Archive for October, 2007

Top Supreme Court member resolves National Assembly conflict

October 5, 2007

Caracas (BS News). The President (E)* of the Venezuelan Supreme Court Hugo Chavez, ruled today
that it is obvious that the National Assembly does not have to restrict
itself to the reform suggested by him in his reform proposal as
President of the Republic, but can clearly add any other articles it
fells like it. Chavez, who also holds the jobs of Commander in Chief,
President, Treasurer, Chief Entertainer, President of his Party PSUV,
Autocrat and future Emperor, made the decision to avoid the unnecessary
discussion taking place in the National Assembly on the subject.

The second Vice-President of the National Assembly Roberto Hernandez, had suggested
that the correct interpretation of Art. 342 of the Venezuelan
Constitution limited the Assembly to the 33 articles proposed by Chavez
for their consideration. This forced Chavez to issue his unsolicited
ruling based on the Non-Dogma School of Law from Barinas State, where
he acquired his legal knowledge, which qualified him for the position.
Hernandez is only a lawyer, with no experience on the bench and
certainly no wisdom like Hugo Chavez.

Chavez’s
important ruling may have even gone further when he suggested that they
they could add at this stage new articles without following the steps
outlined in Art. 343, which require the proposed reform to be discussed
in a certain fashion. Some have suggested that at this point no change
could be made either in adding articles without sending it back to the
first discussion. If this were the case, the referendum to approve the
reform could not take place in 2007, setting back the Autocrat’s
schedule. Apparently Chavez’s interpretation arises from some
jurisprudence called “Don’t entangle my kite” (No me enredes el
papagayo), which states that if the autocrat’s path is delayed, then
anything can be done to avoid the delay.
 \u003cdiv\> \u003c/div\>\u003cdiv\>The formal President of the Supreme Court, Luis Estella Morales, did not comment on the decision, but as in previous case, she will ratify any prior decision by her superior if it is ever requested. In recent years, Chavez’ decision have not been appealed or admitted for appeal by the functional members of the Court. \u003c/div\>\u003cdiv\> \u003c/div\>\u003cdiv\>*(E) means that he is in charge!\u003c/div\>\u003c/div\>”,0]
);
D([“ce”]);

//–>

The
formal President of the Supreme Court, Luis Estella Morales, did not
comment on the decision, but as in previous case, she will ratify any
prior decision by her superior if it is ever requested. In recent
years, Chavez’ decision have not been appealed or admitted for appeal
by the functional members of the Court.

(*)(E) means that he is in charge!

People’s Power…but not for the people…

October 4, 2007

In the 2000 Constitution promoted by Hugo Chavez, the concept of
Citizen’s Power was created. This supposedly independent body would be
composed of two existing institutions: The General Prosecutor and the
Comptroller and by the newly created People’s Ombudsman. These
independent powers, were supposed to be proposed by an open process,
which according to Venezuelan law has to start 90 days ahead of the day
the term ends for the position and if this process were not followed,
the National Assembly would choose these three independent positions.
 
In
the 1999 Constituent Assembly there was no provision for how it would
be chosen the first time and since that Assembly dissolved the existing
Congress and the new Assembly had yet to be elected, Chavez and his
cohorts created a body with no legal basis, composed of 16 people,
which ruled the country between the time the Constituent Assembly was
finished and the time the new Assembly was elected.
 
The National Assembly selected the representatives of the Citizen’s Power without following any of the procedures established in the Constitutional document, which had been approved earlier that year
 
Clearly,
instead of appointing three true representatives of the people, who
would watch for their rights and the upholding of the law, they named
three unconditional Chavistas (one was the Vice-President!) who have
acted as such during the last almost seven years, absolutely submissive
to the Government and always ready to defend it, instead of the
citizens they are supposed to represent.
 
It’s
hard to say who has been the most despicable of the three. The
Comptroller has been almost invisible in the face of the biggest
accusations and scandals of corruption in the country’s history and the
most blatant use of the Government’s resources by a political party.
The People’s Ombudsman has been the defender of the Government, absent
from the huge violations of human rights that have taken pace, from the
outright shooting of peaceful protesters to the disgusting blacklisting
of the Tascon/Maisanta/Chavez list. And then there is the General
Prosecutor who has allowed Chavistas to blatantly violate the laws,
while prosecuting all opposition figures that got in the way, while
failing miserably to prove his assertions and accusations in the most
visible cases, such as the Anderson case, which by the way, remains
unsolved.
 
Well yesterday, Alfredo Romero, a
representative form NGO Vive and two other NGO’s, asked the Supreme
Court to force the “Citizens” Power to start the process of having
people propose who will replace them after their term expires on Dec. 20th. (or 22nd. I am not sure). The point is that such a process should have been started on Sept. 20th.
, Sixty days before the required thirty days for the National Assembly
to name them. (They can be reelected after their seven-year term
expires).
 
They called it fraud
against the law, because the Constitution says that if this open and
democratic process is not carried out, then the National assembly can
go ahead and do it, without following the procedure of open proposals
by the citizens. The Prosecutor in his customary cynical fashion said
in early September that the process was delayed because they had been
unable to find any opposition figures to propose themselves. The
Prosecutor never explained how this “search” had taken place, given
that no public call for candidates has been made.
 
Today,
the Prosecutor gave an outrageous press conference, in which after
saying he did not know Mr. Romero or his track record in the defense of
human rights, but later calls him a coupster, with that ease that we
have become accustomed to: You are plotting a coup if you are against
Chavez. Independent of whether Mr. Rodriguez knows people or not, the
Constitution, that piece of paper that they care so little about grants
them the right, yes the right, to propose anyone they want for each of
the three positions even if it may be a futile exercise in Chavista
pseudo-democracy.
 
Even worse, the Prosecutor,
who happens to lead and “independent” power, proceeds to say that he
has “informed” the Assembly and the President that he has no plans to
continue. Why did he have to do this private update? Because he depends
on them, he is no more independent than the other clowns that are with
him in the People or citizen’s power. (He also made some sexist remarks which match his personality, but are outside the scope of this post)
 
So by now,
much like most things this Government does they can not satisfy the
law, so the Assembly will elect the new representatives of the citizens
without following the procedure established in the Constitution in
another unequivocal demonstration that this farcical revolution cares
little about either representative or participatory democracy.
 
Thus,
we will get some clones or relatives of “our” current representatives
who will defend Chavez and his robolution for the next seven years.
 
All in the name of the people, the autocrat and the robolution.

From Chavez’ CD to huge rocks falling and worried Jews, lots going on in Venezuela

October 2, 2007


I have been derelict in reporting some important news, so here is a wrap up, so that I can say

The Devil has covered all of it, including Chavez’ new musical CD:

—Chavez new CD: Chavez’ press secretary made the ultimate sucking up gesture by compiling and publishing a CD
with all of the songs the autocrat has sung in his variety show Alo
Presidente. Just as an example, this is what you have been missing:

Since we are on the subject you may also enjoy a spoof of \u003cspan style\u003d\”font-family:Verdana\”\>\u003cfont face\u003d\”Verdana\”\>this commercial\u003c/font\>\u003c/span\>\u003c/a\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> by Berlitz, \u003c/font\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:\” color\>\u003ca href\u003d\”http://www.youtube.com/watch?v\u003dK_SFi7sF2Jo\” target\u003d\”_blank\” onclick\u003d\”return top.js.OpenExtLink(window,event,this)\”\>\u003cspan style\u003d\”font-family:Verdana\”\>\u003cfont face\u003d\”Verdana\”\>starring Hugo Chavez\u003c/font\>\u003c/span\>\u003c/a\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>.\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>—Venezuelan Jews: An Israeli newspaper reports on the concerns of the local Jewish community on a possible takeover of the private school system. According to the report, 20% of Venezuelan Jews have already left the country, concerned about Chavez’ ant-Israel and anti-Jewish stance. \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>—\u003c/font\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:\” color\>\u003ca href\u003d\”http://www.el-carabobeno.com/p_pag_not.aspx?art\u003da021007e10&id\u003dt021007-e10\” target\u003d\”_blank\” onclick\u003d\”return top.js.OpenExtLink(window,event,this)\”\>\u003cspan style\u003d\”font-family:Verdana\”\>\u003cfont face\u003d\”Verdana\”\>Double dipping Adan\u003c/font\>\u003c/span\>\u003c/a\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>: And how about the theorist, the idealist of the revolution, the pure Adan Chavez, the “true” Marxist in the team, being accused of double dipping. The accusers presented receipts showing that Adan receives a full paycheck from the Ministry of Education as Minister as well as some 10 times the minimum salary as Coordinator of International Affairs for the Foreign Ministry. The accusers presented reiceipts showing that the Minister who is calling for people to make an example for the revolution, and who claims to be so ideologically pure, has been collecting over thirty times the minimum salary and two salaries at once. The latter is a violation of Venezuelan law. Even when you retire, if you come back to work for the Government you have to give up one of the salaries. “,1]
);

//–>this commercial by Berlitz, starring Hugo Chavez.

Venezuelan
Jews
: An Israeli newspaper reports on the concerns of the local Jewish
community on a possible takeover of the private school system.
According to the report, 20% of Venezuelan Jews have already left the
country, concerned about Chavez’ ant-Israel and anti-Jewish stance.

Double dipping Adan:
And how about the theorist, the idealist of the revolution, the pure
Adan Chavez, the “true” Marxist in the team, being accused of double
dipping. The accusers presented receipts showing that Adan receives a
full paycheck from the Ministry of Education as Minister as well as
some 10 times the minimum salary as Coordinator of International
Affairs for the Foreign Ministry. The accusers presented reiceipts
showing that the Minister who is calling for people to make an example
for the revolution, and who claims to be so ideologically pure, has
been collecting over thirty times the minimum salary and two salaries
at once. The latter is a violation of Venezuelan law. Even when you
retire, if you come back to work for the Government you have to give up
one of the salaries.

\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>—\u003c/font\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:\” color\>\u003ca href\u003d\”http://noticias.eluniversal.com/2007/10/02/eco_art_precios-avanzaron-1,_504561.shtml\” target\u003d\”_blank\” onclick\u003d\”return top.js.OpenExtLink(window,event,this)\”\>\u003cspan style\u003d\”font-family:Verdana\”\>\u003cfont face\u003d\”Verdana\”\>Inflation\u003c/font\>\u003c/span\>\u003c/a\>\u003c/span\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>: And some people are very skeptical of the rise of only 1.3% for the CPI in September. Food and Beverages were up 2% for the month, but the surprising drop in Transportation and Home Services helped the index be coger than analysts’ expectations, even if Food and Beverage inflation continues to be closet to 25% for the year. \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>—Choroni: And when I heard that the road to Choroni was closed because a “rock” was in the way, I could not imagine that they meant this rock:\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana;color:black\”\>\u003cfont face\u003d\”Verdana\”\>Huge, no? I have many friends who o to Choroni every weekend. Choroni has a nice beach and is a nice laid back tropical town. I do hope my friends got caught on the other side of the rock, so they have an excuse o stay there for a while. \u003c/font\>\u003c/span\>\u003cspan\>\u003cspan style\u003d\”font-size:9.0pt;font-family:Verdana\”\>\u003cfont face\u003d\”Verdana\”\>I have been derelict I reporting some important news, so here is a wrap up so that I can say “,1]
);

//–>

Inflation:
And some people are very skeptical of the rise of only 1.3% for the CPI
in September. Food and Beverages were up 2% for the month, but the
surprising drop in Transportation and Home Services helped the index be
clower than analysts’ expectations, even if Food and Beverage inflation
continues to be close to 25% for the year.

—Choroni:
And when I heard that the road to Choroni was closed because a “rock”
was in the way, I could not imagine that they meant this rock:

Huge,
no? I have many friends who to to Choroni every weekend. Choroni has a
nice beach and is a nice, laid back tropical town. I do hope my friends
got caught on the other side of the rock, so they have an excuse to stay
there for a while.
\u003c/span\>\u003c/span\>\u003c/div\>\u003c/div\>”,0]
);
D([“ce”]);

//–>

The Robbery of the XXIst. Century by Teodoro Petkoff

October 2, 2007

Warning: Very long post!

About two years ago, I
began writing about the huge rip off that began with the sale of
Argentinean bonds to local banks, which was enriching local bankers,
intermediaries and Government officials. I even think my blog was the
first place where anyone wrote about this issue even if I had no
particular special knowledge about what was going on. A couple of
months later, Teodoro Petkoff in his evening paper Tal Cual began
describing exactly what I had said in my blog. This gave me great
satisfaction, as I had written about this before anyone.

Some
friends warned me to be careful, because the level of profits being
made by this huge swindle was nothing to sneeze at and if I hit on the
issue too much, some people may be bothered by it. A little while later
Andy Webb of the Financial Times also wrote about it, going as far as
naming the “preferred” banks of the regime. Since then, I have written
about the topic regularly, sometimes translating Petkoff’s Editorial on
the matter as a way of deflecting some of the responsibility about the
content.

The
funny thing was that despite the supposed freedom of the press, except
for Tal Cual, no other newspaper in Venezuela dared to touch the
subject. As the swindle got more sophisticated and structured notes
were introduced, the profits increased dramatically as the parallel
exchange rate began to increase sharply. Then this summer, as all of
the local newspapers and TV stations still kept quiet about it, the
pro-Chavez Editor of Ultimas Noticias Eleazar Diaz Rangel began writing
about the subject weekly. He gave enough details to prove that he knew
who was benefiting from it, without giving names, in the hope that the
autocrat would something about it. But since corruption is part of what
sustains Chavez, he has done little.

Last
week Teodoro Petkoff decided to take another stab at it and challenged
the President, trapped in his corruption labyrinth. Petkoff has thrown
the gauntlet by writing three Editorials giving even more detail about
this huge rip off and swindle to the Nation, perpetrated by some of the
autocrat’s closest associates and with his full knowledge. Below I
translate all three in a row, which will make it a long post, but is
worth it for all of you to read and as a permanent record of the
absolute levels of corruption reached under the robolution and with the
quiet approval of Hugo Chávez himself.

But,
as he says in the last sentence, nothing will happen, because all
checks and balances have been kidnapped by the autocrat and he has a
hold on many of his collaborators precisely because he allows all of
theses shenanigans to take place.

The Robbery of the XXIst. Century by Teodoro Petkoff

On
Sunday August 26th. anyone that has the guts to suffer through Alo
Presidente could see Hugo Chavez showing the Sunday page of Diaz Rangel
in Ultimas Noticias, which we show here.
Chavez read aloud the main text of the page by the Editor of Ultimas
Noticias, entitled “As a block or separately”. But just under that
article, the first of the small notes or tips by Diaz Rangel said the
following:

“Fifteen
were the banks that issued structured notes valued at US$ 8 billion
owned by the Venezuela State, ordered according to the amount placed:
:
Barclays Bank PLC (more than US$ 2 billion), Lehman Brothers, Calyon,
Welstb AG, AB Svensk Expotkredit SEK, HSBC Bank USA, Credit Suisse,
Deutsche Bank AG FLR, Dresdner Bank AG, ING Bank NV, Morgan Stanley,
Nomura Bank International, BNP Paribas y JP Morgan.

With
a few of them (the notes) there was mediation by private individuals in
tandem with high Government officials and they made millions of dollars
in operations where the only loser was the Venezuelan Government”

Chacumbele
(the name Petkoff uses for Hugo Chavez these days) had to see that
note, thus we were expecting some reaction on his part, because he
surely believes Diaz Rangel, who at some point uncovered the fraud at
the sugar processing plant in Sabaneta and now makes reference to a
swindle so large that leaves those responsible for the sugar plant at
the level of chicken thieves. However, throughout that week Chacumbele
did not have a peep to say about this monumental fraud. It was as if
Diaz Rangel had talked about a robbery in Uganda and not in the
Venezuela governed by Hugo Chávez. Then Diaz Rangel came back charging
the following Sunday September 2nd. :

“Of course, the foreign banks mentioned on Sunday obtained significant profits negotiating the Venezuelan structured notes”
But,
as you may suppose, the mediators also enriched themselves: Of the most
important ones, both Venezuelans, one was capable of purchasing a
modest bank in Austria for US$ 15 million and thus obtain a double
nationality.

The other one met in Washington the wife of a
Veezuelan representative to a multilateral organization, who connected
him with a high Venezuelan official and through that connection he
managed to link himself to these operations. With profits “to be
shared” of course. However, Chacumbele, almost a month after these very
grave accusations, continues to act as if this had nothing to do with
him. The worst part is that Chacumbele, who obviously reads Diaz
Rangel, forcibly had to read the first two notes that had been written
on the subject. The first, on August 12th. :

“The
financial world is full of rumors and questions. What has happened to
the Investments of the country abroad? Who made in 2006 hundreds of
millions of dollars with the transactions that made the Venezuelan
Government lose more than a billion dollars? Which are the European
banks where those transactions took place? Who are the Government
officials or former officials involved in those operations? Who were
the intermediaries in the private sector? Which Government office
controls or does not control these operations?”

In the second note, on August 19th. Diaz Rangel said:

“Some
of the questions last Sunday have something to do with these: What is
the origin of the campaign by a weekly against the Minister of Finance
Rodrigo Cabezas? Could it be that they pretend to weaken the position
of the person that has impacted the network of those that were making
multimillion dollar deals with certain placements of the Government
abroad? Didn’t they show their true colors with possible candidates to
replace him, presumably involved in the dirty negotiations that have
affected so much the Venezuelan Government?” Chacumbele can’t say that
he does not know all of these shenanigans.

Diaz
Rangel spent four continuous weeks calling attention on this topic.
That is why we are taking it over; to ask Hugo Chávez if he is going to
continue looking distracted with this scandalous financial fraud, which
according to an important Venezuelan banker “constitutes the largest robbery of public money that has ever taken place in our history
”.

Is
this what Chávez wants the indefinite reelection for? So that these
gigantic swindles remain unpunished by those who want to govern us for
life? So that corruption with impunity will be as eternal as his term?
In part 2 we will explain the “deal” with these structured notes and
how, since we have no obligations with anyone, we will occupy our time
answering some of the questions that Diaz Rangel is asking.
 
Part 2

Let’s
continue with our Topic about the Robbery of the XXIst. Century. (above
in Part I). To facilitate the perception about the magnitude of the
fraud committed with the ineffable structured notes, let us explain, in
the simplest possible way, what the devil they are and how those
financial instruments work.

They
are securities issued by a bank, with a fixed yield in interest
payments and with a well defined maturity, also determined by the
issuing bank. These structured notes are backed by public debt bonds of
different countries, for example, Argentinean, Brazilian, and
Ecuadorian. The issuing bank makes a “cocktail” with some amount of
each of these bonds and according to their maturity, their yield and
their price, sets the price and the yield of the structured notes it is
going include in it, backing them precisely with those bonds. The
issuing bank does it because someone, whom we will call the
“intermediary”, assures it that it has a client for the securities. The
“client”, of course, is the Venezuelan Government.

The
“intermediary” acquires a certain volume of the structured notes and
using his contacts with “officials” at the highest levels of the
Ministry of Finance, sells them, to Fonden. The “intermediary” makes an
intere$sting commission, which he shares with the “official”.

The
issuing bank makes money, the intermediary makes money, the official
makes money, the country loses. In the case of the Robbery of the
XXIst. Century, Fonden acquired US$ 8 billion in structured notes.

You
can imagine the size of the commission. Diaz Rangel, Director of
Ultimas Noticias, gave us the list of the 15 banks involved in this
operation and gave the “artists rendition” of the two “intermediaries”

One
of them was a gentleman that with his share of the pie was able to buy
an Austrian bank and on the way, obtain that nationality.
Who could that man be? Who did he deal with in Minpopopfinanzas? Chavez knows who both of them are.

He
also knows who the other “intermediary” is, whose artist rendition Diaz
Rangel gave: Someone, a trader, via a girl who works in a multilateral
organization in Washington, got in touch with an official of the
Venezuelan Embassy in Washington, today a big shot in Minpopopfinanzas,
and using that route reached the level at which decisions are being
made. This “intermediary” is the same one that appeared in the first of
the frauds of former Minister Nobrega, a crime which is still remains
impune, denounced at the time in Tal Cual. Chávez knows who this
“intermediary” is, as well as who the “official” is, involved in the
operation. In conclusion, Chávez knows everything that has happened
and, nevertheless, has not done anything about it, unless you interpret
as such the removal of Minister Merentes and that of the Director of
the national Office of the Treasury, the then Captain of the Navy,
today Admiral Carmen de Maniglia.

But
the swindle has had other consequences. The price of the structured
notes in the hands of Fonden suffered a large drop when the President
of Ecuador suggested the possible moratorium on the payment of that
country’s debt, because of part of the backing of the notes is in
Ecuadorian debt. That is, the country suffered a big loss in its
patrimony.

It
bought something at 100 that today is worth 85. Who is accountable for
that gigantic loss in the country’s equity? The Government is
persecuting some credit card holders that supposedly “sold” their
insignificant dollar quota, but it washes its hands in the face of a
loss of US$ 1.2 billion in the fraud with the structured notes. Those
that cover up, are as corrupt as those that steal.

Part 3

We
already explained what happens at one end of the swindle, the
international one; let’s see what happens to the national end of it.
What
happens here to the structured notes? Simply the same that happens with
the Bonos del Sur or with the Venezuelan sovereign bonds; that they are
used for financial trades in which high Government officials are
involved with bankers-not all of them, but only those that can be
considered to be bankers of the regime, which can be counted with the
fingers in two hands, and some fingers are left, who in this “socialist
revolution” have made money like they never had in their whole history.

When
Fonden creates a stock of US$ 8 billion in structured notes, the great
swindlers of the regime counted with an instrument that allowed them (Still allows it? Let Cabezas tell us) to make the following operation:

Minister Merentes, through officials with the appropriate attribution, offered structured notes to the bankers of the regime.

The
notes, as is obvious, are denominated in US$, but they are to be paid
in Bolivars at the controlled exchange rate (Bs. 2,150 per dollar).
Thus, the banker buys the paper at Bs. 2,150 per US$ and later, either
he take his dollars abroad or he sells them in the parallel market,
where the price is around Bs. 5 thousand (Even if yesterday it reached
Bs. 5,259). The profit that one obtains with this comfortable business
is divided between bankers and Government officials, who, of course,
always ask that their share be deposited in numbered accounts in Swiss
banks or in fiscal paradises like the Cayman Islands. Moreover, they
always let you know that the money is not for them, but “for the party”.

The
deal is so juicy that the distribution is made on the bases of 30% for
the banker and coworkers and 70% for “the party”, although when the
swindle involves brokers or investment banks, since these have less
access to the privileged circles, they have to pay off as much s 80%
and even 90% of what is generated.

Imagine how juicy this swindle is…

When Rodrigo Cabezas arrived at Minpopopfin he found this piece of cake and suspended the placement of structured notes.

Merentes,
who was headed towards the Central Bank, was all of a sudden left in
limbo. Navy captain Maniglia was removed from the Office of the
Treasury, without any explanations. Nevertheless, recently Cabezas put
into action again the mechanism of handing over structured notes but
according to the usual conditions: handpicked banks, no auction, all of
it opaque. Given the patrimonial loss that the Republic suffered, which
we told you about in the previous part, the structured notes have above
the official price of the dollar, a premium, to recover part of the
loss. Its real price, the one they call “implicit”, ends up being
around Bs. 4,000 per US$, but since the parallel dollar is around Bs.
5,000 there still is a comfortable margin in the exchange to pocket a
huge amount of money.

Will anything happen with this? What a stupid question!

When ignorance, improvisation and complacent fascism lead the way in the robolution…

October 1, 2007


Reading
yesterday’s paper was quite depressing due to the large number of articles in
which it was clear that this country is being led by the blind, not only away
from democratic principles, but away from the drive of individual into a no
man’s land of brainwashing and a wishy washy socialism that has yet to be
defined.

Unfortunately,
I picked up El Nacional first. I started with an interview with one of the
“theorists” of the robolution, a Spaniard by the name of Monedero, who has
found in Chavez a fantastic utter to suck on to finance his life and his
research. I may be actually exaggerating by calling it research, as Mr.
Monedero over and over shows that he knows very little about Venezuela. He
seems to be a theorist of left wing ideas and models, which he wants to apply
in countries different than his, just in case it all fails, let someone else
suffer the consequences. Daniel has discussed him extensively, thus I will not
bother you with it, but I would like to emphasize that Monedero does not seem
to have read or learned much about Venezuela’s recent history and the dismal
failure of Governments, which is being repeated by Chavez’ but this time on
steroids, in managing utilities and social programs. Thus, one has to wonder
how a Government that cannot manage one program can somehow take under its wing
all sorts of programs, using on top of that, only the loyalists that surround
the autocrat.

But the
scariest part of the article is that after eight years of this fake revolution,
one of its main theorists says that they have yet to “invent” exactly what the
model is for this virtual or imaginary destructive XXIst. Century Socialism
that Chávez is imposing. While the models are being invented, Chávez takes over
more and more without a clue as to what to do with it, which guarantees that
nothing will run in the end.
\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>Thus, Mr. Monedero was apparently hired because he is a proven leftists and admirer of the robolution, but not because he had any specific knowledge and/or proposal in mind. Just a good cheerleader who is a foreigner, and thus better than any Venezuelan to the robolutionaries. Hopefully, given his curriculum he may come up with some good ideas if he takes the time to learn how Venezuela works and if they fail, he can try some different ones or we may look for a new theorist from Argentina, Zimbabwe or North Korea, countries that love to experiment but have had no success, after all, we do want our socialism to be different than those that have succeeded elsewhere…like…like…like…well, I guess I don’t have the knowledge to tell you which one. \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>I then proceeded to the interview with the Minister of Higher Education Luis Acuña, someone I am acquainted with, but will not tell you what I think of him from that fairly extensive contact. Instead, all I could think reading him was that I did not know he had such a fascist and cynical streak in him.\u003c/font\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>  \u003c/font\>\u003c/span\>\u003cfont face\u003d\”Verdana\”\>Or maybe I did, since I initiated a more recent interaction with him about a year ago, when he was just a Deputy, which was discontinued by him when I asked how he could support a Government in a good conscience, which had such little disregard for human rights. \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>Besides his statement about the universities here having kidnapped autonomy, Acuña proceeds to say essentially that things have to change at the universities so that discussion can be eliminated and only one school of thought taught in order to create the new Venezuelan man or woman. I was planning to write more about this today, but then someone sent me a letter by Amalio Belmonte, a Sociology Professor from Universidad Central de Venezuela whom I never met. Since he covers much of what I was planning to say and does it well, I simply translate some excerpts:”,1]
);

//–>

Thus, Mr.
Monedero was apparently hired because he is a proven leftists and admirer of
the robolution, but not because he had any specific knowledge and/or proposal
in mind. Just a good cheerleader who is a foreigner, and thus better than any
Venezuelan to the robolutionaries. Hopefully, given his curriculum he may come
up with some good ideas if he takes the time to learn how Venezuela works and
if they fail, he can try some different ones or we may look for a new theorist
from Argentina, Zimbabwe or North Korea, countries that love to experiment but
have had no success, after all, we do want our socialism to be different than
those that have succeeded elsewhere…like…like…like…well, I guess I don’t have
the knowledge to tell you which one.

I then
proceeded to the interview with the Minister of Higher Education Luis Acuña,
someone I am acquainted with, but will not tell you what I think of him from
that fairly extensive contact. Instead, all I could think reading him was that
I did not know he had such a fascist and cynical streak in him.  Or maybe
I did, since I initiated a more recent interaction with him about a year ago,
when he was just a Deputy, which was discontinued by him when I asked how he
could support a Government in a good conscience, which had such little
disregard for human rights.

Besides
his statement about the universities here having kidnapped autonomy, Acuña
proceeds to say essentially that things have to change at the universities so
that discussion can be eliminated and only one school of thought taught in
order to create the new Venezuelan man or woman. I was planning to write more
about this today, but then someone sent me a letter by Amalio Belmonte, a
Sociology Professor from Universidad Central de Venezuela whom I never met.
Since he covers much of what I was planning to say and does it well, I simply
translate some excerpts:
\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>“Minister Acuña insists in the official purpose of creating “revolutionary consciences” to form the men and women needed by the revolution. This makes it indispensable to reeducate the country to have a general will imposed by the canons of XXIst. Century Socialism, so that it generates a subservient conscience, proper of those regimes that are dominated by authoritarian and totalitarian regimes”\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>“The Minister proposes to constitute the State-Ideology from the universities, because they can not be absent from the changes and he says: “Nothing has happened at the universities”. He regrets that we have not obsequiotiusly gone to surrender to the discourse of the new creator of the country and he demands that we join submissively in front of the revolutionary leaders. Only in this manner will the high functionary of Higher Education recognize that we are not a conservative institution.”\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>“Professor Acuña avoids a retrospective reflection so as not to see himself as Dean of the University of Oriente, elected by the same peers that he now accuses of being elitist and closed. When you hold power, visits by your conscience provoke internal conflicts. Because power, with its terrible logic, upsets positions and principles. He wants us to accompany him in the destruction of the most expensive principles that the university has, which makes academic environments spaces appropriate for thinking and questioning the established premises and submit them to the corresponding critical analysis, opened to the multiple forms of seeing reality that prepares human beings for freedom, because the production of knowledge and culture is an activity that demands, without excuses and limitations, a spirit inclined to democratic controversy, far from absolute conclusions. Without any doubt, these premises are contrary to those of States which have one dimensional ideologies.” “,1]
);

//–>

“Minister
Acuña insists in the official purpose of creating “revolutionary consciences”
to form the men and women needed by the revolution. This makes it indispensable
to reeducate the country to have a general will imposed by the canons of XXIst.
Century Socialism, so that it generates a subservient conscience, proper of
those regimes that are dominated by authoritarian and totalitarian regimes”

“The
Minister proposes to constitute the State-Ideology from the universities,
because they can not be absent from the changes and he says: “Nothing has
happened at the universities”. He regrets that we have not obsequiotiusly gone
to surrender to the discourse of the new creator of the country and he demands
that we join submissively in front of the revolutionary leaders. Only in this
manner will the high functionary of Higher Education recognize that we are not
a conservative institution.”

“Professor
Acuña avoids a retrospective reflection so as not to see himself as Dean of the
University of Oriente, elected by the same peers that he now accuses of being
elitist and closed. When you hold power, visits by your conscience provoke
internal conflicts. Because power, with its terrible logic, upsets positions
and principles. He wants us to accompany him in the destruction of the most
expensive principles that the university has, which makes academic environments
spaces appropriate for thinking and questioning the established premises and
submit them to the corresponding critical analysis, opened to the multiple
forms of seeing reality that prepares human beings for freedom, because the
production of knowledge and culture is an activity that demands, without
excuses and limitations, a spirit inclined to democratic controversy, far from
absolute conclusions. Without any doubt, these premises are contrary to those
of States which have one dimensional ideologies.”
\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>“Acuña adds that the conditions to become e University President have to be “revised” to adapt them to their attributions and pertinence to the context of the higher education the country demands and that allow for the materialization of an efficient state signed by socialist ethic. The authorities he says: “Can not place their academic merits above these new conceptions of autonomy with protagonist participation “He also thinks equally that “he would not put in a position someone with a capitalist vision”. He requires that the Rectors “share the power”, because he considers it suspicious any authority which is not controlled by the Government. His Ministry will be in charge of granting ideological indulgences and reward those that repent from being free and autonomous.\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\> \u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cspan\>\u003cfont face\u003d\”Verdana\”\>“This form of conceiving academia and of governing has precedents that do not make the Minister look good, if he cared. The Nazi regime also required Aryan science, culture and art opposed to the Jewish physique and the decadent bourgeois art. President Truman equally, in the early days of the cold war, ordered that education promote values, which would create loyalties to confront communism. Similar efforts were made by Stalin and the leaders of the Chinese Cultural Revolution. In all of these cases they imposed from the position of power the idea of good and evil. With which people and institutions were evaluated in order to defined those that were convinced and the enemies of the State.\u003c/font\>\u003c/span\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>\u003cbr\>\u003c/font\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>How the Minister reached this point is hard for me to fathom. How power can corrupt someone so fast and easy is even more incredible. A well educated man ( He has a Ph.D. in Physics) forgets the basic principles of being open to new ideas and discussion. Even worse, he seems to have forgotten, besides those that elected him Dean, the same system that gave him his education, without asking him why or what, as well as the research funding into his not so very "pertinent" research, which he now seems to be so critical about. Who is the real Luis “,1]
);

//–>

“Acuña
adds that the conditions to become e University President have to be “revised”
to adapt them to their attributions and pertinence to the context of the higher
education the country demands and that allow for the materialization of an
efficient state signed by socialist ethic. The authorities he says: “Can not
place their academic merits above these new conceptions of autonomy with
protagonist participation “He also thinks equally that “he would not put in a
position someone with a capitalist vision”. He requires that the Rectors “share
the power”, because he considers it suspicious any authority which is not
controlled by the Government. His Ministry will be in charge of granting
ideological indulgences and reward those that repent from being free and
autonomous.

“This form
of conceiving academia and of governing has precedents that do not make the
Minister look good, if he cared. The Nazi regime also required Aryan science,
culture and art opposed to the Jewish physique and the decadent bourgeois art.
President Truman equally, in the early days of the cold war, ordered that
education promote values, which would create loyalties to confront communism.
Similar efforts were made by Stalin and the leaders of the Chinese Cultural
Revolution. In all of these cases they imposed from the position of power the
idea of good and evil. With which people and institutions were evaluated in
order to defined those that were convinced and the enemies of the State.

How the
Minister reached this point is hard for me to fathom. How power can corrupt
someone so fast and easy is even more incredible. A well educated man ( He has
a Ph.D. in Physics) forgets the basic principles of being open to new ideas and
discussion. Even worse, he seems to have forgotten, besides those that elected
him Dean, the same system that gave him his education, without asking him why
or what, as well as the research funding into his not so very
“pertinent” research, which he now seems to be so critical about. Who
is the real Luis 
Acuña? This one or that one? We may never know.\u003c/span\>\u003c/font\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>\u003cbr\>\u003c/font\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>What we do know is that these pseudo-academics are now backing the autocrat and what he stands for, simply to get power and/or money. However, with their backing and tacit acceptance, they are helping in destroying Venezuela in the name of an undefined project, which all that it seems to be asking is that we be submissive to the wishes and desires of the autocrat. While we do that, they may be able to luckily "find" the model they are searching for, or cause more pain and destruction to the "people" they claim to love.\u003c/font\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>\u003cbr\>\u003c/font\>\u003c/div\>\u003cdiv\>\u003cfont face\u003d\”Verdana\”\>Wouldn't it have been better to at least "search" for someone with a model or proposal? We could have at least saved some time that way, rather that wasting eight years in this existential search and who knows how many wasted more years and billions of dollars are in front of us. \u003c/font\>\u003c/div\>\u003c/div\>”,0]
);
D([“ce”]);

//–>
Acuña? This one or that one? We may never know.

What we do
know is that these pseudo-academics are now backing the autocrat and what he
stands for, simply to get power and/or money. However, with their backing and
tacit acceptance, they are helping in destroying Venezuela in the name of an
undefined project, which all that it seems to be asking is that we be
submissive to the wishes and desires of the autocrat. While we do that, they
may be able to luckily “find” the model they are searching for, or
cause more pain and destruction to the “people” they claim to love.

Wouldn’t
it have been better to at least “search” for someone with a model or
proposal? We could have at least saved some time that way, rather that wasting
eight years in this existential search and who knows how many wasted more years
and billions of dollars are in front of us.