The full-blown economic collapse that is happening in Venezuela right now is a preview of what Americans will be experiencing in the not too distant future. Just a few years ago, most Venezuelans could never have imagined that food shortages would become so severe that people would literally hunt dogs and cats for food. But as you will see below, this is now taking place. Sadly, this is what the endgame of socialism looks like. When an all-powerful government is elevated far above all other institutions in society and radical leftists are given the keys to the kingdom, this is the result. Food shortages, looting, and rampant violent crime have all become part of daily life in Venezuela, and we all need to watch as this unfolds very carefully, because similar scenarios will soon be playing out all over the planet.
The funny thing is that Venezuela actually has more “wealth” than most countries in the world. According to the CIA, Venezuela actually has more proven oil reserves than anyone else on the globe – including Saudi Arabia.
So how did such a wealthy nation find itself plunged into full-blown economic collapse so rapidly, and could a similar thing happen to us?
The president of Venezuela has declared a 60-day state of emergency in a desperate attempt to restore order, but most people don’t anticipate that it will do much good. Social order continues to unravel as the economy systematically implodes. The Venezuelan economy shrunk by 5.7 percent last year, and it is being projected that it will contract by another 8 percent in 2016. Meanwhile, inflation is raging wildly out of control. According to the IMF, the official inflation rate in Venezuela will be somewhere around 720 percent this year and 2,200 percent next year.
If people are able to get their hands on some money, they immediately rush out to the stores to use it before the prices go up again. This has created devastating shortages of food, basic supplies, and medicine.
Electricity is also in short supply, and a two-day workweek has been imposed on many government employees in a desperate attempt to save power. Violent crime is seemingly everywhere, and most law-abiding Venezuelans lock themselves in their homes at night as a result.