Venezuelans brace for slump in oil prices

[Zorro]

The falling oil prices that are providing relief to drivers around the world threaten to bring more misery to the life of Milagro Alvarez and millions of other Venezuelans, whose country depends almost exclusively on oil revenue.

The math teacher has been getting up before dawn each day and rushing out to hunt for disposable diapers, one of scores of products that have been in short supply due to price restrictions and currency controls put in place by the socialist government long before the slide in petroleum prices.

"The government says we're a rich country, so why do we have to stand in line and beg to buy diapers?" said Alvarez, standing under a pink umbrella to protect herself and her 5-month-old daughter Annabeth from the blazing sun after three hours queued up in front of a Farmatodo store.

Now Venezuela is suddenly a lot less rich, and many fear those lines will just get longer.

http://news.yahoo.com/venezuelans-brace-slump-oil-prices-173941886.html

[NYC_SKP]

1. Whether in Venezuela or Kentucky....

Jobs dependent upon a fossil fuel economy really aren't secure jobs.

[WhiteTara]

2. Good understanding of the problem

We need to embrace the future and work with the Earth's knowledge instead of forcing our will of old technology and old profit making models.

[Marksman_91]

3. If only the Chavista regime would heed those words, but alas they won't

Oil money is the easy way out. Those currently in control of the venezuelan government want to make as much money as possible with as little effort as possible. To be a diversified economy and actually develop in all areas of production, Venezuela's oil has to run out, unfortunately.

[Travis_0004]

4. There is also a lot of corruption and price controls

The official exchange rate is 6.3 bolivars for one US dollar. That is just a stupid price. The black market price is around 90-100 bolivars per US dollar. This has caused a shortage of imports. Its also very profitable to buy products in Venezuela and sell them in Columbia or another country. And with price controls a lot of products are being sold on the black market and not hitting store shelves.

Venezuela does have an over reliance on oil, and that is huring things, but the long lines show that people can afford to buy the products, they just are not there.