Venezuela oil price collapse; president gets economic decree.

Discussion in 'General Trading Discussion' started by baudwalk, Jan 16, 2016.

  1. baudwalk

    baudwalk Senior Investor

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    http://www.avn.info.ve/contenido/economic-emergency-decree-safeguards-venezuela039s-social-rights
    Look beyond the stilted socialist rhetoric and one will see the president has been given sweeping powers to control the economy, prices and wages. One underlying cause apparently is traced to oil. No surprise here.
    To track the effects of the decree and oil prices, look at the Bolsa de Valores de Caracas.
     
    Last edited by a moderator: Jul 8, 2016
  2. petesede

    petesede Guest

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    Venezuela is a huge producer of oil, but they have never been competent at it. The gov´t seized oil over a decade ago, and then realized they had no idea what they were doing so hired western companies to actually run the production. BP probably makes a bigger profit from Venezuela than the actual country does

    When Chavez stole/nationalized oil, it was kinda like a person stealing a diamond ring worth $5000 and then pawning it for $200. He didn´t care, in his eyes it was a free $200.

    Maduro is on the way out. they had congressional election a couple months ago and his party got crushed, losing almost every seat that was up.

    But they are really similar to Nigeria in that they have a ton of oil and everyone sees that on paper, but the reality is those two countries are the reason ´big oil´ has crazy profits.
     
  3. Corzhens

    Corzhens Senior Investor

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    From what I had read, Hugo Chavez was good in politics and he had protected the country's interest in oil. However, his successors were not good at the business hence the oil industry hit rock bottom. And with the impending recession, it is expected that the ruling party will lose to the opposition. By the way, Saudi Arabia is pumping oil more than is needed so the world prices are going down.
     
  4. anders

    anders Well-Known Member

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    This is what happens when ideology takes over from economics. And Western nations aren't excepted here: Alan Greenspan is an ideologue of the worst sort, and he's been directing the US economy for years. But Chavez was a deliberate wrecker of perfectly good industries, and now his people are suffering while he's long gone.....
     
  5. kgord

    kgord Senior Investor

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    Well with the world oil prices in a a major slump it is unlikely to get any better for the Venezuelans anytime soon. It is sad when the people end up with an uncaring or incompetent leader in charge. Chavez was the Putin of Venezuela, I think. Anything to get his name in the paper without caring for the needs of his people. It was a disgrace for sure, this Maduro guy seems cut out of the same cloth.
     

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