Venezuela Moving Deeper Into Crisis—Lessons We Can Learn From Venezuela’s Economic Collapse


Venezuela, a nation spiraling into a humanitarian crisis, has missed a debt payment. It could soon face grim consequences.

The South American country defaulted on its debt, according to a statement issued last month by S&P Global Ratings. The agency said the 30-day grace period had expired for a payment that was due in October. A debt default risks setting off a dangerous series of events that could exacerbate Venezuela’s food and medical shortages.

If enough holders of a particular bond demand full and immediate repayment, it can prompt investors across all Venezuelan bonds to demand the same thing. Since Venezuela doesn’t have the money to pay all its bondholders right now, investors would then be entitled to seize the country’s assets — primarily barrels of oil — outside its borders.

Venezuela has no other meaningful income other than the oil it sells abroad. The government, meanwhile, has failed for years to ship in enough food and medicine for its citizens. As a result, Venezuelans are waiting hours in line to buy food and dying in hospitals that lack basic resources.

If investors seize the country’s oil shipments, the food and medical shortages would worsen quickly.

“Then it’s pandemonium,” says Fernando Freijedo, an analyst at the Economist Intelligence Unit, a research firm. “The humanitarian crisis is already pretty dire … it boggles the mind what could happen next.”

So what caused all of this?

Recommended articles: After The Collapse: How To Deal With The Food Crisis In A World Without Walmart-Part 4

After The Collapse: An Accurate Expectation Of What Is To Come…—Part 3

There Will Be Riots, Looting And A Divided America. Learn How To Become Invisible, To Mobs

The scary part is that the events leading up to the economic collapse are not all that different from current conditions in the United States. Venezuela was not hit by a hurricane or earthquake. They were not hit with an EMP blast or attacked by a foreign nation. They have not been overrun with terrorist attacks. What has happened was the extreme national debt, an overly controlling government, and ridiculous currency manipulation. Sound familiar? (the US have now over $20 Trillion national debt)

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In this article, I want to cover lessons we can learn from this foreign disaster. Venezuela may seem like it is worlds away, but there are more similarities to the US than you think. It is not enough for us to stare aghast from a distance and not take action. We must learn from their hardship. Here are lessons we can learn:

Economic Failure Can Be Hidden by Media Spin and Statistics

When it comes to profitable, tangible assets at the national level, few things can rival oil. Even though the price of oil has gone down, it remains the lifeblood of industry and consumer-based activities. Despite Venezuela has the largest oil reserve on Earth, Venezuela’s looming collapse was well hidden by media spin and statistics. Here are just a few things that contributed to the collapse (but were presented as economic benefits):

  • When Hugo Chavez rose to power in Venezuela, he promised his policies would lift people out of poverty, spur consumer spending, and lead to greater and better-distributed wealth for everyone. As went, the USSR and many other collapsed nations who took their socialist policies too far so now go Venezuela.
  • It is not necessarily fair to say that money spent on the betterment of others is a bad thing. However, when that money is spent on the cost of building up vital infrastructure assets, it can spell disaster. In the case of Venezuela, oil refining and blending plants were sacrificed for the sake of socialist ideals.

Right now in the United States, we are given all kinds of false statistics (the number of people obtaining unemployment benefits is actually much lower than the number of people with no job). If you look carefully, you will find that just about every “positive” financial indicator used to promote socialism in our own nation has some kind of hidden factor that indicates economic failure.

The best thing you can do is go at your own cost of living and income levels. If you are not better off now than you were 7 years ago, and your neighbors and family are not better off, then you know the media and statistics aren’t quite right. That’s why you should take steps now to reduce your reliance on any basic items or services that can be rationed, controlled, or denied to you.

Governments Don’t Go Away Overnight

More than a few people watching the steady decline of our nation seem to believe that our leaders will head for the nearest bunker and leave the people to kill each other off. Clearly, Venezuela proves that government agencies will be around and will attempt to control the situation even as it spirals out of control. As the government gets more desperate, you will see the following tactics (which will only make things worse):

  • Increased reliance on laws and punishment. “Do not rely on the government for anything, especially your survival.” (Fr. Frog) As important as this may be, governments will seek to impose increased limitations on free speech, gun rights, other weapons, and self-sufficiency.
  • Attempts to control or stop the flow of money.
  • Increased election fraud. Most people will recognize that the candidates have no tangible answers and are likely to be unsuccessful at anything remotely useful.
  • Increased killing of the civilian population by government agencies.
  • Politicians will isolate themselves more and more from the people as they fight among themselves and get caught up in their own desperate attempts to gain control.

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Riots and Protests Will Continue Until Balance is Achieved

During a major societal collapse, not everything the government does will be bad, even though in general it seeks to impose limitations. Here, as in Venezuela, our society and way of life cannot continue when our law enforcement officers are shot dead just for doing their jobs. There comes a point when protests and peaceful revolutions are no longer healthy and become just as dangerous as anything we might fear from a dictatorship. We have seen this in Syria, and a similar pattern is being repeated in Venezuela.

As individuals, one of the best things we can do is gain control of personal stress levels so that it will be easier to achieve other goals. When it comes to riots and protests, our goals aren’t so much about physical survival needs as they are about meeting communication and team-formation goals. It is our job to open and maintain a dialogue with others in our own community who disagree on vital issues such as gun rights. We are the ones that must come to an understanding among ourselves in a civilized way so that opportunistic terrorist and criminal elements cannot use our division to destroy us. I am not saying this is an easy task, but it must be done.

Hunger Equals Desperation

We have all seen the homeless dig through dumpsters outside of restaurants to pick out the fresh food that was scraped off of plates. This is not the type of desperation to which I am referring. Imagine that there were no restaurants. Imagine that there were not wealthy people that could afford to throw out half of the food they fix for their families. Those that had money for food find the shelves empty both within the borders and outside the borders. This is desperation, and this is the reality in Venezuela.

People react to desperation differently. How would you feed your family? Some have turned to violence. If you were smart enough or lucky enough to have food for your family, you would also have to be prepared to defend that food. Break-ins and attacks on the street are common. Of course, trash cans and dumpsters are an option, but they are often picked clean. Some people have even taken to hunting cats and dogs in the streets. Rarely do you see true survival in an urban setting, but in this scenario, people must be ready for it. If you live in the country or even in suburban areas, finding wild edibles and meat will be an essential skill.

Many People Will Sacrifice Honor and Ethics

The Darknet and the black market reveal a subset of our population that already has no honor or ethics. But what about when your own child is starving and someone else has food to eat? While every item has a price, so does just about every person. This has been proven in Venezuela where desperation has led people to do horrible things they would not normally do. In these situations, where starving neighbors are banging on your door, all you have is self-defense via whatever means are available, because a government that can’t bail itself out can’t help you either.

The pre-crisis world is not the time or place for citizens to disarm, or for leaders to make laws that prevent people from defending themselves with guns. These politicians should never be voted in, and as soon as any leader moves to impose more gun control, people should immediately attempt to recall them from office and repeal all unnecessary existing gun control or confiscation laws.

Shortages Will Happen Quickly

Many people assume that because an economic collapse takes some time to develop that shortages will also take some time to develop. This was not the case with Venezuela. Within a few weeks of the collapse, products that were most needed had been picked clean. Bread, milk, sugar, and eggs were impossible to find within days. Some stores were able to restock their shelves, but many did not bother because of the looting that took place. Currently, only 15% of the food, water, and medical supplies needed can be obtained within the borders of Venezuela.

If this is not a strong argument for prepping, I do not know what is. Those that wait until the collapse to stock up on supplies will be out of luck. Only those that see it coming and build up their supply storage will be able to survive a disaster such as this. Do not wait.

It is a bit surreal to talk about a collapse like this happening in the United States, but it is very possible. Our government is making all of the same mistakes that Venezuela has made, and it does not intend to change. Without getting too political you can see that the socialist and liberal powers in Venezuela allowed open borders, funded heavy benefits for the poor, controlled currency, relied on foreign aid because of wasteful spending, and allowed corruption. It hits a little too close to home for me.

The Final Word

There are bound to be people who say that an economic collapse like the one in Venezuela will never happen in the United States. Nevertheless, our economy and the patterns occurring in the legislative process all point to something very similar. As preppers, we should watch what is going on in Venezuela, compare it to trends in our own nation, and use that as a guide for setting survival skill and stockpiling priorities. If things in the US go like recent events in Venezuela, we will have plenty of pain to prompt a swift and dramatic change.

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The Lost Ways is a far-reaching book with chapters ranging from simple things like making tasty bark-bread-like people did when there was no food to building a traditional backyard smokehouse… and much, much, much more!


Discover how to survive: Most complete survival tactics, tips, skills and ideas like how to make pemmican, snowshoes, knives, soap, beer, smokehouses, bullets, survival bread, water wheels, herbal poultices, Indian roundhouses, root cellars, primitive navigation, and much more at The Lost Ways


Here’s just a glimpse of what you’ll find in The Lost Ways:

From Ruff Simons, an old west history expert, and former deputy, you’ll learn the techniques and methods used by the wise sheriffs from the frontiers to defend an entire village despite being outnumbered and outgunned by gangs of robbers and bandits, and how you can use their wisdom to defend your home against looters when you’ll be surrounded.

Native American ERIK BAINBRIDGE – who took part in the reconstruction of the native village of Kule Loklo in California, will show you how Native Americans build the subterranean roundhouse, an underground house that today will serve you as a storm shelter, a perfectly camouflaged hideout, or a bunker. It can easily shelter three to four families, so how will you feel if, when all hell breaks loose, you’ll be able to call all your loved ones and offer them guidance and shelter? Besides that, the subterranean roundhouse makes an awesome root cellar where you can keep all your food and water reserves year-round.

From Shannon Azares you’ll learn how sailors from the XVII century preserved water in their ships for months on end, even years and how you can use this method to preserve clean water for your family cost-free.

Mike Searson – who is a Firearm and Old West history expert – will show you what to do when there is no more ammo to be had, how people who wandered the West managed to hunt eight deer with six bullets, and why their supply of ammo never ran out. Remember the panic buying in the first half of 2013? That was nothing compared to what’s going to precede the collapse.

From Susan Morrow, an ex-science teacher and chemist, you’ll master “The Art of Poultice.” She says, “If you really explore the ingredients from which our forefathers made poultices, you’ll be totally surprised by the similarities with modern medicines.” Well…how would you feel in a crisis to be the only one from the group knowing about this lost skill? When there are no more antibiotics, people will turn to you to save their ill children’s lives.

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And believe it or not, this is not all…

Table Of Contents:

The Most Important Thing
Making Your Own Beverages: Beer to Stronger Stuff
Ginger Beer: Making Soda the Old Fashioned Way
How North American Indians and Early Pioneers Made Pemmican
Spycraft: Military Correspondence During The 1700’s to 1900’s
Wild West Guns for SHTF and a Guide to Rolling Your Own Ammo
How Our Forefathers Built Their Sawmills, Grain Mills, and Stamping Mills
How Our Ancestors Made Herbal Poultice to Heal Their Wounds
What Our Ancestors Were Foraging For? or How to Wildcraft Your Table
How Our Ancestors Navigated Without Using a GPS System
How Our Forefathers Made Knives
How Our Forefathers Made Snowshoes for Survival
How North California Native Americans Built Their Semi-subterranean Roundhouses
Our Ancestors’Guide to Root Cellars
Good Old Fashioned Cooking on an Open Flame
Learning from Our Ancestors How to Preserve Water
Learning from Our Ancestors How to Take Care of Our Hygiene When There Isn’t Anything to Buy
How and Why I Prefer to Make Soap with Modern Ingredients
Temporarily Installing a Wood-Burning Stove during Emergencies
Making Traditional and Survival Bark Bread…….
Trapping in Winter for Beaver and Muskrat Just like Our Forefathers Did
How to Make a Smokehouse and Smoke Fish
Survival Lessons From The Donner Party

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