Why Is Venezuela In Crisis?


You’ve probably noticed that filling up
your car with gas is a lot cheaper than it was a few months ago. That’s because the
price of oil has fallen, and while that’s good for the consumer, for countries like
Iran, Russia and Venezuela, whose economies rely heavily on oil exports, it spells disaster.
Reports suggest that Venezuela has been hit particularly hard by the oil price drop. But
why? And what is the country doing to do help solve the problem? Well, with one of the largest oil reserves
in the world, Venezuela relies heavily on oil exports, in fact, oil generates around
95 percent of it’s hard currency income. So, as oil prices have dropped by over half
since June, the Venezuelan economy has really suffered.2 The results of which can be seen
in the lives of the Venezuelan people. The country relies heavily on imports for
food and other necessities. It’s reported that long lines for the state run grocery
stores are now the norm, as food supplies are extremely limited. Venezuelans are being
pushed to the limit and the army has even been called in to patrol food queues and keep
order. Medical supplies are also a rare commodity in Venezuela. Unfortunately, Venezuelans have been in this
position before. Prior to oil prices falling, the country had been in a deep recession,
with out-of-control inflation. Food and medical supplies have been in short supply for years
and economists are placing the blame on Venezuelan President Maduro and his unsustainable policies. Currently, the government funds free health
care, state education, food and gas subsidies. Venezuela also provides oil to 13 other countries
within the Caribbean basin for what many experts argue, are giveaway prices. Until now, Maduro
has been reluctant to make changes to these costly policies as he strives to continue
former President Hugo Chávez’s popular socialist ambitions for Venezuela. So with his people on the verge of starvation
just what is President Maduro doing about the situation? Well, in January 2015, Maduro went on a tour
of China, Qatar, Saudi Arabia, Iran, Algeria and Russia in a bid to secure some financial
aid for Venezuela. Experts argue that it was a desperate move, but Maduro did manage to
secure a 20 billion dollar investment deal with China and significant financing from
Qatari banks. But critics argue that the money still isn’t enough to provide the economic
relief that Venezuela desperately needs. With the situation showing no signs of improving,
widespread protests have broken out across the country, but these demonstrations have
only been met with threats of violence from the government in order to keep public order.
There’s no doubt that tensions between the state and it’s citizens have reached a boiling
point and even Maduro has acknowledged rumours of the numerous coup plots to overthrow him. To learn more about how low oil prices are
hurting other countries too, take a look at our video now

100 thoughts on “Why Is Venezuela In Crisis?”

  1. Free education, food and healthcare is surely the reason for hyperinflation… Hahaha read book my friends!

  2. As Venezuelan i dont agree to blame only oil prices, the biggest fault was chavez's one, he expropriated 50% of Venezuelan industries and bankroupting them bc of the bad gerency (he litteraly made bricklayers CEO without any preparation)

  3. No mention of price controls? You blame free healthcare and education? If you set the price of anything below the cost of production you will have no production. Venezuela did this with all sorts of products. Now they have no products. As for healthcare and education many nations offer those things for free to it's people and they are doing just fine.

  4. "A lot cheaper then it was a few months earlier" Mwahahaha. So much cheaper that we had to install gas update on an old gasoline car cuz gasoline was becoming too pricy.

  5. Whoa!! #nerdwriter1 is talking about my country's crisis! Thank you for the breakdown, accurate and well resumed.

  6. Free healthcare?? Free education?? Free gas and food subsidies?? you see now how socialism doesn't work???? why can't the world realize this?!!? Arab countries are next, I'm looking at you Saudi Arabia, your days are numbered. It's only a matter of time till you reap what you sow, and let's not forget your little friend Qatar.

  7. They failed to develop when they had the chance. Look at Norway – also highly dependent on oil, but they put more emphasis on education. They have fallback. South Korea too puts very heavy emphasis on education and despite having no natural resources have gone through an incredible economic revolution. The way forward is education. DECENT education.

  8. I am unsubscribing, he didn't talk about the high corrupcion in venezuela 🙁 , I really loved test tube…. (subscribed in january of 2015). If Evan was the one who did this research, I'm unsubscribing to Nerdwriter1 too. This video shows me that test tube 8seeker Dailey) doesn't give us the full picture. 🙁 i loved your videos……….

  9. People must understand that there's nothing Free in this world. You have to pay price eventually. Socialism sounds good until the nation runs out of money.

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  11. I noticed how you said Maduro was able to secure financial aid to help Venezuela and hearing this kind of bothered me, not exactly because of what you said but because this makes me realize how little people really know about my country's government and how they've destroyed it over the years. He might have gone to those countries asking for money but i can assure you that money will not go to the Venezuelan people. For years they've stole our country's money and have basically ruined it. I know they are not the only reason Venezuela is the way it is right now but they are one of the main reasons. People in my country are starving and dying because of the lack of medicines and all the violence.

  12. they dont even mention that venezuelas economy was ruined in the 80 when the us abd saudi arabia fucked up the oil prices. and they dont even mention the smugling and money flight. what a fucking joke.

  13. Nearly all the Scandinavian countries are socialist. They all have very high taxes, lots of social services and a high degree of state interference in the economy with a combination of free enterprise and open markets.That was what Gorbachev was trying to emulate when he attempted to reform the Soviet Union. But then the KGB tried to get rid of him and Yeltsin betrayed him because he wanted to be president of Russia no matter what. Yeltsin was willing to even willing to break up the Soviet Union in order to achieve that.

  14. In focusing almost exclusively on the oil glut, I fear Seeker missed the majority of the problem. While Venezuela's balance of payments problems resultant from the drop in oil prices have certainly aggravated the situation, there are plenty of other petrol dependent states that have not suffered nearly as badly as Venezuela. The current crisis stems from three major factors in addition to oil prices: an enormous increase in the Venezuelan money supply to monetize the government's obligations, stringent and convoluted currency controls which have limited access to foreign capital and imports, and most damagingly, the use of price controls as a means of fighting the inflation for which the state itself is responsible. While I wholeheartedly appreciate Seeker's attempt to explain the situation to the layperson, I fear the video missed several key points, many of which are actually more important than those it mentioned.

  15. I'd like to clarify something since many people have asked me about the same topic. Venezuela government has ALWAYS funded free health care, state education, food, and gas subsidies. Many people believe that Chavez, the worst thing that has happened in Venezuela for the last 100 years, began this subsides and that's part of the reason of Venezuela's crisis. This is absolutely false!! We've always had these subsides. We've always had public (supported by the government) and private education and health systems, and there is not difference between how these public systems work before and after Chavez.

  16. The price of a barrel of oil is less now then years ago yet the price of gas is still 2.50 per gallon in Pennsylvania, Aside from the highest gas tax in the USA. I still think these oil companies are greedy as hell.

  17. Even though this is an issue practically no American politician has talked about, I honestly believe a spike in Venezuelan immigration or refugees may become a political talking point prior to the next Presidential election. We already know President Trump's (as well as many Republicans') stance on Hispanic immigration, Muslim refugees, and white nationalists, but I do wonder what this administration will do (if anything) should Venezuelans begin seeking asylum in the U.S. My guess is nothing and many average Americans probably wouldn't want them in here either given the rhetoric of the last 2 years.

  18. Hey Venezuela, ever hear of something called free market capitalism? It's pretty fucking neat, why don't you try it? I mean, socialism hasn't exactly worked has it?

  19. The more power you give to the government the more corrupt it becomes yaaawn bumbles leftists who think Bernie is a saint would of turned America into Venezuela.

  20. Una respuesta simple, Venezuela es un pais socialista y EEUU no puede permitir que una de sus ovejas se aleje del rebaño, asi que crean crisis económica y desabastecimiento a Venezuela para que el gobierno socialista caiga y entre un gobierno democrático que obviamente este dirigido por el capitalismo sionista del nuevo orden mundial. Ojala todos los países latinoamericanos hiciéramos lo mismo que Venezuela, asi los yanquis no podrían hacer un bloqueo económico a medio continente y volverian a nacer las naciones libres, como Corea del Norte, cuba, Rusia, Afganistán, iran, Líbano y Venezuela por supuesto.

  21. PARA LOS IDIOTAS AMERICANOS, QUIERO QUE SEPAN QUE EL COMUNISMO Y EL SOCIALISMO FUNCIONAN, pero el problema es que ESTADOS UNIDOS y SU NUEVO ORDEN MUNDIAL no permitiran que otro movimiento se haga fuerte y simplemente te sofocan con sus desabastecimientos y las crisis (todos sabemos que los sionistas americanos judios están detrás de cualquier crisis) para que entre un nuevo gobierno TITERE DE LOS ESTADOS UNIDOS. lo peor es que venezuela esta rodeada de países capitalistas proestadunidenses y solo basta que te corten las exportaciones para que tu país este en crisis. pero si Venezuela estaría a lado de Rusia o china esto no pasaría y empezaría a renacer como KOREA del NORTE o IRAN o SIRIA. pero Venezuela esta tan aislada entre PAÍSES TÍTERES DE LOS SIONISTAS que es prácticamente imposible salir de esa crisis.

  22. Coup plots from where?, gosh, not USA I hope. I like how he tells you half the story and then it ends.

  23. Morons are using Venezuala to attack socialism yet did capatalism work in venezuala I dont think so

  24. Country and State of Venezuela the government you will choose to lead is people power and your voices is crying too change and your strength is shown you all need to look at your rights and how important it is to keep it you all know how you have lived under er such a left side of Democracy and now want the right side of Democracy I for one hope you fine Peace and your mojo which means your heart is in the right direction, prayers God Bless , Food , by plane , boat , people power is Aborigines from the North in the USA Canada , etc,,,,, Rft

  25. Socialism has failed yet again and we can now add Venezuela to the long list of countries that socialism and the left have wrecked, along with Rumania, Russia, North Korea, Cuba, Somalia, Poland, East Germany, Yugoslavia, Albania and a great many others.

  26. A lot of people here seem to haven’t heard (or didn’t want to hear) the part where he says Venezuela IMPORTS almost EVERYTHING, except oil!

    Of course if your country doesn’t produce absolutely anything and buys/gets everything overseas (importing Essentials: Meds, Food, etc), it’s bound to sooner or later go down and end up in bankruptcy!

  27. Because the CIA finally managed to succeed after decades of failed coups and unsuccesful economic strikes.
    The USA has been waging economic war on Venezuela ever since they decided to call themselves socialist, because the USA hates sharing. Every bit of wealth must go to the USA, because infinite greed is their ideology. THATS the real truth.
    Look at what they did to Cuba. Countries go poor if nobody is allowed to do trade with it. SHOCKER!

    "Wah wah socialisum sucks"
    Cry me a river.

  28. for USA make alot sanctions to block the economic for venezuela if they remove the sanctions venezuela go better but USA want that tahat it. that all

  29. "low oil prices are hurting other countries."

    TRUTH: Free trade hurts oil prices as it does with the Steele industry.

  30. make no mistake this will happen to the UK and USA give me the power to create currency and i care not who makes its laws! our money is not money is all a scam to keep you working for nothing! becose in the end thats what the peolpe of all countrys will be left with nothing! by knowing the past you will know the future

  31. How did you end up starving if the product you produce doesn't cost you any money at all.? I guess no one is buying from them. Maybe they boycott Venezuela and thats the reason why they are poor.

  32. This and all videos leave out the golden step. Being 95% dependant on oil means you need to invest early on diversifying your economy. Impossible when the profits are being siphoned overseas by global corporate entities and foreign powers.

  33. They only difference between inflation in American and Venezuela is that America can export their toxic parasitic inflation upon the world with their globally socialized fiat currency… Venezuela has to deal it it domestically… we all saw what happen when the Euro fire-walled American inflation from being exported to their central banks the American economy went bankrupt.. so what did American do they used SOCIALISM to bail them out and the FED just printed up 27 trillion dollars and bought up all that bad debt which sent commodity price through the roof taxing the rest of the world. So Americans with their parasitic Petrodollar live off the backs of the rest of the world… If the American economy had the same sanctions and monetary isolation that was invoke upon Venezuela they would be in worse shape… but they are allowed to have their parasitic Saudi enabled Petrodollar to continue which makes them the biggest parasitic socialists on the planet.

  34. Venezuela is in crisis because the USA has been ordered by the State of Israel to attack Iran (1). Without the Venezuelan oil under its control Iran can not be attacked as this will cause oil prices in the USA to sky-rocket and cause internal revolts. As suggested by Bolton the Venezuelan oil needs to be pumped to the max by US companies and brought cheaply to the US market to keep oil prices under control. But just as we see the Israeli strategies in the ME failing due to the incompetence of the USA (2) the coup attempt in Venezuela also appears to end in failure.

    1 – YouTube: US Policies: Made In Israel
    2 – YouTube: Russia is stopping USA's Secret Mideast Strategy "Greater Israel"

  35. Should make enough money to feed everyone even if oil prices fell to 10% if they have that much oil.  Sounds like government does not have enough control.  Should be buying food and medicine at prices that only allow a sight profit while selling as much oil as they could

  36. Forgot to mention the part where Saudi Arabia (best buds with the US) flooded the market with cheap oil causing the prices to drop. The US has been working towards this for a long time. Manufacturing consent for another coup. If the US was actually concerned with morality it wouldn’t be giving billions a year to Israel.

  37. You talked a lot but didn't mention the real reason why this and so many other countries are in political and economical turmoil thanks to the US.

  38. Venezuela is in trouble because the U.S. sanctions trying to get at the oil reserves for U.S corporations.
    Period no other reason.

  39. larger dependence on this non renewable resources would make their economy only dependent on oil. so they have create an alternative, to sustain in future. This statement indicates to countries like Venezuela, Saudi Arabia, Iran, and Middle east.

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