Cubanization, chapter 13: Venenozuela on the brink of absolute ruin
Emperor Maduro's bread-and-circuses routine may soon come to a screeching halt. After pillaging stores in order to secure votes in municipal elections, Maduro has no more tricks up his sleeve, save the ultimate one: brutal repression. Meanwhile, as he fiddles, Caracastan burns, so to speak, and the Venenozuelan economy plunges into the sinkhole created by the Bolivarian Revolution.
Great work, Cuban advisers!
Moody's Downgrades Venezuela, Warns of Economic Collapse
Moody's Investors Service downgraded Venezuela's credit rating on Monday and warned it could cut them again given what it saw as the growing risk of an economic and financial collapse in the country.
It was the second ratings downgrade in just a few days for the country after Standard & Poor's cut its bond ratings on the “radicalization” of economic policy and declining international reserves.
President Nicolas Maduro spooked investors last month by forcing retailers to slash the prices of consumer goods as part of an “economic offensive” to rein in annualized inflation of 54 percent, a move critics say will spur shortages down the road.
The populist move helped the ruling Socialist Party, however, to a strong showing in local polls earlier this month that shored up Maduro's political standing.
Moody's said it cut Venezuela's local and foreign currency ratings to Caa1 from B1 and B2, respectively, while the outlook for the rating was negative.
“The downgrade reflects Moody's view that Venezuela is facing increasingly unsustainable macroeconomic imbalances, including a skyrocketing inflation and a sharp depreciation of the parallel exchange rate,” the agency said.
“As government policies have exacerbated these problems, the risk of an economic and financial collapse has greatly increased.”
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