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Venezuela Inflation Jumps to 150,000%, 1 Million Percent Expected, IMF

Venezuela Inflation Jumps to 150,000%, 1 Million Percent Expected, IMF

Although not reported on most legacy media channels, the situation in Venezuela is getting worse, and people are suffering and even dying. This is a crisis that needs attention. 

When we look at the many examples of socialism failing in the past 100 years since the Bolshivik Revolution which lead to the rise of the Soviet Union, Communist China (1949) and Cuba (1959), we think of lessons learned. However, when Hugo Chavez founded the Revolutionary Bolivarian Movement-200 or MBR-200 in the early 1980s, and after a failed coup attempt in 1992, he eventually gained power in 1998 by free election and turned Venezuela into a socialist paradise with cheap energy and cheap housing for everyone. This social experiment worked until government mismanagement of the economy resulted in higher inflation, increasing poverty and food shortages. The average citizen of this social paradise has lost 10 kilograms in the past 3 years as street violence has taken hold and businesses continue to collapse.

There is no question that Mr Chavez and the current Presidet Mr Maduro have done their best to deliver cheap food and energy to the general public of the mega-rich oil state. Venezuela has more oil reserves that Saudi Arabia. Still the mismanagement of resources by the government and the lack of true understanding of global crude markets, have sent the economy into a tailspin. There are many reasons to like the socialist model on paper, but in practice, this system has fallen again, putting the Venezuelans in the same historical box as Cuba and other failed states.

Of course, the US government has made matters worse by freezing over 100 million dollars in accounts hidden overseas – an embarrassment for the Maduro government. Sanctions have been placed on senior members of the socialist party, most tied to accounts in Switzerland and other safe places away from the eyes of the people.

Inflation is now 150,000 percent in Venezuela – and rising. The IMF produced research that states inflation is expected to hit 1 million percent by 2019.

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