Comment by terminalshort
5 days ago
The policy that led to a collapse in oil production in a petro state? The policy that led to an economic collapse so severe that 20% of the population has emigrated? That's the policy you call defensible?
5 days ago
The policy that led to a collapse in oil production in a petro state? The policy that led to an economic collapse so severe that 20% of the population has emigrated? That's the policy you call defensible?
That was the policy that allowed him to build a social welfare state for people tired of being exploited. Famine decreased, life expectancy increased, and the HDI became high. Unfortunately, this ended when the country was sanctioned and embargoed.
Why do these strong, socialist countries anyways need US trade to function?
The Venezuelan economy was dying before the sanctions.
Burning the economy to hand out free money isn't good for the people.
Maduro and Chavez fixed the exchange rate, imposed price controls, printed money and did a wave of nationalisation (not the oil infrastructure that was in the 70s). USA isn't to blame for Venezuelan dysfunction.
> socialist countries anyways need US trade to function
Sanctions go way beyond just direct trade with the US; they attempt to prevent all countries on earth from trading with the sanctioned entity, by force of the USD settling system, or as the past week has shown - the US Navy. So it reduces the number of potential trading partners from hundreds to a handful with (near) reserve currencies, and a navy that's not a pushover.
Now I hate your typical south american dictator just like the next guy and know a thing or two from the ground about what sort of instability and crime wave his regime caused across much of South America, but some reality check - if US blocks you from selling oil and you are a regular country and not a china/russia, you practically can't sell oil, not in stable big numbers that can contribute to economy. Yes bits here and there on black market for much lower price, but thats it. And all oil is sold in USD, hence the popular 'petrodolar' expression, and US will fight till its last soldier and missile to keep that status.
Also tells you how serious US is with sanctioning russia and its army of oil&gas resellers btw, which is the primary cash flow financing russian war in Ukraine.
As it was all collapsing because no one cared enough to make oil to support those things?
They were under embargo, they can pump as much oil as they want but pdvsa can't sell it.
You mean due to the collapse that the United States engineered?
The Saudis did it in the 1970s. It's a great policy.
Where it failed is that Venezuelans are an utterly corrupt people lacking any sense of nationalism or patriotism.