Venezuela continues slide into chaos – 6

Shipwreck standing on the beach with the sea in the background. Margarita Island. Venezuela. Photo courtesy of DollarPhotoClub.com

Shipwreck standing on the beach with the sea in the background. Margarita Island. Venezuela. Photo courtesy of DollarPhotoClub.com

Things are bad and likely to get far worse for the people living in Venezuela. More reports of looting are appearing in news stories. Read between the lines on the comment from a mayor who says that dogs and cats are disappearing from the streets.

(Cross-post from my other blog, Outrun Change.)

5/14 – Zero Hedge – Scenes From the Venezuela Apocalypse: “Countless Wounded” After 5,000 Loot Supermarket Looking for Food – Opening photo shows over 100 soldiers (by my count) holding back a huge crowd on a street.

Article reports on several specific stores being looted with comments there have been many more in the last two weeks. There is so little food and when available it is expensive. More people are slipping into severe hunger. Widespread looting is the expected next step in the collapse of the country.

The mayor of Chacao in Caracas said the cats and dogs in the city are disappearing. Pigeons as well. That is traditionally a sign of famine.

5/13 – Reuters – U.S. concern grows over possible Venezuela meltdown – officials(more…)

Ongoing deterioration in the Venezuelan economy and increased suffering – 5

Image courtesy of DollarPhotoClub.com

Image courtesy of DollarPhotoClub.com

The level of suffering is increasing and the economy continues collapsing in Venezuela.

A few articles to describe this live demonstration of the glorious success of socialism:

  • Food becoming scarcer.
  • Soldiers stealing goats so they have something to eat.
  • Hard core socialists blame the suffering on everything but socialism.
  • A better description of the cause. Also, comments that looting and rioting has started to appear.

(Cross-post from my other blog, Outrun Change.)

5/2 – Business Insider – “We want out of this agony’: What it’s like to eat in a country that’s on the verge of collapse – Food is getting even more scarce in Venezuela. You have to stand in line for many hours in order to buy a few items that are on the shelf. Oh, there is little on the shelves.

Poor people are skipping meals because they can’t afford what little can be found, and what little they can find and afford comes with the additional price of standing in line all day.

5/4 – CNBC – How bad is it in Venezuela?  Soldiers are stealing goats – Six soldiers were arrested over the weekend by local police for stealing goats.

Why rip off goats?

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Ongoing deterioration in the Venezuelan economy – 4

The soon-to-be condition of working light bulb in Venezuela. Photo by James Ulvog.

The soon-to-be condition of working light bulbs in Venezuela. Photo by James Ulvog.

One old joke and two new ones:

  • What did socialists use before candles? Electricity.
  • Before tree leaves? Toilet paper.
  • Before the telegraph? Telephone and email.

Was planning to hold on to this post for a while, but the bad news is piling up too fast. Need to print this while it is still of readable length.

Bonus question for the day: What economic system is in place in Venezuela that is producing these results?

4/15 – Yahoo News – In Venezuela, no toilet paper and now lousy phone service The government distributes dollars as it wishes. It has not provided enough dollars to telephone companies and cable companies for them in turn to pay their providers. As a result several international telecoms have cut off long-distance services to the country. In addition vendors providing cable channels are cutting their services because they haven’t been paid.

As a result, telephone service is deteriorating and the number of channels available on cable TV is dropping.

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Continued deterioration in the Venezuelan economy

Image courtesy of DollarPhotoClub.com

Image courtesy of DollarPhotoClub.com

The citizens of Venezuela continue to suffer at the hands of their elected officials.

Question for you to ponder: Is there a particular economic system that is causing all the suffering?

(Cross-post from my other blog, Outrun Change.)

2/29 – AP at Fox News – Inflation-hit Venezuela to print bigger bills – Central Bank president says Venezuela will start printing 500 and 1,000 bolivar notes sometime. No date mentioned.

Largest bill in circulation is currently the 100 note. At exchange rates in effect a month ago or so, that would be worth about US$0.10. Largest bill in circulation is equal to about one American dime.

How can an economy function in such circumstances? Not very well.

3/4 – According to dolartoday.com, the exchange rate is 1,105 bolivars to the dollar. That means 100 bolivars is 9.05 cents.

3/18 – Exchange rate is 1,211, or 100 bolivars is 8.25 cents.

3/18 – Foundation for Economic Education – What Did Venezuela Use Before Candles? Electricity.

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Suffering increases in Venezuela, all as a result of official government policies

Shipwreck standing on the beach with the sea in the background. Margarita Island. Venezuela. Photo courtesy of DollarPhotoClub.com

Shipwreck standing on the beach with the sea in the background. Margarita Island. Venezuela. Photo courtesy of DollarPhotoClub.com

The level of suffering in Venezuela is increasing. All of the blame for the current and future suffering can be laid at the feet of the socialist government.

Previously mentioned Venezuela is in the early stages of hyperinflation:  Instead of reading about hyperinflation and economic collapse in history, you can watch it play out live. Tune in to Venezuela.

(Cross-post from my other blog, Outrun Change.)

Some more discussion on the increased suffering:

2/6 – The Economist – The endgame in Venezuela – A few stats from the article:

Government acknowledges that for the 12 months ending 9/2015, inflation was 141% and the economy shrank 7.1%.

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Why I am so optimistic – 3

The future is so bright we need sunglasses. Image courtesy of DollarPhotoClub.com

The future is so bright we need sunglasses. Image courtesy of DollarPhotoClub.com

The number of people working in manufacturing has been declining for many years. Those job losses will continue at the same time as technology disrupts other industries causing the loss of more jobs.

This is not a new concept. Technological advances have devastated farm employment over the last 150 years.

(Cross-post from my other blog, Nonprofit Update.)

Prof. Thomas Tunstall pondered Where the New Jobs Will Come From. Sub headline on his 11/4/15 article said:

In 2007 iPhone application developers didn’t exist. By 2011 Apple had $15 billion in mobile-app revenues.

Consider the percentage of the population employed in agriculture over time: (more…)

Why I am so optimistic – 2

200 years ago subsistence agriculture was the norm across the planet. Photo courtesy of DollarPhotoClub.com

200 years ago brutal poverty was the norm across the planet. Not so today. Photo courtesy of DollarPhotoClub.com

Previously mentioned when I look at long-term economic trends I am incredibly optimistic. When I look at the headlines this morning or news from the political world, I am very discouraged.

(Cross-post from my other blog, Nonprofit Update.)

To see one illustration of why I am so optimistic for the long-term, check out a column by Glenn Reynolds at USA Today: Actually, things are pretty good / Free markets and free inquiry have changed the historic ‘norms’ of poverty and violence.

Earlier post summarized in one paragraph what caused this radical improvement.

Here are a final two points from the article I’d like to highlight:

Second, it is possible for us collectively to turn back history.

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Why I am so optimistic – 1

200 years ago subsistence agriculture was the norm across the planet. Photo courtesy of DollarPhotoClub.com

200 years ago brutal poverty was the norm across the planet. Not so today. Photo courtesy of DollarPhotoClub.com

When I look at the political news or any news in general I get very pessimistic about our future.

In contrast, when I look at the amazing things happening beyond the headlines in today’s newspaper I feel incredibly optimistic.

Consider that private companies are developing the technology for space exploration. Consider the energy revolution created by hydraulic fracturing and horizontal drilling. Consider radical changes in technology that are making so many things easier, faster, and cheaper. Consider that anyone that wants to do so can publish their own book, distribute their own music, or create a feature movie.

As a tiny illustration, look at my company and pastimes. Technology allows me to run a high quality CPA practice without any staff. In my spare time I am a publisher and journalist. Anyone in Europe or North America or most of Asia could easily do the same and at minimal cost.

(Cross post from my other blog, Nonprofit Update.)

When I look at long-term economic trends I am incredibly optimistic.

For yet one more explanation of why that is the case, consider a column by Glenn Reynolds at USA Today: Actually, things are pretty good / Free markets and free inquiry have changed the historic ‘norms’ of poverty and violence.

Until relatively recently, an illness-filled short life of dirt-eating poverty was the normal condition for practically everybody on the planet. In the last 100 or 200 years life has gotten radically better for practically everyone.

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