Meanwhile the situation next door is getting worse. The economy in Venezuela is collapsing as government efforts to run the economy continue to fail. The government admitted that inflation was over 50 percent in 2013 but boasted that the GDP grew 1.6 percent last year. Left unsaid was how this got done with loans, make-work jobs and at the expense of companies that actually produce things. Government efforts to control the economy are driving productive enterprises away or out-of-business. The latest crises is foreign investors and lenders backing away. Venezuela’s credit rating is falling rapidly and loans are harder to get. China sees an opportunity and has recently loaned Venezuela $5 billion.
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