Sunday, November 30, 2014

La imbecilidad del vicepresidente que tenemos que calarnos

Me van a perdonar si empiezo una entrada con un insulto pero no tengo otra palabra para cualificar a Jorge Arreaza, el vicepresidente de Venezuela. El es un imbécil.
Operación colchón 

¿Por que lo digo? Pues si usted no lo sabia todavía sus palabras en un congreso de "ciencia" lo confirman sobradamente. Lo que voy a escribir a continuación es un comentario sobre su participación en la clausura del III Congreso de Ciencia Tecnología e Innovación. Uno podría pensar que frente a una audiencia que no tengo razones para presumir de una pobre formación científica Arreaza hubiese medido algo sus palabras. Pero no, picó adelante y reveló más sobre los objetivos reales de la "revolución".

Primero dijo que la caída del precio del petroleo es una conspiración de Obama y la derecha apátrida de Venezuela:
"Si esos factores políticos, si el imperialismo cree que con la guerra del petróleo va a poder con la revolución bolivariana sepan que el látigo de la contrarrevolución nos da más fuerza que nunca para desatar nuestra creatividad, nuestra inventiva, nuestros conocimientos para superar todas las crisis que se presenten; no podrán con la patria de (Hugo) Chávez, ni con los poderes creadores del pueblo"

O sea que el tipo piensa que Obama se desvela para poder joder a Venezuela, que inventó lo del fracking únicamente para joder a Venezuela, que Venezuela es un problema más importante que ISIS, el Irán nuclear, la deuda China, la amenaza de recesión constante, ebola, el narcotráfico por la frontera con México, ¡y pare usted de contar! Ademas implicaría que los países del Golfo conspiran con Obama para joder a Venezuela, o que son sujetos a los deseos de Obama, que hasta Rusia ha decidido mantener el petroleo bajo porque Obama se lo pidió a cambio de Ucrania, ¡y pare usted de contar las imbecilidades implícitas en esas palabras! Sinceramente si el lumpen chavista se cree esas bobadas es que estamos peor de lo que yo pensaba.

Pero eso no es todo. Frente a un panel de "científicos" Arreaza resucitó a Lysenko (aunque dudo que el tonto ese sepa quien fue Lysenko). Por si algún lector no sabe quien fue Lysenko, el fue el que se asoció con Stalin para decidir que la biología (y las leyes de la ciencia) tenían que obedecer los lineamientos del partido comunista. Claro, en una robolución 2+2=X según le convenga a los robolucionarios uno no debería asombrarse.
"Se armó una alharaca con lo del IVIC (...) no vamos a eliminar el IVIC, lo que vamos a eliminar es la ciencia elitesca, del capitalismo que no es útil para el pueblo"
y, por si no fuese suficiente
"Si tenemos que dejar nuestra línea de investigación y virar porque hay una necesidad real del pueblo, pues hagámoslo"
¿Que disparate es eso? ¿Es la llegada de la Revolución Cultural china a Venezuela? ¿Es que van a mandar los científicos del IVIC a cortar caña? ¿Es que ese pobre imbécil no sabe que en la Unión Soviética no había nada mas elitesco que los científicos quienes hasta su propia ciudad secreta tuvieron donde no les faltaba nada? ¿Es que nadie le dijo que su Ipad, su camarita digital, los aviones de las colitas de PDVSA, las medicinas para el cáncer de Hugo, los psicotrópicos que de seguro toma, son productos de la "ciencia elitesca capitalista"?

Lo digo con toda propiedad, Jorge Arreaza es un imbécil. ¿Pero que se podía esperar de un tipo que llegó donde esta por un braguetazo?


Saturday, November 29, 2014

Mao's Beijing on the Güaire: the Grand Chavez ballet company

It looks like chavismo will never run out of idiotic ideas. Yesterday we saw how we paid for them with oil prices plummeting. Today journalist Andreina Marquez (@mintina)  attended a ballet performance.  Words fail common sense....  Here are some of her tweets.




The ballet is, of course, on the life of Chavez. I do not have the program but from the title of that tweet it seems that it means something like from Chavez to Bolivar, or vise-versa, or something (Arañero in chavista terms means like a spider knitting a tale). Maybe meaning "how Chavez became a Libertador himself, one better than Bolivar?At any rate the mood is set, including the "Samán de Güere" under which Chavez allegedly swore an oath, the tree under which Bolivar took a nap or something. I refuse to familiarize myself with silly chavista lore...

The next one, well, is a recreation of parachutist descent in some 1992 coup, or Chavez career or something. The silliness of that on such an austere stage speaks for itself (apparently the crisis has already struck ballet decorators, red berets and military fatigues kindled sponsored by some military barrack).



Of course all the official heroes of Venezuelan history approved by Chavez make an appearance, including Chavez himself. Ghostly and even ghastly.

Fortunately, personality cult and all, it seems that it was not a big hit since the chavista crowd was rather sparse. Too much is just too much? But just you wait until it becomes mandatory any time soon.

Besides congratulating Andreina for the courage and stamina to attend, I cannot fail to remember all those heroic ballets and operas from Maoist China, you know, those ones where the soprano prances around with a machine gun while the tenor drops straight from the survivors of the Long March to rescue the villagers. These are probably today relegated to minor stages where only tourists and sad communists go. But what do I know?
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PS: it looks like foreign correspondents got more advanced information than locals like yours truly that learned about the ballet from Twitter. Our good friends at Babalu point out to two reviews, one from the Times and the other from the Guardian, which inspired the former, as if these did not have better things to review... What surprises me in these reviews, rather the Guardian's, is on how they rely more on local "critics" than their actual attendance...  As such, my review above out from Andreina's tweets is way more telling than theirs. Sorry...

And as I should have suspected, the Cubans are behind the whole show, probably cashing a hefty fee for their services. Prove me wrong!


Friday, November 28, 2014

The road from Deadend to Rockbottom passes through Deadbeat & Co. Caracas'offices

Well, my friends, it seems that this time we got what we saw coming. Well, some of us saw it coming long ago but that is a small consolation.  I am going to give you a few of tweets from The Telegraph covering the latest OPEC meeting.

First, Ramirez reaction to the meeting's results.


Why? There, in two tweets.



and the real meat


Translation: My "dollar today" app has been updating its "cucuta" currency more often than usual and last time I checked it was 149,73 Bs. for one single US dollar... For memory I was writing last Wednesday a horrifying post where the USD was still at what would be today a balmy 137.... Venezuela has to be the only country in the world where there is a run on its currency and the government does not notice.

Real Translation now: Ramirez left red faced because 1) he finally realized that Venezuela has lost any influence in OPEC, or the world for that matter; 2) probably someone at the meeting told him that the OPEC was not there to solve the mismanagement problems of Venezuela, that if the Middle East producers had been able to create sovereign funds of billion dollars, why did Venezuela not do the same? 3) because Ramirez, of all people, knows where the wasted money went and he knows that at the OPEC meeting they all know he knows; 4) because Ramirez has to go back to Venezuela with the good news that we are bankrupt and that it will take too long  for prices to go back up enough for the regime to survive in its current state; and finally 5) Ramirez knows that when real history books are written his name will go down in infamy as perhaps the single worst offender after Chavez, the one that destroyed willfully Venezuela for ideological reasons, personal resentment and what not. Then again Ramirez may be too far gone to realize, yet, #5.

To conclude fast this post, since I feel more like crying than writing, let's just say that the crows have come home to roost, that we are now all but officially bankrupt, that 2015 will have a truly major economic crisis and that the only hope the regime has to survive is brutal repression, of the kind that leaves hundreds of death. And not necessarily opposition deaths as many of today's chavista will feel hungry soon.

Of course there are solutions to attenuate the damage and avoid the worst; but the regime cannot take them. That will be for another post, once I regain some composure.

PS: from a second article of Critchlow we get the following, say, money quotes:
But in too many cases throughout Opec’s turbulent history this vast oil wealth and control of the world’s primary fossil fuel energy source has been abused, simply to support regimes with, at best, questionable political legitimacy and, at worst, the brutal juntas of despots such as Colonel Muammer Gaddafi, Saddam Hussein and Hugo Chavez.
Oh dear....

Added later, courtesy of @MonseTalleyrand




La propia arepera socialista.


Wednesday, November 26, 2014

Got a local problem? Hide it by jailing a Venezuelan opposition leader

So let's review the regime's problems just this week,

What if there were internal elections and nobody came? It is exactly what happened this Sunday. The regime's political facade, PSUV, held internal elections. Some inside PSUV dare to claim something like 7 million members (more than the votes they get at general elections). Cooler heads inside the PSUV satisfy themselves with 5 millions. More realistic observers do not go much further than 2 millions.  Whatever it is, the participation may have not reached the half a million. That the regime refuses to give numbers "because we do not want the enemy to know exactly how many we are" is a true confession of the paucity of enthusiasm inside the PSUV.  In fact, even Telesur manages a triumphant article without giving a single number of votes. They say there were more than 400,000 candidates, really, which would allow us to believe that there must have been at least the same number of votes. No?

Whatever... Sunday was a bust by any standard, abundantly observed by the opposition, amazed at the negative landslide, almost unable to believe its good luck...

What if your currency lost more than 30% in less than 30 days? Let's be generous and assume that the bolivar lost 1% a day only against the Dollar. You do not believe me? On November 1st the black market rate was at 103. Today, November 26, we reached 137 Bs. for a dollar.

It cannot be clearer than that: people are desperate to buy dollars at truly ridiculous price because they know inflation will speed up and dollar availability will become worse.  Kind of wallet voting if you please.

What if your jails went again into chaos? Which is exactly what is happening yet again. We had a break out of at least 41 inmates, some considered dangerous, early today. Those that cannot escape may chose to commit suicide. Thirteen of them today unless you chose to agree with the version that they "intoxicated" with some kind of food poisoning that included massive swallowing of barbiturates and psychotropic substances...

And more, I am sure, if I had the time to dig further.

So what is a repressive regime to do?  Very simple, you put more opposition leaders in jail and accuse them of everything, including the weather.

Today it was the turn of Maria Corina Machado. See, the woman was accused last March of conspiring to kill Maduro. Yet, such tremendous charge could not be sustained (so to speak since there is no concrete evidence). Only this week did the regime start the proceeding to make sure she goes to jail soon, á la Leopoldo Lopez.  For good measure the regime decided that there was indeed a conspiracy that involved, curiously, only its bêtes noires. I have named Diego Arria, Pedro Burelli, Henrique Salas, just to list the more notorious ones.

Of course Maria Corina is ready and started by posting the citation on her twitter account.



What surprises (not) more here is that the increasing international outcry over Lopez jail is not making the regime pause. Such must be the desperation and infighting inside chavismo that the only thing they can come up with, the only thing that kind bind them together, is recklessly to raise the ante, move towards flagrant dictatorship, mock international opinion, before reaching the inevitable end of the road: start internal purges in the most totalitarian way.

After last Sunday me thinks that Marea Socialista may find itself in the cell next to the one of Maria Corina.

Tuesday, November 25, 2014

Mensaje al chavismo anti democrático y torturador

Veo eso en Twitter, proviniendo de una reunión del Grupo de Madrid, conformado por ex presidentes de cualquier país democrático.



Los presidentes al lado de Carlos Vecchio son, de izquierda a derecha: Pastrana, Quiroga, Toledo, Hurtado, Calderon, Lagos y Lacalle (no aparecen pero si firman la carta Arias y Cardoso). Si bien algunos son de la derecha democrática, Lagos es socialista chileno y ni Hurtado ni Toledo ni Cardoso se pueden colocar en la derecha. Ademas, sea cual sea sus preferencias políticas, TODOS han sabido entregar el poder a sucesores democraticamente electos, después de elecciones de verdad. Y sin los abusos electorales ni las trampas que ustedes convirtieron en rutina del CNE.


El tema, claro está, es el abuso que ustedes cometen, o toleran si son "tropa", en cuanto al cautiverio injustificado de Leopoldo Lopez. Es bueno recordar que el se entregó cuando hubiese podido ser juzgado en libertad. ¿Y si sus crímenes fuesen tan viles como ustedes lo pretenden, tan contundentes, porque ya no se juzgó y sentenció? ¿Cual es la demora?

En fin, esta foto, ya que ustedes aparentemente no leen los textos de las declaraciones internacionales desde la ONU pa'bajo condenando los abusos judiciales de Venezuela, les dice de una manera clara, diáfana, que el mundo civilizado y democrático ha abandonado a la Venezuela chavista. Ellos consideran que el gobierno chavista está al margen de la decencia, de las virtudes humanas. No se engañen, no es porque asesinos como los Castros, chulos como Ortega, Lula o Cristina, autoritarios como Correa o Morales todavía los tratan que ustedes tienen su apoyo incondicional. Mas bien observen que el apoyo de algunos de ellos es cada día mas discreto porque ellos saben muy bien que ustedes van cuesta abajo y ellos no se van a ensuciar mas de lo necesario con el barro fétido que salpicará en la caída final del chavo-madurismo.

Saturday, November 22, 2014

Venezuela reaches the limits of procrastination

It has been now two years that the post Chavez era has started and nothing has been done to correct the obvious. It is true that there are many explanations, ranging from the inner divisions of chavismo to their absolute ignorance of how the world really works, not forgetting that Cuban masters have come to the realization that Venezuela is lost and that they need to loot as much as possible before the inevitable bankruptcy. The point I am trying to make here is that the regime does not take any serious decision outside of repression while the opposition is doldrumier than ever, apparently waiting for things to fall of their own weight. But such procrastination has consequences.

It's the economy, stupid!

The problem here is that under Chavez Venezuela has become more dependent on oil than at any time in its history. That this income reached astronomical highs is only part of the explanation, there was also a deliberate and continuing attempt at destroying the private production sector to weaken opposition financing, beyond ideology, of course.


As a consequence the populist system installed under Chavez can only function if the oil production allows for at least 2 million barrel export and at 100 USD a barrel. Today it is neither nor. Unfortunately the regime does not understand that the drop in oil prices is due to new energy sources, to the failure of world economy to recover in full from the 2008 crisis, from Saudi Arabia more interested in keeping market share than actual income, etc.

So what are the strategies of the regime? Well, it sends Ramirez former but still oil Tsar to beg for an oil price at 100. What else can it do? Oil production cannot increase just like that as Venezuela has forsaken the necessary investment that exist in, say, Saudi Arabia, to increase or decrease oil production at will. Never mind that strategies to hold market like having oil refineries abroad or captive products like Orimulsion have been recklessly disposed of.

One strategy that is not seriously contemplated is to release in a hurry some of the nefarious controls over local production in the hope that within a few months Venezuela would depend a little less on imports to feed itself. Say, until oil prices rebound a little.  Instead the regime has done nothing for two years but in the last two weeks has instead extended its controls, increased taxes, decreased dollars to producers. Well, at least according to the latest laws from the enabling law just expired, laws announced but nowhere to be seen yet. Even there, in wring down laws to further its control over everything the regime procrastinated...

But as bad as this is, it is not the worst part.  Years of controls, years of erroneous policies, years of speeches promoting labor instability have deeply damaged the production tissue of the country. Even if controls were to be lifted, it is now impossible for the local producers to rebound fast. As late as 2010-2011 any softening of the regime's controls could have still allowed local production to recover fast a minimum of productivity. But this is not the case anymore. The causes are many.

There is an extremely deleterious work environment were mafia like crime and trade union extortion make many production plants non viable. The infrastructure keeps deteriorating, from lack of power to roads in shambles which make difficult to increase production and distribution. Commerce, a major source of production funding, has been voided a year ago through the Dakazo when the regime has for all practical purposes taken "the right" to nationalize any stockroom. Investment for improving production has been at a minimum for the last few years creating a non competitive structure. And more.

Recovering from the real damage is going to be much harder and slower than it would have been 4 years ago, much harder than what people think, people that are not at ground zero the way yours truly is. The military has allowed it to happen. The regime believed that it was good for them. The opposition has been unable to articulate a message to condemn that destruction and warn of its consequences. Now they are all going to pay.

It is not politics, stupid!

This week and next we are seeing yet more evidence that the only thing people in charge are able to think about is more useless politicking. Both the regime and the opposition look more and more like rival bands playing on the Titanic.

The regime problems, besides the impeding war between the paramilitary colectivo thugs and the army, besides its inner factions at war, is that it has no clue on what to do except holding on to power at all costs and make sure Cuba receives its monthly allowance. All decisions, or lack thereof, come from that dystopia. So, to distract itself, it invents internal elections whose sole real objective is to get rid of some smaller factions like Marea Socialista. For that they are not afraid to mobilize the Electoral Board CNE, to suspend schools for a few days as if these were national elections on a crucial matter. Even El Universal felt obliged to comment on this new abuse.

But the opposition is not faring much better. The abandonment for all practical purposes of Leopoldo Lopez to his jail keeper Cabello has underscored yet again that as far as AD and Primero Justicia are concerned, if they are not the ones leading the opposition they cannot care less about chavismo remaining in office (assuming that this one throws them a few bones, at the very least).  Voluntad Popular of Lopez, at loss for ideas on how to get its leader out of jail, has decided to start a signature campaign to call for a new constituent assembly. As if this would help solving the current crisis... Not that the constitution needs to be changed badly, on that I could not more heartily agree, but the time frame is so dilated in time, if all goes well, that it is irrelevant to the current situation. Never mind that since the Tascon List few people will be willing to sign their names on any list that will ensure state discrimination against them. I, for one, did not go to sign up, not by fear, but for sheer amazement.

And thus we float downstream...


Wednesday, November 19, 2014

Alek Boyd tells us how he was robbed of his lap tops, and only them

Two days ago Alek Boyd, well know to our readers, suffered a break in at his home in London. Interestingly the only thing they took away was his lap tops. Money, cash, passports, remained behind. Just the lap tops. Since he has been a long time investigator of the Chavez regime corruption this blog asked him a few questions.
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We have been surprised to learn that even in London methods like those used in Venezuela to harass opposition are applied. Could you briefly tell us what happened?

Basically, one and/or a group of subjects of my investigations must have felt that breaking and entering into my flat, and stealing a couple of laptops would send a chill down my spine, and I would be silenced, or blackmailed with the information potentially retrieved. For years chavistas and their associates have been sending death threats, have launched smear campaigns to tarnish my reputation, have tried to hack my website and email accounts, have initiated ridiculously spurious legal cases against me, have attacked my family, all with the purpose of shutting me down. In their infinite ineptitude, they truly believe that the methods they use in Caracas can be extrapolated to any other place, without consequences. But they keep miscalculating, and erring.


Do you have any suspect or suspects?

Three suspects (people that have no relation or business whatsoever in this building) were filmed inside and around the place. Eventually they gained entry, hid in the staircase waiting for us to leave, forced my lock, and got what they were after. Let's just say that they left enough incriminating evidence behind (rain poncho, mobile phone, fingerprints) for the forensics to work on, which coupled with abundant CCTV recordings will hopefully reveal their identities sooner or later. No one walks through Central London without detection, but obviously this lot didn't get the memo.[Note: since this was posted Alek has added to his blog pictures of the trespassers]

Why? What do you think they are looking for?

I think they are after my sources, they want to know who is leaking stuff to me. Given that there's an absolute lack of rule of law in Venezuela, I fear they will apply "chavista justice" -a la Afiuni and so many others- to the brave souls that keep me informed.

Yet, you have rather been silent in recent weeks. Your latest report is over a month old. Any reason for that?

Yes, I have embarked in a seemingly infinite project of mapping out the Boliburgeoisie and its connections and business with chavismo, which I plan to turn into a book. In the current circumstances, political careers in Venezuela do not end with sunlight on corruption. But the Boligarchs are "en franca expansión internacional". Venezuela has become too little, backward and unsophisticated to this lot, and boy do they abhor someone bringing to light research on their ill gotten fortunes. Spain, the US, France, Germany, and then of course, St Tropez, Monaco, St Barts... They want to rob shoulders with the global rich you see, and in that legitimisation process, which I like to call Slimification, online profiles made up by the likes of RaFa must be protected at all cost. [Note: Bolibourgeois and Boligarchs are the nouveau riche of the chavista regime, those who made millions through sweet uncontrolled "deals" with the government, from phony and/or overpriced contracts to currency exchange traffic. RaFa is a main hacker working for these people. ]

What are you next "legal" steps?

The Metropolitan Police are investigating and keeping me up to speed on the process, within the constraints of what's permitted. Their approach changed, from one presuming the break in as an opportunistic event to a more concerned approach, when I mentioned that I was an investigative journalist and that information contained in my laptops could put some people's lives in grave danger.

And what are your next investigation steps? Or are such proceedings going to affect your activities?

Obviously I have to wait and see how this whole thing ends. While London's law enforcers carry out their job, I shall do my own little investigation and try to get to the bottom of this rabbit hole. I don't believe for one second that this was a random event, so there's a special online place already reserved for my findings. This does not end with the three thugs featured in CCTV. Given that there are ongoing cases in other parts of the world, involving other jurisdictions, I shall keep a steady feed to parties involved on both sides of the pond, unless of course I get run over or suffer an "accident" in the process.

Tuesday, November 18, 2014

28 new laws are going to solve all of our problems

Maduro is finishing his week the enabling law period. So, as it has always been the case since Chavez reached office, every hitlerian enabling law lasts one to two years but 90% of the "laws" decreed are published in the very final couple of weeks. One truly wonders why the urgency of an enabling law if the future alleged positive effects of such dictatorial measure will be announced at the very end of the period. Of course, for those new to this sick game, the whole point of the regime during these months of wait is to test political waters and announce political laws in bulk so that opposition will be drown under the flood. Remember: this is ALL about control, NOTHING about sound economics.


So tonight Maduro tells us that there will be 28 more new decrees that will be laws and we only have hints at it. In the rush they do not even bother to publish them a few days ahead so people have time to read them before they get into application..... From the little bit I can read it is more of the same, more revamped stuff, more attempts at making past approved controls that failed into refurbished items that we are absolutely sure will work this time around...

One example is a new "Ley Gran Sistema Nacional Agroalimentario" law for the great national agroalimentary system, or something like that. This time, we are told, the state will now exactly what is produced and where so contraband will be impossible. Yeah, right...  Long time readers of this blog now that wince 2010 there have been diverse instruments like SADA which were designed to monitor ALL interstate food and ingredients shipment. That is right, since 2010 if you manufacture food or an ingredient that goes into food, you need a permit from the state before your truck can leave the manufacturing plant. And the guys at the receiving end must report that they received it.

Clearly, in 4 years the system has failed and could never stop contraband at the Colombian border or that street vendors received all sorts of food items that technically it was not possible for them to receive. The only way, THE ONLY WAY I stress, for these illegal shipments to operate is that the military does not fulfill its duties since they are the one in charge to monitor the roads through which these shipments go.  Long time readers of this blog know of course the extensive bevy of military corruption that I have written about over the years. Military get rich by allowing those who pay for it to bypass these controls. Does any one seriously think that rewriting the law will stop corrupt military of a corrupt military regime?

There are also delicious contractions. A law will be published to try to encourage foreign investors. On the other hand another law will allow for direct confiscation of anything that is not shipped as some fat military thinks it should be shipped.  At least before if you were caught "speculating" or "hoarding" supposedly the military would force you to sell at the regulated price and let you cash that money (remember the dakazo?). Now they will be able to confiscate it outright. Bureaucratic simplification we should call it. We are absolutely sure that foreign investors are going to flock in.

Meanwhile the parallel exchange rate for the dollar was today at 124,57 Bs. for one dollar. That is already a 20% depreciation of the bolivar in not even two weeks.  Let's see what is the value in a few days.


Saturday, November 15, 2014

Why the cruelty against Leopoldo Lopez?

The current Venezuelan dictatorship is unusual in that it has, relatively, few political prisoners. However this is amply compensated by the notorious cruelty that the regime has against such prisoners. The case of Afiuni has defrayed the chronicles. Simonovis had to be in a near death situation for the regime to give him home arrest so he could be treated. And "smaller" cases are also the target of human rights violations such as students raped or threatened with rape while arrested early this year. In addition to physical cruelty there is also a purposeful mental cruelty from all sorts of verbal abuses to trials that are postponed constantly so not even the illusion of justice is offered. But what is happening to Leopoldo Lopez is truly baffling, even by the regime "standards".

Before I get into this story let me add a comment. The current violence and almost randomness of torture, the abuse of power, the deliberate cruelty are alien to Venezuelan political "tradition". And it is a tradition with quite a story for itself, from the troubled civil wars of the XIX century to the longest of dictatorships with Gomez, to the anti AD expediency of Perez Jimenez. Whichever the case was in general the power in place tried to dispatch political enemies as fast as possible, be them killed quickly or interned in a camp after a fast trial of sorts. So why this totally novel form of crushing political dissent? I will advance two reasons.


The first one is that it is not novel, it has been duly tested in Cuba and imported from Cuba, even if newspapers that should know better, like the New York Times, exhibit suddenly short term memory.

The second one is that the regime needs to erase the memory of the previous system, the only system some Venezuelans can refer to. So, by committing more horrendous crimes than the pre Chavez era and by saying that from 1958 to 1998 Venezuela was under an unbearable tyranny sort of works, paradoxically, in the mind of some to make them believe that this is now a heaven of democracy. In particular for idiots of the Eva Golinger type blabbering now from the Putin TV propaganda network.

This comment will help understand what comes next.  As readers may know I have been following closely the career of Lopez once he decided to form his own party. Lately I have written less for a variety of reasons, none of them for lack of interest. After all the plight of Lopez is now of public worldwide notoriety and a blogger's voice is not essential anymore. Heck, even the UN has asked for the release of Leopoldo Lopez! So why the cruelty against Lopez?

Let's remind the reader that the visitations rights to Lopez are reduced to a minimum. That his trial according tot he "evidence" should be swift and instead is dragging in a particularly shameful way. That when he tries to shout from his window cell or that people try from outside to voice their support the Nazional Guard of whatever fascist military in charge play loud sirens. That in seclusion without access to water his cell was bombarded with human feces. And what not.

The two amazing things here is that the tortures are so well known and that in spite of international outrage the regime goes further in its abuse. It is almost as if the regime tried to make its lies on Lopez detention conditions even more dramatic considering the truth we know on them. It is not enough to invoke the influence of the Castro creeps of Cuba. Something else is playing here.

The latest scene was when two representatives of Chile's parliament, from the side holding power today, were denied access to Lopez even though they represented the International Socialist organization.

Clearly the regime must know that all of these will have negative consequences. Certainly foreign folks are reluctant to attack the regime for a variety of excuses but there is a point when these excuses will not hold any longer, at least in civilized societies that the regime may need desperately in the future.

We need to go further than the idea that Lopez is in fact a hostage in the faction wars inside chavismo. There are not many reasons that may explain why the obtuse and cruel treatment of Lopez.

The regime is sending an international sign that it is ready to become a pariah state like Cuba.

The regime sends a warning to all of  Venezuela citizens that Lopez fate is what awaits them if...

And worse, this behavior has become normal operating procedures for the regime. Totalitarian amorality reigns.


Thursday, November 13, 2014

A broke Venezuela splits its finances in two

To add more complexity to an already complicated situation Maduro went a big step ahead in creating a parallel administration for the country. That is, a parallel system for many activities of the state, a system that he can finance (if he has money) as he pleases, outside of any legislative control. Why is he doing that? Two reasons. Because he does not have enough money for all so he must find a "legal" way to give the money to only a few. Because he may be losing next year legislative election by a margin wide enough that no amount of electoral fraud will be able to disguise the fact (after all, we are in an elected dictatorship, are we not?)

To nail down the whole scheme he even dares making these new laws he decreed "organicas" which means that the laws can only be changed by a 2/3 vote in the national Assembly, something he trusts the opposition will not be able to reach. For those that still think Venezuela is a democracy (mercifully a dwindling small number) let me remind you that Maduro decrees these law through an "enabling law", Hitler style, that he got barely with a 3/5 majority (having expelled/blackmailed/bought enough opposition representatives on the flimsiest of charges to reach the magical number). And yet these laws can only be abrogated or modified by a 2/3 majority. 3/5 become 2/3. Explain to me where is representation and democracy in that....


Which are these laws? Today 5, more to come in the next days as the enabling law period ends in a few days (interesting how the regime always uses the last days of enabling laws to push though the laws it wants and has been planning for a long time).

First the 3 laws that truly interest the regime. One is to give the Misiones permanency in time. That is, you can only eliminate them though that famous 2/3 vote. Need I remind you that all most Misiones function could have been managed with the pre Chavez administrative structure but that the Misiones had been taken away from administrative control by Chavez to further his personality cult and outrageous populism?

But of course, a new parliament may not want to fund Misiones and thus the point would be moot. Henceforth a second law supplements the funds that must be ascribed to the Misiones in the first law law by creating a new bank strictly for Misiones programs.

To tie the whole package the third law creates "Presidential Councils of the Popular Power". Translation: the regime creates administrative structures that will be part elected by a minority, part appointed by the regime (you need to remember that many decisions of the Consejos Comunales are taken with a show of arms in the presence of red shirted officials so whatever input the Consejos Comunales will have in this new regime contraption will neither be representative nor democratic {deliberate tautology}),  That new contraption will transfer functions for the Poder Popular away from public administration. That is, the Poder Popular that does not exist in the constitution, that was voted down in the 2007 referendum, is now expanded under presidential control in a way that the future Parliament will not be able to control. Yeah right, this is a democracy.

Of course, what basically amounts to yet another coup needs to be sweetened by some populist measure so that nobody will speak about the three bad laws and only about the two "good ones".

The first one, which serves double purpose because it is also a weapon to blackmail business, is a law for "productive jobs" which is nothing more than a way to force business to employ youngsters, whether they need them or not, and put them on par with experienced workers and probably make it impossible to be fired as it is the case with all current workers.  The calculation is simple: if by 2015 elections the regime has forced the employment of, say, 50,000 of these youth selected from families where no one has a job, that could mean 250,000 captive votes so afraid would be those families to lose their only income. The same recipe that was used in two previous elections, creating bogus universities for bogus titles in 2006 and bogus housing construction in  2012 (there were constructions but they probably could have been done through normal ways, with less corruption, in larger amounts, if the existing tools had been organized better).

The last one is relatively cheap and harmless compared to the other four. It consists in increasing by a weak amount the bonus food ticket that business must give to its employees for lunch but which in fact became a part of employees revenue except that it was not counted in the salary when social benefits were factored in (social security, dismissal packages, etc). The old law previewed that this "cesta ticket" had to be between 0,25 and 0,5 of a financial marker that determines the cost of some public services (unidad tributaria). Most business have long been above of 0,25 so the bottom increase at 0,5 will have little effect, merely yet another demagoguery moment.

So there you have it, the shape of things to come.

Meanwhile this week the black market for the bolivar lost another 10% passing from 104 last week at 114 today bolivares for one US dollar. For those who do not grasp what this means, the difference between the official dollar at 6.3 and the black dollar at 114 is 18.  A whopping 18 fold! I let you draw your own guesses as to the success of these latest regime's measures and those to come.... Or maybe the regime is trying to create two countries, one chavista functioning along a worthless currency and another anti chavista that will have to pay full price. Where have I seen this?  Cuba?  Naaaah!


Monday, November 10, 2014

The Regime's finely honed art of lying: Marcos Torres and the non-devaluation news

Look, indicators are in deep red but we are groovy!
One must be in awe at the news this morning, reflecting an interview of our top economic minister to the the top chavista talk show.  General Marcos Torres who is now the one in charge of all the money in Venezuela has given a gravity defying performance, helped by Jose Vicente Rangel, the worst courtier of the regime. But there is already a clear interpretation beyond the words of the General. One, the regime is already hard into an electoral campaign that may come sooner than expected and two, as a General we can only by charitable by supposing he thinks the economy is just like the barracks; he gives orders, people obey, results are predictable.

To make sure you do not think I am making up what follows then, I will take my sources from two pro Chavez papers, Ultimas Noticias and El Universal. Also I am not going to comment on this as a financier which I am not but as a business person at ground zero.


The first thing that even Ultimas Noticias notes is that JVR was careful not to ask about Inflation, GDP drop or shortage index. Thus the interview was going to be all good news...


- "Hay garantías de que nosotros vamos a mantener, de verdad, ese sistema cambiario de forma tal de cubrir todas las necesidades del país. No está planteada ninguna devaluación. Seguiremos trabajando con el 6,30 (bolívares por dólar ), con el Sicad I y el Sicad II".
There are guarantees [!?] that we are going to maintain, truly [I kid you not], that foreign exchange system in a way to cover all the country's needs. No devaluation is in the works.  We will continue to work at 6.3 to the dollar and SICAD I and II.

Back from Europe I KNOW that 6.3 is unsustainable. A little bit as if Obama were to decree that with a quarter you get now 2 euros... I need no MBA for that, just to pay my bills.

- “Estamos efectuando reuniones con el sector privado, con el empresariado, vamos a las empresas a ver las debilidades y fortalezas, esto nos permitirá fortalecer productividad, no con el sector especulador, acaparador (...) Vamos a direccionar las divisas para el sector productivo para el 2015”.
We are holding meetings with the private sector, with businessmen, we are going to businesses to look at their weaknesses and strengths, this will allow us to reinforce productivity, not with the speculating, hoarding sector ... We are going to directionate [chavez-speak, even more grating in Spanish] currency to the productive sector in 2015.

Where do I start?
That Marcos Torres does not know the difference between production and productivity?
That I am one of the business that has been visited, inspected, gathered, suggested, passed all trials, approved, promised to, encouraged to ask for more CENCOEX,  and yet the regime is holding more than 2 million dollars against our providers, some from February already?
That most business are limiting their importations of raw material because the refusal to allow us to pay our debts has brought us to a dangerous level of debt in case the regime would devaluate suddenly in a retroactive way as it has already happened in the past?
That without raw material there can be no production and even less productivity?
That if speculation may still be possible (and encouraged through black market) hoarding is impossible because, well, there are not enough stuff to hoard?

It is quite impressive that in a single grammatically incorrect sentence Marcos Torres reveals such an amount of bad faith and/or ignorance.

-"Ya el presidente Nicolás Maduro nos ha dado una instrucción de que manejamos diferentes escenarios. Tenemos excelentes previsiones". Already president Maduro has given us instructions that we deal with different scenarios. We have excellent prognostics. 

He needs to receive instructions from Maduro? Is it not his job to present options to the president without having to be told? Does he not realize that the need to admit that they handle different scenarios is a confession of parts that none of them is "excellent"?

The next one was perhaps the best one...

"Nosotros le decimos a los inversionistas que cuenten y confíen en Venezuela porque nosotros seguiremos honrando y cumpliendo con nuestros compromisos internacionales como lo demostramos durante todo el año 2014 y específicamente en el año 2013, donde pagó la República y pagó Pdvsa ". We tell investors that they can count on Venezuela because we keep honoring and keeping up with our international engagements as we showed through 2014  and mostly 2013, were the republic paid and PDVSA paid.

I am passing on yet another grammatically incorrect sentence, after all is just another loutish general. But I will note that his need to stress 2013 over 2014 is yet another subconscious betrayal that 2014 was not all that it was cracked up to be debt payment wise. What is graver there is that PDVSA may have paid but that is not what makes the economy work: what makes the economy work is either to pay me, who produces, or have the honesty to tell me that I will not receive dollars ever again so I can close shop once and for all.

Or put it in another way: the regime is afraid of Wall Street but not afraid of inflicting final damage to production inside Venezuela.

I need not go further, I am sure the reader gets the point. This is electoral propaganda of the worst kind, piling up lies.

Sunday, November 9, 2014

Las viudas de Berlín

Hoy celebramos la libertad del pueblo alemán, el día cuando cayeron los primeros pedazos del muro de Berlín, el infame muro que separó las democracias occidentales de la tiranía comunista. Que los resultados no hayan sido todos los esperados no es el punto: nadie discute que Europa y el mundo no hayan mejorado en estos últimos 25 años. Pero si Europa es más rica y prospera que en ningún momento de su historia, pese a una crisis coyuntural que afecta a algunos, no todos se han podido librar todavía del yugo comunista, yugo que ha adquirido otros nombres pero que sigue teniendo el mismo objetivo final.


En China todavía existe la dictadura comunista con nombre pero con apellido nuevo. Para retener el poder los comunistas chinos entendieron que tenían que cambiar, si no iban a ser el ultimo dominó en caer, al final de la hilera que empezaba en la Alemania del Este. Hicieron un pacto con su pueblo, un pacto que después de siglos de hambruna el pueblo chino podía aceptar. Todos iban a ganar plata con una condición, que no se toque el poder político de Pekín. El cambio de apellido funcionó y hoy en día China es una economía capitalista salvaje que a cuesta de una explotación humana salvaje ha permitido la emergencia de una clase media y rica que vemos hoy en día sustituyendo los autobuses otrora llenos de japoneses en las capitales europeas.

Pero hay otras viudas de Berlín. Algunas han aceptado entrar en concubinatos difíciles, otras sencillamente no se han vuelto a casar, algunas tratando de pretender que son felices en una nueva vida de comunismo "light". Muchas de las viudas de la Unión Soviética no aceptan su viudez. Puede ser que tomen amantes, pero no aceptan los cambios. Es el caso de Belarús, Azerbaiyán y una que otra tiranía de Asia Central. Los rusos fueron más consecuentes. Siempre amantes de esposos rudos han aceptado un concubinato con un tal Putín.

Pero de todas la viudas de Berlín la mas patética fue Cuba. Claro, hay que entender que la pobre vivía alejada del único marido que tuvo y que la mantuvo por años. Encerrada en una isla depauperada sencillamente no pudo aceptar su baja de estatus y empezó a chulearse otros por ahí. Cuba ha tenido varios hijos ilegítimos, todos fracasados o destinados al fracaso. Es más, hasta una asociación tienen, establecida en un tal Foro de Sao Paulo. En esa escuela les enseñan que no son bastardos de una lujuria salvaje sino nietos legales de Karl Marx, hijos de Fidel y que la Unión Soviética fue un tío que no tuvo suerte en la vida. China es una prima lejana, algo loca, que se mata trabajando y a quien se le saca plata pero que sería de muy mal gusto imitar.

El problema con esa cuerda de bastardos es que han salido muy parecidos a la Mamá y todos son chulos. Sacan o roban la plata a quien sea y terminan todos como dictatorzuelos disfrutando en pleno la plata que se robaron.  Por lo menos los tíos de ellos no tenían escándalos como la niñera de Elias Jaua, agarrada en Brazil con armas y papeles comprometedores. O como Antonini pasando maletas de dólares como si fuesen chocolates de regalo.  Hasta los mas educados de ellos terminan siendo corruptos como en Brasil vemos el Mensalao o Petrobras. Todos sabíamos de las dachas de los jerarcas soviéticos o de los yates de Fidel, pero ellos tenían una cierta discreción y nos se les podía agarrar in fraganti como cayeron los chavistas a cada rato o, con menor frecuencia, corruptos morales como Correa, Cristina, Lula o Dilma.

De todas las viudas de Berlín los hermanos Castro han resultado ser las peores, logrando propagar el mal que nació en la Alemania del Este y la Unión Soviética a todo un continente que pagará muy caro haberse acostado con esos viejos morbosos.


Monday, November 3, 2014

A brief history of "colectivos"

Colectivos can be this tacky...
With the recent murder of representative Serra and the summary dismissal of Interior Minister Rodriguez Torres "colectivos" have assumed durable front news status. Heck, there is even a Wikipedia page on them, which is curiously critical considering the constant work that the regime propaganda machine does to edit permanently unfavorable comments in the people's encyclopedia page.

Still, that page is lacking on significant background and historical development, and could be neutered soon. Thus a blog post may be of help (1).


Colectivos today are a paramilitary force, based mostly in Caracas extensive slums and popular old districts (e.g. 23 Enero) where they reign supreme (2). From there they can descend on the city, execute whichever action they want or are requested to do, and retreat to an intricate network of small narrow alleys where police and army fear to thread. In addition, in those slums (ranchos or barrios), they make a basic living controlling anything, from governmental "social" programs of distribution to drug trafficking. They also happen in other cities of Venezuela but Caracas is their stronghold now.  How did this come to happen?

The story of colectivos is a progressive evolution of pro Chavez organized militants which were deliberately armed and motorized to inspire fear against opposition protests and upon which the regime eventually lost control.

The very origin comes as early as the 1998 campaign when I could see by myself the motivation in San Felipe, watching locals refurbishing a dilapidated house into a campaign headquarter, a block away from my home then. Chavismo has always had a motivated component that was relatively easy to herd through the following years into anything Chavez wanted.

... this threatening....
We can pinpoint the original precursor of colectivos to the Bolivarian Circles (Circulos Bolivarianos) creation in 2001. Already by then in spite of his electoral victories it was clear that an opposition to Chavez would exist, something quite traumatic and unacceptable for the narcissistic personality Chavez was. As a bland imitation of Cuban CDR were these circles created which were meant to promote patriotism and chavista motto in small neighbor groups of a dozen folks or so. By 2003 the political evolution had evolved and Chavez needed something more substantial and organized than the loosely organized fabric of these BC. But the experience had brought a few lessons for the regime. First, the BC were the place for the initial testing and recruiting of more hardcore supporters, those that should be trained in hit forces. Also, the BC were the first experience in financing such supporter groups and it became clear for the regime that buying loyalties was not something too difficult to do.

The next step came probably late 2001 when more hard core militants started to be equipped with motorbikes. This was very useful to the regime as quickly a hundred or two bikers could be summoned anywhere in Caracas to protest any opposition activity or media (Globovision was many times besieged by such hordes). A prime example was Lina Ron, who came to fame in September 2001 supporting the WTC blowing up by Al Qaeda by protesting herself in front of the US embassy in Caracas. Another aspect was supporting these nascent assault sections through informal street work. This was convenient because it was easy to place them in many areas, they were "working" in groups in informal systems and thus easily called upon. This was the time when "buhoneros" took over major downtown areas of Caracas, in particular the Sabana Grande Boulevard that they wrecked over time. (3)

We knew that motorizados had arrived as a force to reckon with when the mayor of Caracas Bernal himself led motorbike gangs in April 2002 to intimidate opposition venues like the RCTV network where his acts were duly filmed for posterity. But that 2002 attempt against Chavez changed that dynamic.

In 2002 Chavez learned that no matter what he could never fully trust the Venezuelan army (forgetting I suppose that no Venezuelan president ever did, never mind that Chavez himself was the 1992 coup monger of infamy). Lina Ron and Freddy Bernal would not be enough to secure his hold. Sure, it was important to develop their potential but this was not going to be enough, at least in the vision of the time. From then on he slowly but surely started building militias, unarmed at first but progressively given some type of access to weaponry. The culmination of that militia development was in 2007 when the constitutional referendum failed. One of the objectives was in fact to bring into the constitution the figure of the militia as an open counterweight to the armed forces. Needless to say that part of the defeat of 2007 was probably due to the army actually counting the vote as it happened and forcing Chavez to accept the result. The defense minister of that time was never herd of afterwards when he was replaced.

But that was not all. After the natural fading of the BC, the limited social reach of motorizados and the like, there was a need to a more structured control, that would bypass the legal constitutional frame work of governors and mayors. In 2006 Chavez created the consejos comunales (communal councils) which were elected assemblies of citizens that at first had the upper hand over legal authorities on some activities.

.... or this resolved beating up journalists, e.g..
Consejos Comunales was the thing chavismo had sought for years. The nature of their public debate through "direct participatory democracy" was an easy way to monitor dissent since this one was detected early, and thus erased or forced into discretion. That there were bigger organizations than the BC, going as far as ruling over a few thousand folks, allowed them to be financed directly in a way that favored its leadership politically. And finally, when a consejo communal is formed it needs to first be registered with the government, and sure enough if non chavista folks presided that registration was refused and henceforth funds would not be coming. Blackmail, and extortion, and close surveillance at a single stroke!

However the consejos comunales whose objective is primarily political are yet to be given a formal and legal system for their control. Thus there is still today a certain anarchy in their workings and this favored the final arrival of colectivos.  The main aim of consejos comunales, militias, bolivarian circles, is a bring in the vote, along a public sector employee which is also mobilized for elections (electoral fraud committed by any of the mentioned actors). And that is where the final cleavage between colectivos and the rest of chavismo organizations happened.

If the bring in the vote actions were shared, the retribution was not the same. It is important to note that since 2006 two new factors have appeared: food shortages and drug trafficking. Motorbikes and informal vendors, the origin of colectivos when combined with radical politicians issued from old guerrilla or recent BC, were uniquely suited to manage this booming business. They had the mobility of the motorizados to bring their traffic anywhere, the network of buhoneros to distribute things for a profit, with the resolve and excuse of being "revolutionary" at the level of "el pueblo" and not the bolibourgeois plutocrats getting rich by ransacking the public coffers. Thus the colectivo sees its actions in a bring in the vote system as a retributive service in addition of the political duty, whereas the other group saw it as payment time for Chavez for all the largess dispensed by him in between elections. A small nuance perhaps but a psychological one of importance: colectivos are self sustaining sovereign pro Chavez groups, they do not feel dependent on him, and even less on his heirs (4). One notable thing is that they exert patronage at their whims, and associate with whomever they please in the regime, be it important or not (the case of Serra, e.g.).

And thus the continuous accretion that formed these colectivos over a decade, from political activist of 1998-2002, to the successive layers of regime sponsored hard core bikers and informal vendors (motorizados and buhoneros), to which you may add disgruntled militia seeking more leeway, political operatives seeking more influence. Certainly when food and drug traffickers became important, they hired colectivos as needed, though in all fairness not all colectivos are rotten to the core though most probably are. You need to also keep in mind that Venezuelan scandalous overcrowding of prison and the traffic inside in drugs and weaponry also has had some impact on these colectivos, providing them with the violent leadership required.

Thus is the historical background of colectivos, original civil organizations that were made to evolve into paramilitary structures that Chavez himself could barely control but served him well to scare opposition, in particular at election time. Now that Chavez is gone, no one can control them, and you know why. Colectivos, storm troopers, assault sections, actos de repudio promoters, ... same difference

If I am wrong, prove me wrong.


---------------------

1) you can consult in Spanish mythic pages on the subject of colectivos like Roland Denis in Aporrea. But of course any and all of the visions on colectivos do have a definitive bias, so fresh in history they are.

2) there is no clear date as to colectivos foundation. Forms of colectivos existing during the guerrilla times of the 60ies became extinct but the name survived as in Venezuelan Spanish it conveys the sense of collective interest of a certain population group. You speak for "the collective" not for yourself. In fact, their leaders today in general do maintain a rather modest profile not wanting to outshine their followers even if in practice they may have even a right of life and death...  I would say that the new version of colectivos appeared after the failed crisis of 2002, either as a spontaneous reaction for revolutionary leftist defense or a deliberate reinvention by the regime. I think the later was the most important factor, at least as soon as it saw small colectivos assemble.

3)  in fact for speed in their mobilization, motorbikes were again allowed on the main highways which has created today a major circulation problem, amen of crime as motorizados have no trouble robbing folks trapped in traffic jams on the highways. One should remind the infamous case of looting a truck crashed in the highway over the dead body of the driver that no one bothered dealing with. Bikers arrived even with passengers to help out in the looting, and were not afraid to confront authorities when they arrived on the scene.

4) Chavez himself on occasion complained abut how unruly some colectivos were: Lina Ron, Alexis Vive, La Piedrita. But unruly for Chavez meant not obeying him rather than being unruly which for him was never an issue in the calculated anarchy that the regime has sponsored.

Sunday, November 2, 2014

Hyperinflation as a gateway to dollarization (or eurozization if you wish)

Printing bolivares
There is no need now to argue against the disastrous economic situation of Venezuela, all of Chavez making (Maduro is a mere idiot managed by his Cuban puppeteers who are merely making things worse than what they should be). The results are for all to see. From an oil exporting country we have done our first importation of oil. More than at any time in our history we depend on oil, at a time where the oil barrel has lost around 25% of its value. We import at the very least 60% of our food (some estimates reach 75% of our total needs in whatever). Our international reserves have reached a decades low. The "official" yearly inflation is now 63% when the real one, outside of a failed price control system, hovers probably around 100%. And this, my friends, when all your neighbors have a yearly inflation average below 4% means hyperinflation, in XXI century parameters. The more so when there is a nasty trend in many advanced countries towards deflation...


My experience in the last month confirms all of this, Besides my culture shock coming back, my business trip in Europe was dismal. I could start by the difficulties I experienced in getting an airplane ticket out of Venezuela, in bolivares. In dollars there is no problem, the more so if someone buys it from you from outside the country. But if you want it in local currency and you get one, you pay full fare. No discounts whatsoever. Yet I did not care since we all try to unload as many bolivares as we can. The nasty surprise was that CENCOEX did not approve my travel dollars for technical reasons (set to make sure that a fair percentage of people cannot access them, even at SICAD 1 of 13 to a USD instead of the offical 6.3). Thus I had to do a business trip on MY personal euro savings, of which I will only recover a portion. As such I cannot tell you how expensive is Europe when you travel at 102 bolivares for an euro (based on declared reserves).

But that was not the worst thing. Every one I approached did not want to do further business with Venezuela. Sure, they would sell me anything if I paid in advance which is impossible. Though understandable. But in one case there was that Chinese company who sent me packing. That is right, some in commie China do not want to deal with Venezuela EVEN if you pay in advance. It is not worth the bother between permits and assorted headaches from paper work.  My investment talk were simply heard of with a lot of sympathy, the kind you use when your poor relatives try to convince you with a business proposal, before declining your participation in it.

After this eye opening experience, discovering that once welcome Venezuela is now a business outcast, I am back home to learn that not only airplane tickets are in dollars, but from now on car sales will also be in dollars. That is right, the regime has reversed a decades all policy to promote at least assembly lines in Venezuela. Rather than allowing for agonizing car assemblies to import what they need to work, the regime has decided that it is preferable to have direct imports of assembled vehicles, if you have the dollars.  I am going to pass on who has dollars today in Venezuela to import fancy cars (hint: they dress in red in public meetings). The point here is that "el pueblo" can forget about buying small cars, that dollarization advances and that just like in Cuba, those who will live better are those who are able to get a few greenbacks. A decade and a half of bogus revolution to reach monetary dependency.

This is the fate of Venezuela, move towards a dollarization of the economy because the regime has failed in creating a sustainable economic system. This is not a matter of a willful political decision to impoverish the population to make it more dependent on the regime. If it is true that this is the case in Cuba and becoming so in Venezuela, it is also true that economic failure came first and that the regimes simply decided to use that economic failure the best they could (making economy worse as an afterthought). After all, it is in the political interest of these countries to have a viable economy, or at least one that produces enough cash to promote revolutions elsewhere. Remember that Cuba regained importance only after Chavez started bankrolling that influence, gaining after the fact Nicaragua, Ecuador, Bolivia, some Caribbean and to a lesser extent Argentina (with or without Venezuelan help, countries like Uruguay or Brazil were fated to "alternance").

Thus we have reached an undeclared dollarization of the economy, promoted through hyperinflation. The only way the bankrupt regime can retain control is to drop "unnecessary" sectors of the economy (cars, electronics, luxury item, exogenous food products, etc..) to a dollar market, while retaining control on basic staples for which they may get enough cash for cheap distribution to its hard core base. Even advanced medical care has been thrown to dollar holders as the case of Jaua's nanny reveal. The wife of a regime high ranked minister went to Brazil for medical treatment instead of getting it in Venezuela (and the 12 years serving nanny got caught at the Sao Paulo airport with a gun).

The minister of "comunas", the one in charge of organizing "el pueblo" has had a nanny for at least 12 years, sends his kids to the most expensive schools in Caracas, travels free in governmental airplanes (that is why the nanny could leave with a gun in her bags) to have the best health care possible outside of Venezuela, paid in dollars. He is dollarized. Meanwhile that pueblo can eat dollarized shit, but paid in bolivares.