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Generational Dynamics World View
#25
*** 29-May-16 World View -- Hugo Chávez dismantled Venezuela's businesses on purpose to create Socialist Paradise

This morning's key headlines from GenerationalDynamics.com
  • Economic collapse of Venezuela will devastate the entire Caribbean region
  • Lufthansa suspends flights to Venezuela over non-payment
  • Hugo Chávez dismantled Venezuela's businesses on purpose to create Socialist Paradise

****
**** Economic collapse of Venezuela will devastate the entire Caribbean region
****


[Image: g160528b.jpg]
Typical food supermarket in Venezuela

According to a statement by Venezuela's president Nicolás Maduro
Moros, his predecessor "[Hugo] Chávez earned a place in heaven" by
subsidizing heating oil to 150,000 low-income American families, and
especially by the PetroCaribe program, which subsidizes oil for many
Caribbean and Central American companies. However, Venezuela's
Socialist economy spirals into collapse, all of these subsidy programs
are in jeopardy, and ending the programs could seriously destabilize
the region, as many countries are already in economic difficulties.

The PetroCaribe program began in 2005, at a time when Venezuela was
making huge amounts of money from selling oil. Under the program, a
Venezuela lends the country most of the cost of the oil under very
lenient terms -- 25 year loans with interest rates as low as 1%. In
addition, Venezuela accepts debt payments in kind. For the last 10
years, it has received payments in bananas, rice, jeans, medical
assistance and “intelligence” services (from Cuba). Estimates are
that this costs Venezuela $2-3 billion per year in lost income. This
was not a problem a few years ago, but with the economy collapsing, it
is today.

In a recent visit to Jamaica, Maduro insisted that Venezuela is still
committed to the PetroCaribe program:

[indent]<QUOTE>"We are fully convinced that in the last 10 years,
PetroCaribe has clearly demonstrated that it’s only together that
we can reach development and (achieve) happiness for our
peoples."<END QUOTE>
[/indent]

If Maduro is correct that PetroCaribe is needed to achieve happiness
for Latin American peoples, then the logical conclusion is that there
will be a lot of unhappiness in Latin America if PetroCaribe ends.
That's exactly the conclusion of New York based Latin America analysts
LATAM PM.

Venezuela has almost $2 billion in debt due in October, $3 billion in
November and almost $4 billion in April 2017, making default almost
certain. According to LATAM PM:

[indent]<QUOTE>Inflation hit 180.9 per cent and the economy
contracted 5.7 per cent last year, according to central bank
figures. Contagion risks are significant: on one hand, regional
risk could spike, with Brazil and Ecuador already in a recession.

PetroCaribe ... is also in big danger. Between 2004 and 2008,
Venezuela experienced an economic miracle. Its economy grew ten
per cent on average every year, while GDP per capita expanded by
26 per cent. Now Venezuela is going backwards.

By 2018, the country will reach the GDP seen in 2005, but with a
population six million (20 per cent larger). GDP per capita will
fall to 2000 levels by 2018, as if 18 years had never occurred for
the economy."<END QUOTE>
[/indent]

Members of the PetroCaribe program include Antigua and Barbuda,
Bahamas, Belize, Cuba, Dominica, Dominican Republic, Grenada, Guyana,
Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the
Grenadines, Suriname, Haiti, Nicaragua, Honduras and El Salvador.
Guatemala left the program in 2013. From the Caribbean, only the oil
producers Trinidad and Tobago and Barbados refused Venezuela’s offer.

The inevitable end of the PetroCaribe program will have significant
impact on most of these countries. The region spends around 15% of
its GDP on oil imports, and many of the countries have a strong
dependency on Venezuela's cheap oil. According to LATAM PM, "the
existence of PetroCaribe is a matter of time and this will bring
economic instability to Central America and the Caribbean." Jamaica Observer and Nation News (Barbados) and LATAM PM (29-Feb) and Economist (4-Oct-2014)

****
**** Lufthansa suspends flights to Venezuela over non-payment
****


As has been frequently reported, the citizens of Venezuela are
suffering one indignity after another, thanks to the approaching
collapse of Venezuela's Socialist economy. These indignities include
jailing of factory owners, and severe shortages of everything from
toilet paper to beer. ( "15-May-16 World View -- Venezuela economy close to collapse as Maduro orders jailing of factory owners"
)

On Saturday, the German airline Lufthansa announced that it is
suspending all flights to Venezuela as of June 18. The reason is that
many airline fares are paid in Venezuela's bolivar currency, which has
become practically worthless, with the highest inflation rate in the
world. Reuters

****
**** Hugo Chávez dismantled Venezuela's businesses on purpose to create Socialist Paradise
****


I was startled to hear analyst Yolanda Valery on the BBC describe the
unfolding some of the history of the tenure of Hugo Chávez, as he
worked to create his Socialist paradise.

In the mid-2000s decade, Venezuela was swimming in money. Starting in
2006-7, Chávez put a plan into action to turn Venezuela into a pure
Socialist state. The plan was as follows:
  • Dismantle all the private businesses one by one
  • Use
    the vast oil wealth to import everything that had previously been
    produced internally.
  • Eventually dismantle all private
    businesses while importing everything.
  • Finally, the
    government would own all businesses, and the government would produce
    everything

Nobody would think of awarding Chávez or any of his acolytes (Sean
Penn, Michael Moore, Oliver Stone, Jeremy Corbyn) any prizes for
anything but sheer stupidity, but this plan is about the dumbest thing
I've ever seen.

This reminds me of Mao Zedong's plan to create a Socialist Paradise in
China -- the Great Leap Forward of 1958-59.

500,000,000 peasants were taken out of their individual homes and put
into communes, creating a massive human work force. The workers were
organized along military lines of companies, battalions, and brigades.
Each person's activities were rigidly supervised. Mao's stipulated
purpose was to mobilize the entire population to transform China into
a socialist powerhouse -- producing both food and industrial goods --
much faster than might otherwise be possible. This would be both a
national triumph and an ideological triumph, proving to the world that
socialism could triumph over capitalism.

The Great Leap Forward was a disastrous failure, and tens of millions
of people died of starvation. BBC: Venezuela on the Brink (MP3 at 17:30)


KEYS: Generational Dynamics, Venezuela, Nicolás Maduro Moros, Hugo Chávez,
PetroCaribe, Caribbean, LATAM PM, Lufthansa, Yolanda Valery,
China, Mao Zedong, Great Leap Forward

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John J. Xenakis
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Messages In This Thread
RE: Generational Dynamics World View - by radind - 05-14-2016, 03:21 PM
RE: Generational Dynamics World View - by radind - 05-23-2016, 10:31 PM
29-May-16 World View -- Hugo Chávez dismantled Venezuela's businesses on purpose - by John J. Xenakis - 05-28-2016, 09:27 PM
RE: Generational Dynamics World View - by radind - 08-11-2016, 08:59 PM
RE: Generational Dynamics World View - by SomeGuy - 01-18-2017, 09:23 PM
RE: Generational Dynamics World View - by tg63 - 02-04-2017, 10:08 AM
RE: Generational Dynamics World View - by Galen - 03-13-2017, 03:33 PM
RE: Generational Dynamics World View - by SomeGuy - 03-15-2017, 02:56 PM
RE: Generational Dynamics World View - by SomeGuy - 03-15-2017, 03:13 PM
RE: Generational Dynamics World View - by Galen - 05-30-2017, 01:04 AM
RE: Generational Dynamics World View - by Galen - 07-08-2017, 01:34 AM
RE: Generational Dynamics World View - by tg63 - 08-09-2017, 11:07 AM
RE: Generational Dynamics World View - by tg63 - 08-10-2017, 02:38 PM
RE: Generational Dynamics World View - by Galen - 10-25-2017, 03:07 PM
RE: Generational Dynamics World View - by rds - 10-31-2017, 03:35 PM
RE: Generational Dynamics World View - by rds - 10-31-2017, 06:33 PM
RE: Generational Dynamics World View - by noway2 - 11-20-2017, 04:31 PM
RE: Generational Dynamics World View - by Galen - 12-28-2017, 11:00 PM
RE: Generational Dynamics World View - by Galen - 12-31-2017, 11:14 PM
RE: Generational Dynamics World View - by JDG 66 - 06-22-2018, 02:54 PM
RE: Generational Dynamics World View - by JDG 66 - 07-11-2018, 01:42 PM
RE: Generational Dynamics World View - by JDG 66 - 07-11-2018, 01:54 PM
RE: Generational Dynamics World View - by JDG 66 - 07-19-2018, 12:43 PM
RE: Generational Dynamics World View - by JDG 66 - 07-25-2018, 02:18 PM
RE: Generational Dynamics World View - by JDG 66 - 07-11-2018, 01:58 PM
RE: Generational Dynamics World View - by Galen - 08-18-2018, 03:42 AM
RE: Generational Dynamics World View - by Galen - 08-19-2018, 04:39 AM
RE: Generational Dynamics World View - by tg63 - 09-25-2019, 11:12 AM
RE: Generational Dynamics World View - by JDG 66 - 03-09-2020, 02:11 PM
RE: Generational Dynamics World View - by Camz - 03-10-2020, 10:10 AM
RE: Generational Dynamics World View - by tg63 - 03-12-2020, 11:11 AM
RE: Generational Dynamics World View - by JDG 66 - 03-16-2020, 03:21 PM
RE: 58 year rule - by Tim Randal Walker - 04-01-2020, 11:17 AM
RE: 58 year rule - by John J. Xenakis - 04-02-2020, 12:25 PM
RE: Generational Dynamics World View - by Isoko - 05-04-2020, 02:51 PM
RE: Generational Dynamics World View - by tg63 - 01-04-2021, 12:13 PM
RE: Generational Dynamics World View - by CH86 - 01-05-2021, 11:17 PM
RE: Generational Dynamics World View - by mamabug - 01-10-2021, 06:16 PM
RE: Generational Dynamics World View - by mamabug - 01-11-2021, 09:06 PM
RE: Generational Dynamics World View - by mamabug - 01-12-2021, 02:53 AM
RE: Generational Dynamics World View - by mamabug - 01-13-2021, 03:58 PM
RE: Generational Dynamics World View - by mamabug - 01-13-2021, 04:16 PM
RE: Generational Dynamics World View - by mamabug - 01-15-2021, 03:36 PM
RE: Generational Dynamics World View - by galaxy - 08-19-2021, 03:03 AM
RE: Generational Dynamics World View - by galaxy - 08-21-2021, 01:41 PM
RE: Generational Dynamics World View - by galaxy - 02-27-2022, 06:06 PM
RE: Generational Dynamics World View - by galaxy - 02-27-2022, 10:42 PM
RE: Generational Dynamics World View - by galaxy - 02-28-2022, 12:26 AM
RE: Generational Dynamics World View - by galaxy - 02-28-2022, 04:08 PM

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