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Venezuela's Transformation To Socialist Utopia Is Nearly Complete As Its Factories Grind To A Halt

Tyler Durden's picture


Venezuela's transformation to a socialist utopia has been well-documented on these pages. Recall:

In retrospect, one can only hope the same "socialist paradise" fate isn't headed to the other "fairness doctrine" members such as the US and France, because with socialist utopias like these who needs capitalist hell?

In any event, what utopia would be complete without a complete paralysis of the one sector that traditionally serves as the backbone of any functioning economy: no, not makers of iPhone apps... manufacturing.

As the WSJ reports, this car-crazed country's auto industry, once the third largest in South America, is seizing up as manufacturers struggle to produce a few vehicles a day. Apparently channel stuffing hasn't been revealed as a legitimate "retail channel" in the Latin American country just yet. As for subprime car purchase loans, US banks apparently don't offer those in Caracas. Yet.

Car makers, including global giants like Ford Motor Co. , Fiat Chrysler Automobiles NV, General Motors Co. and Toyota Motor Corp., have cut output by more than 80% in the first six months of the year compared with a year earlier because of a lack of dollars to pay parts suppliers, according to data compiled by the Automotive Chamber of Venezuela, which represents car makers.


"This is the first time I have ever seen things this bad," said 61-year-old Antonio Lopez, a Ford worker who recently prepared a sedan for painting at the auto maker's factory here. The cavernous Valencia plant, about 110 miles west of Caracas, was quiet by midafternoon one day last month, with a handful of workers sweeping up and maintaining equipment on assembly stations.


Across Venezuela, car production and sales has been sliding fast. Balance sheets have been battered, with revenue vulnerable to devaluation and trapped in Venezuela because of currency controls. Auto makers built 36,919 vehicles through June of last year. But only produced 6,161 during in the same period this year, about what Argentina produces in a few days.


Economists say the car industry, like newspapers, bottlers and food processors, has been hard hit by a shortage of dollars in Venezuela that has left many companies scrambling to pay for much-needed imports in a country that produces little more than oil. The reverberations in the economy include companies going out of business, a shortage of basic products and one of the world's highest rates of inflation.



"[Sales] volumes are down 75% below 2013, and last year was the lowest level in a decade," said Carlos Gomes, an economist who follows the global auto industry for Scotiabank. "I think it is fair to say that the situation is alarming."

Alarming maybe, but at least it is a socialist utopia. An utopia where it appears that the phones...

Venezuela's Communications Ministry declined to comment. The ministries of finance and industry didn't return phone calls. A spokeswoman for the Automotive Chamber of Venezuela, which represents foreign auto makers, said the group was in talks with the government and declined further comment.

.... also don't work.

And a quick glance at what is coming to every banana republic socialist utopia near you:

"I can't find anything. Prices are climbing daily," said Jesus Ramirez, a taxi driver who has spent a year trying to replace the 2008 Renault he purchased new for $7,441. He sold the car for over $30,000 five years later.


With inflation at 60% a year, among the highest in the world, Venezuelans protect their earnings by buying cars, among other big-ticket items.


Car parts needed to keep vehicles on the road have also become difficult to find. That has led thieves to steal parts such as batteries from parked cars.


The owner of a Caracas car dealership who said he last sold a vehicle in 2009, said he stays in business by servicing cars. But with spare part shipments tumbling 75%, he said, he fears his business may soon close.


"I spend all day on the phone looking for parts," the owner said, asking to remain nameless. "We are in survival mode."

Oops. Looks like someone forgot to BTFD, or rather BTFATH, and instead of being hopeful is cynical.


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Tue, 07/22/2014 - 15:04 | 4989345 ekm1
ekm1's picture

Soon to occur in USA, unless QE is fully unwound which would mean about $4 trillion extinguished and further another $10 trillion to be extinguished due to staged collapses of 2 or 3 primary dealers

Tue, 07/22/2014 - 15:07 | 4989367 Dr. Engali
Dr. Engali's picture

It's coming to the U.S no matter what happens to the debt.

Tue, 07/22/2014 - 15:15 | 4989403 Skateboarder
Skateboarder's picture

<-- Maduro is the bigger clown

<-- Obie is the bigger clown.

Tue, 07/22/2014 - 15:25 | 4989462 Pool Shark
Pool Shark's picture



Stupid Venezuelans.

Even former Central American communists have figured out the answer is capitalism:

Daniel Ortega has transformed Nicaraugua from a communist warzone in the 80's, into "...the easiest country in Central America, Panama excepted, in which to start a new business."

Funny how former communist hell-holes (Vietnam, anyone?) seem to be embracing capitalism, while the western democracies are all racing towards socialism...


Tue, 07/22/2014 - 16:56 | 4989996 Anusocracy
Anusocracy's picture

You are referring to governmental capitalism, fascism? It just runs out of money to steal a little bit slower than socialism.

Like the US and its camp followers.

Tue, 07/22/2014 - 17:15 | 4990081 durablefaith
durablefaith's picture

just got back from nica. great place for citizens. subsistence agriculture. true community. but the unwelcome sign is out in force. you can buy land. own . businesses. employ locals. you still have to leave nica several times per year. only path to citizenship that I am aware of is marriage to a local. 

all your land and business are belong to us...when we decide not to let you back in...

Tue, 07/22/2014 - 17:37 | 4990192 COSMOS
COSMOS's picture

Can't say I blame them, why would I want to sell out the land of my ancestors from underneath my feet to some gringos.  Only ones to do something that dumb are the Eastern Europeans suckers.

Tue, 07/22/2014 - 17:30 | 4990161 Escrava Isaura
Escrava Isaura's picture

Pool Shark,

Your history is very distorted.

Are you sure that you haven’t been brainwashed?  

Tue, 07/22/2014 - 20:40 | 4991013 pods
pods's picture

You do realize that if he has been brainwashed he is not going to be able to tell, right?


Tue, 07/22/2014 - 22:42 | 4991445 Escrava Isaura
Escrava Isaura's picture

Darn. I just can’t think of all the side effects.

But glad you were able to draw attention to it.


Tue, 07/22/2014 - 15:26 | 4989476 BlindMonkey
BlindMonkey's picture

I just want to find my closest new car storage yard so I have an endless supply of parts no one needs.  

Tue, 07/22/2014 - 21:24 | 4991181 A Nanny Moose
A Nanny Moose's picture

It's coming to the FORMER U.S no matter what happens to the debt.



Tue, 07/22/2014 - 15:05 | 4989350 JLee2027
JLee2027's picture

Forward! Into the ditch....

Tue, 07/22/2014 - 15:25 | 4989473 Oldwood
Oldwood's picture

If they can only hold on for a little longer....they will finally reach the utopia of their dreams.

Maybe the Chinese can rush in at the last possible moment and buy the whole country for the price of a claim on a warehouse full of copper...or is it really?

Tue, 07/22/2014 - 15:44 | 4989574 tbone654
tbone654's picture

apparently I read that too fast...  Though you said "Whorehouse" full of copper, which would have a different value under true socialism...

Tue, 07/22/2014 - 17:32 | 4990173 wee-weed up
wee-weed up's picture

A "Whorehouse" full of "Coppers?"

Yeah... that works!

Tue, 07/22/2014 - 22:14 | 4991357 SokPOTUS
SokPOTUS's picture

Thar's *gold* in them thar Hoes!

Tue, 07/22/2014 - 15:05 | 4989353 passenger_pidgin
passenger_pidgin's picture

"With inflation at 60% a year, among the highest in the world, Venezuelans protect their earnings by buying cars, among other big-ticket items."

Seems like the perfect way to save GM.  Coming soon to a Banana Republic near you...


Tue, 07/22/2014 - 15:14 | 4989402 Colonel Klink
Colonel Klink's picture

I'd rather purchase PMs.  The government may try to recall PMs but it's a certainty that GMs will be recalled.

Tue, 07/22/2014 - 15:18 | 4989433 Pheonyte
Pheonyte's picture

It's a lot harder to bury a car in your backyard too.

Tue, 07/22/2014 - 15:42 | 4989566 Colonel Klink
Colonel Klink's picture

Hahaha, true that!

Tue, 07/22/2014 - 17:56 | 4990302 DoChenRollingBearing
DoChenRollingBearing's picture

Good humor always gets green arrows from Bearing Guys...

Tue, 07/22/2014 - 16:01 | 4989682 stacking12321
Tue, 07/22/2014 - 16:15 | 4989740 Overfed
Overfed's picture

Though not well hidden.

Tue, 07/22/2014 - 17:41 | 4990217 COSMOS
COSMOS's picture

Yeah no kidding, and if you lose the car in a boating accident it would really affect the value later when you pulled it out.  Ask the people whose cars were flooded in Katrina.

Tue, 07/22/2014 - 15:05 | 4989354 Zeta Reticuli
Zeta Reticuli's picture

What is it with these South American countries and socialism? When they do it, it fails miserably. When they do it in Scandinavia, it works fine.

Tue, 07/22/2014 - 15:12 | 4989394 TeamDepends
TeamDepends's picture

Oh yeah, they are just lovin' all the muslims streaming in!

Tue, 07/22/2014 - 15:14 | 4989405 Dangertime
Dangertime's picture

Socialism never fails in a day, month or year.


Give scandinavia will come.

Tue, 07/22/2014 - 16:52 | 4989973 TheRedScourge
TheRedScourge's picture

They're actually less socialist than most socialist countries, so it will take some time.

Tue, 07/22/2014 - 17:05 | 4990028 Monty Burns
Monty Burns's picture

Scandinavian countries are welfare states, not socialist. Not the same thing. All countries there are capitalist-friendly. However they are indeed doomed because open borders and a welfare state are incompatible. As the Scandinavians are in the process of discovering.

Tue, 07/22/2014 - 19:41 | 4990763 Not My Real Name
Not My Real Name's picture

I say tomato, you say to-mah-to. Socialist state, welfare state. Blah blah blah. In the end, they both end up picking the pockets of those who produce and redistribute wealth to those who don't. Open borders or not.

Tue, 07/22/2014 - 17:06 | 4990035 Anusocracy
Anusocracy's picture

Sweden's currency had a stroke a couple of decades ago and Norway is living off its oil.

The Bernanke Reaper will get them eventually.

Tue, 07/22/2014 - 15:16 | 4989415 TheReplacement
TheReplacement's picture

Scandahoovia is backed by the US Military.  South Americans have to fend for themselves.

Scandahoovia does not have a persistent druglord problem.  South Americans do.

Scandahoovia has a history of civilization and rule of law.  South Americans do not.

Need more?

Tue, 07/22/2014 - 15:27 | 4989485 BlindMonkey
BlindMonkey's picture

Riddle me this smarty-pants.  Who has the hottest chicks?

Tue, 07/22/2014 - 17:27 | 4990144 durablefaith
durablefaith's picture


Tue, 07/22/2014 - 17:45 | 4990241 COSMOS
COSMOS's picture

Boooring those chicks are ok, the latin women are best, not only looks but in bed also.  Those Scandinavian chicks lie in bed and do nothing, just like them boats in all those scandinavian harbors/havns hahaha.

Tue, 07/22/2014 - 20:10 | 4990880 rsnoble
rsnoble's picture

Yeah that wouldn't work for me cause I like to lie in bed and do nothing myself.  Unless they're money motivated i'm not interested.

Tue, 07/22/2014 - 21:09 | 4991121 COSMOS
COSMOS's picture

Now you understand why Denmark is having those public service commercials telling young couples to go on vacation and make babies.

Tue, 07/22/2014 - 20:57 | 4991079 The Most Intere...
The Most Interesting Frog in the World's picture

You should receive a Nobel Prize for that.

Tue, 07/22/2014 - 15:35 | 4989531 shovelhead
shovelhead's picture

And the Old Gods smile down on them from Asgaard.

Tue, 07/22/2014 - 20:54 | 4991069 The Most Intere...
The Most Interesting Frog in the World's picture

The white man is supposed to be so evil but compare the accomplishments, contributions to society and humanity of white men and there is no compare.

Tue, 07/22/2014 - 23:05 | 4991519 TBT or not TBT
TBT or not TBT's picture

It's refreshing to hear the race angle voiced for once.  It really doesn't get enough play.  Now the fact is neither the Latin Americans nor the scandies look like Eric Holder's people or Trayvon so there are no possible race things here, but it is refreshing, just a great feeling.  

Wed, 07/23/2014 - 02:05 | 4991776 John_Coltrane
John_Coltrane's picture

Or to Summarize:  Scandahoovia is very very white with a culture to match (and I'm not just talking about all the snow!).  All those muslim immigrants should bring them back to the virtues of "diversity".

Tue, 07/22/2014 - 15:15 | 4989418 Statetheist
Statetheist's picture

What is it with these South American countries and coercion through violence? When they do it, it fails miserably. When they do it in Scandinavia, it works fine.

Tue, 07/22/2014 - 18:16 | 4990418 Pure Evil
Pure Evil's picture

I believe the difference is in Scandanavia they actually dirstribute the wealth to all their citizens, while in the US the middle class wealth is distributed to the poor and the elite while leaving just enough to live on, while in countries like Venezula all the wealth goes directly into the pockets of Maduro and his cronies.

Maduro only has so much time left to amass a fortune out of what's left from the Chavez regime. He probably has no intention of sticking around longer than he has to, he doesn't want to come down with what Chavez caught.

Tue, 07/22/2014 - 18:53 | 4990568 DoChenRollingBearing
DoChenRollingBearing's picture

True that!  Even evil speaks the truth sometimes.  Probably just enough to trap you...

Tue, 07/22/2014 - 16:46 | 4989491 Hobbleknee
Hobbleknee's picture

80% of my income goes to the government, so I can be denied mediocre first-aid and send my kids to my kids below-average schools.

Tue, 07/22/2014 - 17:22 | 4990106 Escrava Isaura
Escrava Isaura's picture


Please tell us who does your tax..... so we can run away from that person

Wed, 07/23/2014 - 05:06 | 4991927 Hobbleknee
Hobbleknee's picture

I live in Sweden. This is the norm here.

Tue, 07/22/2014 - 15:36 | 4989525 Surging Chaos
Surging Chaos's picture

Actually it didn't work out that fine. Sweden suffered a severe financial crisis in the 90s due to its immense welfare state and huge government debt. Since then they adopted many free market principles and underwent some privitization and deregulation of industries. They're still an extremely progressive country with high taxes and a generous welfare state, but it's at least better than what Venezuela is doing by having the government constantly tighten the vice on its people and bring about increasingly more suffering.

Tue, 07/22/2014 - 15:49 | 4989617 Escrava Isaura
Escrava Isaura's picture

Surging Chaos,

There's a say that goes like this:

Before speaking... Think

Before writing... Research

Otherwise it sounds really stupid..... How can you tell?

Read your comment.... again.

Tue, 07/22/2014 - 19:51 | 4990812 ceilidh_trail
ceilidh_trail's picture

Turn away from the mirror.

Tue, 07/22/2014 - 21:20 | 4991155 Calmyourself
Calmyourself's picture

Your an ass..  Introspection is before speaking try it..

Tue, 07/22/2014 - 15:40 | 4989560 bagehot99
bagehot99's picture

Socilaism has never worked fine, anywhere; nor will it ever. 

It creates misery, poverty, tyranny and usually war. Every single time. No exceptions. 

Tue, 07/22/2014 - 16:09 | 4989715 Escrava Isaura
Escrava Isaura's picture

bagehot99... Socilaism has never worked

Wrong! It works great in America.

Tue, 07/22/2014 - 18:19 | 4990433 COSMOS
COSMOS's picture

I disagree, works just fine in the Kibbutz and I am not being facetious.

Tue, 07/22/2014 - 18:31 | 4990486 Escrava Isaura
Escrava Isaura's picture


That is Socialism.

Congratulations for a correct answer!

Tue, 07/22/2014 - 23:21 | 4991561 Buckaroo Banzai
Buckaroo Banzai's picture

Kibbutz rely on volunteer labor from foreign Jews to stay solvent. Socialism works great as long as there are free resources (other people's money, other people's labor, or burgeoningly abundant natural resources) to throw at it.

Wed, 07/23/2014 - 07:16 | 4992042 Escrava Isaura
Escrava Isaura's picture

“It's funny how humans can wrap their mind around things and fit them into their version of reality.” -- Rick Riordan


Tue, 07/22/2014 - 16:58 | 4990000 TheRedScourge
TheRedScourge's picture

It works fine. It does exactly what it's supposed to do. And that is, according to Lenin, to bring about communism.

Tue, 07/22/2014 - 17:04 | 4990026 Escrava Isaura
Escrava Isaura's picture


Where do you learn these things?

Russia was NEVER a socialist nation.

Russia farmers and local labor leaders were killed by the Bolsheviks.

Tue, 07/22/2014 - 18:41 | 4990519 l8apex
l8apex's picture

Escrava, would you please turn off your bold text?   Your comments aren't all that important.  

Tue, 07/22/2014 - 19:05 | 4990620 Escrava Isaura
Escrava Isaura's picture


It's bold because I copy and paste the commentator's name.... so I would not insult them by misspelling their names.

That’s why my comment turns to bold, automatically.

But you made your point. Now, let’s move on.

Tue, 07/22/2014 - 17:13 | 4990075 Zeta Reticuli
Zeta Reticuli's picture

Have you ever been to Scandanavia?

Tue, 07/22/2014 - 21:18 | 4991147 Calmyourself
Calmyourself's picture

The Norwegian oil will run out and then you will see the Vikings re-emerge.  The muzzies better run when the oil runs out, unless they have out bred the Vikings..

Tue, 07/22/2014 - 15:05 | 4989357 gdiamond22
gdiamond22's picture

Venezuela or Detroit?

Tue, 07/22/2014 - 15:14 | 4989408 Colonel Klink
Colonel Klink's picture

Redundant much?

Tue, 07/22/2014 - 15:05 | 4989358 Dr. Engali
Dr. Engali's picture

Clearly they don't get it. In order to achieve a utopian society they must chase ALL filthy manufacturing companies out of the country so they can shit in somebody else's back yard.

Tue, 07/22/2014 - 18:16 | 4990416 Escrava Isaura
Escrava Isaura's picture

Dr. Engali,

Is your comment supposed to be a serious comment... or you just don't have anything better to do?

Tue, 07/22/2014 - 20:01 | 4990850 Pure Evil
Pure Evil's picture

Shouldn't you be asking yourself the same question?

Tue, 07/22/2014 - 21:20 | 4991166 Calmyourself
Calmyourself's picture

Introspection is not this bots strong point, they are improving the software however..

Tue, 07/22/2014 - 15:09 | 4989375 nosoeawe
nosoeawe's picture

what did you expect would happen in a country ran by a retarded socialist pig. 

Oh, this article is about argentina. My bad, I thought they were talking about the big eared jihadist in chief and his merry band of heathens here in america.

Tue, 07/22/2014 - 15:11 | 4989387 Pheonyte
Pheonyte's picture

(Psst, you might want to edit that while no one's looking.)

Tue, 07/22/2014 - 15:16 | 4989416 Pool Shark
Pool Shark's picture



Too late...



Tue, 07/22/2014 - 16:15 | 4989745 Escrava Isaura
Escrava Isaura's picture


Pool Shark .... Too late!

Time should be the least of the worries... compared to the level of misinformation presented here

Tue, 07/22/2014 - 15:23 | 4989463 UpAndComing
UpAndComing's picture

"The staple gun was found beside the couch where he lay lifeless for many hours. The neighbors said he was a quiet man..."

Tue, 07/22/2014 - 15:12 | 4989381 Kaiser Sousa
Kaiser Sousa's picture

"I can't find anything. Prices are climbing daily..."

i thought this story was about Venezuela not the United States...."

Tue, 07/22/2014 - 20:47 | 4991045 The Most Intere...
The Most Interesting Frog in the World's picture

IDK about that just saw a commercial the other day. $99 per month for a Dodge Dart. Only problem it doesn't blow up on ignition like a GM.

Tue, 07/22/2014 - 15:12 | 4989383 smacker
smacker's picture

"Venezuela's Transformation To Socialist Utopia Is Nearly Complete As Its Factories Grind To A Halt"

Obama on his way to announce "Yes We Can"

GW Bush on his way to announce "Mission Accomplished"

Tue, 07/22/2014 - 15:39 | 4989551 shovelhead
shovelhead's picture

At least Hugo had the good taste to die.

Tue, 07/22/2014 - 15:51 | 4989629 toady
toady's picture

Whoever this new dude is, he's no Hugo Chavez!

Tue, 07/22/2014 - 15:12 | 4989385 Colonel Klink
Colonel Klink's picture

Socialist utopia and factories grinding to a halt.  Why does that sound so familiar?  OH YEAH, because it's what we've become too!!

All hail BushClintonBushbama!

Tue, 07/22/2014 - 18:25 | 4990461 Escrava Isaura
Escrava Isaura's picture

Colonel Klink,

Could you please tell us the most "Socialist-Utopia" right now?

Tue, 07/22/2014 - 20:44 | 4991031 The Most Intere...
The Most Interesting Frog in the World's picture

Detroit, Buffalo, Gary, how's that?

Wed, 07/23/2014 - 01:09 | 4991735 Colonel Klink
Colonel Klink's picture

Commiefornia?  San Fransicko?  Shitcago?  Detoilet?

Feel free to pick one.

Wed, 07/23/2014 - 07:23 | 4992050 Escrava Isaura
Escrava Isaura's picture

Colonel Klink,

Man, you need some therapy and anger management.

You're starting sounding like the Fascist.

Tue, 07/22/2014 - 15:12 | 4989389 Meat Hammer
Meat Hammer's picture

Too bad they don't have MyRA's.

Tue, 07/22/2014 - 15:13 | 4989397 agstacks
agstacks's picture

Whip Inflation Now!!

Tue, 07/22/2014 - 15:15 | 4989413 Colonel Klink
Colonel Klink's picture

Whipup Inflation Now!!


Tue, 07/22/2014 - 15:13 | 4989399 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture


Tue, 07/22/2014 - 18:56 | 4990585 DoChenRollingBearing
DoChenRollingBearing's picture

En este caso, no tanto...

Tue, 07/22/2014 - 15:16 | 4989425 bertone
bertone's picture

OT, sort of. A couple of years ago someone posted to a thread along the lines of "they will print until their eyes bleed".  I searched archives to no avail.  Anyone? 

Tue, 07/22/2014 - 16:45 | 4989916 bertone
bertone's picture

Thanks Overfed, much appreciated.

Tue, 07/22/2014 - 17:28 | 4990146 Overfed
Overfed's picture

Hard to forget an epic rant like that one.

Tue, 07/22/2014 - 21:02 | 4991095 bertone
bertone's picture

Apparenlty, he/she was correct. I remember Donky Punch.. I mean Kong.

Tue, 07/22/2014 - 15:23 | 4989435 americanspirit
americanspirit's picture

Looks like a major opportunity for China to step in and set up car sales denominated in Yuan.

And maybe a bank or two to facilitate the changeover to the Yuan.

Gotta do that before they will be able to grab all of V's oil exports - also denominated in Yuan.

And maybe open an airbase or two.

My goodness - that was quick -

Tue, 07/22/2014 - 16:20 | 4989766 Herd Redirectio...
Herd Redirection Committee's picture

They said in above article, Venezuela does 100 times more business w/ China now than compared to 1998.


Tue, 07/22/2014 - 19:00 | 4990599 DoChenRollingBearing
DoChenRollingBearing's picture

A lot of Venezuela's oil is hard to refine though (sour (sulphur) and heavy (thick)), that is one the reasons PDVSA bought Citgo -- they had refineries on the US Gulf that could deal with that kind of oil.  My understanding is that China cannot (yet perhaps) refine much heavy sour crude.

Tue, 07/22/2014 - 15:19 | 4989438 kchrisc
kchrisc's picture

Government can only produce poverty, misery and death.

Venezuela is growing like gangbusters when measured in that regards.


"Socialism, fascism, it's all totalitarianism to me."

Tue, 07/22/2014 - 15:22 | 4989441 Zandalf
Zandalf's picture

Why can't they all just play on usa baseball teams? Then they'd really be in the money!

Tue, 07/22/2014 - 15:21 | 4989443 ebworthen
ebworthen's picture

"Factories!  We don't need no stinkin' factories!"

Tue, 07/22/2014 - 15:38 | 4989549 Farqued Up
Farqued Up's picture

Thaaaat's riiiiigght, no more work, only manipulate fiat paper. I advise not to fall in the manipulating bog, anyone not inside is outside and will be shredded for Soylent Wafers. Best to do something that serves others with some good or service. Be in demand.

Tue, 07/22/2014 - 15:41 | 4989558 Oldwood
Oldwood's picture

Its that evil "work" that pissing everyone off.

And those damned factories have jobs that require people to "work", the evil fucks.


Tue, 07/22/2014 - 15:22 | 4989447 UpAndComing
UpAndComing's picture

Vicky's already at the girl gotta re-up

Tue, 07/22/2014 - 15:27 | 4989487 Loucleve
Loucleve's picture

maybe this is why they all wanna come here?????

Tue, 07/22/2014 - 15:27 | 4989489 Dublinmick
Dublinmick's picture


China oil and gold deal with venezuela.

Tue, 07/22/2014 - 15:34 | 4989500 slightlyskeptical
slightlyskeptical's picture

What exactly is strange about capitalists having trouble selling things in a socialist country? It's pretty shocking in itself that their factories are still under their control.

Tue, 07/22/2014 - 15:29 | 4989501 rsnoble
rsnoble's picture

Are the some clowns still in charge with their fabulous paychecks?

Tue, 07/22/2014 - 15:31 | 4989512 TalkToLind
TalkToLind's picture

Thank goodness TPTB are much smarter here in the US!  At least we don't have government owned and operated gas stations here.  No, wait....

Tue, 07/22/2014 - 15:33 | 4989521 pitterrier
pitterrier's picture

If you want your factory, you can keep your factory.

Tue, 07/22/2014 - 15:35 | 4989526 no more banksters
no more banksters's picture

Venezuela: The "revolution" of the rich

The myth of economic collapse and the Right-wing riot geography

Tue, 07/22/2014 - 15:47 | 4989605 Oldwood
Oldwood's picture

And they have 6% unemployment....right. I understand that good data is hard to come by but when you report government data, especially from Venezuela, and treat it as fact, facts are no longer in the discussion.

Tue, 07/22/2014 - 19:04 | 4990614 DoChenRollingBearing
DoChenRollingBearing's picture

Venezuela's economy really is in the toilet.  One of our neighbors is from there.  I used to sell general auto parts to Venezuela.  Private sector people nowadays can get NO foreign exchange to bring in almost anything.

And their .gov is very corrupt and very inefficient.

I would not trust Venezuelan propaganda as far as I could throw it either.

Tue, 07/22/2014 - 15:37 | 4989536 slightlyskeptical
slightlyskeptical's picture

And why the hell do GM and Ford have no access to dollars?

Pretty obvious this all by design rather than real shortages.

Tue, 07/22/2014 - 15:49 | 4989611 ShrNfr
ShrNfr's picture

Corporately, their Vz stuff are subs. Those subs are like any other company in the land of utopia, they have to deal through the government mafia. F & GM can't just parachutte dollars into them. The government would grab it anyway if they did. The Vz operations of F and GM have been losing money for the parent now for quite a while. The factories are worth something if they can ever make cars again, so they do not sell out to the locals. Just another day in the realization of Obama's dream country.

Tue, 07/22/2014 - 19:05 | 4990619 DoChenRollingBearing
DoChenRollingBearing's picture

Great explanation.  As far as I can tell, all completely true.

Tue, 07/22/2014 - 15:56 | 4989665 Nue
Nue's picture

Your right it's by the design. Capital and Currency controls designed by a bunch of complete idiots.  

Tue, 07/22/2014 - 15:47 | 4989584 buzzsaw99
buzzsaw99's picture

in practice there is no difference between economic systems. Tylers love to rag on socialist utopias like argentina but nary a word against capitalist utopias like china or india. capitalism is a cult religion. the existence of their god cannot be proven.

Tue, 07/22/2014 - 16:18 | 4989758 roadhazard
roadhazard's picture

Capitalist utopias love to socialize there losses and privatize there gains.

Tue, 07/22/2014 - 16:36 | 4989865 Overfed
Overfed's picture

That would be a fascist utopia. Like USSA.

Tue, 07/22/2014 - 20:37 | 4990994 The Most Intere...
The Most Interesting Frog in the World's picture

US is communist not Fascist.

Tue, 07/22/2014 - 16:36 | 4989866 FrankDrakman
FrankDrakman's picture

A pox on both of you. No way China and India are "capitalist" - they are still command economies, with a small market component. And in a 'capitalist utopia', there is no such thing as 'socialize there (sic) losses" - you go bust while your competitors are cheering, as it's one less competitor for them to worry about. You are describing 'crony capitalism', which is a horrible disfigurement of real capitalism.

Tue, 07/22/2014 - 16:50 | 4989885 buzzsaw99
buzzsaw99's picture

my point exactly. pure capitalism does not exist, and is impossible to prove as superior to other systems, which although flawed, actually do exist, whereas capitalism does not. the cult here at zh does not tolerate criticism of capitalism because every time one tries to point to the flaws in this system or that they respond by saying "that's not capitalism, nanny nanny noo!" if one tries to make the point that capitalism ruined venezuela or any other country you get the same thing. fuck capitalism, it is a myth. criticizing socialism is stupid, it is the only system that works at all and whatever shred of capitalism may exist does so only because socialism made that possible in the fist place.

Tue, 07/22/2014 - 16:57 | 4989998 Oldwood
Oldwood's picture

The theories of capitalism and socialism are both valid in the proper settings, that do not yet exist on earth. Communist understood this which is why they went straight to a dictatorship, to force people to fit their agenda...but is still didn't work. The problem is corruption, and the larger the scale of the system, no matter what it is, the greater the role of corruption, for as we know, power corrupts and the more absolute the power, the more absolute the corruption.

The "ism" that is not discussed is freedom...ism. Capitalism is based on freedom but uses power to enforce an ever more complicated set of rules supposedly to ensure it...and fails. Socialism accepts the fact that power corrupts, but assigns this corruption as a failure of specific individuals, believing that their system can succeed if only the had the right people in power.

Freedomism is relative and can only be better or worse, but never perfect. The only thing that will promote freedomism is decentralization where individuals have at least a fighting chance against organized powers. No body thinks they can win against the Fed. Resistance is futile. But I might have a chance against my local school board...maybe.

Tue, 07/22/2014 - 16:54 | 4989982 Ms. Erable
Ms. Erable's picture

Capitalism hasn't been practiced by any nation for generations.

Tue, 07/22/2014 - 23:29 | 4991582 Buckaroo Banzai
Buckaroo Banzai's picture

Capitalism was last seen on these shores in 1912. The period between 1870 and 1913 was one of tremendous prosperity and world trade surged to staggering volumes-- much larger on a relative basis than world trade today.

Wed, 07/23/2014 - 04:03 | 4991887 Kprime
Kprime's picture

another public school system winner. 

there, their, (guess which is correct) by the time you finish ur (your, your're, guess which) cookie, you'll feel right as rain.

Tue, 07/22/2014 - 15:46 | 4989604 pazmaker
pazmaker's picture

Very bad situation for Venezuelans.  It's getting harder to get flights out of the country and if you want to eat be prepared to have pay in dollars or buy extremly high in the black market.  


I have two family members there who are preparing to leave, both once had profitable businesses. One was smart enough to invest in some farmland in Ecuador and that is where they will be going.

Tue, 07/22/2014 - 21:19 | 4991157 COSMOS
COSMOS's picture

Two things, its nice that he has bought farmland.  But it better be substantial amounts for him to make as good of a living as he had in Venezuela.  Not to mention what do they know about farming if they had other business ventures, you dont just become a great farmer overnight.

The other thing is when the dollar loses reserve status I wonder if we will be having trouble getting foreign made goods and foreign currency.

Tue, 07/22/2014 - 15:48 | 4989614 Nue
Nue's picture

I have a theory that explains the existence of all modern day socialist. Science has shown that human beings are benefited by a unique neural physiology known as Mirror Neurons. Among other things these neurons allow human beings to learn by observing the success and failures of others. So when one person sticks their finger in the light socket an observer or even a person just hearing about it fires off a barrage of complex synaptic activity allowing them to interpret the outcome suffered by the other person as either a positive or negative event.  Given the overwhelming failure of socialism it would seem that most Socialist have a deficiency to their mirror neuron system.  This leaves them unable to process the absolute failure of Socialism. Furthermore since Mirror Neurons are also responsible for empathy this would also account for the absolute despots that arisen from various socialist states through decades. In short Modern Socialism is the result of brain damage.

Tue, 07/22/2014 - 16:34 | 4989854 Escrava Isaura
Escrava Isaura's picture

Nue... "In short... the result of brain damage"

Thank Goodness your brain damaged theory doesn't apply to you... and to most on this thread.

Tue, 07/22/2014 - 17:03 | 4990023 Oldwood
Oldwood's picture

Or could have just said stoopid.

Tue, 07/22/2014 - 20:25 | 4990945 JuicedGamma
JuicedGamma's picture

If I had a psychology doctorate I'd give it a fancy name.

Never mind, monkey see, monkey do.

Tue, 07/22/2014 - 15:50 | 4989619 youngman
youngman's picture

In the news today in Colombia it had a story about an apartment building the government just took over for housing in Venzuela.....kicked the rich people out..and in with the poor...

Tue, 07/22/2014 - 17:05 | 4990033 Oldwood
Oldwood's picture

Sounds fair.

They didn't really build that did they?

Where does a country go, down from "third world"? Is there a fourth?


Tue, 07/22/2014 - 19:09 | 4990631 DoChenRollingBearing
DoChenRollingBearing's picture




"Three gets you five" that building turns into a crappy hole* within two years...


*un hueco asqueroso  :)

Wed, 07/23/2014 - 03:58 | 4991883 Kprime
Kprime's picture

you will lose that bet.  Ain't no way they can make it two years. 6 months maybe.

Tue, 07/22/2014 - 15:54 | 4989643 Barry Freed
Barry Freed's picture

As if not turning out tens of thousands of cars that people don't need and can't afford is a bad thing?

Tue, 07/22/2014 - 17:06 | 4990042 Oldwood
Oldwood's picture

If there is no job and no food, what the hell do you need a car for?

Lessons for a modern economy...

Tue, 07/22/2014 - 16:16 | 4989752 Smegley Wanxalot
Smegley Wanxalot's picture

Who needs manufacturing when you got toilet paper?

And who needs toilet paper when you got nothing to eat?

Tue, 07/22/2014 - 16:18 | 4989756 orangegeek
orangegeek's picture

Dig up Hugo Chávez, tape a fkg yardstick to his back, tie some strings to his hands and get him back on the job.


Hugo can fix it!!!

Tue, 07/22/2014 - 16:21 | 4989772 pashley1411
pashley1411's picture

The solution is obvious.    Invite Obama down for a fund-raiser, or five, and a round of golf.    Those ole digital $$$'s will just cascade in.

Tue, 07/22/2014 - 16:22 | 4989777 Goldilocks
Goldilocks's picture

Count de Money / "The People Are Revolting" (2:12)

Tue, 07/22/2014 - 16:34 | 4989849 hallywood
hallywood's picture

Russians are in VZ in a big way. They have set up a munitions factory and expanded a navel port on Margarita Island. Look no further than VZ for Yuan priced oil coming soon. This tale (tail) does not end in VZ, Russia or China but rather in the good ole USA and while Ackman and Herbalife get the headlines Rome (Washington) is burning to the ground.

Tue, 07/22/2014 - 23:52 | 4991626 Dublinmick
Dublinmick's picture

Hallwood you hit it on the head

Tue, 07/22/2014 - 16:33 | 4989850 q99x2
q99x2's picture

Sounds like they are ready for a version of Obamacare.

Tue, 07/22/2014 - 22:51 | 4991477 studfinder
studfinder's picture

Could you imagine if Sebilius gets a new job down in Venezuela starting the ChavezOcare?  Fucking 10 trillion lines of code.    Be awesome.  Those fuckers wouldn't know what hit him.  They'd be forcing us to take their oil just to get rid of ChavezOcare.

Tue, 07/22/2014 - 17:05 | 4990030 Cacete de Ouro
Cacete de Ouro's picture

Yes! We no gotta de Bananas!

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