The problem with socialism isn’t that you
eventually run out of other people’s money. It’s that you eventually run out of
oil money. Well, at least in Venezuela. It doesn’t have an economy, you see, so
much as a poorly-run oil exporting business that isn’t enough to subsidize
everything else. And that was true even when oil was over $100-a-barrel. So now
that it’s under $50-a-barrel, Venezuela’s government has gone from defaulting
on its own people, as former minister Ricardo Hausmann put it, in the form of
rampant inflation and shortages, to really doing so, to the point that it might
have to start defaulting on its debt, too. More… 
Thursday, January 22, 2015
How to earn billions and keep getting poorer? Ask Venezuela
The problem with socialism isn’t that you
eventually run out of other people’s money. It’s that you eventually run out of
oil money. Well, at least in Venezuela. It doesn’t have an economy, you see, so
much as a poorly-run oil exporting business that isn’t enough to subsidize
everything else. And that was true even when oil was over $100-a-barrel. So now
that it’s under $50-a-barrel, Venezuela’s government has gone from defaulting
on its own people, as former minister Ricardo Hausmann put it, in the form of
rampant inflation and shortages, to really doing so, to the point that it might
have to start defaulting on its debt, too. More… 
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