How The Collapse Of Venezuela Really Happened: Part 1

Via Daisy Luther's Organic Prepper blog,

Today we welcome back our friend Jose, who wrote the awesome article about Christmas in Venezuela. It was so well-received that I invited him back to do a recurring series. In this piece, he begins telling us the story about how his country started the slide into a slow-motion collapse. Jose is a heck of a storyteller and he leaves us hanging at the end, but don’t worry, Part 2 is coming soon! ~ Daisy

My Story of the Collapse of Venezuela

I believe it is the moment of an introduction for our readers to know how everything began. Venezuela is a wonderful country, with lots of peculiarities and attractions.

I love my country, and most of the people, even in these harsh times portraits wonderful qualities as a society that few countries in the world have.

This was once a beautiful land, relatively sparsely populated where food was plentiful, money was never scarce, and jobs were plentiful. The weather was very sunny, the days a little hot and people used to recline in their chairs in front of the door of their house and watch the neighbors go on arriving from a day’s work, and they greeted with courtesy. The neighborhoods were mostly safe. There was practically no monster known as inflation, bank loans were easily available and people often traveled to other countries without much concern for things like exchange controls, access to foreign currency, among other things.

There was no Internet, there were no so-called experimental drugs in the streets, access to a decent life was more or less possible if one had discipline and well, and in general, life was good. The cars used huge carburetors (some still use them), the fuel was abundant, and at the best prices on the planet, its inhabitants crossed the territory of almost one million km2 enjoying beautiful beaches, lonely plains, lush jungles and even the odd snow peak. The climate is optimal to live all year round with shorts, fresh clothes, and sandals.

It was very strange to hear of any deportation, and thousands of foreigners over the years came on vacation, and they stayed forever. Our beautiful women attract the attention of the whole world (and still do) and an endless line of ships left our ports, carrying their valuable black cargo to return loaded with that green paper that is accepted all over the world.

The country had an educational system of a very acceptable level. University education was free in most cases, and although the system required qualifications above the average for access to it, the demand was very high as the need for qualified professionals was such that, coming from a humble background, anyone with the ability, the desire to do it and enough enthusiasm could become a graduate and have a decent life, improving their socio-economic status and reaping the fruits of their effort and their work.

But not everything would be honey over flakes.

So much wealth of economic resources, and the inherent flaws of the lack of a solid, strong legal system, were unable to safeguard the public patrimony. With the lack of committed officials, with enough values and ethical and moral principles, It would lead to levels of corruption rarely seen in the world, with exceptions in some African republics. The main companies in the country adopted as a policy to place most of their financial resources in foreign banks. Investments in infrastructure were becoming smaller and smaller, and as the population grew and demanded services, this lack of investment became more palpable. The social policies that until then had been sufficient, with the corrupt elite that began to seize the country in those years were reduced to its minimum expression. These were the years of the second government period executed by populist (deceased) leader Carlos Andres Perez. His government was characterized by some of the biggest and darkest corrupted business of the decade. Getting in debt with the FMI was the straw that broke the camel´s back.

The fraudulent business in the government was: construction of schools, hospitals, highways, and roads, among a myriad of works that remained unfinished, without the population expressing disapproval. The political elite leaders were driving around luxury cars, escorted by heavily armed bodyguards, behaving like great lords. Most of them were soldiers who were linked at the time to the movement that gave the coup years ago. Crime grew steadily but was kept at bay by a police force that also fulfilled the role of containing “subversive” elements: people sympathetic to the concepts of the left.

Friends of the country supplied practically all industrialization needs, but technology transfer was a totally non-existent concept: the domination scheme was always maintained, and the few national companies that were able to carry out a true technological independence saw their functions paralyzed by government controls that would end up suffocating a large number of them. Despite the fact that, within the Latin American context, the professionals were among the most qualified and trained, the low wages meant that many of these professionals emigrated continuously, in a so-called brain drain that has been much more pronounced in recent years.

But let’s go slowly.

This situation led to a severe deterioration of socio-economic conditions, gradually but unswervingly creating the necessary pressure for citizens to slowly acquire the necessary awareness that a radical change was essential if they wanted improvements in their quality of life. A country with vast, enormous resources, but with inhabitants that increasingly felt the impact of inflation, a shortage that nobody could explain, and knowing this reality, seeing their political class isolated from the realities that the bulk of the population was suffering.

The whole thing was reaching a point of very high dissatisfaction. Student demonstrations, street disorders began to become more common. Corruption scandals came to light, but the guilty were seldom apprehended or put to rights. Most of the time they left fleeing to some country to enjoy the stolen riches.

This the people saw him repeat so much that he filled his already exhausted patience. On the date of February 27, 1989, after the announcement of economic measures (requested by the IMF for access to international financing) by the then President of the Republic, Carlos Andrez Perez, including an exacerbated increase in the price of gasoline, an wave of extremely violent protests, a violence like never before seen in the country, not even in the turbulent era of the guerrillas of the 60s and early 70s. The security forces were overwhelmed: poorly equipped and worse prepared to face disorders of this nature, the Government of that time had to resort. The looting was generalized in the largest cities in the country, causing terror in older citizens both nationalized and native, who paralyzed by surprise, never thought that such a situation could occur in a country so absurdly rich and prosperous.

It was not a coup attempt. It was a situation of widespread discontent, a call for attention to the Latin American style, in protest of the excesses publicly committed by the corrupt elite class of politicians who had been in power for more than 40 years through a pact known in the country as the Fixed Point Pact. Among the infinity of anecdotes that swarm among Venezuelans is known one in which an alcoholic, good-for-nothing president called Jaime Lusinchi (recently deceased in the Miami streets, like a vagabond) sent a Hercules C-130 from a military base on the island La Orchila, to the mainland … in search of ONE chest of ice to cool the president´s whiskey.

Tell me about it…

It is said that this situation was planned by the left, but in the absence of a more detailed investigation, for the moment it is difficult to confirm this theory.

What I saw personally

I would like to tell you about my experience as a young man, in the town where I lived with my parents at the time.

The day the riots began, we began to see on TV what was happening in the big cities. At the beginning, I did not understand very well what it was about, but my parents told me that the economic situation had reached an extreme where people could not take it anymore, so they took to the streets, in the first instance to protest against the package of economic measures imposed by the IMF.

The protests, perhaps moderately organized from the beginning by some factions, evolved rapidly during the course of the day, becoming looting that began in the largest cities, and quickly spread throughout the country. But let’s not get ahead …

I was in school, in high school. The teachers, around 9 am, led by the director of the institute, were classroom by classroom, from the lower grades to the older ones, evacuating us all and giving the order to go directly to our homes. Of course, what we did was divide into groups, with each group going where it seemed best. Since I had friends in my old school, I thought it would be interesting to go there and spend some time hanging around with them. As teenagers, after all, our group went there, going through what was a commercial area, and we were surprised and even had a bit of fun to see that there was no vehicle traffic, so that we were soon walking through the center of the street, without realizing that a student demonstration had come out to protest before us, and we were following it without realizing it.

In Venezuela the uniform is used until finishing secondary school, so for the eyes of the authorities, we were part of the demonstration. When we walked, we were surprised to see many people on the streets: housewives, young men and women who would normally be working, including adults and the elderly. Some of them told us not to follow, and to go home. Suddenly, we saw in front of the boys of the school we were going to, who came in the opposite direction to us, in a huge group and mixed with people of all kinds: young, elders, ladies, grown-up angry men…

(To be continued…)


vato poco Richard Chesler Thu, 01/11/2018 - 22:05 Permalink

"make no mistake, the US has played a very big role in the collapse" LOL

even assuming you're right - and you're not; not even close - so the fuck WHAT?? even if Uncle Sam was badmouthing Hugo and Nikki all over the world, Venezuela has more proven crude reserves then SA.

all they had to do was pump & ship the oil. at a discount if need be, thanks to that whole "US big role" bullshit (again, LOL). it's a thirsty world: SOMEone would buy their oil, the money would flow in to state coffers, and all would be well. 

and yet they're eating dogs & cats & zoo animals and high-school girls are trading blowjobs for a bite of a Big Mac. why IS that??


In reply to by Richard Chesler

HillaryOdor vato poco Thu, 01/11/2018 - 22:57 Permalink

Yes clearly the CIA forced them to inflate their currency into Bolivia.  Awesome analysis.  Do you have a patreon?

It's clear Jose has figured it out.  They just gotta get good moral guys running the all powerful central state next time.  Then everything will work out great!  Next time vote for the good moral guy!  You can't go wrong. 

LMFAO.  People that believe that deserve to starve in the streets in my book.

In reply to by vato poco

TBT or not TBT vato poco Thu, 01/11/2018 - 23:02 Permalink

In order to collapse, Venezuela had to first rise up, no?    The US played a role, BUYING THEIR OIL, with pretty hard currency.   Lately we have been producing a lot more oil domestically.   Those are indeed things the USA has done to help Venezuela rise up to begin with, then to collapse.    But not every petrokleptocracy has suffered so badly as Venezuela has.  Mainly for failure to invest adequately in more efficient production and delivery.   Chavez types in power.  Oops. 

In reply to by vato poco

booboo nmewn Thu, 01/11/2018 - 21:23 Permalink

don't worry, the communist experiment will only need to be tried several more times in order to perfect it, we are working out the bugs in the system, a few kinks and wrinkles, we will iron them out with a heavy hot iron, and a hammer and furnace we will forge the perfect society of the most happy people under the sun and if we don't will will kill as many kinks and wrinkles as it takes. pinky promise.

In reply to by nmewn

HRH of Aquitaine 2.0 Thu, 01/11/2018 - 21:01 Permalink

When there is no rule of law and a country decides to let a bus driver be their leader, what outcome did they expect?  Paradise?  Sure.  For Chavezs' daughter, living le dolce vita in Miami with $4 billion.  Why hasn't she been sent packing by US DHS?  And her bank accounts, and property, seized.  Send her home to Venezuela.  That's where she belongs.  With her people.

Peak Finance Thu, 01/11/2018 - 21:03 Permalink

LOL Sounds EXACTLY like this USSA "Shithole!"

Wonder if a (((Certain demographic))) started to be over-represented in banking, finance, media, education, and politics when this started to happen. 


Mr.Kowalski Thu, 01/11/2018 - 21:12 Permalink

Venezuelan oil production is down by like 75%. It wont be long. At some point, the families of common soldiers will begin to go hungry. More and more of the common soldiers will begin to join the demonstrators. At some point, the junior officers will begin to join the protesters. When this happens.. as senior generals have fewer and fewer actual soldiers at their command.. a few of them will order an assault on the palace and Maduro will join Mussolini, Ceaucescu, Chavez & other sh!theads roasting in h&ll. 

louie1 Thu, 01/11/2018 - 23:55 Permalink

Venezuala's problems have always been foreign powers especially the USA. The exercising of the Monroe doctine has kept every country south of the border poor. If you cant see that you are just another uneducated Yankee dickhead.

dunce Fri, 01/12/2018 - 02:19 Permalink

The problem is all of the oil belongs to the state plus most other resources. Nothing will change until most of the oil is gone and the state has nothing but a big mess to clean up with no money to do it. Any attempt to privatize the oil resources will be rejected. They could hire foreign companies to operate the industry for a modest fee paid as a part of production but kleptocrats will demand bribes in the form of contracts and the cycle would repeat with the foreign companies taking the blame for the politicians corruption.

roddy6667 dunce Fri, 01/12/2018 - 11:12 Permalink

Most of the oil is worthless. It is very dirty, and at today's prices, it is a losing proposition to pump and refine it. It would cost more than it could be sold for. When it was $130 a barrel, it was a different story. They country borrowed a lot of money thinking prices would stay high. Chavez helped the poor with most of the money. There are two opinions on why he did that. One is cynical, and says that he was just buying support at the next election. The other  one says that by narrowing the huge gap between Venezuela's poor and the middle and upper classes, he could avoid social unrest. It doesn't matter now. Oil is selling at less than half of the price when this all went down, but the interest payments are still due. 

The worst contributor to the civil unrest is still the massive difference between the poor and the rest of the country. Sounds more like America every day.

In reply to by dunce

roddy6667 Fri, 01/12/2018 - 02:22 Permalink

No mention so far of the huge chasm between the poor and the rest of the people in Venezuela. This article is written from the point of view of the middle class or higher. The poor, the majority of the country for a long time, are invisible to the author. This has been the downfall of many countries, although it is usually blamed on socialism. 

roddy6667 Black Warrior … Sat, 01/13/2018 - 10:25 Permalink

Some people want simple one-word answers. Reality is not like that. The situation in Venezuela is complex and predates any socialist governments. Poverty and the gap between the rich and poor are the root cause. There seems to be something wrong with the people of South America. They are like children. They don't understand money or saving for the future or the fallacy of borrowing huge amounts of money to satisfy present wants. That's why you see the governments alternate between populists who promise the world, bankrupting the country, and military juntas who are forced to take over to stop the chaos and violence. It has been going on for a long time. 

In reply to by Black Warrior …

meterman Fri, 01/12/2018 - 09:15 Permalink

This long article to say one thing: SOCIALISM.

Do you know the details of socialism? Have you studied it? Can you recognize socialism's principles when you hear them?

If not - You are in big trouble my friend.