Venezuela Experiencing Economic Distress

Venezuela has long been a socialist nation in which the government has had a considerable amount of control over private industries and individual freedoms. Nowadays expert Adrian Jose Velasquez Figueroa sees the nation is beginning to experience one of the biggest economic collapses in recent history. This collapse has been caused by socialist economic and political policies dating back to the 1970’s. However these policies have become even more restrictive during the regime of former President Hugo Chavez. Under his leadership, the nation has experienced a number of authoritarian policies which include the nationalization of the oil industry, other industries being nationalized, excessive government spending, public benefits, and price controls. His regime has also participated in elections that are not free, intimidation of the media and also putting political opponents in prison. As a result Venezuela has become very distressed economically due to a lack of adopting free market economics.
With the economic policies Jose Figueroa added, the people of Venezuela have began to suffer the effects of socialism. One of the main problems facing Venezuela is the fact that its currency has become hyper inflated by up to 720% along with its currency dropping in value by up to 93%. With a declining currency value and hyperinflation, Venezuelan citizens are unable to afford the the things they need to survive such as food and water. With a shortage of these resources, the nations has adopted rations and therefore many people are unable to be properly nourished. There are also power shortages, elimination of long distance phone service and also inadequate medical care.

LINK:
http://www.forbes.com/sites/dougbandow/2016/06/07/venezuelan-people-feel-the-bern-as-real-socialism-destroys-their-country/#3a4ddbb1fcd6

 

The 2008 Meltdown Is Over But Another One Is Coming According To George Soros

 

It was less than 10 years ago, but the remnants of the 2008 recession are still present is certain parts of the United States. That recession was the deepest, and the most all-encompassing meltdown since the 1920s and 1930s Great Depression. When the U.S. stock market crashed in 2008, investors licked their wounds and healing those wounds was a slow and painful challenge.

The S&P 500 index has risen by more than 92 percent since then. That increased seemed to be the new norm until the second half of 2015 sounded a wake-up call. The S&P index dipped by 9 percent at the beginning of 2016 and it has recovered, but George Soros says the recovery won’t last long.

George Soros is the guy other investors want to be. Soros is a billionaire 27 times over, and he made all that money investing. His hedge fund has returned 20 percent, year after year. Soros is known for his humanitarian efforts as well as for his investment prowess. Soros recently told Bollomberg.com that the economy of the United States may look like it will continue to grow in 2016, but it is going to hit a wall, and it may not get up for a while.

Even though recent unemployment figures show that almost all employable American are working that could change in the months ahead. One of reasons for Soros dismal outlook for the U.S. economy is the fact that most of the economic growth was fueled by government bailouts, huge injections of capital disguised as quantitative easing, and loose monetary policies. The expansion, according to Mr. Soros can’t continue because of central bank support and cheap money. The basic fundamentals of the economy must catch up with the stimulus that will create real economic growth. The real economy is covered in mirrors, according to Bloomberg, and those mirrors are going to break under the pressure of the current global issues.

Those issues are easy to see. The European Union is drowning in its own narcissistic behavior. The migration crisis coupled with the EU’s weak economic performance and the euro debacle has caused a major riff in the Union, and some members think it is not repairable. If the EU collapses, Europe will be thrown into a deep recession.

When the Chinese economic fiasco is added to the EU debacle, the result will likely be a global recession, according to Soros. Soros told Bloomberg.com that China’s economy is not going to grow by 6.5 percent in 2016. Soros believes the growth might be 3.5 percent at best. China has already put Asian and South American countries into the recession mode, and the next target is the rest of the world, according to Mr. Soros.