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[–] Broc_Lia 0 points 2 points 2 points (+2|-0) ago (edited ago)
The countrywide sanctions are recent, up until recently they have only applied to a select few senior politicians. And their economy was nosediving long before any sanctions of any kind were in place.
As for CUBA... they had the entire eastern bloc to trade with, not to mention China, most of south east asia and the nonaligned nations. The reason their economy went down the tubes begins with an "S" and ends with an "ocialism."
[–] pby1000 ago
I think the sanctions against Venezuela have been in place for a while now. The international bankers want to control the oil there, but there is resistance. What is happening to Venezuela is the same thing that happened to Germany after WW1.
How do you explain National Socialism? Hitler had the German economy humming for a while there. I know how he did it.
[–] Broc_Lia 0 points 1 point 1 point (+1|-0) ago
The Venezueland government has been complaining about sanctions for over a year, but they weren't sanctions against the country at all. Basicly Washington confiscated the private bank accounts that some of the senior chavists were embezelling their retirement fund into. They were understandably vague about what exactly the sanctions entailed.
Their economy is tanking because of out of control public spending, the refusal to maintain or invest in the oil extraction operations they plundered, inflating their currency through the roof and retarded price controls.
For example they mandate that flour can't be sold above a certain price, so no one can import it because it costs more than they're allowed to sell it. The government imports some flour with their cash reserves, then sell it at a loss to whoever's at the front of the breadline that day, those people then resell it at an enormous profit on the black market to people who couldn't be in the line because they were at work. Some of it is also distributed for free to party loyalists and some of it goes to bakers who are strictly regulated as to what products they can make and how much they're allowed to sell them for.
Their is no getting around the fact that their economic policies have been absolutely disastrous.
So did Chavez. Socialism works wonderfully until you run out of other people's money. If WW2 hadn't kicked off Hitler would have been screwed. His Volkswagen savings plan was worse than a ponzi scheme: it didn't even use new investments to pay off the old ones. It just didn't pay anyone at all.