In several times i have tried to explain the economy of the country with the biggest tested oil reserve in the world after now 15 years of the Chavez
government and now Maduro regime.
The economy in Venezuela is very simple, after some years in power the minds of the regime figured out that poor people is easier to control, as said
by the trusted men of Chavez, Jorge Giordani once "in order for the revolution to produce the new man it is required 30 years as the current
generation cannot be change, the young can be educated by the revolution and the ones that born after will only know the revolution" so the man
responsible of the economy of the country set to destroy it for this purpose.
The first step was to control the exchange of the local currency and foreign currency, if you wish to buy $ only the government can sell them. With a
discriminatory policy of who gets the $ to acquire supplies in the exterior the local production was controlled. It was impossible to acquire currency
for most business in a legal manner, furthermore the regime started to import directly most of what is consumed in the country, and controlled the
prices of what is produced locally, generating an immense pressure to local producers.
Most of them closed and moved to neighbor countries, or were acquired by the government, destroying the local economy in order for the revolution to
survive for the 30 years needed to produce the "new man". the rest that still exist and want to acquire foreign currency have to go to the black
market. Bellow a comparison of the dollar price in official exchange and black market exchange rate.
Regular people buy small quantities like this, but some people sells dollars in amounts of hundreds of millions at a discount price of 40 bs per $.
how can someone have billions of dollars to make such operations?
Well its very simple, the government imports are made by army officials without tender, they buy sub par quality items at 2 or 3 times overprice in
order to keep the overprice money, once the import is acquired some times it not even reach Venezuelan ports or are just let to rot in the port. with
this free money they can buy whatever they like, but as greedy as they are they like to double or triple it by selling a part in the black market.
Now small business buy dollars to these people and make their own imports of the goods and sell at reasonable prices so for example a pair of shoes
that cost 50 $ in US are sold at 60$ in Venezuela, just the 60$ is not official exchange rate but black market one so the real price of the shoe to
someone that buys it in bs is:
Venezuela bloats it have one of the best salaries in the region with the minimal at 600$ per month, at official rate that is, but Venezuelans buy
everything at black market prices.
Poor people is indeed easy to control, they are too busy trying to get the basics to make a day to day living, the government is proud of the corrupt
system they have created, made billionaire most of the government officials to the point they don't know what to buy and are buying ranch, yachts,
mansions and as they run out of ideas, news papers and tv stations.
Illustrating Venezuela’s surreal prices
More photos of the prices of common items in Venezuela, the home of socialism of the 21 century
edit on 8-10-2014 by Indigent because: (no reason given)
full list
edit on 8-10-2014 by Indigent because: (no reason given)
edit on 8-10-2014 by Indigent because: (no
reason given)