October 10, 2016
The situation in Venezuela is dire. The Main Stream Media is covering up the reality of what is taking place since they know it will be exposed as another failure of socialism. As I may have told you before, socialism always evolves into a dictatorship since it is the only way it can maintain itself. President Maduro is a clone of Hugo Chavez and is not the brightest bulb on the planet, causing him to create such things as a Ministry of Happiness.
There is almost no medicine, food shortages are rampant causing people to go into Colombia and raid villages, and mass starvation will soon ensue. The fundamental problem is a 500% rate of inflation. A 500% rate of inflation means that something that cost $10 on January 1, 2016 will cost $5,000 on December 31, 2016. There is absolutely no way people can get those kinds of pay raises to keep up with those kinds of cost increases and this is especially true when most businesses are failing causing most people to be put out of work.
The most important function of any government is to protect you but its second most important function is financial integrity. When you have governments going on wild spending sprees and creating massive debt you know that inflation is soon to follow since the integrity of the currency will soon be shattered. In spite of the reports from the government on the Consumer Price Index (doctored by the government to give a false picture) we have inflation here but it is not so great that it is yet noticeable by many people. If the wild government spending is not soon stopped people will soon begin to notice the price increases.
Venezuela is a blueprint for what will happen in the United States and many other nations around the world if nations do not get their financial houses in order and stop bailing out failing governments. Venezuela actually has certain short-term advantages that the United States will not enjoy if the United States continues to follow this path. Venezuela can be bailed out and can use other currencies. The United States is too big to be bailed out or use other currencies.
When people tell you that the debt is okay because we only owe it to ourselves do not listen to this nonsense. Venezuela has shown you how this debt will be paid and it is not a pretty picture that they are showing us. This is why other countries have reduced or stopped buying our debt instruments and the Federal Reserve has to print more and more fiat money to keep our government from defaulting.
Lewis Shupe, Founder