Bleak Economic Forecast for Venezuela

So how rosy does the future look for the workers paradise of Venezuela?

Economist.com has the following:

The numbers, using the mot positive assumptions possible for the future, show Venezuela with a declining GDP growth, inflation ranging from 19.5 to 13.7, and the national deficit gowing as a percentage of GDP.

But this is news you will never hear from the mainstream media.

The analysis contains this very telling section.

Investment in most sectors is unlikely to thrive against a background of distortionary macroeconomic policy (with price and exchange controls expected to be retained), rising threats to property and contract rights, unpredictable state intervention, and a growing bureaucratic burden. Even in the dominant energy sector, foreign investment will be below potential, as a result of legal uncertainty and an emerging emphasis on links with investors from “friendly” countries. The burden of oil investment will fall increasingly on the public sector, but here there are questions over efficiency and technical capacity.

The key to all this is the threat to owning private property and respecting contracts. Once you take that away, the collapse of the economy is just a matter of time.

Venezuela will implode before your eyes and Hugo Chavez has already sowed the seeds to cause it to happen.