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The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the gov

The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the govt paid for the social programs. Now that the rate is not in their favour and oil prices have crashed... now it makes it difficult to pay for your debt. The US smelled blood and decided to help speed up the inevitable by adding sanctions. This increased the cost of their debt. Maduro is attempting to avoid further economic harm with the petro coin.

scythe 8y ago
>The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the govt paid for the social programs. Now that the rate is not in their favour and oil prices have crashed... now it makes it difficult to pay for your debt. The "exchange rates" never could have made the government's pilfering of PDVSA revenues sustainable. Any properly-run business would save money for the possibility of a change in commodity prices. PDVSA under Chavez did not. Exchange rates did not cause the collapse of Venezuela. Hugo Chavez's decision to ignore economic reality and substitute his own is what caused the collapse of Venezuela. No other oil-based economy got hit as hard as Venezuela by the oil price collapse because they maintained sustainable business practices. >The US smelled blood and decided to help speed up the inevitable by adding sanctions This is a joke, right? The US did not even sanction Venezuelan businesses, only the officials involved in looting the oil industry revenues. From Wiki: >On March 9, 2015, the United States President, Barack Obama, signed and issued a presidential order declaring Venezuela a "threat to its national security" and ordered sanctions against seven Venezuelan officials. Venezuelan President Nicolás Maduro denounced the sanctions as an attempt to topple his socialist government. Washington said that the sanctions targeted individuals who were involved in the violation of Venezuelans' human rights, saying that "we are deeply concerned by the Venezuelan government's efforts to escalate intimidation of its political opponents". The notion that US sanctions played any role in the collapse of Venezuela is an utter fantasy promulgated by the Venezuelan government and perpetuated by credulous Western champagne socialists.

scythe 8y ago

>The firing wasn’t the issue. It was a controversial move but it is not what caused the ongoing collapse. The exchange rates being in their favour is how the govt paid for the social programs. Now that the rate is not in their favour and oil prices have crashed... now it makes it difficult to pay for your debt. The "exchange rates" never could have made the government's pilfering of PDVSA revenues sustainable. Any properly-run business would save money for the possibility of a change in commodity prices. PDVSA under Chavez did not. Exchange rates did not cause the collapse of Venezuela. Hugo Chavez's decision to ignore economic reality and substitute his own is what caused the collapse of Venezuela. No other oil-based economy got hit as hard as Venezuela by the oil price collapse because they maintained sustainable business practices. >The US smelled blood and decided to help speed up the inevitable by adding sanctions This is a joke, right? The US did not even sanction Venezuelan businesses, only the officials involved in looting the oil industry revenues. From Wiki: >On March 9, 2015, the United States President, Barack Obama, signed and issued a presidential order declaring Venezuela a "threat to its national security" and ordered sanctions against seven Venezuelan officials. Venezuelan President Nicolás Maduro denounced the sanctions as an attempt to topple his socialist government. Washington said that the sanctions targeted individuals who were involved in the violation of Venezuelans' human rights, saying that "we are deeply concerned by the Venezuelan government's efforts to escalate intimidation of its political opponents". The notion that US sanctions played any role in the collapse of Venezuela is an utter fantasy promulgated by the Venezuelan government and perpetuated by credulous Western champagne socialists.