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How does the Venezuelan crisis affect the World Economy, though? AFAIK they are neither well integrated into global trade and finance (Japan and US), nor do the
by pm90 9y ago
How does the Venezuelan crisis affect the World Economy, though? AFAIK they are neither well integrated into global trade and finance (Japan and US), nor do they have so many people as to cause a serious change in the labor market (USSR).
- ChuckMcM 9y agoIn both the USSR and Venezuela cases we've seen a complete separation of meaningful feedback and controls in the regulation arm and the market itself. In both cases multiple markets emerged that where nominally independent (black, grey, sanctioned, and unsanctioned) which created ways for capital to flow that had previously been impossible. In both cases there appears to be tremendous looting of GDP into the market accounts of a smaller wealthy elite. To the extent that the wealth of a nation empowers its governance, the rise of oligarchs creates a nominally stable power structure that is disassociated with GDP development. To me, this appears to structurally favor wealth creation for the oligarchs over GDP creation for the economy. What I observe is that the rapid shift of materially significant (from a GDP perspective) wealth from the general market to a much smaller number of market 'maskers' on a sovereign state basis, has an attenuating effect on systemic controls and other market damping systems. So looking at how business cycles happen in a system where more and more interacting economies are less market driven and more exploitation driven is, again in my non-professional opinion, might shed some light on how the cycles will evolve.
- dnautics 9y agoYou could probably throw Zimbabwe, Yugoslavia, and Greece into that mix too. To a lesser extent Iceland, but in that case the "bad actors" were thrown into jail afterwards (which of course doesn't have effects reaching back into time)