Don't Ignore Newqs of the World.

[Geek-9pm]

Maybe some of use get so deep into our hobby and.or profession that we have isolated our thoughts from what might going on in other places.
Maybe this is more so in the USA and Canada, because we feel the oceans protect us from any hardships in the Old World.

Time  to wake up. One of the most wealthy contraries in South America is in deep trouble. It is Venezuela. Yes, Venezuela. Awhile back they stopped international cellphone calling due to economic issues. They can not pay their bills to other couriers.

Let me put that in terms you can visualize.

The government has admitted that less than 2 percent of the country has access to a connection faster than four megabits per second (Mbps). While in neighboring Colombia internet service providers offer transmission speeds of up to 150 Mbps, most Venezuelans are using 2 Mbps connections.

I have lived in Columbia. It is OK, but not near as rich y as Venezuela was. Apparently, the leaders of Venezuela have made some bad choices in recent years.

Source: https://panampost.com/sabrina-martin/2015/09/01/venezuelas-internet-runs-at-snails-pace-by-design/
From last year.

The economy in that country is now in a tail-spin.  But why care? Well, Venezuela has a culture and history that is western and modern. It is not some sleepy nation from the 17th century.  Put another way, modern technology has not saved them from financial failure. Think about it.

This is not meant top be a political commentary. Rather I am trying to let the gentry know that things can change very quickly even with the best plans and resources available. You need a backup plan. I I don't just mean your computer data. Who are your friends? Where are your extended family members? Do you keep in contact?  If they fall into hard times, will you help? Or wouldn't they  help you? Do not b become overconfident about your good fortune. Look what happened to an entire contrary here in the Western Hemisphere. 

[BC_Programmer]

You might want to look up some of the history of Venezuela. They were under a military dictatorship less than 100 years ago and trhere have been a number of blows to state attempted in the meantime. It is also no stranger to economic turmoil, as the rather rapid shifts in administration policy have led to relatively frequent financial crises, such as the last one in 1994.

That isn't to mention the (as I stated in the other thread) fact that news journalists apparently don't even understand the basic economics involved. Industrial Shipping subsidy  exchange rates don't reflect the buying power of the Bolivar.

That is not to suggest, ofd course, that they have no economic crisis at all, just  that it is being somewhat misrepresented by using DIPRO rates instead of DICOM. (One could argue DICOM shows a bleaker picture of inflation!)

[Geek-9pm]

Thank you for the  replay, BC.

As I mentioned, I have lived in South America. Most of those countries have a spotted history.  Attempts to establish a free market have been attempted.

At the risk of making a oversimplification, Here is how the foreign exchanges rates influence the local economy.   The locals want new things.  They see it on TV Int he movies and newspapers.  The national government tries to restrict importation of goods from other countries. But soon you have an imbalance.  There is a black market  that undermines the autonomy of a small contrary.

Similar problems have happened in other places. Take Argentina. Somehow, Argentina has survived.  I never meant to say that only Venezuela has a problem. Rather, it comes as a revelation that they could not resolve the issues. Venezuela is a county rich in natural resources, namely petroleum.

But for a number of years the production of crude oil  has dropped.
http://oilprice.com/Energy/Energy-General/Venezuelas-Oil-Production-Plunges-To-13-Year-Low.html

Venezuela’s oil production has declined by 170,000 barrels per day since the start of 2016, dipping to 2.18 million barrels per day (mb/d) in June, according to the IEA’s latest Oil Market Report. Part of that was due to electricity blackouts that cut 120,000 barrels per day from the country’s output between April and June, but even with some of those issues resolved – rain has restored some output at hydroelectric dams – the IEA says that “further losses are expected in 2H16.” A year-on-year decline in oil production of 200,000 barrels per day “looks unavoidable as foreign oil service companies reduce their activity and international oil companies face repayment issues and daily operational challenges.” But 200,000 barrels per day could be just the start.

The point I wish to make is that we should not become overconfident, even if we live in a very rich contrary.  Part of the problems in Venezuela were  form things the government could not foresee. The global economy,  rain, lawlessness and a population wanting  high standards of living.

Of course herein North America we do not have the very same issues.  Yet we never no what might happen for no apparent reason.

No, I am not saying we should all have underground shelter.  Rather we should give some thought as to what we would do in an emergency.

[BC_Programmer]

You mentioned in another post the "150 dollar" carton of eggs, which is something repeated in a few articles I've found. I think that's an oversimplification or even a misrepresentation. The issue is that it is trying to paint it in the context of the exchange rate, when we're looking at domestic exchanges. A person in Venezuala is paid in Bolivar, and shops in Bolivar.
Here's a quote I found from somebody from the area on the "headline" which talks about $150 eggs:

Nobody goes to a grocery store with $150 and spends it on a dozen eggs. Instead, they would probably give it to a relative, who would sell it on the black market, and then buy 40-50 dozen eggs. The $150 price is an artifact, a bizarre side effect of a multi-rate currency exchange system and the government's gross mismanagement of the economy.

And that's the real story: how a nation that was approaching "middle class" status, with arguably the largest oil reserves in the world, that has been reduced to an economic basket case. All without a war, invasion, ethnic or religious strife, earthquake, hurricane, extreme weather, or any of the other catastrophes that can afflict normal countries.

It also obscures the other effects of failed leadership, including shortages of food, basic medicine (insulin, anesthetic, antibiotics), auto parts, industrial raw materials. Those are leading to once- preventable deaths and hunger.

That's on top of government expropriation, jailing of opposition leaders, judges, shutdown of broadcast and print media, wiretapping, and other forms of repression.

Many people in my position are glad that it's finally getting international attention. But this headline trivializes and obscures the unfolding man-made disaster.

[Geek-9pm]

Thanks. Yes, that is a more complete summary of what is happening. The real issues is not the exchange rate. The true problems are much deeper and can not be solved with some kind of ban-aid.

Similar things have happened in other places. And most often followed by some kind of overthrow of the government. It is yet not clear what will take place.

Some experts predict that all of South America will fall into a economic pit.  If you want to blame anybody, you could blame Brazil. Look at this:
http://www.americasquarterly.org/content/how-brazils-crisis-bleeding-rest-south-america

Yet as Brazil is consumed by the worst political and economic crisis in decades, the country has turned inward. This has contributed to a regional power vacuum and a sense of paralysis when it comes to devising regional approaches to South America's most pressing challenges. For example, Venezuelan President Nicolás Maduro's increasingly blatant disregard for even basic democratic standards has seen a less meaningful regional reaction because of Brazil's problems. Given Brazil’s dominant role in South America – representing roughly half its GDP, population and territory – its travails are inevitably bad news for the continent.

One could reason that if all of SA goes into a deep economic hole, it will have some impact on the rest of the world. The future looks grim.