Cash Flow Problem in Venezuela

A perfect storm has unfolded in the country of Venezuela, and although it is a bit bizarre how rapidly and just how bad it has gotten in the area, it all makes sense when you look at the facts from Corporation Wiki. Civil unrest has taken over the country, as there is a huge drought, a massive lack of food, and a large energy crisis, which really is due to the drought, as sixty percent of the countries energy comes from a major dam, which is at such low levels that they have even had to cut off a lot of the turbines that create the countries energy. However, the biggest hardship that the country is facing right now is their lack of cash flow. Venezuela is a socialist country that has come unto a lot of money, based on the fact that they have had large oil production over the last century. This led to politicians like Norka being able to bring in social programs to take care of its citizens, as well as provide a lavish lifestyle for a lot of people in the country. The oil production has just dropped to its lowest point in over a decade, and oil prices around the World have dropped significantly. This has cut off the cash flow to the country, although they still owe lots of money in terms of loans to China, so the reality of their situation is routed in its oil production and overall cash flow.

 

 

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