Valuetainment - Episode 282 - Venezuela Collapse Explained by Patrick Bet-David

00:00:00.000 30 seconds. One time for the underdog. Technician sequence start. Let me see you put them up. Reach the sky, touch the stars up above. Cause it's one time for the underdog. One time for the underdog.

00:00:17.300 I'm Patrick Bedevi, host of Value Team and today we're going to talk about the collapse that's taking place in Venezuela and go a little bit deeper behind the reasoning of that taking place.

00:00:24.420 Before we get into my 10 points I have here, I first want to lay the groundwork for us to see some of the numbers. So we just see facts, data, what's really taking place, right?

00:00:33.300 So first thing I want to pay attention to is oil reserve leaders around the world. What countries? This number that says 266,455, this is in millions barrel.

00:00:45.400 So if I put millions, I would need to add six more zeros. So go figure. This is, they're the leading country in the world with the most barrels, right?

00:00:54.420 Leading countries in the world with the most barrels in reserves. You look at U.S. at the bottom at 39,230, right?

00:01:01.800 Times million, which means 39 billion, right? You look at Libya, 48. You look at Russia, 80. You look at United Arab Emirates, 97.8.

00:01:11.000 Kuwait, 101. Iraq, 142. Iran, 158. Canada, no one talks about 169. Saudi Arabia, which is what everybody talks about.

00:01:20.720 They're the biggest. When you think about oil, you think about Saudi Arabia, Sheikh, you think about Prince.

00:01:25.980 These are the guys that have all the oil, right? Right? It is the Middle East, right? Nope. 0.94

00:01:31.140 Number one in the world is Venezuela. You ready? 300,878 times a million barrels.

00:01:40.920 They are number one. U.S. is number 10. So why is it such a big mess?

00:01:48.060 How is it that a country with that much oil is going through a mess today?

00:01:54.140 What took place? There's two numbers we have to look at.

00:01:57.060 One is oil prices. The other one we have to look at is inflation.

00:02:00.600 Let's first look at oil prices. This is not just Venezuela oil prices.

00:02:04.380 This is oil prices per barrel, right?

00:02:06.860 But why oil prices? What does oil cost per barrel?

00:02:09.760 And historically, what has it done?

00:02:12.420 And is there a trend or something that we ought to pay attention to between Chavez and Maduro?

00:02:16.780 Because when Chavez was president, people were happy.

00:02:19.360 The economy was apparently doing good.

00:02:21.180 Some people said, wait a minute, we were getting a lot of free programs.

00:02:24.160 I mean, why is it that under Maduro it's not working?

00:02:26.020 It must be all of Maduro's fault, right?

00:02:27.780 Let's look at this here.

00:02:28.680 Look, oil prices today.

00:02:30.580 Today, a barrel in 2019, give or take, as of yesterday's pricing, is $52.87.

00:02:37.280 Today, a barrel, 2019.

00:02:39.580 2018 was $64.90.

00:02:41.100 2017 was $50.84.

00:02:43.360 2016, $43.58.

00:02:44.980 2015, $48.72.

00:02:46.780 2014, $93.17.

00:02:49.000 Why is 2014 so critical?

00:02:51.420 From 93.17 to 48.72.

00:02:54.120 Here's why it's critical.

00:02:55.620 Maduro got elected in 2014.

00:02:58.400 Chavez died in 2013.

00:03:00.580 So, when Maduro first got elected, Venezuela was still kind of okay.

00:03:05.480 They had some problems, but they were kind of okay.

00:03:07.600 Why were they kind of okay?

00:03:09.080 Because oil prices were still high.

00:03:11.440 The moment oil prices dropped more than 50%, they could no longer fund all the public programs.

00:03:17.300 Because 50% of Venezuela's GDP is what pays for all the free public programs that Chavez came up with years ago.

00:03:26.640 And why could Chavez do it?

00:03:28.360 Let's keep going.

00:03:28.900 Now, watch this.

00:03:30.200 2013, oil prices, $97.98.

00:03:33.020 $94.05.

00:03:33.940 $94.79.

00:03:34.940 $61.99.

00:03:35.800 $72.

00:03:36.240 $66.

00:03:36.580 $56.

00:03:37.000 $41.

00:03:37.720 Stay with me here.

00:03:39.420 $31.

00:03:39.920 $26.

00:03:40.400 $25.

00:03:40.860 $30.

00:03:41.280 $19.

00:03:41.720 When Chavez got elected, oil prices, $19.95 per barrel.

00:03:46.860 During his reign, it went from $19.95.

00:03:48.120 During his reign, it went from $19.95 to $97.

00:03:51.820 And they are the number one leaders in the world in oil reserve.

00:03:56.660 So he could give all these free programs away while oil prices were going up.

00:04:00.980 Which means what?

00:04:02.840 Venezuela's economy is controlled by oil prices per barrel.

00:04:08.360 They go up.

00:04:09.260 It could work.

00:04:10.040 It goes down.

00:04:11.760 Catastrophe all over Venezuela.

00:04:13.780 So what happened when oil prices kept going up?

00:04:16.320 More free program.

00:04:17.520 Housing.

00:04:18.420 This.

00:04:18.820 Let me give the land away.

00:04:19.720 Let me take the land from the rich.

00:04:20.880 Let's give it to the poor. 0.98

00:04:21.640 Let's take this away.

00:04:22.400 Let's give that away.

00:04:23.040 Let's give everything away.

00:04:24.680 Up taxes.

00:04:25.580 Maybe 71%.

00:04:26.420 Let's give everything away to everybody.

00:04:28.220 No incentives.

00:04:29.960 But when the oil prices went down, a whole different story.

00:04:32.600 So now, what does this mean with inflation?

00:04:33.860 Let's look at inflation.

00:04:34.660 Watch this.

00:04:35.840 From 2012 until today, what does inflation look like?

00:04:38.400 Look at 2012.

00:04:39.040 The world inflation in 2012 was 4.07%.

00:04:44.100 World inflation, 4.07%.

00:04:47.420 Venezuela, 21%.

00:04:49.060 2013, world 3.66%.

00:04:51.680 Venezuela, 40%.

00:04:52.820 2014, 3.22%.

00:04:54.860 Venezuela, 62.1%.

00:04:56.580 Look what happened in 2014.

00:04:58.320 It's still 93%, right?

00:04:59.540 But watch what happens in 2015.

00:05:01.300 World inflation, 2.75%.

00:05:03.460 Venezuela, 121%.

00:05:06.660 2016, 2.75%.

00:05:08.900 World inflation, Venezuela, 254%.

00:05:12.180 2017, 3.2%.

00:05:14.420 World inflation, Venezuela, 2006-16.

00:05:18.280 2018, world is 3.78%.

00:05:20.680 Venezuela, over 2.6 million.

00:05:23.440 The IMF predicts this year, Venezuela's inflation will crack 10 million.

00:05:28.720 There is inflation, then there is hyperinflation.

00:05:32.600 What Venezuela is going through is hyperinflation.

00:05:35.260 Let me explain to you what hyperinflation is based on what an economist said.

00:05:38.880 If the economy increases inflation 50% a month consecutively, eventually it becomes hyperinflation.

00:05:47.240 50% a month.

00:05:48.620 This is what it means.

00:05:49.440 That means what costs a dollar today on January 1st, 12 months later on December 31st, whatever costs a dollar, now costs $130.

00:05:58.980 That's hyperinflation.

00:06:00.340 Except Venezuela has hyperinflation on steroids.

00:06:03.760 Let me give you some comparisons with other countries' inflation.

00:06:06.640 Venezuela has the worst inflation in the world, right?

00:06:08.660 Number two is South Sudan at 117%.

00:06:11.600 Crisis, but not at Venezuela's place. 0.93

00:06:13.860 I was in Argentina a couple months ago.

00:06:15.700 They have crisis, but their inflation is 47.6%.

00:06:19.180 Turkey is 24.52%.

00:06:21.380 Uruguay is 6.1%.

00:06:22.900 Mexico is 5.9%.

00:06:24.480 Russia is 4.2%.

00:06:25.900 India is 3.8%.

00:06:27.000 U.S. is 2.1%.

00:06:28.300 Armenia is 1.9%.

00:06:30.420 And Israel is 0.2%.

00:06:32.820 I just used some of the countries.

00:06:34.080 This is not ranking.

00:06:35.520 The top three is Venezuela, South Sudan, Argentina.

00:06:38.220 The rest of them are some notable countries.

00:06:39.720 I want you to be paying attention on what's going on there, right?

00:06:41.980 So here are 10 things I think we can learn from what's taking place in Venezuela.

00:06:45.160 It is an absolute crisis what's taking place over there.

00:06:48.580 But we all have to pay attention to this because sometimes these things can come back and affect you.

00:06:52.280 Number one, number one thing, if your country solely relies on a natural resource and that natural resource is pricing you don't control.

00:07:02.000 Other factors around the world can dictate what the price of your oil is going to be per barrel.

00:07:06.140 One thing happens, you're wiped out.

00:07:08.800 When it goes from $93.17 to $48 the next year and 50% of all the social programs, because Venezuela is a socialistic nation,

00:07:17.180 50% of the social programs are funded by oil, what do you do when that takes place?

00:07:22.220 Then you have to go in debt.

00:07:23.700 This is why they went and borrowed money, $110 billion they owe,

00:07:27.260 because they have to keep borrowing money to be able to fund all these social programs, right?

00:07:30.480 There are some countries around the world that solely rely on their natural resource.

00:07:34.840 You've got to find other things to rely on except outside of just that.

00:07:37.900 Number two, when there's no food, when there's no medicine,

00:07:40.600 the nicest person in the world can commit crime if that person has a kid.

00:07:43.860 Let me say this again.

00:07:45.260 Economy's doing bad.

00:07:46.120 But you are not letting food in.

00:07:48.380 You are not letting medicine come in.

00:07:50.120 You are burning trucks that are coming through the border to bring food and medicine.

00:07:54.720 And all the money in the world can't buy a medicine that doesn't exist.

00:07:58.680 It doesn't matter what's taking place.

00:08:00.660 Any parent will do anything to put food in the belly of their kids. 1.00

00:08:04.240 Anyone is capable of crime when the economy goes.

00:08:06.400 It's very important to keep the economy going,

00:08:09.220 because if you don't, it affects everybody.

00:08:10.900 Crime goes to the roof.

00:08:11.760 Number three, look, you go to dinner, your dad pays the bill.

00:08:15.660 Fine.

00:08:15.920 You go to dinner, you pay the bill for your dad.

00:08:18.160 Fine.

00:08:18.500 You go to dinner, somebody pays your bill, because that person's a millionaire.

00:08:22.880 One time, fine.

00:08:24.500 Two times, fine.

00:08:25.780 You don't work for them.

00:08:26.560 This is a friend.

00:08:27.520 Imagine a guy you party with, okay?

00:08:29.720 And you party with this guy.

00:08:30.660 Every time you go out with this guy that's partying,

00:08:32.280 I got the bill on the house, bar on me, order your drinks, club on me, bottle services, table,

00:08:40.600 all on me.

00:08:41.020 I got it, guys.

00:08:42.140 Oh my gosh, he's so cool.

00:08:43.800 He's so cool.

00:08:44.580 He's so cool.

00:08:45.200 There's two problems going on there.

00:08:46.460 One, the problem is, that guy who now has 50 people with his entourage that go to clubs,

00:08:52.300 the day money goes, those 50 people disappear like this.

00:08:55.580 He's buying friends.

00:08:56.820 You're funding friends, right?

00:08:58.580 You know what's the worst thing that's worse than this?

00:09:01.000 The people that are partying with him, who are being paid all their bill,

00:09:05.880 you know what muscle's getting weaker?

00:09:07.480 The muscle of making their own money.

00:09:09.780 If you can't pay your own bill, and you solely rely on somebody else to pay your own bill,

00:09:14.480 eventually the ability to pay your own bill goes away.

00:09:17.900 Your muscles become so weak that all of a sudden, when it's pulled, it's a crisis.

00:09:22.700 That's what was taking place in Venezuela.

00:09:24.480 Bills being paid, bills being paid, bills being paid.

00:09:26.480 All of a sudden, wipe it out.

00:09:27.900 Wait a minute.

00:09:28.360 What happened here?

00:09:29.520 I was relying on all this stuff.

00:09:30.900 You were paying me for this stuff.

00:09:31.880 You were giving me shelter.

00:09:32.800 You were giving me this.

00:09:33.780 What just took place?

00:09:34.640 And they don't know how to make the money.

00:09:36.000 So what happens to a country like Venezuela, just like it happened to other countries,

00:09:38.900 like I'm from Iran, the job creators, those that know how to make money, who work very

00:09:43.080 hard, they leave to other places, Colombia, Bogota, U.S., all over the place, because they

00:09:47.960 know they're going to go find a place to make money because they know how to work hard.

00:09:50.780 They'll go to other places, and the economy takes a big hit.

00:09:53.680 Never, ever rely on somebody to pay your bills for the rest of your life.

00:09:57.440 Number four, one of the most manipulative words.

00:09:59.860 You have to be very careful with.

00:10:01.100 Elections are about to come out.

00:10:02.220 Everybody's using this word.

00:10:03.720 Free college education.

00:10:05.140 My name is Bernie.

00:10:06.360 Free college.

00:10:07.540 Free college.

00:10:08.480 Free.

00:10:09.020 Free college.

00:10:09.740 How can we be the richest country in the world?

00:10:12.060 And we don't offer free college.

00:10:13.620 How can we be the richest country in the world?

00:10:15.600 Richest country in the world.

00:10:16.760 Free.

00:10:17.060 Free.

00:10:17.340 Free.

00:10:17.600 Free.

00:10:17.880 Free.

00:10:18.480 Boom.

00:10:20.020 Just because America is rich doesn't mean we have to give free programs away to everybody.

00:10:26.020 Just because Venezuela is number one in oil reserves doesn't mean they have to give it

00:10:31.900 away to everybody.

00:10:34.300 Everybody.

00:10:35.520 Be very careful with the word free, especially when politicians say it.

00:10:39.960 Every time you hear the word free, replace it with the real F word.

00:10:43.400 You know which one I'm talking about.

00:10:44.460 The F-U-C-K. 0.84

00:10:45.760 Every time you hear the word free, just think about they're saying the other word.

00:10:49.760 Every time.

00:10:50.640 Every time you hear it.

00:10:51.660 And this program is going to be free.

00:10:53.280 Boom.

00:10:53.920 F-bomb.

00:10:54.380 And this program is going to be free.

00:10:55.680 F-bomb.

00:10:56.480 Free.

00:10:56.820 F-bomb.

00:10:57.440 F-bomb.

00:10:58.040 F-bomb.

00:10:58.360 If you replace it, politics would actually make more sense to you if you replace the word

00:11:02.320 free with the F-bomb. 0.75

00:11:03.240 Number five.

00:11:04.160 Never give too much control to the government.

00:11:06.440 Listen.

00:11:06.820 Even if the most noble, spiritual, whatever church-going person takes over and you say,

00:11:13.540 what a nice man.

00:11:15.040 And he decides to change everything.

00:11:17.240 He changes the constitution, is what Chavez did.

00:11:19.800 He creates his own house, which is what Chavez did.

00:11:22.900 He takes control of the military, the executive branch, judicial, legislative, everything he

00:11:28.420 takes control.

00:11:29.080 But what a nice guy.

00:11:29.840 I like him because he's giving me free programs.

00:11:31.840 Never fall for it.

00:11:33.340 Never give the government too much control.

00:11:36.040 He eliminated term limits.

00:11:38.420 We need term limits. 0.99

00:11:39.520 Why?

00:11:40.440 Because certain years is enough.

00:11:42.720 Like, listen, we got to replace to get somebody else to balance it out.

00:11:46.380 No matter what side it is.

00:11:48.020 Listen, Obama gave birth to Trump, but Bush gave birth to Obama.

00:11:51.840 You know, Clinton gave birth to Bush.

00:11:53.680 This goes back and forth because we need to balance each other.

00:11:56.600 It's almost like an eagle's flying every four to eight years.

00:11:58.880 He needs to kind of go like this a little bit to balance it out.

00:12:01.120 We need that.

00:12:01.980 Some of these countries, no term limits.

00:12:03.860 Unlimited.

00:12:04.480 No, no.

00:12:04.740 Don't give too much trust to the government.

00:12:06.900 Don't ever do that because then you lose your ability to choose.

00:12:10.720 You lose your ability to vote.

00:12:12.500 Be very close attention.

00:12:13.940 There's a lot of people that follow by telling me you're not living in America.

00:12:16.740 Just remember this.

00:12:17.740 No matter how noble the leader looks like at the top, still don't give 100% trust to the

00:12:23.520 government.

00:12:24.020 Very important for you to remember that.

00:12:25.580 Number six, many American politicians praised Venezuela in the 2000s.

00:12:29.200 Oh my gosh, look at Venezuela.

00:12:30.900 Americans are so afraid of socialism.

00:12:32.600 Look how great it's working in Venezuela.

00:12:33.840 Look how great it's working in Venezuela.

00:12:35.740 Like, you know, Bernie was one of them.

00:12:37.140 Look how great it's working in Venezuela.

00:12:38.680 Bernie's a great example.

00:12:39.740 Seems like a noble guy.

00:12:40.880 Seems like he wants to do the right thing.

00:12:42.040 He seems like a good guy.

00:12:43.260 But his philosophies don't work.

00:12:45.200 When he kept saying socialism works in Venezuela, he's not telling you the whole story.

00:12:49.400 It worked because oil prices went from 19 to 94.

00:12:54.380 I mean, that's like free money to a country.

00:12:57.140 Especially if you're a leader in oil reserves.

00:12:59.200 But you're not hearing the whole story.

00:13:01.360 And all you hear is the average voter looks at it and says, wow, I guess he's right.

00:13:06.520 It is working in Venezuela.

00:13:07.940 Why not do it in America? 0.70

00:13:09.220 Rich people have too much money.

00:13:11.060 We should take the money and redistribute and give it to everybody else.

00:13:13.540 And that sounds noble.

00:13:14.980 And you're going to hear it again.

00:13:16.480 Look what happened.

00:13:17.240 AOC.

00:13:17.780 Alexander Ocasio-Cortez.

00:13:19.180 Amazon shouldn't come to New York. 0.96

00:13:21.060 Amazon shouldn't come to New York. 0.96

00:13:22.480 It is unfair what Amazon's going to be doing to New York.

00:13:24.740 Amazon was bringing $150,000 a year salary to 25,000 workers in New York.

00:13:30.460 That is a good thing for New York.

00:13:32.200 New York was going to give Amazon $3.2 billion.

00:13:34.620 And that's normal, by the way.

00:13:35.940 A lot of companies get a billion dollar payout.

00:13:37.740 Nike, General.

00:13:39.020 A lot of companies get big payouts because they're moving their market to a city.

00:13:42.440 But New York was going to make $20 billion over the next decade, decade and a half.

00:13:45.800 But they said, no, we don't want you to come.

00:13:47.620 Because why?

00:13:48.160 Because she said, because if they come due to competition, rent prices will go up.

00:13:53.260 Property value is going to go up in New York.

00:13:55.300 And the governor of New York is saying, what are you talking about?

00:13:58.940 We have the most powerful influential company that wants to come to New York.

00:14:01.840 You are protesting?

00:14:03.440 And then she's celebrating.

00:14:04.900 Oh, yes, Amazon didn't come to New York. 0.52

00:14:07.340 New York used to be the number one city in the world for the most Fortune 500 company headquarters to be there.

00:14:12.960 It is not going to be there for too long because a lot of people are going to pay attention to it.

00:14:15.840 So you can't put too much of that trust into the socialistic, noble concept that, oh my gosh, it sounds really good, but it doesn't work.

00:14:23.440 Next, number seven, pay close attention to your taxes.

00:14:25.600 I've been saying this for so many years.

00:14:27.280 Listen, go study taxes.

00:14:29.160 Taxes is so boring.

00:14:31.900 One of the lines I've heard for years is there's two guarantees in life.

00:14:35.240 You're going to die, you're going to be taxed.

00:14:37.420 So if you're going to die, you've got to study death.

00:14:39.500 And if you're going to be taxed, you better study taxes.

00:14:41.980 Because it's just what's going to be taking place.

00:14:44.100 And when it comes down to taxes, that takes me to point number eight is the power of incentives.

00:14:48.000 Incentives, a country, whatever they create as an incentive, that's what people go after.

00:14:53.520 Meaning, if Venezuela says, no incentive, don't worry about it.

00:14:57.080 We'll give you an income, we'll give you food, we'll give you this, we'll give you a house, and we'll give you all this stuff.

00:15:01.140 Don't worry about it, we'll give it to you.

00:15:02.420 Incentive goes away.

00:15:03.740 If America says, we'll give you incentive if you create jobs, we'll give you all this other incentives, and Americans do it, then people get advantage of it.

00:15:10.660 A lot of people say, why isn't that company paying as much taxes as this other person?

00:15:15.520 Why?

00:15:16.160 That is unfair.

00:15:18.100 So, immediately, emotionally, you're like, wow, that kind of makes sense.

00:15:21.860 That company, they made this much money, how come they're not paying any taxes?

00:15:25.800 Because that company created 400,000 jobs in America.

00:15:29.940 Okay, let's take those taxes away, let's take those incentives away. 0.66

00:15:34.140 But let's also take those 400,000 jobs away.

00:15:36.080 Are you okay with that?

00:15:37.180 400,000 jobs at a $60,000 salary, how much taxes are being paid?

00:15:40.780 What are sales taxes?

00:15:41.860 How many families are being fed?

00:15:43.560 How many kids are going to school?

00:15:44.660 How many people have a place to live?

00:15:46.040 Because that company created 400,000 jobs.

00:15:48.400 Pay very close attention to incentives at a company.

00:15:51.340 A company will say, if you do X, Y, Z, you get promoted.

00:15:53.980 A country says, this is our tax system.

00:15:56.200 We give you an incentive in X, Y, Z, people create jobs.

00:15:59.800 It's all about how you create incentives.

00:16:02.120 If the incentives are proper, innovation goes high.

00:16:04.820 If the incentives are not, innovation doesn't go high.

00:16:07.140 Number nine, sometimes a crisis wakes up a nation.

00:16:11.460 Look, one of the reasons why I totally feel for the people of Venezuela and what they're

00:16:16.480 going through with this is because when you have so much power with oil, when you are

00:16:20.860 number one, oil reserves, everybody, you're like the beautiful girl that every man wants

00:16:28.260 to be with.

00:16:29.120 Because there's like, oh my gosh, she is so sexy.

00:16:32.020 Venezuela, you are so sexy because of all the oil you got.

00:16:35.920 Ding, ding, ding, ding, ding, ding, ding, ding, ding, right?

00:16:37.680 Okay.

00:16:38.360 Now watch, I'm from Iran.

00:16:39.760 In Iran, there's a city called Abadan.

00:16:42.020 In Iran, the city called Abadan, they found oil.

00:16:45.080 They realized, oh my gosh, there's not just a little bit of oil.

00:16:48.200 There's a lot of oil in Abadan.

00:16:50.440 And the person in Iran at that time, they're like, I don't really know how to handle this.

00:16:54.060 UK smelled opportunity, Britain.

00:16:56.620 They came in and they said, oh, listen, we can help you orchestrate it because we know how

00:17:00.100 it is to deal with this kind of stuff.

00:17:01.420 We're the experts.

00:17:02.580 And Iran doesn't know how to do it at that time.

00:17:03.940 They were just coming up.

00:17:05.060 Like, okay, what do we do?

00:17:05.900 Maybe we should give them an opportunity.

00:17:07.640 Today came in and they said, look, we want to team up with you.

00:17:09.560 Let's start a company together.

00:17:11.120 They called the company APOC, Anglo-Persian Oil Company.

00:17:16.160 You know what it's called today, by the way, APOC?

00:17:18.800 BP, British Petroleum, was once known as APOC, Anglo-Persian Oil Company.

00:17:24.480 Go verify it for your own self so you can see the history of it and what took place.

00:17:28.200 So Iran's like, okay, let's do it. 0.99

00:17:30.100 But then Britain said, we'll take 84%.

00:17:32.080 You keep 16%. 0.74

00:17:33.360 Why?

00:17:34.360 Because we know how to do this.

00:17:35.340 But you keep 16%, we'll keep 84%. 0.99

00:17:37.360 So at first, Iran was kind of naive.

00:17:39.700 And they're like, okay, let's do it.

00:17:41.580 We kind of need your help anyways.

00:17:43.220 And we'll protect you.

00:17:44.100 It's almost like the mafia in New York.

00:17:46.040 You have a business.

00:17:47.120 You give us such and such.

00:17:48.500 And you keep this.

00:17:49.180 But we'll protect you.

00:17:49.880 We'll give you protection.

00:17:50.660 Okay, we'll do it.

00:17:51.560 And then Iran started getting stronger.

00:17:52.920 Like, wait a minute.

00:17:53.360 Why are we giving this to you?

00:17:54.460 We don't want to do that.

00:17:55.220 Then Mossadegh, renegotiation.

00:17:57.120 Then next thing you know, U.S. and U.K. teamed up together.

00:17:59.820 And we have to create a coup.

00:18:01.240 And we have to create a fall.

00:18:02.560 And then there was a fall.

00:18:03.440 And then Shah came.

00:18:04.680 And Shah renegotiated a deal and took control.

00:18:07.060 And they're like, oh, wait a minute.

00:18:08.540 Now we lost control.

00:18:09.600 It's like, this is our oil.

00:18:10.960 This is our land.

00:18:11.840 What do you mean?

00:18:12.220 Dude, this is our country.

00:18:14.460 This is not your oil.

00:18:15.700 We own this oil.

00:18:17.440 So I understand the fear of Venezuelans when they see EU and U.S. and Mike Pence getting

00:18:23.700 involved.

00:18:24.180 Because they're like, oh, what are we going to do here?

00:18:25.760 But there's also to the opposite side.

00:18:27.920 There's also community.

00:18:28.780 I was speaking at an event a couple weeks ago and I talked about what's taking place in

00:18:31.440 Venezuela.

00:18:32.280 A bunch of Venezuelans came to me afterwards.

00:18:34.240 The opposite side is the following.

00:18:36.200 That a lot of Venezuelans, when they can't feed their family, when they don't have medicine,

00:18:40.220 they're willing to do anything at that moment to get back into survival mode.

00:18:44.400 So I wouldn't 100% say no to it.

00:18:46.360 And I wouldn't 100% say yes to it.

00:18:48.140 Maybe create an arrangement because I do know a lot of eyeballs are going to be on how sexy 1.00

00:18:52.160 Venezuela still is because the oil is still there.

00:18:55.800 The structure needs to change.

00:18:57.440 And in order for the structure to change, it's going to be a little bit ugly.

00:19:00.700 It's going to be pretty bad.

00:19:02.400 It's going to be at the hands of many people dying.

00:19:04.880 Unfortunately, this is just kind of what happens with oil, money, power, and socialism.

00:19:08.660 It's just what takes place.

00:19:10.620 But this ought to be something for a lot of us.

00:19:13.020 And this leads me to point number 10, which is who's next?

00:19:15.380 Who's next with this?

00:19:16.820 Who can this happen to next?

00:19:18.680 I know a lot of us are looking at it from the outside.

00:19:20.360 Oh my gosh, I feel so bad for people in Venezuela.

00:19:22.920 Oh my gosh, I feel so bad for them.

00:19:24.840 Look what they're going through.

00:19:26.240 Look what they're going through.

00:19:27.160 Do you remember how I opened up the video?

00:19:28.600 That a lot of times we look at somebody else going through a divorce, cancer, crisis issues,

00:19:32.040 business going.

00:19:32.960 We look at other people and not us because we're amazing.

00:19:36.100 It'll never happen to me.

00:19:37.060 It'll never happen to my country.

00:19:38.060 It can happen to any empire.

00:19:40.300 That's the one thing.

00:19:40.900 The moment you forget that incentives create hard work, create effort, create movement,

00:19:49.680 create everybody paying the price and paying their own bills.

00:19:52.800 That's what a country can be relying on for a long time because it's the right values and

00:19:58.120 principles.

00:19:59.080 But if you rely on something for free, something to give away, something you don't have to

00:20:03.460 work for, something that's just going to be given away to you, and all the people that

00:20:06.600 are creating the jobs are becoming too rich, take that land away, take that business away.

00:20:10.300 And they're kind of sitting there saying, well, listen, if I don't have incentives, I want

00:20:12.660 to go to another country.

00:20:13.500 Because entrepreneurs and people who are driven by incentives, no one wants to leave their

00:20:19.440 homeland.

00:20:19.780 I'm from Iran.

00:20:20.380 Believe me.

00:20:20.680 No one wants to leave their homeland.

00:20:22.420 But they will gladly leave their homeland if you put them in a position where they cannot

00:20:26.940 give their kids, their blood, the life they want to give like this, they will disappear.

00:20:32.880 Because everybody thinks family first.

00:20:35.320 And if a country thinks that way, they keep talent.

00:20:37.960 If they don't think that way, there's a reason why you lose nearly 5 million people that left

00:20:42.040 your country to other places.

00:20:43.320 Whether that number is 2 million or 5 million, Venezuela is the size of Texas. 0.68

00:20:47.360 They have 31 million people living there.

00:20:49.380 2 million is high, 5 million is high, and they're leaving.

00:20:51.920 And it's the hardworking people leaving, not the people that are relying on the programs.

00:20:56.420 It's the people that still know how to work.

00:20:57.900 Thanks everybody for listening.

00:20:59.240 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.

00:21:03.820 Give us a five star.

00:21:05.140 Write a review if you haven't already.

00:21:06.600 And if you have any questions for me that you may have, you can always find me on Snapchat,

00:21:10.820 Instagram, Facebook, or YouTube.

00:21:12.780 Just search my name, Patrick Bid David.

00:21:14.720 And I actually do respond back when you snap me or send me a message on Instagram.

00:21:19.680 With that being said, have a great day today.

00:21:21.420 Take care everybody.

00:21:22.140 Bye bye.

Valuetainment - April 15, 2019

Episode 282 - Venezuela Collapse Explained by Patrick Bet-David

Episode Stats

Summary

Transcript