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.

38 Responses to “Clueless in Caracas”

  1. web site Says:

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  2. Ronaldo Says:

    Miss Venezuela is Miss Universe 2013. Forget all the problems in Venezuela. At least until morning.

    Three of the last 6 years. They sure are pretty but has Chavismo greased the judges?

  3. “El anuncio fue decir que continuaran haciendo lo mismo, solo que esta vez sí funcionará.”

  4. Boludo Tejano Says:

    Clueless in Caracas

    Miguel, did you name this thread to “honor” Chris Carlson? 🙂

  5. […] Clueless in Caracas, on economic matters, The “things” Maduro said he would do […]

  6. syd Says:

    Miguel, is there a Vennie bond issue out there that needs extra white-bread pimping, or that is coming up?

  7. VJ Says:

    Whisky rationing in Margarita island ! Just three bottles per person.

  8. Sales Man Says:

    Does this mean Bariven and PDVSA for international purchasing is finished?

  9. Inflation for October 5.1%, that is 54% for the last twelve months and the shortage index reaches new 52 week high of 22.4%

  10. Canadian Says:

    And some Venezuelans are CLULESS about its current goverment. 🙂

  11. Roy Says:

    Meanwhile, our old buddy Mark Weisbrot is Loony in London.

    Reading a sampling of the comments, though, I was gratified to see that a majority of them are calling BS on Weisbrot for this piece.

  12. Have you seen this?
    Vzla owes $9 million to an oil service provider, so they get a judge to impound the equipment!

  13. xp Says:

    To Maduro,
    his Government or that of his predecessor
    have done nothing wrong….
    For they must strive

    To dream the impossible dream
    To fight the unbeatable foe
    To bear with unbearable sorrow
    To run where the brave dare not go.
    To right the unrightable wrong
    To love pure and chaste from afar
    To try when your arms are too weary
    To reach the unreachable star.


  14. Ronaldo Says:

    What is the World price for a barrel of stupidity? If it is above $1/barrel then Venezuela could export Maduro and get rich quick.

    Maduro and the other high-level Chavistas clearly understand economics when it comes to their own bank accounts. For others, they just act stupid.

  15. extorres Says:

    I think it’s worse than their being clueless; they actually believe that those who are reporting the market value of the exchange rates are setting the rates. That’s worse than clueless.

  16. Carlos S Says:

    How can they try to hide the reality of the situation. Given the content of the announcements, or lack of it(and their past record 15 years). There is no way, that the Venezuelan economy can pick up in 2014 or 2015 as the president emphasized on his “announcement”. It is very sad that a head of state would sit there for 3 hours and pretend like nothing is going on and lying to the whole world. The only way this can happen is when the military control it all. Interesting how history repeats itself in different ways…Germany, Italy, Spain, Chile, Myanmar, Syria, North Corea, Belorusia, just to name a few. For the sake of Venezuela, I wish we turn the corner soon and begin to look more like Chile or Gemany. But a wish is nothing but a wish. I could not agree more with Miguel, but clueless is an understatement….he is lost in space and that is very sad and unfortunate for Venezuela.

  17. notiven Says:

    1) If I am not mistaken, I noticed that when Maduro showed the “black market Dollar ” chart, the source was Venezuelas Central Bank, and this was a tabú term while Chavez lived

    2) New burocracy level to check on other burocracy


  18. Self-exiled in Canada Says:

    I find amazing that Maduro has not realized that he is going into a path to eventual and imminent self-destruction. One just wonders if it is just Maduro’s stupidity or the work of some of Maduro’s underlings trying to get him out of their way to power.

  19. VJ Says:

    Today´s improvised cadena was pura paja … It was a gross propaganda maneuver to shadow the visit of Henrique Capriles to Pope Francisco….

  20. Trader Says:

    100 coming soon

  21. Dr. Faustus Says:

    Is it just me or does anyone else get the creeps from those ugly wall paintings of Simon Bolivar in the background? This is really something out of Animal Farm.

  22. Reblogged this on danmillerinpanama and commented:

    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.

    I seem to have sensed and heard the same thing about the Dear Leader of another country.

  23. Glenn Says:

    This lends itself to additional shortages, perhaps in time for Christmas 25 Dec). This may be why Christmas was moved up early, right? It’s a chance to empty the shelves by 8 December and find nothing to buy after. We are also seeing news about a “revaluation” that once again may introduce a different exchange rate for things like plane tickets. It’s just more fun with numbers.

  24. I find it amazing, and it seems you do too, that they won’t or can’t learn from their numerous past mistakes. How long can someone be continuously wrong? A professor of mine once said: “Ignorance is not a sin, the persistence of ignorance is.” Perhaps Edith Sitwell said it even better: “I am patient with stupidity but not with those who are proud of it.” That phrase is quickly becoming my favorite saying as this is what I comprehend the least about this country, that I’ve been condemned to call my own.

    • VJ Says:

      I think A.Einsten quote is the best: “Only two things are infinite, the universe and human stupidity”…

    • Antonio Says:

      Mit der Dummheit kämpfen Götter selbst vergebens. Schiller and others.
      Price control was the doom of the Soviet Union.

  25. Virginia Laffitte Says:

    Yes, truly clueless, truly sad, and NO END IN SIGHT!
    It will ultimately be run by the Cubans, and that’s the end of that.
    Pity the people who are now STUCK there, the dreamers who always believed it would all turn around. Wasted years…VERY SAD! (I know, because I have family there, stuck there.)
    They should have a revolution and be done with it all.
    Finito, Basta, !!

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