The Venezuela case

Updated: Jul 3, 2019

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-Razor


Written by Lean G.

Email: jobsforleandro@gmail.com




In Venezuela, hyperinflation has been going on since November 2017, when there was a monthly inflation of 56.7% and an inter-annual rate of 1370%, and is currently considered the highest inflation in American history.

Although Venezuela already had an inflation even before 1996, the prices of a barrel of oil masked the situation but it was not until 2013 when the price of a barrel of oil began to fall sharply in the international market, as a tide that descended and left a lot rubbish, that's when it started to severely notice what was really happening in the nation

The main triggers of hyperinflation in Venezuela have to do with the intervention by the Venezuelan government in monetary policy and the Central Bank of Venezuela (BCV), mainly through the injection of inorganic money into the economy. Additionally, the fiscal deficit of the Republic is financed by the BCV, which generates a process known as monetization of the deficit. On the other hand, due to the economic crisis that has plagued the country since 2013, the government has dramatically reduced imports, which has generated a reduction in the supply of goods. Finally, exchange control, in force since 2003, has generated a lack of foreign currency in the economy and the emergence of a parallel market that is trading well above the official reference, the market that is used to set the price of products and services.

Apart from this, we Venezuelans must face a high crime rate, high corruption, institutional deficit and more.



The case of Venezuela is one of the most iconic in the world regarding hyperinflation and how socialism destroyed this rich nation, in fact, it would be strange that you have not yet learned about this economic catastrophe, but it is better to learn from the mistakes for avoid repeating them and thus leave in front of a more efficient way that's why I saw myself in the motivation to develop this guide on how to survive in Venezuela and also on how to do it in a similar place.



Socialism & Venezuelan Communism


Surely one of the only good things that can be taken advantage of to Marxism is to apply it in marketing, otherwise nothing works. In order to begin to fulfill what he preached, one would first have to go through a philosophical reform, educate people and leave behind the Prussian method that only takes care of educating employees and kills the creativity of children. Marx said that capitalist society exploited the working class because they did not pay the total of their working hours referring to what they produced, and most of the time the capitalist, that is, the owner of the company kept the most of the profits. He said that the only way to overcome this was to make a violent change of institutions, in my opinion that is relative, it is the easy and completely unproductive way out, since an employee will never have the managerial capacity that an entrepreneur has unless they are educated correctly in the matter, something that was never done in Venezuela, except if the expropriations were promoted and they gave the management of the companies to the people, but this only led to bankruptcy, we Venezuelans already know by practices what the theory says. Although I am still very young I think it is much more efficient to promote entrepreneurship, that is, why take the company of someone who has worked to maintain it? What if we better promote each employee to start their own company and want to innovate in the sector? Sure it would seem utopian and a great threat to entrepreneurs but thinking like that is thinking inside the box, we are entering a new era, the fourth industrial revolution that brought the Digital Economy and promises to completely change the world, in the coming years we will see changes that today we do not even imagine the socialist and communist models will be a thing of the past.

As usual, socialist and communist leaders are very good at Marketing, in fact they are better at that than in any economic policy, they managed to deceive the weak part of the population by making them believe that they are helping but not really, the leaders of This political form usually manipulates the masses into believing that they have been the only ones who support the working class, give them benefits and make them believe that they are free, also make them believe that only in socialism they will be able to progress and cheat them with a strong level of eloquence, in fact, if a leader of the left does not have an exceptional eloquence then he failed as a leader of the left, although it is reasonable that all politicians have very good persuasive power the truth is that those on the left constantly bombard marketing towards their followers to keep them convinced that there is no other solution to their problems, so it is not uncommon to see how free It ceases to exist and there are usually political prisoners.



In Venezuela there are usually many political prisoners because they think differently, the government does not imprison them directly without some attempt at justification, (as in most countries that have communism) they are accused of a crime, here in Venezuela they are called "Golfer" and/or "traitors to the fatherland". The government takes ownership of all the propaganda and deceives its followers by making them believe that they are sovereign, that they are in a revolution and that everything bad that happens to Venezuela comes from the right and from the US, they are the typical people to Those who love to look guilty and how the poor class is weak-minded have found it very easy to keep that lie, but it is already a few.

Every time a leader presents himself with socialist notions do a favor to your nation and do not support it and even less if it is military, socialism seems very good and pretends to be but over time you will realize that this is just a myth and You must be very smart not to fall into the mind control of politicians who are really good at it.

"It does not matter if the cat is white or black, while it hunts mice" -Den Xiaoping

A famous phrase of one of the most important Chinese leaders of the late 70s who understood that pure and simple communism was only a factory of violence and it was there when China began to grow as an economic power although its changes were directed towards the free market and although they were not radicals, they were enough for the Chinese economy to improve, and simply improving the economy of a country is enough to reduce the red numbers little by little.

The controlled economy

It is very popular to see how the left policies want to control the entire economy and the country, it seems that they have no common sense to ignore that the world is governed by laws, and that the market is governed by the law of supply and demand . The government placed an exchange control and fixed the price of the dollar in comparison with the bolivar, a price that had nothing to do with the real change, to "protect" the people from the high costs of the products, they put a price that not that it has to do with the price of the market, people ignorant of what happened applauded when the late President Chávez set prices for items such as tomato sauce, which went from $ 3 to $ 1 (even less) and so the product was disappearing little by little.

For entrepreneurs it was very difficult to survive like this, I'll give you an example so you can understand it better:

"Imagine that you live on a coast and there is good exploitation of tuna so you found a company to market canned tuna and distribute it nationally, each can you get on the international market at $ 1, that price must be added to your product, and you must include the cost of fishing, employees, profit, among other things. Let's suppose that the price of the final product will come out at $ 4 per can of tuna, then the government arrives imposing that you must sell that tuna at $ 1.5 and if you do not expropriate your company, what would you do? "

Uff seems like a nightmare, right? Well, that happened to most of the businessmen in Venezuela, and although this also benefited some businessmen friends of the government that controlled the monopoly of the nation, at present there is only one brand for each product in the country, it is rare see a product manufactured by different companies, but the most curious thing is that politicians have very good participation in these companies.

As there were too many regulations and we had a powerful black market, the government launched the military to "stop" the smuggling, and from there to solve the problem they only created a huge wave of corruption, the drug dealers and the black market mafias fill the pockets of the military and so they fill their pockets, I cannot say that all the military are corrupt, I have known some very honest, but they are the exception. This corruption not only came to the military, but also to all politicians, I remember that in the city where I live long ago a man of the left won the mayoralty, and his first official act as mayor was to buy a Hammer H1, in That was then fashionable, when he justified what he said was that his mother had given it to him, and there was everything, no one could say otherwise but everyone knew it was a lie.

The Venezuelan government manages hotels, airlines, agricultural fields and everything it controls does not work. On the contrary, instead of producing profits, it produces losses. The most emblematic case is PDVSA, which went from being a world-class colossus of the oil industry to a company in bankruptcy with accidents almost daily, PDVSA is cheaper to buy oil abroad than producing it herself, the state cannot manipulate that kind of things, why do it when the market can do better?



Hyperinflation


It is an uncontrolled inflation where prices increase rapidly, the local currency loses its value and purchasing power is increasingly diminished, for example: In Venezuela, when the currency conversion was made in August 2018 the newborn 50 dollar bill Bolivars Sovereign was enough to pay for 250 bus tickets, since the ticket had remained at 0.2 Bs.S, by December of that same year the ticket was already at 70 BsS and by the time I write this document (February 2019 ) the ticket is already at 200 BsS. So the magnitude of hyperinflation that exists in Venezuela is already quite remarkable. With a minimum wage it is really impossible to buy all the products of the basic basket, in fact only a few of them can be paid.



When there is a huge hyperinflation and you did not prepare for it, it will be good to say goodbye to the long markets and learn to live with two meals a day, and that if you are lucky. Currently the government has a social mission where it feeds the population, and although the socialists applaud that they do not realize that this is actually another method to keep the people in control, because if they give them food they would hardly wake up, they thought, they talked to us about food sovereignty but we could only eat what they gave us. For those who do not have that benefit, they must take to the work and devise a plan to obtain more income and ration the food, personally I often have to eat spaghetti with salt, without condiments or sauces. This has caused many Venezuelans to emigrate massively, they do not do it because they want, many leave in tears, but it is the best they can do, especially if they have families to support, many parents have been forced to leave the country to go to work in another nation and thus be able to send remittances to their children

How to know if you are entering hyperinflation and what to do in that case?

There are many ways to know if you are entering a hyperinflation, some very technical and others very basic but the most notable is when we go shopping in the supermarket and we noticed how the items have been doubling their prices since the last time you bought them, there It is when we realize that we are experiencing a critical moment from the economic point of view when prices increase week after week.

When this happens, people usually buy things that they consider "economic" so they do not need them, the correct thing is to start managing correctly and for no reason fall into compulsive purchases, and because the increases are generated almost daily you must change your currency local currency by foreign currency that is not a victim of devaluations.

Always keep calm, because there are few products are usually bought in excess but beyond that looting can also be generated by parts of the inhabitants and are very violent if they are hungry, so if you are a merchant and you have a local is It is recommended that you invest in security for your premises, new lattices, doors, etc.

It is vital to carry out a financial plan on your income and to have all costs controlled since, due to so many price rises, it can be difficult to buy items today in the same way as you did a month ago, it is best to buy foods that take a long time to expire.

You should start to devise methods on how to obtain income in an alternative way, when a country enters into hyperinflation, having a job where a minimum monthly salary is obtained is not a good idea at all, it is best to start as an independent trader and meet the distributors of the items you can, if possible you should also trade in foreign currency to avoid the price rise in the real market, socialism is very common price control, here in Venezuela according to Nicolas Maduro inflation was due to the speculation of the capitalists and for that reason fixed a maximum price of sale to the public, that is very far from the reality and therefore this brings with the black market, to work in the black market would be to encourage the crisis of the nation, therefore This type of practice is not ethical at all.

Do not save or save money in your local currency, and if you are going to do it, do it in a foreign currency, in turn, under no circumstance will you acquire debt in foreign currency.

Due to the loss of confidence in the local currency, businesses close and unemployment increases, thereby increasing poverty and despair. If you are from a small company the smartest thing is to educate yourself as much as you can about your environment and the product or service that you market, you should know if in spite of the crisis people will continue to come to you, although sales and income may decrease if you focus well on your audience you can have enough to survive, the important thing is to make investments and have different income points, in addition, the affected classes are mostly poor class and middle class, so the upper class does not usually look very affected by these crises so focusing your product or services towards them would be a good idea.

Here in Venezuela many companies have broken especially those that produce food, and it is not because they have no demand, obviously have too much but as is the custom of socialism want to control them and set prices for their products that are not at all profitable and lead to bankruptcy , it is smarter to create companies that leave this area to have less government pressure, and as I said, if you sell your products on the black market even if it seems a good idea you would be contributing to the crisis. Here is a list of sectors that still stand in Venezuela and produce benefits:

Carwash

Lottery agencies

Event organization

Cleaning products for the home

Personal hygiene

Network Marketing

Commerce

Mechanic workshops

Education

Beauty salons

Barber shops

Candy stores

Shoe repair

Repair of electrical appliances and electronics

Marketing

Medicine

Among other things that have to do with Maslow's pyramid.

Surely by inflation you can see not only the food but all the products go up in price, but those that are most affected would be those that are imported, I would recommend that you do not sell any of those products unless it is an emergency and that in the future cost an authentic fortune in your local currency.

A very basic problem of hyperinflation is that the local currency loses so much value that even if you have a suitcase of bills in your currency you will still not have much money, and as you can tell people will want to make a lot of money constantly from the bank making it empty your coffers and have cash is a problem, if you do not want to have to go to the bank every day the best option is to work as a merchant and trade in cash, and leave the cash for really important cases such as transportation payments or services, but always You can pay with electric means do it.

Currently an average Venezuelan survives with less than $ 20 per month, and the minimum wage is less than $ 10 a madness, right? Our expenses tend to go in food in most cases, but when we have a good money management and we have different income points we can choose other needs such as shoes and clothes and at all costs you must spend on leisure unless you have already reached considerable income and in your accounts there is flexibility for that.

If you have a baby, or if you think you have one, it will be very expensive to keep it, in fact the best thing is to abstain from reproducing if you have a tight budget, it seems logical but many people still do not understand that it is much cheaper to protect themselves than to take adventures, not However, if that was the case, here are some tips:

Replace traditional diapers with cloth diapers and washable diapers.

Eat enough so you can always breastfeed your baby.

Quality milk will be very expensive so you can choose not to buy this ruble.

You must raise money constantly for the health of your child.

Educate him to sleep and make the most of free time especially to work as a Freelancer.

Buy clothes in larger sizes so that they adapt to their growth, since they will be expensive.

Attend seminars on how to raise them correctly and prevent them from falling into delinquency.

What should be done to get out of hyperinflation?

These acts are mostly political, what citizens can do is promote projects, undertake and invest in education, but if it is about politics, the idea is:

Review public spending

Recover productive capacity

Encourage foreign investment

Improve the pricing operation system




Crime, injustice and corruption: survive


One of the evils that had already plagued Venezuela was the high rate of crime, since even before the model of Hugo Chavez will arrive there was already a good crime rate but in his government it grew as the foam, and there are many theories that respond to this, but it would be another issue. A Gallup poll entitled Ley y Orden (Law) in 2018 ranked Venezuela as the most insecure country in the world with figures of 79 deaths per day while in countries such as Israel and Palestine they have 66 per day.



Corruption has reached all corners of the country not only in the military sector even in any de facto institution nowadays if a Venezuelan wishes to obtain his passport he would quickly have to pay a figure of approximately $ 1000 otherwise he would have to wait more than 6 months, I know people who have been waiting for their passports for more than a year, that is why many Venezuelans choose to emigrate without documents. But the worst of the case is that it also reaches the institutions of justice, or even before there, it is very common to find out how criminals pay the police to let them go, this is due to the fact that the Government national "formed" a large number of "security" troops focused on quantity and not on quality, it is also common in Caracas to see how hooded criminals assault and kill people with motorcycles and official government weapons. Not all the troops are deficient, there are troops who really do their job, but another problem is that they are at a crossroads for their safety or that of their families, if a police officer arrests the criminals in their area and their lives. that of your family is in great danger and if you arrest an offender with protection from others you also run a great danger, in addition because many officials are working most of the time and their salary is not enough for anything they are under obligation to corrupt to be able to take the sustenance to their homes, no doubt being a civil servant in Venezuela is not an easy task, I personally do not recommend it but here only one year is studied to be a police officer and the state immediately takes you into the system and gives you payments immediately and if that were not enough they do not care where you come from, in fact, many young criminals when they grow up go to the police academy because practically the state gives them a weapon, it is a very tentative offer with the job deficit there is.

And as a consequence the injustice grows, I have to live in my own flesh and comfort relatives and friends because they have been stolen and threatened, and when they make the accusations the troops do not take it or even notify the wrongdoer who reported them, and if the troops agree to arrest the offender, they release him after they are bribed. I had to live a similar case with a friend very recently, a delinquent went to his house and stole valuables that inflation can no longer buy or damaged, when he made the complaint the security cash found the delinquent but it turns out that both reached an agreement and distributed the stolen goods to 50% even without knowing, when the security cash contacted my friend told him that he could not arrest the subject because he found nothing and she had to supply the invoice of buying their products, we learned the truth a couple of weeks but could not do anything.

Due to this type of circumstances it seems impossible to live like this, but in reality it is not, once you learn to live together it is easier to live, here we have a saying that says: "You can live among snakes if you know how to live together".


The coexistence:


To avoid coming into conflict with gangs or local criminals, you should be very friendly and greet them whenever you see them, in fact, I can help you more than another gang member that a security cash, I am not exaggerating. When my dad worked in the transport service sometimes the sound player was stolen and I remember that there was a delinquent friend of my father who was recovering it and he returned it without charge, among criminals understand each other here so it is advisable to have good deals with them and help them if it is within your reach and if it is something that is not a crime, this is not applicable only in Venezuela, also throughout the world the hatred you give will be the hatred you will receive, here we know it for practices because we see, it is not to justify the unjustifiable but many criminals enter these paths because they feel pressured or have emergencies and see that path as the only available, institutions should encourage the population and teach them the myriad of ways to work but not they do it, it is a great weakness of the current policy.


On the street



At the time of leaving, if you go to another community or the center you should avoid looking at those who look suspicious and if you do you should do it in a friendly way and even give a greeting people, regardless if they return it or it is better to show friendly to hostile. Avoid going out with good and flashy clothes, you will only attract criminals who want to steal you, if you have a smart phone, avoid taking it out on the streets and place it in an inconspicuous place on your body, avoid very large cell phones that are difficult to hide, if you have the ability to buy two do it, one small and basic, and another advanced and large, one you keep at home and the other you have to communicate on the street.


In your community:



The biggest thing that can be done in your community is to organize as neighbors and apply justice by your own means, such as expelling the criminals, when making these meetings to solidify the neighborhood council. speak too badly of criminals and show your anger, because it is very likely that someone who is in charge of informing the delinquents of the current situation is present, you must speak in a courteous, calm and friendly way, make the community understand They need to unite to overcome the threats that affect them.

If you are going to buy electronics avoid seeing you, if they think you have a lot of money they can see you as a possible victim, spend only what is necessary and if you think it is necessary to move you should analyze meticulously the area you will go to, in Venezuela all the neighborhoods They are dangerous but there are some hotter than others.

In the institutions:

In these areas I already told you that there is a lot of corruption and injustice in both a court of justice and the public prosecutor's office, not to mention those related to politics. If you work in these areas it is best not to comment on anything and do your job as best you can without looking elsewhere, it will be a very tentative environment to corrupt you, I recommend that you give up if you have the opportunity, to everything you should not corrupt you and if you do it you will not have the right to complain.

An average citizen should develop good social skills since it is better to have a friend in court than a dollar in your pocket, a friend within the institutions can help you and / or advise you on what to do and where to go to apply for complaints if that is The case may even encourage other officials to take your complaints and get them working.



Discontent and the present


The Venezuelan situation is enough for any political leader to be overthrown, after all it is a time bomb waiting to explode, but it does not, it is something that we have asked ourselves: Why, if the country is so bad, there has been not been a revolt? With what I have been telling you, you can have an idea of why not yet, but here I list the most reasonable ones:

-Mass Marketing

-Feed the lack of education of the poor class (more than 70% of the population)

-Critical thinking is scarce to differentiate false news, even opposition people lack this

-The coup can only be done by the military, and the military is very comfortable to do that

-There is fear in people to be killed or imprisoned

-The fighting part of the people is now struggling to stay in other nations

-Lack of leadership on the part of opposition factors

Venezuela is a peaceful town despite the fact that its rate of internal violence is high.

However, after a while, the people have been waking up and began to consciously analyze the deteriorated situation of the country and understand that it was never the fault of capitalism or the Venezuelan opposition but that they came from the incapacity of the current government they began to carry out Organized demonstrations, which due to the government's attempt to repress them as anti-revolutionary and anti-sovereign, began to try to suppress them by making them violent, it is also speculated that the government sent groups of groups to make the protests violent, many opposition political leaders Influencing the population was threatened by the government, which tried to take them prisoners, so many had to leave the country. We currently have almost a Supreme Court of Justice in exile.

On January 23, 2019, when Juan Guaidó became president of the Venezuelan Observatory of Social Conflict (OVCS), he reported that at least 13 people died in this scenario that led to protests, all victims of "bullet impact" and while "They participated in peaceful protests that were attacked by agents of the public force and / or paramilitary groups."

And from the 21st to the 24th of that month the director of the Venezuelan Criminal Forum, Gonzalo Himiob, indicated that 278 people had been arrested.

These months have been of disinformation and mobilizations, the national armed force continues on the side of the government because they are "comfortable" with the current situation since the power falls on them, besides that they have been trained with Cuban guidelines so that they remain faithful to its ruler. It has been circulating for a month now that government forces kidnap youth and adolescents to arm them against possible intervention, Maduro gave orders to recruit 2 million militiamen, I personally have not known anyone who has abducted or seen that activity , but I know many people who claim to have seen and not only, that, also witnessed.

On the border the Colombian terrorist FARC forces have strong support for the government because they maintain their drug guidelines, in fact, it is said that if the US military came to enter the border they will come to confront them, also in the border areas it is said that the forced recruitment of young people is even more serious.

I have gone to the streets and I have asked people and a lot of disinformation is handled about the intervention since the government is in charge of sowing fear, a rumor that has become popular is that Trump announced that if he intervenes he will keep 50% of the riches of the nation, something that is false, but if it is true that there are US interests in Venezuelan oil, actually economically speaking it would be beneficial for both countries and could initiate a new era of economic freedom for Venezuela but that It would be if the next president of Venezuela were to have diplomatic intelligence, however there are a lot of people who refuse to sign the #HandOffVenezuela and are calm waiting and hoping for intervention, they just hope that the streets do not become a war environment and go straight to the dictator. Humanitarian aid is necessary but that will not solve the problem, it could even make it worse and make the Venezuelans adapt to everything for free, they would kill the little productive power left to the country as it has been happening in Haiti.

There have been curfews but most of all in the capital due to the protests, there have also been curfews in the border states, citizens are afraid to go out to protest, many have died and others have been arrested, and those who do not They have run that luck they have left the country therefore we lack leadership.




This is what I can tell you for now, if you have questions or corrections you can send them to the email that I left on this page, I hope you have liked and answered a good part of your questions, if you have more questions or want to talk about how to help you can also write me to the mail. I have a project of a leveraged company of the Digital Economy to help young people in my country and start activating their productive capacity in an intelligent way, but I do not have the capital to buy the equipment since due to inflation a computer is excessively expensive, If you want to donate or invest in Start Up shares, you would be well received, thank you very much for reading, we will see you at the top. I also offer professional digital services to raise capital, if you want you can also help me by hiring me for your services or recommending me.


About me

I'm a 20-year-old Venezuelan who has grown and raised in an environment of political rudeness, corruption, crime, injustice and inflation. Despite this, I must say that Venezuela is a beautiful country with hopeful people and that they are eager to get ahead, although many have been forced to be part of the largest migration exodus from Latin America. What I write in this document is real and it is not exaggerated about the situation of socialism in Venezuela, with the passage of time and evolution of this document it could be an ebook that accurately and truthfully covers what socialism is described first hand by a Young who knows the environment, for more complete versions could include more advanced and better drafted issues, and things like the good that brought socialism and its long-term damage, but for reasons of time and resources I have done my best at the time to write this file and I give permission to use it in blogs as informative material but without taking the authority of it and if you are going to market it I only ask for a commission, by doing so you would also be helping me obtain funds to finance projects of young people who want to leverage the digital economy to undertake in this country and get it out of the crisis but we still lack capital to invest in hosting and web resources.

Sincerely, Lean G.

Email: jobsforleandro@gmail.com


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