Archive for November 6th, 2013

Clueless in Caracas

November 6, 2013


It took Nicolas Maduro three hours to announce the “new” economic measures. But during this time, he failed to announce any real economic measure. What he did announce, was a set of more controls, checks, threats and institutions to allow (hope?) the Government to force prices down as a way of controlling inflation. To Maduro, his Government or that of his predecessor have done nothing wrong. It is all part of an economic war waged by who knows whom, which requires no change in economic policy. Instead, he blames speculators and hoarders for the problems and “Cadivismo” is out of hand.

Funny, who created Cadivi ten years ago, who has managed and allowed it to become the monster it is today?

But in the end, as Maduro called the black market dollar fictitious, showing and proving how clueless in Caracas the Venezuelan President is. The fictitious dollar will continue to soar and feed inflation, the more Maduro threatens and controls. As usual the reaction is simply more controls, which assumes the Government can do it all (and with no corruption), as if Chavismo has learned nothing the last ten years.

The “things” Maduro said he would do are:

-A great fight against hoarding and price speculation.

-A new framework for price controls.

-A new fund to stabilize prices of essential consumer items.

-A new National Center for Foreign Commerce to oversee foreign currency policies.

-A budget for foreign currency (They did not have one?)

-A new National Corporation for Service, Logistics and Transportation.

That’s it. Period.

The Government continues to say that there are enough dollars for the Venezuelan economy, failing to ask the basic question: At what price? If everything is too cheap, everyone will like to eat, buy, use the best, whether it is lomito (tenderloin), caviar or iPhones. At Bs. 6.3 per dollar, there is basic infinite demand for them, there are myriad strategies for arbitrage of the same (and by the same) Government that creates all these rules, controls and regulations. It is a losing game for Maduro and the rapid increase of the fictitious dollars in the last few weeks proves it. With an increase in monetary liquidity of 20% coming in the next few weeks, fictitiousness will explode in the face of clueless in Caracas.

In closing, internet websites like, and were singled out and blamed for part of the inflationary forces in Venezuela in the continuing satanization of the internet in Venezuela. At this rate the jump back into the nineteenth century is being prepared with eagerness.

Truly a sad spectacle of ignorance and emphasis on the same policies which have failed over the years. Chavismo is never to blame for any problems, it is always someone else’s fault.

Truly clueless, truly sad.