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IPFS News Link • Economic Theory

This Timeline of the Venezuelan Economic Collapse May Look Familiar to Americans

• J.G. Martinez D

Let´s say it plain and simple:

What were the factors that led to the economic crisis in Venezuela?

Currency control

An incredible level of corruption
The seizing of the public institutions
These are the root causes. Everything started because of these three criminal actions. We did not need a currency control. With a proper monetary adjustment and tying our currency to the USD or Euro, it was enough. They needed it to launder illegal money and to avoid people getting wealthy with their trade. They needed a poor population, depending on a bag of food issued by the seized State.

I think we are about to face this situation in many countries, so it would be very useful for any fellow out there to learn from our experience.

How did it begin?
Living in Venezuela until 2013 was relatively peaceful initially. There was some turmoil and unrest, of course, and people were starting to get uneasy. Being the discreet man I am, I just went to work on my bicycle, trying to avoid being noticed. I left my SUV at home because driving it was too conspicuous and could leave me defenseless in the middle of a riot, turmoil, or shooting.

Usually, the demonstrations started on the main avenue by 11 AM, sometimes earlier, and everything was usually quiet again by 5 PM. I had an advantage: I could ride my bicycle through a private subdivision to avoid getting into the middle of the agitation, and that offered some more protection than the open streets, where you could occasionally stumble upon some thugs who would ruin your day.