30 Jan '16, 1am

Venezuela is on the brink of a complete economic collapse... via PEAK OIL #oilandgas

Now you might have noticed that I talked about Venezuela’s black market exchange rate. There’s a good reason for that. Venezuela’s government has tried to deny economic reality with price and currency controls. The idea was that it could stop inflation without having to stop printing money by telling businesses what they were allowed to charge, and then giving them dollars on cheap enough terms that they could actually afford to sell at those prices. The problem with that idea is that it’s not profitable for unsubsidized companies to stock their shelves, and not profitable enough for subsidized ones to do so either when they can just sell their dollars in the black market instead of using them to import things. That’s left Venezuela’s supermarkets without enough food , its breweries without enough hops to make beer , and its factories without enough pulp to

Full article: http://peakoil.com/publicpolicy/venezuela-is-on-the-brink...

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