8 Lessons That We Can Learn From The Economic Meltdown In Venezuela
By Tyler Durden
Submitted by Michael Snyder via The End of The American Dream blog,
We are watching an entire nation collapse right in front of our eyes. As you read this article, there are severe shortages of just about anything you can imagine in Venezuela. That includes food, toilet paper, medicine, electricity and even Coca-Cola. All over the country, people are standing in extremely long lines for hours on end just hoping that they will be able to purchase some provisions for their hungry families. At times when there hasn’t been anything for the people that have waited in those long lines, full-blown riots have broken out.
All of this is happening even though Venezuela has not been hit by a war, a major natural disaster, a terror attack, an EMP burst or any other type of significant “black swan” event. When debt spirals out of control, currency manipulation goes too far and government interference reaches ridiculous extremes, this is what can happen to an economy. The following are 8 lessons that we can learn from the epic economic meltdown in Venezuela…
#1 During an economic collapse, severe shortages of basic supplies can happen very rapidly…
“There’s a shortage of everything at some level,” says Ricardo Cusanno, vice president of Venezuela’s Chamber of Commerce. Cusanno says 85% of companies in Venezuela have halted production to some extent.
At this point, even Coca-Cola has shut down production due to a severe shortage of sugar.
#2 If you have not stored up food ahead of time, your diet could quickly become very simple during a major emergency. The Los Angeles Times recently covered the plight of a 42-year-old single mother in Venezuela named Maria Linares, and according to the story her family has not had any chicken to eat since last December…
In December, she was spending about half her salary on groceries. It now takes almost everything she earns to feed her two children, who subsist on manioc (also known as cassava or yuca), eggs and cornmeal patties called arepas, served with butter and plantains.
“The last time we had chicken was in December,” she said.
The best deals are generally at government-run stores, such as Mercal and Bicentenario, where the prices are regulated.
To shop there, however, Linares said, she has to line up overnight. Even then, she might come home empty-handed if everything sells out before she gets to the front of the line — or if she is robbed leaving the store.
#3 When people get hungry, they become very desperate. And very desperate people will eat just about anything.
In a recent article, I detailed the fact that some people down in Venezuela have already become so desperate that they are actually hunting dogs and cats for food.
Could you ever do that?
I couldn’t, but just like in Venezuela there …read more
Source: 8 Lessons That We Can Learn From The Economic Meltdown In Venezuela
