Honestly, does this guy ( Mr. Weisbrot) ever get tired of being dead wrong? His article of Nov 2013 “Sorry Venezuela haters, Venezuela is not the Greece of Latin America” is a good starting point. In it he explains how Venezuela cannot have a balance of payment crisis…because they make too much damn money on oil. Hyperinflation is highly unlikely, shortages are temporary, nothing wrong with the currency exchange rates, democracy flourishing and citizens thriving.
Well, can you say 100% wrong on all accounts? Inflation at 800% and climbing, reserves almost non existent, corruption out of control, 2nd highest murder rate in the world, collapse of agriculture and industrial production, a black market rate on the bolivar 1000 TIMES the official rate… rampant hunger…ect ect ect. Venezuela will soon collapse on its own, it doesn’t need any help to do so from outside forces.
This outcome was easily predicted for the past ten years for anyone with even a basic knowledge of economics… even when oil was high and Chavez was in power. Time for a little honesty from those that had so much emotionally invested in Chavez’s “Bolivarian Revolution” . Heck, they should look to Bolivia , they have helped the poor without destroying the economy. Major changes are needed or there probably will be a civil war…about the only thing Mr. Weisbrot is correct on calling.