to print their money. Welcome to Bernie's world!
Venezuela is part of America's backyard. They will eventually have to abandon their own independence in order to survive and they will beg the U.S. to save them....right after the current regime is overthrown and possibly executed. That's as sure as the turning of the day! However - the U.S. may not be financially able to save them when that day comes. And quite frankly - I don't care!
We've our own leftist lunatics destroying our economy, and that needs to be dealt with, but who knows....maybe Sean Penn and his fellow lunatic Hollywood leftists - who praised Chavez and his followers - will step up to the plate and give Venezuela the millions they will need to feed their people. They're waiting Sean!!!! Where are you?
No comments:
Post a Comment