Alan Greenspan on Thursday May 26 told Fox News that Venezuela is now under martial law and that “America is next.” He said that what was happening in Venezuela was inevitably going to take place in the US. Former Reagan budget director David Stockman on Wednesday told Neil Cavuto the U.S. could be on the verge of a market economic collapse.
So that brings up the question what is happening in Venezuela. Well for preppers this may very well prove to be a good primer of what can happen here. They are already having food shortages, riots, chaos and looting. I would not be surprised if within a few days the army is shooting the rioters and looters in the street. Now these rioters are desperate people who are starving, they are not out stealing televisions they want food.
Supermarket shelves in Venezuela are bare, and power shortages are so severe that government offices are now open only two days a week. The health care system has collapsed, the crime rate is one of the world’s worst, and inflation is rapidly eroding what remains of the currency’s value.
“The economy has gone from bad to worse to horrific,” said Jason Marczak, director of the Latin America Economic Growth Initiative at the Adrienne Arsht Latin America Center, part of the Atlantic Council, a Washington-based research organization. “The Venezuelan government is doing a good job of leading itself into chaos.”
Now you wonder how a country with the largest oil reserves in the world could get itself into this condition. The socialist policies of state ownership, unfettered spending, subsidies, domestic price controls and massive government regulations are responsible.
Price controls are an interesting example. They have been placed on food staples in an attempt to make food more available to the poor. The problem is that the prices were less than the cost of producing the products. As a result, manufactures quite producing these foods. Less food was available in the government-controlled stores. Corruption increased and food from the government-controlled stores was diverted into the black market and sold at high prices. As a result, there is less food available for the poor.
This is the type of authoritarian socialism that we are starting to see in the United States. If we continue on this path, we will see the same results. Already the price of homes and many other commodities are being driven up by ridicules government regulations. In California, the cost of building a modest home is increased by $50,000 to $100,000 in permit fees. The proposed $15 dollar an hour minimum wage, if passed will lead to more unemployment and and more people dependent and enslaved on the government dole.
So what do we need to do to stop this? The first thing is to vote for candidates that will oppose these policies. But in reality, I think we are a bit too late. So get your food storage and other preps and develop a means of producing extra food. A little silver or gold won’t hurt. In Venezuela, you can still buy things on the black market if you have the funds. You may want to read a post that I wrote last month on the Food Crisis in Venezuela Shows What could Happen Here
Understand that in a martial law situation you will have lost all of your rights. Prepare yourselves to deal with it and survive.