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sarahbell

Venezuela - is this important?

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Massive for Venezuela as it looks like it is about to lose control of the income from its oil fields and will so become an economic and social basket case for a decade or more until those debts are paid back; for the rest of us: not so much.

That was a hard read but it linked to a useful page explaining it:

https://www.bloomberg.com/news/articles/2017-11-03/how-venezuela-bondholders-finally-ran-out-of-time-quicktake-q-a

 

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9. Is there any precedent for Venezuela’s situation?

There are some similarities to the devastating case of Romania in the 1980s when dictator Nicolae Ceausescu imposed Draconian austerity measures in an obsessive drive to pay off the country’s foreign debt by the end of the decade. Living standards plunged as food, heating, electricity and medical care were rationed. Ceausescu knocked out the debt, but by then, public anger was so high that he was overthrown and executed a few months later.

 

 

This is a lovely product of its time in 2008 hailing the success that Chavez has made of Venezuela:
 

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The ‘Opposition’ is a therefore a grouping whose whole record shows they have not the slightest right to be taken seriously regarding economic policy.
Chavez has already set about meeting many immediate needs of the Venezuelan population through improving health, education, food supply and many other services.


 

 

https://thevenezuelaneconomyed.wordpress.com/2008/12/21/catastrophic-economic-policies-of-the-venezuelan-opposition/

Whereas by 2015:
 

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By many measures, Venezuela’s economy is the most sickly in the world. From the value of its currency (sinking), to its inflation (scorching) and GDP (shrinking), Venezuela ranks at or near the bottom of just about every important financial indicator out there, performing worse even than Argentina, Greece, or Ukraine.

The battered bolívar

The most striking sign of the country’s financial crisis is its rapidly weakening currency, which has lost more than 60% of its value against the dollar on the black market over the past six months. This is not immediately apparent in official figures. Venezuela’s convoluted three-tier exchange system suggests that the bolívar is much stronger than this, thanks to strict currency controls—which is why nobody believes the official figures.

 

https://qz.com/362275/why-venezuela-is-the-worlds-worst-performing-economy-in-three-charts/

 

 

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What was it Corbyn said about Venezuela again?

Oh yes:

"(Venezuela is an) inspiration to all of us fighting back against neoliberalism and austerity in Europe and showing us there is a better way of doing things. It’s called socialism, it’s called social justice and it’s something that Venezuela has made a big step towards."

So how's that working out for you Jeremy, hmmm?

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34 minutes ago, Sgt Hartman said:

What was it Corbyn said about Venezuela again?

Oh yes:

"(Venezuela is an) inspiration to all of us fighting back against neoliberalism and austerity in Europe and showing us there is a better way of doing things. It’s called socialism, it’s called social justice and it’s something that Venezuela has made a big step towards."

So how's that working out for you Jeremy, hmmm?

He knows how to pick 'em does our Jez.

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2 hours ago, dgul said:

Hmm... Venezuela has just overtaken Saudi as largest oil reserves in the world.

Funny how there are currently political upheavals in both countries...

"Oil reserves" are a funny old beast. Take the following chart:

Venezuela_Oil_Reserves.png

The KSR's oil reserves have remained pretty much flat for the last 30 years - despite massive pumping.

Meanwhile, Venezuela's have trebled in the last decade - "hey, look what I just found behind the sofa!"

But I wouldn't go so far as agreeing with you that the political climate in these 2 countries might be influencing the cautious impartial scientific studies into their oil reserves  :ph34r:

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9 minutes ago, DeepLurker said:

"Oil reserves" are a funny old beast. Take the following chart:

Venezuela_Oil_Reserves.png

The KSR's oil reserves have remained pretty much flat for the last 30 years - despite massive pumping.

Meanwhile, Venezuela's have trebled in the last decade - "hey, look what I just found behind the sofa!"

But I wouldn't go so far as agreeing with you that the political climate in these 2 countries might be influencing the cautious impartial scientific studies into their oil reserves  :ph34r:

I think I might have been pointing out that the outcomes of cautious impartial scientific studies into their oil reserves might be influencing the political climate.

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