Venezuela's out-of-control spending increased their inflation by an amazing 4.4% last month to 18.6%, according to international economists. And it looks to get much worse unless it's government reigns in it's own spending. If it keeps up at that rate, Venezuela's oil profits will not be enough to keep it above water.
And now there are reports of shortages of basic goods and food in Venezuela, which could seriously destabilize the communist wanna-be government of Hugo Chavez. Food costs in Venezuela have gone up 33% in spite of government attempts to influence prices of major domestic commodities.
People in our own government should be watching what's happening to prices in Venezuela's economy and declining currency, as the same thing could happen here if Congress and the White House don't get a handle on OUR out-of-control government spending.
As it is, the U.S. debt is somewhere near $10 trillion. Venezuela's debt is a fraction of ours, but Venezuela doesn't have the economic power that our nation does and so is much more vulnerable to economic chaos than we are. When our economy declines, it's a gradual event. But in a smaller nation like Venezuela, it's like someone's hit the fast forward button. Changes are quite sudden and get real bad, real fast.
Are the decision-makers in this country paying attention?
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