Venezuela is suffering the worst chaos of its history. Runaway inflation with exaggerated levels of indebtedness and production stagnation is one among the many factors that triggered the serious crisis the country is experiencing; without a doubt, this has led the country to the most terrible deprivation it has every suffered. This does not entail bad decisions; this involves the destruction of the country initiated 17 years ago.
Each day Venezuelans encounter a Dantesque reality; a great gap separates the population, the very rich and the very poor, while the middle class navigates in a ship without a rudder in a raging storm. This is the truth, Venezuelans are experiencing hunger and an infinite number die due to lack of medicines, while others become richer every day based on our misery. Deals come and go at all levels of participation, while the population holds up garbage trucks looking for something to eat, hospitals are destroyed and cannot provide any services, not even the simplest of needs.
The Chavista revolution was only interested in maintaining control of the will of the people by temporarily satisfying their needs, taking advantage of the economic bonanza from the oil income and mercilessly abusing foreign indebtedness. In view of the excessive oil income, the XXI century socialist project or the project for the continuation of Cuban communism, moved forward: conquering the population involved squandering money: construction of houses strategically located, hospital services with Cuban physicians, excessive public spending, scholarships, etc. Its objective was not to build the bases for a self-sufficient country; its real objective was to have a population dependent on the State.
Evidently, to reach its objective the country’s productive sector was attacked by calling it an enemy of the population in order to seize numerous industries and through an absolutely political act, the private participation in the country slowly decreased and industries that continue operating are frequently subjected to tax abuse by the revolutionary State. Honoring constitutional guarantees for the right to private property and freedom of industry and trade were interpreted by the revolutionary State at its convenience.
Thus, the revolutionary State considered it was self-sufficient, capable of replacing the private sector by controlling production means without any type of oversight and experience, at the same time dilapidating oil income and abusing indebtedness to control and minimize the country’s needs. The revolutionary State was incapable of reactivating the country’s productive system, but it did not care, the only concern was to appear as having conquered power for the people, merely pure populism.
Imports became an excellent business for the revolutionary State and its close family and friends, while national production disappeared from the market. The image of prosperity was an illusion they believed they could maintain in time. The levels of indebtedness reached during this period of revolution were such that the State lost control of its finances and has involved the country´s resources as a guarantee; at the same time, the petroleum industry lost its drive, both due to the sustained tendency towards lower oil prices and also to disinvestment and loss of export markets.
Coupled with the foregoing, it is worth noting that the greed of the revolutionary State went beyond and found an easy and fast way to obtain money by issuing inorganic money. The revolutionary State through the Central Bank of Venezuela has issued unfunded money to finance the revolutionary system, including imports. The creation of inorganic money has resulted in deterioration of the purchasing power of the currency.
This way, faced with a tax policy based on the indiscriminate creation of inorganic money, with no income or assets to support it, with a declining petroleum sector, the income from which does not cover the country’s needs and, a deteriorated production sector, unable to produce sufficiently to satisfy the country’s essentials, which has resulted in a critical level of economic decline, have caused Venezuela to face a terrible inflationary process known as STAGFLATION.”
Under these circumstances, the Venezuelan population, in general, is affected by the continuous loss of value of their currency, that is, an endless devaluation, which results in anxiety and hopelessness of the population, who is unable to satisfy with its income basic necessities such as food, medicine and essential items. Each salary increase aggravates the stagflation process, since an increase in liquidity and a slowdown of the production of goods, leads to very high inflation, and this causes accelerated and continuous impoverishment of the population.
In view of this terrible situation Venezuela cries for justice and Venezuelans raise their voice claiming the right to our common good, personal dignity and to rescue economic and social freedom as well as freedom of speech. Doing nothing is not an option, now, more than ever we must go forward and fight for our constitutional principles and rescue our country.