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I recently read a HN comment that used their once booming oil industry to illustrate this fact. They have vast amounts of accessible light crude oil but due to
by dwightgunning 10y ago
I recently read a HN comment that used their once booming oil industry to illustrate this fact.
They have vast amounts of accessible light crude oil but due to their currency they're struggling to purchase/maintain the machinery in order to efficiently extract/refine and monetise it.
Talk about a vicious cycle.
- Symbiote 10y agoThe less reliable your country, the less likely foreign businesses are to extend credit. If European and American companies, who probably manufacture the machinery, see the risk is too high, they will demand full payment upfront. Venezuela can't pay for its banknotes: http://www.bloomberg.com/news/articles/2016-04-27/venezuela-faces-its-strangest-shortage-yet-as-inflation-explodes http://www.bloomberg.com/news/articles/2016-04-27/venezuela-...
- zeroer 10y agoPrinting Bolivars isn't profitable enough ...