Is Venezuela America’s Future? Will Our Nation Descend Into Chaos As Food Riots And Other Unrest Takes Control? Will Martial Law Be In Our Future As Well?




"This situation is vastly deteriorating," Diego Moya-Ocampos, senior Latin America analyst at IHS Country Risk, told CNBC Thursday. "We expect the economy to contract at least 11.5 percent, inflation to hit 700 percent, already the highest in the world."


And now to one of the worst economies in the world – Venezuela. The country is suffering from food shortages and massive inflation even though it sits on one of the world's richest deposits of oil. The economic crisis has led to a political one. Robert Smith from NPR's Planet Money team reports on how Venezuela ran out of everything.



This scene is particularly distressing because Venezuela used to have plenty of money. Even a decade ago, the oil flowed out, and dollars flowed into the country, and Venezuela could buy anything it wanted from the rest of the world. Alejandro Velasco is a history professor at NYU, and he says there was this attitude in Venezuela. Why make anything yourself?




With its oil production and international reserves falling at an accelerating rate, the government is juggling as fast as it can to pay for imported food and medicines while meeting its short-term bond payments. Even as the country has slashed imports, its reserves have declined by half over the last two years, to $10.4 billion. Most of that sum is in gold and is pledged as security for many of the government’s creditors, which include international institutional investors and everyday Venezuelans.

“The probability of default is rising,” said Stuart Culverhouse, head of sovereign and credit research at Exotix Partners, a London-based investment bank that trades Venezuelan bonds on behalf of clients. “So far their willingness to pay has been pretty firm, surprisingly so given the political situation. But you have to ask how long that can continue when they are probably spending more on debt service than imports.”


The point is, the USD is not just being printed “willy-nilly” into existence by the Fed. It comes into being as both an asset and a liability. As such, there are some checks and balances at work in the dollar monetary system which prevents it from immediately spiraling out of control—as it did in the Weimar Republic.
So, why is there little evidence of inflation? Well, when they borrow these dollars into existence from the Fed, most banks often just buy US Treasuries with the funds – which they are required to hold anyway. The result is that interest rates are being pressured lower and lower, while the value of the bonds they bought rises. This is one of the main reasons why all this quantitative easing has not resulted in high inflation of day to day goods. It’s because it is mainly affecting the bond market and causing them to rise substantially in value, all the while depressing interest rates.
Nevertheless, the US dollar, despite some extra built-in protections against its abuse, is a fiat currency. Just like every other fiat currency that has ever existed, it is slowly failing and will ultimately collapse. It’s just on a different timeline compared with the Venezuelan bolivar.





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  1. Donald Canaday

    Venezuela in year 1926, had precious metal of silver and gold Bolivian coins. For example, 5 Bolivares,called Bolivar Libertador,with side face of man named Spanish on the back of coin,were enscription,Estados Unidos De Venezuela gram.25,1926,Del 900. If more of these coins were circulated in economy,for their precious metal content.This in turn would Help Venezuela people.

  2. Chuck Morrison

    Venezuela made the Mistake of Iran. In the fifties, a man named Mossadique was democratically elected to run Iran on the platform that the oil wealth would be used to make the whole country modern and prosperous. Big Oil, working hand in glove with the US government and the Military industrial Complex, removed him from office and replaced him with the Shah, a ruthless autocrat who was more than happy to let big oil skim the best cream off for themselves. Venezuela elected Hugo Chavez for the same reason; he saw Venezula's oil wealth as a 'common resource' that should be shared with all the people. Unfortunately, he got suckered by the Globalist Banksters into believing that he could speed the whole process up by borrowing a huge pile of money against future oil revenues. Oil prices were high and going higher, and everyone was talking 'peak oil', so it seemed like a very safe bet. Problem was, it was a trap set by the most greedy and psychpathic people on the planet. Peak oil is a myth, and all they had to do was order their client state Saudi Arabia to pump massive amounts of oil without regard to normal market forces like supply and demand, until every single storage tank on the planet was full, and every ocean tanker was sitting laden offshore from terminal locations waiting for 6 or 8 weeks for a chance to unload. Naturally, the price of oil cratered, and Venezuela has lost its collective backside. All the revenue (and then some) is going to the debt, and we can all see the result for the people. So the answer to the rhetorical question posed in the title is, YES! If there is any justice in the universe, then the USA will have to repent of its sins, and help the Venezuelan people (in accordance with God's law), or it will suffer the same fate as Venezuela. 


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