US Sanctions on Venezuela: 'Attempt to Destroy the Economy'

Venezuela's recession is making it difficult for the country to meet its debt payments, but US sanctions are making a difficult task almost impossible explains CEPR's Mark Weisbrot

[joshc]

I could buy the anti- socialist rhetoric a little better if the US would let countries fail without imposing cripling sanctions on them. Hopefully Russia and China can trade with them.

[jessicavlogger]

venezuela's problem is not their economic system, but their absolute reliance on american capital: for investment, for exports and for imports, too. the venezuelan economy is almost totally described as "they sell oil to the united states in exchange for food". that's not socialism, it's imperialism; they're a banana republic. and, we see the consequence of utter reliance on an unreliable partner. but, i maintain that this is ultimately just a move by parasitic investors to take advantage of a weak state: the bully in chief has given a green light to pounce, and they are swarming, and biting and attacking on demand. at the end of the day, it means little, so long as the oil keeps flowing to texas: it's just a slightly tenser hold on the jugular, but not with an intent to actually tear, just an intent to squeeze a few more drops out. if they wanted maduro gone, they would stop buying oil. and, what maduro ought to be doing is trying to sell more oil to china.

[kainalrik]

They need to become monetarily sovereign. Problem solved. They no longer need bonds to spend and can never be forced to become insolvent.
The inflation is because of product shortages, due to sanctions and corporate embargo.

[aquaknight]

so long as they depend on oil and imports, venezuela will never be free. i would focus oil production for electricity for the population and tie that electricity to the value of the currency so that the internal economy can grow, because energy has true value. debt and credits are not tools for prosperity but means of slavery. focus on the local economy, stabilize it then default on the creditors is the only way forward and out of this parasitical engines called banks.
they devalue your products artificially then they buy it from you thru a system of perception of worth rather than true value. food, energy and infrastructure, this things are of real value and a nation that wishes to grow independent will focus on this three over the current artificial model.
The sooner the world discovers that economics is not a true science but a belief system the sooner it will prosper again. making measurable what is not so is one of the key principles of science, yet economics uses fluctuating currencies as measuring devices. imagine a ruler that constantly changes length, how accurate will you build a house?
economics is the late 20th/21st century religion, it used to work because it was tied to gold and gold, being a finite thing had a finite value, but now with fiat currencies everywhere, the value has no connection to what is real, hence it is an entirely controlled measuring device by those that control its policies, extending it and contracting it at will.
credit is even worse, it is institutionalize discrimination like nobility papers, the banks give it to whom they please for whatever reason they choose. from political positions to famous names, anyone can get credit so long as the bank desires it.

[MrMooemoney]

I wonder if the US people who thinks they live in a democracy have a say in who the government sanctions around the world or even have a debate

[VFDemon]

I love how everyone seems to compare Socialism like it's some sort of alien concept vis-à-vis 'successful' economies. There isn't a single fully capitalistic society in the world. Save maybe a few tax havens. There are only degrees of Capitalism & Socialism. Virtually every mkt is a mixed bag. The US is hugely socialist in its welfare aids esp concerning healthcare, social security etc heck, even a welfare state line third-world India is more capitalistic when it comes to providing healthcare to its billion plus population (!!); the rate at which the Federal Govt is growing even, more so. W Europe including the UK are socialist too or atleast embrace the most discerning of socialist qualities such as living wages issues, healthcare, state subsidy, educational grants etc. Finally, this talk of Marxism and socialism never working anywhere is a bit disambiguous. This is because Marxism was meant to work in a state of plenty not a state of deprivation. Also, communism isn't socialism and any comparisons to Trotsky's brand of Socialism is a corruption of the original idea. Countries experimenting with Socialism get it wrong bec of this crucial factor above. This is why western democracies, if we can call them that, are veering towards socialist agendas as their cultures have peaked and are realising the effect of unfettered capitalism. Countries in Scandinavia, W Europe are mixed market economies that incorporate at their core worker rights and state support along with healthy doses of state sponsored capitalism. The only exception here would be the UK which is headed toward the precipice not bec of say, BREXIT but bec of unregulated banking & finance. Venezuela here, is caught between inept governance and outside interference. A classic tale of what has passed before in Latin America. It is not the fault of Socialism as a concept by any yardstick but inept management of it.

[peaton]

Narco Rubio and the nexus with narco organization.

[RockawayCCW]

Venezuela doesn't need any help destroying it's economy. They did a fine job of that all on their own.