Archive for January 11th, 2010

It’s all your fault! by Teodoro Petkoff

January 11, 2010

People do not need  brainy and technical economic analysis. The huge queues at appliance stores were more than eloquent this weekend. Everyone knows that devaluation is synonymous with outrageous price increases, so the army of fire nts went out to buy what they could at old prices. We are veterans of devaluations. This is not our first Black Friday. We also know what’s coming: a cost of living increase that will make us sweat oil in order to cover our expenses.

Chavez has no excuses. It was his crazy economic policies that forced him to devalue. Devalue after five years of the greatest oil boom of the century, during which billions of dollars entered the country,  but they were poorly managed. You can not hide behind an inherited fiscal crisis created by “previous administrations”. The two previous administrations are his and a bit of a third one too. He gave birth to his own fiscal problems.

He can not argue that he was left with no international reserves, because there are 35 billion of them. The economic downturn is yours-your own. The Great Charlatan was saying we were “shielded” from the international crisis. But the armor could not withstand the impact of National Destruction Plan put forward by Chacumbele. The Venezuelan economy fell 2.9% in 2009 but the world’s only by 1.1% and 1.8% in Latin America. Our economic performance was much worse than the global average and the average of the continent. All the nonsense that led to this brutal devaluation are therefore their exclusive brand. This devaluation is made in Miraflores. Inflation, recession and now devaluation, will bring more inflation and more recession.

Experts call this stagflation. Stagnation plus inflation. ¡What a beautiful revolution! They devalued late and did it badly. Why did do it then? They have not deceived anyoneN. The government needs the money and it will draw it from our pocket, driving into us the worst possible tax, inflation.

Each oil dollar will produce now Bs. 4.30 and not Bs. 2.15.

He doubles his revenues. More money to waste and to finance his campaign.

Additional pressures on prices. The fallacy that our minimum wage was the highest in Latin America became shit.  St Bs.  2.15 it clearly was  but not at the  or 7 per dollar of the swap rate or the Bs.  4.30 we have now. We will have a year of strong wage pressures because the high cost of living, already intolerable, will be even worse. Costs more expensive, therefore, more fuel to inflation. But do not even dare tell the truth. Deceive the people with pure lies. Now tehy say thos is to  stimulate exports. Please! Do you believe we are stupid? After eleven years of preaching “endogenous growth” (import substitution), suddenly they discover that what matters is to export, or “exogenous growth. The ineffable Professor Giordani says that they “seek to make Venezuela’s economy more competitive by promoting exports.” Too late baby!. Eleven years destroying the productive sector, with non-oil exports which last year barely reached a little over 3 billion dollars, and now we come with the story that the mere devaluation is going to take you out of the hole. This is not enough to overcome the disaster of exporting state enterprises ruined nor the private schools which are broke.

They allowed the currency to be  overvalued to demential extremes , a typical manifestation of the rentist, and spent a wad of dollars to crush the parallel rate to no avail, and now Chacumbele lectures  us on overcoming the “rentist economy”. Go to hell!

Virtual Bolivarian reality doublespeak

January 11, 2010

Former Minister Rodrigo Cabezas and his virtual Bolivarian reality:

This can not be qualified as a devaluation, it is a monetary correction to correct things on the matter of imports

Oh, thanks Rodrigo, I feel much better now that I understand it…