Venezuela Runs Out Of Money To Print New Money.
That is what happens when a government makes more promises than it can deliver. We are in that very same hole. We can fix it to some extent. We can reduce the promises. Except – who ever got elected by promising less? Until the people change we are in a world of hurt.
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5 responses to “Venezuela Is Now Officially And Totally Broke”
In many cases, we can’t reduce the promises. E.g., in Illinois, every plan to reduce pensions has been shot down by the Ill Supreme Court as unconstitutional. But the State can’t reduce or nullify their obligation by declaring bankruptcy either: the Court said – raise the real-estate tax. Which is already at the highest rate in the country.
At some point the Constitution will need to be changed. Or Illinois will wind up owning all the real estate in the State.
Higher taxes also mean lower property values. It is self defeating.
I used to know some Venezuelans ca. 1980s. They were proud of their democracy and society, seemed like reasonable people. Hugo Chavez did prison time for an attempted coup, yet somehow he gets elected, and stays in power. And Followed by Manuro, Maduro, whatever. Venezuela is toast. I don’t get it. How could a moderately successful country with good resources fuck up so bad?
A large part of the answer is “Liberation Theology”, ostensibly created by the NKVD, and pushed by clerics like the current Pope.
You sure about that? Bankruptcy courts have a ton of power. It could easily say “Change your Constitution” and Illinois wouldn’t have much choice. President Boyfriend is from Chicago but he’ll be gone before that happens. Hillary is from Park Ridge, though. I could see her and (a GOP) Congress making a deal with IL along the lines of “We’ll pay 60¢ on the dollar for your illiquid pension obligations if you outlaw government employee unions forever.”
Such a deal would be a boon for the state. And an out for the retirees.