Category Archives: Global Economic Recession

Venezuela’s Recent Economic Collapse

During the past months Venezuela has experienced one of the most significant economic collapses in the world. While being a nation rich of natural resources such as oil, the nation has adopted a number of economic policies that have prevented economic growth. The economic policies of socialism have been widespread in the country during the regime of former President Hugo Chavez and his successor Nicolas Maduro. During their regime, the nation has had a number of policies that have not only put restrictions on economic growth but have also made the lives of Venezuelan citizens quite mediocre. Policies such as excess government spending, social benefits, industry nationalization and also price controls. As a result the country has developed a failed economy.
With all of the negative economic effects of socialism analyst Adrian Jose Velasquez Figueroa sees Venezuela now has the highest crime rate in the entire world. Crimes such as looting and kidnapping are most common. Along with high crime, medical care is inadequate as many people die in the underfunded and run down hospitals. Purchasing medicine is only attainable on the black market as well. Along with inadequate medical care and crime, Venezuela has a food shortage and therefore many people are unable to be fed properly. Lastly there is a power shortage and also no availability of long distance phone service, according to Velasquez Figueroa. While these problems are plaguing the nation, President Maduro is blaming other people such as private businesses and the United States for the country’s economic collapse.

LINK:
http://www.forbes.com/sites/dougbandow/2016/06/07/venezuelan-people-feel-the-bern-as-real-socialism-destroys-their-country/#3a4ddbb1fcd6

George Soros Predicts 2008-Like Crisis

 

According to George Soros, the global economy is at the beginning of a crisis. At this point, investors are exercising a lot of caution. They should be very cautious with the next move they make in the financial markets according to George Soros when he talked in an economic forum. Every big economy is facing the effects of the crisis. Even China is faced with struggles in finding a growth model that it can sustain. The problems that China is facing is being felt by the rest of the world. The global crises are feeding off of each other in a way that is turning into a downfall that is very similar to the economic downturn of 2008.

George Soros takes note of an adjustment problem in China. George Soros equates it to a crisis. This isn’t the first time that George Soros warned of a crisis that is as bad as 2008. He has went before a panel in Washington back in 2011 and compared the European debt crunch that was born in Greece. He stated that the growing crisis is worse than the one in 2008.

George Soros runs a hedge fund that averages about 20% a year in gains ever since 1969 until 2011. Right now, he carries a $27.3 billion net worth. He is well known for his investing expertise. Among the highlights of his career was a gaining of $1 billion from his prediction of the devaluation of the pound by the UK.

George Soros has also spoken on the crises that has taken the EU by storm. In the midst of the crisis, the Ukraine has been under attack by Russia. Soros has looked into issue from the beginning and can see a very big downfall that could be very devastating to not only the EU, but other countries and nations.