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Venezuela, A Warning For All Liberals

Venezuela, A Warning For All Liberals

We have seen Sanders, now Cortez and others on the far left espousing the wonders of socialism, but one has to ask, where has it ever worked? These supporters of it sure can’t show you, but they will make excuses that each and every nation it was implemented as a national policy, it was done incorrectly, so they want to have a go at it here. In this Venezuela is a perfect example of how what sounds great in concept is not so much in reality.

While there was a separation between the rich and the poor in Venezuela, there is all over Central and South America, there was a ability to rise out of ones station, and oil, which Venezuela has one of the largest proven reserves in the world, was improving the average man’s station in life, even though it came slowly.

The problem is after Hugo Chavez, not only did he isolate his nation from its neighbors, he turned to Russia and China to back him as he set out to put socialism in place as the ruling ideology of his nation.

Hugo Chavez

Chavez knew the way to hold on power was to strip the wealth from the rich, give it to the poor. This aided him greatly in the 2002 Venezuelan coup d’état attempt when the poor came out on the streets to stop a coup and keep him in power, just 2 days later he was back in power.

But now that the rich have been bled dry, the oil that Venezuela is so rich in has been mortgaged out to pay for its social programs, it is up to its neck in debt, owing $120 billion to both China and Russia, now most of the oil taken out is used to service this debt, the ability to borrow has been pulled back.

With little or no money the country has been in a free-fall since, inflation in comparison to its major export, oil, has since 2015 grown from bad to outright hyperinflation.

Venezuela’s historic inflation rate beside annual oil revenues
Sources: Business Insider

As we can see 2013 and 2014 saw waves in the economy as debts started to take from the income from oil, after 2014 this has exploded, inflation is now in a hyperinflation state, the goods people are used to is now gone, basic staples are none existent, the very poor people that one time took to the streets to keep Chavez in power, now are taking to the streets to get rid of this government that has cost them so much.

This brings the problem with the nation, although they gave a go at socialism, exactly what Russia and China had done, all three have found setting up a socialist economy did not work, China and Russia have infused their economy with Western Style markets, Venezuela has not, they are now in trouble with massive debts owned by both these nations.

But it goes further than this, with both China and Russia finding the placement of bases and intelligence assets in America’s at stake, they have in the past and continue to supply Venezuela top rated weapon systems, they need to after all have their assets protected.

Vladimir Putin and Nicolas Maduro in 2017. (Yuri Kadobnov/Pool Photo via AP, File)

As stated by FOX:

According to one U.S. intelligence and defense official, who was not authorized to speak on the record, the threat of “asymmetric warfare” looms large as the Venezuelan crisis deepens – especially given Russia’s supply of arms and equipment to its Venezuela ally.

“Some clients of Russia got antiquated planes, Venezuela got state-of-the-art. There is a lot of candy that can be given away to cartels and terrorists, or used to flood others adverse to the U.S., such as Nicaragua,” said the U.S-based intelligence source. “At a minimum, they could harass the United States, if not cause a lot more trouble. This makes the Cuban Missile Crisis look like child’s play.”

For its part, China has injected some $65 billion into Venezuela since 2008, virtually all of it loans, secured by parallel contracts repaid in oil, in which it effectively controls the pumping of the fuel used to repay its own loans.

“In addition, China helped Venezuela to set up factories for manufacturing cars (Chery), telephones (Huawei and ZTE), the building of railroads, port upgrades and other infrastructure, and sold the regime millions of Haier appliances during the 2012 election to help the regime buy off supporters,” said Evan Ellis, a Latin America research professor with the U.S Army War College Strategic Studies Institute.

China has also sold significant quantities of military equipment to Venezuela, including the VN-4 armored personnel carriers and other vehicles used by the National Guard to repress protesters in 2014, 2017 and now.

These things, “as well as air defense radars, K-8 fighters, military transport aircraft, self-propelled mortar launchers, and rocket launcher vehicles and an array of other equipment,” Ellis said. “China’s role in selling arms has ramped up in recent years as Venezuela ran out of cash to buy Russian equipment, and Venezuela, especially the Marine Infantry and National Guard, bought Chinese military equipment on credit.”

Venezuela’s neighbors are understandably concerned, many times nations in the middle of such an implosion may look to conflict to draw the people behind them, with the modern military tech the nation has access to is causing anxiety within nations around them.

As we have seen, we have a nation that was once one of the most wealthy in Central and South America, a nation with massive oil reserves, a thriving economy, then socialism took over, now less than twenty years later, the nation is like the Soviets of old, no food, long lines, no goods available to the people, all while the elite still have everything.

This is what is in store for the US, the idea of taxing the rich until they are poor to pay for the programs promised to the masses is not new, it may work for a while. Due to the economy we may last longer, but not by much, I would predict if we go with the program that Cortez, Sanders, and friends are demanding, we would be looking at our land of plenty within a generation would be a land of not much.

About The Author

Timothy Benton

Student of history, a journalist for the last 2 years. Specialize in Middle East History, more specifically modern history with the Israeli Palestinian conflict. Also, a political commentator has been a lifetime fan of politics.

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