When Bernie Sanders’ campaign was on the rise we were watching different parts of the world collapse due to socialistic ideals that he touted. One of these countries was Greece that was literally dragging down the EU with its socialized programs. Today however we see a country that has no way out, Venezuela. The rich have left and there is no way for this country to save themselves. They have spent themselves into oblivion and borrowed at a rate that could not be sustained. This just in today from CNN.
The country’s central bank only has $11.9 billion in reserves, down sharply from $30 billion in 2011. A few large debt payments are coming due soon. Starting in October, Venezuela owes a total of $4.7 billion in a series of payments.
Venezuela is in the midst of a deep economic, political and humanitarian crisis. Its citizens are suffering from massive food shortages and hospitals lack basic medicine and equipment. Experts say Venezuela has prioritized paying the debt over dealing with the shortages.
“Within a year they’re going to run out of money,” says Russ Dallen, an expert on Venezuela’s debt and managing partner at Caracas Capital, an investing firm in Miami. Dallen pointed out that the country has been almost “suicidal” in its focus on making debt payments.
Food down there has gotten so hard to find that some people wait 35 hours in front of government stores to get their food. On the black market it can take a whole month’s salary in order to pay for basic essentials to feed a household. This is democratic socialism. I do not care how anyone tries to spin it, I don’t care that Norway or Sweden has “perfected” it. The fact is that eventually people get tired of paying for those who refuse to pay for themselves. All socialized programs are fraught with waste and abuse, and when controlled by the state end up in a state of shambles. Don’t believe me look at books that children read 100 years ago vs the books that are read today.
It is a dire situation and ironic for a country that sits on the world’s largest oil reserves. It’s true that oil prices have dropped dramatically and Venezuela hasn’t been able to earn enough money for its oil. But whatever money Venezuela earns from its oil is going to pay down its debts to lenders like China, bondholders, oil drilling companies and importers.
Even oil drilling companies are starting to cut business in Venezuela. For instance, in April, Schlumberger said it would reduce operations in Venezuela due to unpaid bills. It’s also one of the key reasons why the country’s oil production has plunged to 13-year lows.
When a country or even a state basis its entire economy on one single industry this is what happens. It has happened in Wyoming and in North Dakota. The main difference is that most of the oil companies were smart and saw the down turn so they shut down their plants realizing that it was more expensive to stay in operation than it was to just shut the plants down. The part of course that CNN isn’t reporting is that the government has taken over some of these facilities and opened them back up for the “worker”, when in reality it is just to keep people’s minds off of what is really going on. Last week we saw the introduction of forced labor laws. In plain term’s its slavery to the state.
This is what happens when you confuse rights with wants. You don’t have a right to someone else’s labor, which means anything that you cannot do yourself you have no right to. So sorry for letting people know that you don’t have a right to education or healthcare, unless you believe it is perfectly okay to force someone else by threat of violence to work for you.