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Venezuela's Transformation To Socialist Utopia Is Nearly Complete As Its Factories Grind To A Halt
Venezuela's transformation to a socialist utopia has been well-documented on these pages. Recall:
- Venezuela Bolivar Devalues 89% in Start of New FX Market
- Venezuela Devalues Bolivar By Another 44% For Some, Still 600% Higher Than Black Market Due To 50% Inflation
- Venezuela's Maduro Averts Military Coup, Arrests Three Air Force Generals
- Venezuela About To Run Out Of Food Despite Fresh All Time High In Its Stock Market
- Venezuela Sets New "Fair" Prices For Chicken, Sugar, Rice & Coffee
- Socialist Paradise Central Planning In Action: Venezuela Looting Edition
- Venezuela Plunges Into Darkness As President Maduro Lays Out Socialist Vision On National TV
- No Spaghetti For You: Venezuela Noodle Maker Halts Production Due To Lack Of Dollars
- No Drinking Water In Venezuela Until Bankers Get Paid Back
- Venezuela Runs Out Of Toilet Paper
- Breathing The Air In Venezuela? Prepare To Pay
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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I wish the Bolivarian Revolution the best of good fortune. They're on track to unchain the people of Venezuala from the shackles of capitalist captivity.
Do they know how to feed themselves?
Of course. Venezuelans eat more fruit and vegetables. They walk and exercise more. They're much healthier than typical, obese, diabetic, brain-dead-by-media, tattooed, drugged-out and alcoholic Americans.
No inflation there then. That's fantastic news.
I cross all women with tattoos off my list. Do you know how long it's been?
... since you've been fucked, sucked and tattooed.
Sorry I couldn't resist.
More energy rations for the citizens. That's a plus.
Heh, heh. I remember few years ago, socialist were touting Chavisism as a success. Look it it now. It whos that failures don't manifest over night. In terms of economy, it's a time consuming process. Socialist think they know everything. When your economic policy is built on hate & envy of the rich, that ain't much of a economic policy. Ha...
The US is more socialist that Venezuela - what a piece of crap propaganda hit piece this is.
Nobody put oil and gas into the ground - nobody's labor did that. Socialism is taking others labor, which is what is happening in every western nation in the world - through tax.
RENT IS NOT EARNED - and money created by the value of land (resources in the ground) is owned byh everyone. We all collectively own the ai, water, sunshine, living things - anything that is not a product of labor should be owned by everyone.
In whining about V's 'socialism' - all you are doing is denying that you have any right to own the the land, or the rent derived from it.
The US is socialist, beyond communism to facism - and you want to whine about a nation that wants to spend its resource based profits to educate its people?
Next we will see articles syaing that Palestinians neded to hurry up and die so Israel doesnt have to waste bullets killing them - or Ukraine should hurry up and bend over for NATO - this article is misguided in the extreme.
If you follow whats going on here - the US and usual suspects are undermining it as hard as they can - V is resisting the financial scum - and you are cheering its downfall .. well done, strangle another pregnant women in a country of your choice as your reward.
You write in English, therefore we can assume that you are not a Venezuelan resident?
This should serve as yet ANOTHER example of the perils of central planning, price controls and collectivism for the so called 'academics' and the 'Anonymous-Occupy' useful idiot revolutionaries. I have yet to find a single one of these collectivists (because they are not individuals) who can point to one historical example of the successful implementation of any version of socialism/communism that didn't result in despotic, authoritarian mass murder, corruption and the break down of society.
Coming soon to 0bamao's USSA.
Its not all bad news... China just threw them a lifeline...
http://www.bbc.com/news/world-latin-america-28414623
But how long will this $4bln last ??
Yesterday I witnessed an argument on a public transport bus.
The bus was waiting at red traffic lights a few meters past a request bus stop.
A young man walked up to the bus doors and asked to be let on.
The bus driver refused "rules say it is not safe".
The young man stood in front of the bus blocking its path, the driver sounded the horn over and over.
A heated argument followed.
Eventually the young man gave up.
Other passengers took notes incase they were needed as a witnesses.
I went home thought about it and I realised that I was travelling on a state sponsored monopoly bus service.
Had this been one of many private bus operators competing in a free market the young man would have been boarded.
He would been respected as a paying passenger and his fair gratefully received.
Free market competition has awesome power to deliver good service and low prices.
Government, which is a monopoly, delivers high prices poor service and plenty of rules!
You heretic! You probably think the US should lower corporate tax rates before all large evil corporations invert. </SARC>
"about what Argentina produces in a few days."
Great comparison. When did Argentina become an efficient capitalist paradise?
If anyone sees Sean Penn - please punch that fucker in the face for me.
Yes, and the State Department assures there was no financial sabotage or attempts at destabilation like in the Ukraine.
Driving a car, just like eating is such a bourgeois thing. Who needs it, when you have social justice.
Just sayinnn.........
"China, Venezuela secure $5 billion in financial deals"
Beijing and Caracas signed more than $5 billion in financial agreements on Monday to support the South American country's economic development as President Xi Jinping concluded his first visit to the country.
The agreements include $4 billion in credit to Venezuela and a $690 million development loan for exploration for gold and copper.
Reuters reported that the credit line will be repaid in oil shipments.
http://www.chinadaily.com.cn/china/2014-07/23/content_17902277.htm