I very much hope green energy is going to unstable the world... "Venezuela, which couldn’t make it at $100 a barrel, will implode, destabilizing Latin America. It’s already started" I love this statement.


Nov 8, 2019, 11:29am
Venezuela Sinks Further Into Oblivion — Debt Level Doubles Over One Year

Venezuela’s human-made economic calamity just took a turn for the worse.

The country’s national debt is now almost double the level of the GDP. At the end of the second quarter, total borrowing hit 198.4% of GDP, up from 102.8% a year earlier, according to a recent report from the Washington D.C.-based think tank, the Institute of International Finance.

It gets worse. Those figures don’t even include what households and businesses owe. When those get added, then the total is 221% of GDP.

The data also means that Venezuela’s government is twice as indebted than is the debt-loving U.S.A. where government borrowing hit 106% of GDP at the end of last year.

At one level, Venezuela’s problem is multi-faceted.

Hyperinflation has taken root in the country in a big way. At the end of October, the annualized rate hit 9,072%, according to estimates by Steve Hanke, the world’s leading expert on hyperinflation, and professor of applied economics at The Johns Hopkins University. That ultra-high rate of inflation retards any form of an efficient economy. The higher the percentage, the more it hurts.
The economy is crashing fast. Every quarter, starting in 2016, the country has seen annualized double-digit declines in GDP, according to data from the Trading Economics website. The actual fall, reached a staggering drop of 22.5% in the third quarter of 2018, according to the latest data available from the site.
The country has made the questionable decision to take out massive loans from China. Venezuela has borrowed at least $63 billion from China since 2007, according to a separate IIF report. With the Venezuelan economy sagging, paying the interest on those debts will become increasingly difficult.
Energy production in the country has plummeted over the last half-decade even though Venezuela has the largest oil reserves anywhere on the planet. A mere 749,000 barrels of crude oil a day got pumped in September, down from almost 3 million barrels a day in early 2014. The problem is that the state-owned oil company, PDVSA, is poorly run.
In short, those four items are symptoms of Venezuela’s epic economic headache.

CARACAS — The United States banned all air transport with Venezuela on Wednesday over security concerns, further isolating the troubled South American nation by severing one of its last links to the world’s largest economy.

The Department of Homeland Security said it decided to immediately suspend all commercial and cargo flights between the United States and Venezuela because the country’s political crisis threatened the safety of passengers, aircraft and crew.

The decision will be a heavy blow for millions of Venezuelans who rely on donations or remittances from relatives abroad to survive, as the country’s crumbling economy has destroyed most of its industry and agriculture and slashed government imports. Many have relied on airline courier services from Miami to obtain scarce medication, spare parts and food.

“This will be a catastrophe for a lot of people,” said Feliciano Reyna, head of the health nonprofit Acción Solidaria, which receives medical donations from the United States through air courier services. “This will complicate enormously the transportation of humanitarian aid to the country.”