Venezuela: still plummeting

For years, many members of the U.S. news media treated the chavista regime in Venezuela with far more respect than it deserved. Hugo Chávez, Americans were told, might not be perfect – he might not, for example, be as devoted to democratic principles as some of us might prefer – but he was a true hero, using his power (albeit quite ruthlessly at times) to bring fairness and equality to his country.

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A cockatoo in every pot?

If there’s anything good about the current economic decline of Venezuela, it’s that such glowing reports are now rather thin on the ground – almost as thin, indeed, as many an indigent Venezuelan who goes to bed hungry every night because there’s nothing on the grocery shelves.

One prominent instance of the new media frankness about Venezuela was a January 29 article in the Washington Post, in which Matt O’Brien explained that both that country’s government and its economy “are well into their death throes.” Experts, he noted, now “expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.” This, even though it has “the largest oil reserves in the world.” But as O’Brien pointed out, that’s the genius of chavista socialism.

The recipe for this disaster? Hand out freebies you can’t pay for. Replace skilled officials at the state-owned oil company with incompetent friends of the regime. And when the money runs out, just start printing more. Quoth O’Brien: “Lenin was wrong. Debauching the currency is actually the best way to destroy the socialist, not the capitalist, system.”

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At least the supply of grocery carts seems undiminished.

Thanks to the wisdom of chavismo, Venezuela’s supermarkets have empty shelves, the breweries don’t have “enough hops to make beer,” its factories have insuffienct “pulp to produce toilet paper,” and so on. “The only thing Venezuela is well-supplied with are lines,” wrote O’Brien. Long, long lines of people waiting to buy things that are in short supply – if they’re in stock at all. Readers will recall that we’ve already discussed this socialist triumph on this site; the one new twist here, identified by O’Brien, is that the Venezuelan government has actually started rationing spots on those grocery-store queues, “kicking people out of line based on the last digit of their national ID card.” 

A February 3 article by Kejal Vyas in the Wall Street Journal provided some more illuminating details.“Millions of pounds of provisions, stuffed into three-dozen 747 cargo planes, arrived here from countries around the world in recent months to service Venezuela’s crippled economy,” reported Vyas from Caracas. But the “provisions” to which Vyas was referred weren’t food items or medical supplies – they were shipments of currency, “at least five billion” freshly printed bank notes, which reportedly doubled the amount of cash in circulation.

What does this stunning development portend? We’ll talk about that tomorrow. 

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