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Author Topic: How Venezuela, an oil rich country has such an inflation ?  (Read 816 times)

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How Venezuela, an oil rich country has such an inflation ?
« on: August 15, 2018, 10:41:01 am »
The none backed fiat system , coupled with many other factors have failed Venezuela
the country is experiencing a huge inflation. The question how can this happen to an oil rich country ?



https://www.express.co.uk/news/world/1003251/Venezuela-economic-crisis-one-million-inflation-dollar-chavez
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How Venezuela, an oil rich country has such an inflation ?
« on: August 15, 2018, 10:41:01 am »


sugarchrisp

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #1 on: August 18, 2018, 08:30:58 pm »
I believe corruption in general.  It doesn't matter how many natural resources your country has if the money you get for them never goes back into the infrastructure of the state.  From my understanding Chavez has been a blatantly corrupt leader for over a decade and he intentionally restructured a lot of the programs in place in order to create a stranglehold on the public.  After his death in 2013 he was succeeded by an even more corrupt leader who took Chavez's structure and warped it even further, too far, apparently as the country started to decline not long after.  Everything like this always seems to lead back to simple human greed.
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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #1 on: August 18, 2018, 08:30:58 pm »

Altcoinstalks User

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #2 on: August 23, 2018, 07:54:08 am »
If they have the resources but still has the inflation, that might be a government issue but I don't to blame them entirely. Non backed fiat? Is it not backed by those oil reserves or gold etc.

mdgabrielzim

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #3 on: August 24, 2018, 05:08:04 am »
I am Brazilian and geographer and I tell you, Venezuela will face poverty and misery as long as its population can not reverse the policy that is established in their country.
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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #4 on: August 24, 2018, 12:42:55 pm »
The answer is pretty simple and comes down to one word: socialism. It has never worked. There are some faults already made that will be dragging this poor country down for years to come.

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #5 on: August 24, 2018, 01:52:31 pm »
The country is facing hyperinflation with an inflation rate at more than 4,000 %. This is really sad and shows that the country leaders are not proactive they solely depended on their oil riches and did not diversify into other industry like agriculture when the was oil boom. They are in this predicament because they depended on their oil source whose price is volatile and not making right decisions.
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magmo

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #6 on: August 27, 2018, 03:41:14 am »
Venezuela claims to have more oil than Saudi Arabia, yet its citizens are hungry. The regime that caused this preventable tragedy professes great love for the poor. Yet its officials have embezzled billions, making Venezuela the most corrupt country in Latin America, as well as the most ineptly governed. It is a textbook example of why democracy matters: people with bad governments should be able to throw the bums out. That is perhaps why President Nicolás Maduro is so eager to smother what little is left of democracy in Venezuela.

By the end of this year Venezuela’s economic collapse since 2012 will be the steepest in modern Latin American history. Income per person is now back where it was in the 1950s. The main cause of this calamity is ideological. Following the lead of his late mentor, Hugo Chávez, Mr Maduro spends public money lavishly, especially on his supporters. Weak oil prices and inept management mean he cannot pay his bills. So he prints money and blames speculators for the resulting inflation, which is expected to exceed 1,000% this year. The black-market price for US dollars is now about 900 times the official rate.

magmo

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #7 on: August 27, 2018, 03:43:26 am »
What can be done? The best solution would be a negotiated transition. Mr Maduro would finish his term but would respect the constitution and parliament, free political prisoners and guarantee that overdue regional elections, and the presidential contest next year, take place fairly. However, an attempt at such a negotiation failed last year, and there is no sign that Mr Maduro and his cronies will voluntarily surrender power. Those who want to save Venezuela have limited influence, but they are not helpless. The opposition, a variegated alliance long on personal ambition and short of cohesion, needs to do far more to become a credible alternative government. That includes agreeing on a single leader. Some in the opposition think all that is needed to trigger the regime’s collapse is to ramp up the protests. That looks fanciful. Mr Maduro can still count on the army, with which he co-governs. In Venezuela’s command economy he controls such money as there is, and retains the backing of a quarter of Venezuelans—enough to put his own people on the streets. And he has the advice of Cuba’s security officials, who are experts in selective repression.
According to the Economist: https://www.economist.com/leaders/2017/07/29/how-to-deal-with-venezuela

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #8 on: August 28, 2018, 09:02:48 am »
They still did not badly work out the issue of creating a national crypto currency, maybe this will save their economy!

dentolas

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #9 on: August 28, 2018, 09:44:05 am »
a lot of mixed info comming out of Venezuela, can't really tell what is happening and the truth behind some reports...
one thing is sure, politicians are always after their own best interest
another thing is sure, a lot of countries are just crazy to get their hands on Venezuelan oil... and it is not that hard to squeeze a fragile economy...
so imparcial judgement is impossible without some hard facts that are very hard to check at this point...
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mikesmat

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #10 on: September 14, 2018, 03:21:15 am »
The inflation rate of a country depends on several factors , largely influenced  by the countries input and output. There have to be balances betwern what a country produce and what it buys from other countries. Should anything destabilizes this balance, it is likey for the inflation rate to be affected. Venezuela has oil as a natural resource and as an oil producting country, it is expected of her to boost her economy. However, from my understanding of the story, the country economic development has been obstructed by corruption whkch goes a long way to influence the inflation rate of the country.

etoker

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Re: How Venezuela, an oil rich country has such an inflation ?
« Reply #11 on: September 19, 2018, 12:57:04 pm »
There are lost of reason about mistakes of government
Firstly unqualifed government staff
Secondly wrong educational system , third one is wrong law politics and backing etc.
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