On: Venezuelan Hyperinflation Explodes, Soaring Over 440,000 Percent

[mustaflex]

shouldn't Venezuela be one the richest country in the world? As far as I know they have the biggest oil reserves in the world.

[dragontamer → mustaflex]

Venezuela is so poorly managed they were losing money at $150/barrel of crude oil.

Last year, oil has been $30 to $50 per barrel. `nuff said. Its an issue of poor governance. Venezuela was heavily dependent on high-priced oil to keep their finances together, and it all collapsed as oil prices dropped.

[kaycebasques → dragontamer]

What were they spending their money on?

[dragontamer → kaycebasques]

Unfortunately, I don't know. I'm an outsider from the USA. So I don't want to get much deeper into the details and pretend I know a lot about Venezuela.

But clearly, they're doing something wrong down there. They are a very oil-rich and resource-rich nation. So they should have the money to do this correctly, even as Oil Prices have dropped.

[contravariant → mustaflex]

I believe this is what economics call Dutch disease.

And corruption probably, although that might not be unrelated.

[freeone3000 → contravariant]

There's still oil! They could still be rich! They fucked it up.

[cptaj → mustaflex]

That's what corruption will do to you.