Venezuela Confusion

Brandon Morse at The Blaze informs us that World of Warcraft currency is worth more than Venezuelan currency.  Brandon gives credit to others and then says:

According to sites that track the value of both currencies, KalebPrime’s math is outdated, and WoW gold is now worth even more than the bolivar.

According to the site dolartoday.com, which actively tracks the worth of the bolivar on the black market, the bolivar has dropped to 11,185.95 per dollar since KalebPrime posted .

Meanwhile, according to mmobux.com, which tracks the value of WoW’s in-game currency for sales outside of the game, the lowest sale of 10,000 gold in a real life exchange will get you $1.21 [or 8,264 per USD].

So when did this come about?  Brandon tells us:

This drop in the worth of the bolivar is stark compared to its worth just a few months ago. In May, 279 bolivars would net $1, according to CNN Money. In June, the worth dropped to 408 bolivars for every dollar.

What is the cause of it?  Brandon gives the party line:

The Venezuelan economy has suffered greatly under President Nicolas Maduro’s socialist regime. The drop in oil prices, combined with the Venezuelan government’s mismanagement of the economy has resulted in a shortage of everything from food to everyday items.

So the drop in oil prices is listed as the first cause.  What was the oil price at the beginning of May when things were less terrible?

Sidebar: We use the Brent price per barrel from Oil.Com.  There are several different benchmarks.  All will show that the price has jumped up and down but has been relatively stable in the last few months.  We use WTI for a longer view because that is the data we could find.  The benchmarks have different prices but they move together.  We are more nervous about Brandon’s measurements of the Bolivar.  It could be that CNN Money and dolartoday. com are not comparable because the Bolivar has an official rate and a real or black market rate.  End Sidebar

Brent crude was just above $52.  What was it at the beginning of June?  It was just below $52.  What is it today.  It must be like $1.43 to cause all this turmoil.  It is $52.72.  That’s right, the oil price has moved up slightly.  Now oil prices did plunge.  It plunged from about $100 a barrel to, roughly, the current price in the second half of 2014 as this chart shows (alert: it is a different benchmark (WTI) so the price today is a couple of dollars different).  Since the beginning of 2015 the price has jumped around on both sides of $50 but is is hard to discern a trend.  So oil prices dropped three years ago.  It is a problem for Venezuela but it is hard to connect what happened three years ago to its current woes.  The government needs to take at least 99 percent of the responsibility for the current problems.

Compare what is happening in Venezuela to the more capitalistic USA.  USA produces (2014 =8,764) over times as much oil as Venezuela (2014 = 2,500) but it is a smaller part of our economy.  The USA and its oil industry is recovering nicely in 2017 while Venezuela in chaos.  The different economic systems are why.

If that is how The Blaze presents Maduro’s problems then you know what to expect from the legacy media.  Venezuela is socialism.

 

 

 

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