What Happened To Venezuela?
- Greedy Trader
- Nov 27, 2019
- 2 min read
I am definitely no fan of communism but let's face it...It is no coincidence in the backyard of capitalist dog number one, all the socialist cats are getting kicked. Is it that we are all just massive fans of 'Kool Aid'? Or do we genuinely believe socialism is bad and worth the complete destruction of any nation who dare to adopt it? You probably know what I think.
If we remember the movie I Am Mother, then you probably get this point...I know we have all been incubated by this machine we call capitalism, in this amazing mother ship of lights and technological marvels but we simply have to consider the possibility that outside this utopia of excellence, something else lives and is thriving in the 'upside down' to take a phrase from my favourite Netflix series...Yes, I love Stranger Things. Venezuela, Bolivia and Chile are one of those countries that are in this newly designated upside down outside the mother ship and definitely not raised by 'Mother' (Capitalism)...Well, hey! I am not about to give you a lesson in morality in relation to what you should think of those living outside of your known reality, after all we know reality is very subjective these days, instead let's look at the facts of what Venezuela is and why 'Mother' feels so threatened.
Venezuela sits on huge Oil reserves and like all these petrodollar countries they got to sell Oil to make money, the volatility in Oil prices have often meant contracting economic growth and thus austerity. Here is were 'Mother' gets to make her case...You see, in the socialist upside down government tries to invest in public services and improve citizen welfare based on the size of its pocket, essentially all those US Dollars coming from all that Oil bonanza go to the people and yes, there is corruption, yes there is waste but who cares? The upside down is thriving. Well, that's just the thing 'Mother' cares...Why? Well, the mother ship needs Oil to keep all the lights on but wants to see all those Dollars back in the hands of private 'Mother' companies not in the hands of those who have ill conceived ideas of thriving in the socialist upside down, so what do they do? They burn it all down, that's it, yes, sanctions, embargoes, no more Dollars. Can't have your lab incubated embryos getting any bright ideas, can you?... I know! I am just another idiot on a keyboard, well, that's okay because you are just the lucky embryo that 'Mother' decided was worth keeping, till you are not. So what is it you are saying? Nothing survives the upside down right? 'Mother' is always right in the end isn't she? She sure is.
So what do us traders need to know? Venezuela has 300 billion barrels of Oil, someone is going to get it because the mother ship has to stay online no matter what. So for now we stop talking about Venezuela, Cryptocurrency, virtual Gold until you here that first shot as 'Mother' makes her move, they are going to huff, they are going to puff, that house will get blown down. Too bad, it's just the upside down anyway....What's on Netflix tonight?
