Lessons From Venezuela: Food Shortages, Looting And Economic Collapse
By Michael Snyder - The Economic Collapse Blog May 17, 2016 Share this article:
The full-blown economic collapse that is happening in Venezuela
right now is a preview of what Americans will be experiencing in the not
too distant future. Just a few years ago, most Venezuelans could never
have imagined that food shortages would become so severe that people
would literally hunt dogs and cats for food.
But as you will see below, this is now taking place.
Sadly, this is what the endgame of socialism looks like. When an
all-powerful government is elevated far above all other institutions in
society and radical leftists are given the keys to the kingdom, this is
the result.
Food shortages, looting and
rampant violent crime have all become part of daily life in Venezuela,
and we all need to watch as this unfolds very carefully, because similar
scenarios will soon be playing out all over the planet.
The
funny thing is that Venezuela actually has more "wealth" than most
countries in the world. According to the CIA, Venezuela actually has
more proven oil reserves than anyone else on the globe - including Saudi
Arabia.
So how did such a wealthy nation find
itself plunged into full-blown economic collapse so rapidly, and could a
similar thing happen to us?
The president of
Venezuela has declared a 60 day state of emergency in a desperate
attempt to restore order, but most people don't anticipate that it will
do much good. Social order continues to unravel as the economy
systematically implodes.
The Venezuelan
economy shrunk by 5.7 percent last year, and it is being projected that
it will contract by another 8 percent in 2016. Meanwhile, inflation is
raging wildly out of control. According to the IMF, the official
inflation rate in Venezuela will be somewhere around 720 percent this
year and 2,200 percent next year.
If people are
able to get their hands on some money, they immediately rush out to the
stores to use it before the prices go up again. This has created
devastating shortages of food, basic supplies and medicine.
Electricity
is also in short supply, and a two day workweek has been imposed on
many government employees in a desperate attempt to save power. Violent
crime is seemingly everywhere, and most law-abiding Venezuelans lock
themselves in their homes at night as a result.
Much
of the crime is being perpetrated by the mafia and the gangs, but
sometimes it is just normal people looking for food. Desperate people
do desperate things, and according to the Guardian there have been "107
episodes of looting or attempted looting in the first quarter of
20163...
Crowds of people in Venezuela have
stolen flour, chicken and even underwear this week as looting increases
across the country in the wake of shortages of many basic products. Many
people have adopted the habit of getting up in the dead of night to
spend hours in long lines in front of supermarkets. But as more end up
empty-handed and black market prices soar, plundering is rising in
Venezuela, an Opec nation that was already one of the world's most
violent countries.
There is no official data,
but the Venezuelan Observatory for Social Conflict, a rights group, have
reported 107 episodes of looting or attempted looting in the first
quarter of 2016. Videos of crowds breaking into shops, swarming on to
trucks or fighting over products frequently make the rounds on social
media, though footage is often hard to confirm.
One
example of this looting took place on May 11th. Thousands of hungry
people stormed Maracay Wholesale Market in central Venezuela, and the
police seemed powerless to stop them...
"They took milk, pasta, flour, oil, and milk powder. There were 5,000 people,"one witness told Venezuela outlet El Estímulo.
People
from across the entire state came to the supermarket because there were
rumors that some products not found anywhere else would be sold there.
"There
were 250 people for each National Guard officer... lots of people and
few soldiers. At least one officer was beat up because he tried to stop
the crowd," another source told El Estímulo.
It
is important to remember that this was not an isolated incident. As
people have become hungrier and hungrier, there have been reports of
looting at "pharmacies, shopping malls, supermarkets, and food delivery
trucks". During some of these episodes there have actually been people
chanting "we are hungry".
Other Venezuelans have resorted to digging in dumpsters
and trash cans for food. This many seem detestable to many Americans,
but when you are desperately hungry you may be surprised at what you are
willing to do.
And as I mentioned above, some Venezuelans and now actually hunting dogs and cats for food...
Ramón
Muchacho, Mayor of Chacao in Caracas, said the streets of the capital
of Venezuela are filled with people killing animals for food.
Through
Twitter, Muchacho reported that in Venezuela, it is a "painful reality"
that people "hunt cats, dogs and pigeons" to ease their hunger.
You may be tempted to dismiss these people as "barbarians", but someday Americans will be doing the exact same thing.
There
has been a breakdown of basic social services in Venezuela as well.
Acute shortages of drugs and medical supplies are having absolutely
tragic results. When I read the following from the New York Times, this
crisis in Venezuela become much more real to me...
By morning, three newborns were already dead.
The
day had begun with the usual hazards: chronic shortages of antibiotics,
intravenous solutions, even food. Then a blackout swept over the city,
shutting down the respirators in the maternity ward.
Doctors kept ailing infants alive by pumping air into their lungs by hand for hours. By nightfall, four more newborns had died.
So once again I ask - how did such a thing happen to such a wealthy nation?
Here is Business Insider's explanation...
The
real culprit is chavismo, the ruling philosophy named for Chavez and
carried forward by Maduro, and its truly breathtaking propensity for
mismanagement (the government plowed state money arbitrarily into
foolish investments); institutional destruction (as Chavez and then
Maduro became more authoritarian and crippled the country's democratic
institutions); nonsense policy-making (like price and currency
controls); and plain thievery (as corruption has proliferated among
unaccountable officials and their friends and families).
Are not the same things happening here?
The
U.S. government is mismanaging our money too. During Barack Obama's
eight years in the White House, the U.S. national debt has risen by more
than eight trillion dollars. We waste money in some of the most
bizarre ways imaginable, and at this point our national debt is nearly
the double the size it was just prior to the last major financial
crisis.
Institutional destruction is also a
legacy of the Obama regime. With each passing day, our society
resembles the Republic that our founders originally intended less and
less, and it resembles socialist dictatorships more and more. We may as
well not even have a Constitution anymore, because at this point nobody
really follows it.
The third thing that
Business Insider mentioned, "nonsense policy-making", is a perfect
description of what has been going on in Washington D.C. these days.
Perhaps that is why Congress only has a 12.8 percent approval rating
right now.
Lastly, thievery and corruption are
also out of control in our nation too. The elite and special interest
groups spend massive amounts of money to get their favorites into
office, and in turn those politicians shower their good friends with
money and favors. It is a very sick relationship, but that is how our
system now works.
We are sitting on the largest
mountain of debt in the history of the planet, and our debt-fueled
prosperity is completely dependent on the rest of the world lending us
gigantic amounts of money at ridiculously low interest rates and
continuing to use our increasingly shaky currency which we are debasing
at a staggering pace.
We consume far more than
we produce, and unlike Venezuela we aren't sitting on hundreds of
billions of barrels of oil. The amount of "real wealth" that we
actually have does not justify our current standard of living. The only
way that we are able to live the way that we do is by stealing
consumption from the future.
One study has
found that our debt level is the highest that it has been since the
Great Depression of the 1930s, and yet we continue to race down this
road to economic oblivion without even thinking twice about it.
What you sow is what you will reap.
And just like Venezuela, America will ultimately reap a very bitter harvest.
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