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Venezuela - Chronicles in Socialist Success Stories!

Correction, speculators haven't driven the price of oil down, they no longer can artificially drive the price of oil up in the face of receding demand from Europe and Asia.

If supply and demand are balanced at $100 why would you say speculators drove it there?

I will provide you with more help. Here is a graph of the price of oil, WTI from FRED the St. Louis Fed, and the Different QEs, from the Wikipedia, Quantitative Easing and Operation Twist.

Price of oil verses the QEs.jpg

The question for you is why did the price of oil go up when a QE started and go down when it ended? Why didn't Operation Twist have the same effect? Why was the effect less pronounced for QE 3?

Clue, the QEs pumped money to investors and Operation Twist lowered long term interest rates.
 
No I agree.

China is getting a nice oligarchy of it's own.

Here are the monuments to them.

The major companies in the PRC are still state owned. How is this different from a socialism mess?

Capitalism is flourishing over there.

I lived in Shanghai for a couple of years twenty years ago. They had just built the bridge across the river to Pudong. I can't believe the Google earth pictures of Shanghai now.

My father was born in Shanghai. He visited me there in the early 1990's and not only could he find the house that he lived in the 1930's, there were people living there who remembered him and his family. Now I can't even find it on the map, the entire neighborhood is gone.

It wasn't quite that severe for my wife, at least the streets were what she knew even though nothing on them was familiar. Her childhood home is now a skyscraper.
 
Looks like Ford is throwing in the towel:

Ford Motor Co. is removing its Venezuelan operation from its consolidated financial reports, taking an $800 million pretax charge in the fourth quarter amid unstable economic conditions and additional currency devaluation.

http://www.wsj.com/articles/ford-to...tax-charge-on-venezuela-operations-1422021412

Other companies have as well:

Companies often need approval from Caracas to raise prices amid soaring inflation. Sometimes that approval is delayed or the price hikes don't keep pace with a 12-month inflation rate currently at nearly 64 percent, threatening losses because of a mismatch between costs and revenue.

Cleaning and household products maker Clorox last year decided to exit Venezuela altogether. CEO Don Knauss told analysts in October that Venezuela's government was slow to approve price increases and when it did they were not as high as promised.

"We saw no hope that we could create a sustaining business in that country," Knauss said during an October conference call.

...

Also on Friday, diaper and tissue maker Kimberly-Clark Corp said it took a fourth-quarter charge of $462 million for its Venezuelan business. That was after it concluded that the appropriate rate at which it should be measuring its bolivar-denominated monetary assets should be a Venezuelan government floating exchange rate - currently at around 50 bolivars to the dollar - rather than a fixed official rate of 6.3 to the dollar that it had previously been using. Kimberly-Clark blamed increased uncertainty and lack of liquidity in Venezuela for the move.

http://finance.yahoo.com/news/venezuelas-currency-woes-increasing-threat-130120650.html

untermenche would call these moves economic sabotage by the oligarchs.
 
Cuba, Chile, Nicaragua, and an innumerable number of barefoot socialist states of Africa are now the arcane history of poly sci classes, a part of the burdening literature of leftwing failure. But some recall that Venezuela was to be the exception! A country rich in oil and with a long democratic tradition the gringo sandalistas flocked to the latest fad in state ordered communalism, to experience the wonders of a new worker's paradise. Gee, what could go wrong?

What went wrong is not only did it fail, but in spite of having the world's largest oil reserves, the countries misery may never end. There will not be the salvation of a CIA sponsored coup, pressure from contras, or a US military intervention. The Venezuelan military (now far left) will never abandon the government to join the opposition, no matter how large the protests or how great the suffering. The massive class war started by Chavez's demagogic politics of hate has left a country completely polarized and unable to reconcile, and in the grip of misanthropes so primitive and doctrinaire in their economics that it can only get worse (and almost certainly will).

So this is the marvel and the ruin that "Bolivarian socialism" has bestowed on a once prosperous nation.

THE queue is perhaps a thousand people long. It snakes around the dusty, rubbish-strewn back lot of a giant supermarket in the heart of Caracas, Venezuela’s capital. The store is the flagship of the government-run Bicentenario chain, part of a project started by President Hugo Chávez, who died in 2013, and continued by his successor, Nicolás Maduro, to seize control of the production, import and distribution of food. ...

“I came here for milk,” says a young mother from El Valle, a working-class district a few kilometres to the south-west. “In El Valle, there’s nothing.” She is carrying a tiny baby, while her four-year-old daughter helps with the modest purchases she has managed to make. Today the Bicentenario has sugar, maize flour, chicken and toilet paper at giveaway, government-controlled prices—but no milk. It is 9.30am and customers who began queuing at six o’clock are just emerging. Hundreds more wait outside a narrow gate in the 3-metre-high railings around the lot. Uniformed police keep order; most customers seem resigned rather than belligerent.

But the shortages are undermining support for the autocratic regime’s “21st-century socialist” experiment, especially among the poor, its intended beneficiaries. As queues lengthen across the country, there have been protests and some looting and violence. Fights break out, the strong snatch shopping from the weak and shots have reportedly been fired on occasion. Supermarkets have banned customers from photographing empty shelves, presumably under government pressure. Police have arrested journalists and charged them with disturbing the peace as they tried to report on food shortages. Several state governors have forbidden queuing overnight, perhaps sensing that it looks more shameful than when it happens during daylight. Government stores limit customers to shopping one day a week, assigning the day according to the last number of their identity cards....

The government insists it is the victim of “economic warfare” waged by the opposition. According to one official, the children of the rich are “infiltrating people into the queues” to cause trouble. The real source of trouble, private-sector economists agree, is price and exchange controls imposed by the government, along with nationalisations of food processing and farmland. The diving price of oil, virtually Venezuela’s only export, means that the government can no longer import its way out of trouble. Earnings of foreign exchange are expected to drop by $35 billion this year, from $65 billion in 2014.

the president insists that the solution is more revolution. He announced that food distributors would be given an ultimatum: fix the supply problem or face “the full weight of the law”. For the umpteenth time he promised to announce economic measures to alleviate the crisis. His annual speech before the National Assembly on January 21st (a day later than planned) was characteristically long on rhetoric and short on specifics.

The hardships of daily life are fraying Venezuelans’ patience. Catholic bishops, never friendly to the regime, published an unusually hard-hitting pastoral letter this month that laid the blame for the crisis squarely on the “totalitarian and centralist system”. Its architects may be powerless to prevent its collapse.

But Venezuela cannot collapse - all it can do is suffer.

http://www.economist.com/news/ameri...ng-economic-crisis-empty-shelves-and-rhetoric
 
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