Venezuela's Latest Little Sign Of Economic Desperation

Venezuela, or at least one of the government ministers there, is hopping up and down with glee at the idea that they’ve just secured a large investment into the country’s mining sector. It’s going to bring billions, billions I tell ya’, into the country and will provide much needed support to the government finances. And it’s really rather difficult to know quite what the proper reaction to this is. One could go with a belly laugh at the incredibly simplistic ideas of how the economics of mining works. Or one could go with weeping bitter tears at the incredibly simplistic ideas about how the economics of mining works. Either way, the seeming beliefs of the government are incredibly simplistic: but my best guess is that this just shows how desperate they are to grab at any story, any tale, which might mean revenue to dig themselves out of the pit of their own making. More…