Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
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Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#2Scary times ahead for Venezuela. It's too bad it will be the average person paying the price for the corrupt few.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#3If you run sovereign debt in a currency you don't control, you become a colony, not a country.
Venezuela private firms should all be run through administration to wipe out the creditors and re-floated with Bolivar investment.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#4The paradox of Venezuela is a populist government that beasts its chest about foreign imperialism starving its citizens to make bond payments to foreigners. We're beyond the point where a sane democracy would have defaulted. The only conclusion I can come to involves cronies of the administration holding substantial amounts of the debt. The payments aren't on interest and principal, but for patronage.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#5If you run sovereign debt in a currency you don't control, you become a colony, not a country. Venezuela private firms should all be run through administration to wipe out the creditors and re-floated with Bolivar investment.
Nobody wants BSF. Plus the government does shenanigans with the exchange rate, with the official exchange rate having no relationship to reality.
If you refloat debt in a different valueless currency that you control the exchange rate on, you're de facto defaulting - nobody wants your currency. They want hard currency.
Re: currency you don't control, do you consider Ecuador a colony? They have debt in the sucre, which is pegged to the dollar. Is most of Europe a colony of Brussels? Except for the British and the Swiss, everybody else runs debt in Euros, which they don't control.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#6The paradox of Venezuela is a populist government that beasts its chest about foreign imperialism starving its citizens to make bond payments to foreigners. We're beyond the point where a sane democracy would have defaulted. The only conclusion I can come to involves cronies of the administration holding substantial amounts of the debt. The payments aren't on interest and principal, but for patronage.
They need to keep the capital flowing in order to fund the police/military that prop up the authoritarian regime.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#7Scary times ahead for Venezuela. It's too bad it will be the average person paying the price for the corrupt few.
The "average person" is guilty of voting the communist government. Corruption is just the normal result of communism/socialism.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#8Scary times ahead for Venezuela. It's too bad it will be the average person paying the price for the corrupt few.
The "average person" is guilty of voting the communist government. Corruption is just the normal result of communism/socialism.
That's never a completely true statement. It is much nearer false for Venezuela, where the last free elections filled their Congress with the opposition, and where people are literally fighting their government on the streets.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#9Earlier quoted context omitted.
The "average person" is guilty of voting the communist government. Corruption is just the normal result of communism/socialism.
That's never a completely true statement. It is much nearer false for Venezuela, where the last free elections filled their Congress with the opposition, and where people are literally fighting their government on the streets.
There was local elections a week ago and the government won majority.
Re: Venezuela’s Behind on Its Debt and Facing Two Huge Bond Payments
#10Scary times ahead for Venezuela. It's too bad it will be the average person paying the price for the corrupt few.
The "average person" is guilty of voting the communist government. Corruption is just the normal result of communism/socialism.
I’m just wondering... in which governing scheme is corruption not the default? I can’t think of any in use today by a country or large organization where it’s not there in one way or another.
The only solution, I think, is to have an extremely low tolerance for corruption (and incompetence because that’s often what corruption is disguised as) such that anybody in power would be too scared to do corrupt shit because they know they’ll get put in to jail and get the hole bill put into their name, but such a thing wouldn’t work because none of the types of people that want to be in power would ever let something like that take place because, well, they want to stay in power.