When Does Buying Gov’t Bonds Support Corrupt Governments?

The president of Venezuela’s opposition-run Congress led by Julio Borges came out and accused Goldman Sachs of ‘aiding and abetting the country’s dictatorial regime’ after a report that Goldman had bought $2.8 billion in bonds from the cash-strapped country at 31 cents on the dollar. They paid $865 million.
There have been two months of opposition protests against President Nicolas Maduro in which almost 60 people have been killed. The collapse of the country’s socialist economy has left millions of people struggling to even eat. This is the problem with ‘socialism’ that it is incapable of managing the economy from any centralized government. They hate people who make money, but government is just incompetent to manage anything. It takes an individual on the front lines to manage any operation.

This post was published at Armstrong Economics on May 31, 2017.