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The evolution of Hugo Chavez’ health via photographs

July 16, 2011

When I first wrote on May 29th. that Chaves did not really have a knee problem, I did this, because someone who has always provided me with good information called me to tell me he had something worse, without being specific. This person said that a few people knew about it, but nobody dared say anything, so I wrote a somewhat sarcastic post on the subject. Little did I know how fast things would move in the next month…

But we still don’t know what Chavez has and when was it that they realized he was sick. To attempt to shed some light on this, I have gone back and looked at Chavez’s pictures using one of his rags as the main source (Correo del Orinoco, Eva’s rag) and have added some more pics chronologically, including pictures from the videos to get an idea of the evolution of Chavez’ face and body until today.

One can clearly see the evolution in his weight and face, but it is not always clear, in fact, I think some picrures puported to be from the day before, were older. But I will let you be the judge.

However, I should note a funny statistic. In January, Chavze was on the cover of that newspaper, 16 times, He was only on it 5 times in February, then it jumps to 13 in March, but only 7 in Abril (Easter week?), dropping to 7 in May, 9 in June (seven in the fist nine days) and 10 so far in July. The scant coverage in February and April is suspicious, but he still looked healthy. Recall Alo Presidente was cancelled half the time between January 1st and April 30th.

Chavez was on the news in early May until May 9th. , then he disappears and reappears with a crutch and the knee story. Note that the crutch disappear once he went to Cuba.

First, let’s set a benchmark, Chavez on Jan. 1st, 24th., 28th. and May 1st, all of which seem to be before they knew what he had.

Note in particular how huge he is on the third picture taken on Apr. 28th.

Then the “knee” problem begins and below you see two pictures, one in an appearance that I can’t pin down the exact date for (on the left), in which he showed up dressed in black and with a crutch. Then, on May 23d. he appeared in the “Balcon del Pueblo” (picture on the right) with a crutch. My take is that he had had a first “procedure” by then in Venezuela, maybe just a biopsy or radiation, but he already looks thinner than above, but it is not clear cut.

Then he shows up on June 1st. (Picture form the day before, below on the left) wearing the blue and white track suit and two days later (picture on the right below) he meets with Lula. He looks better, no crutch by then, as he gets ready to go to Ecuador, Brasil and Cuba:

The next picture is on June 9th. in Brazil (left picture below) and the next one arriving in Cuba (right picture below), meeting Raul Castro, on the night of June 9th. to 10th. according to my estimates:

Chavez then really disappears and we see him again in a picture in Gramma published on June 19th. on the right below. He seems thinner and we were shown a video of unspecified date (picture on the right below and the next frame too), where you can see him thinner, particularly his body:

In the picture below, from one of the videos, he is with his daughter and looks thin (on the left). Then, we do not hear from Chavez again for ten days, on June 28th. , when he gives a speech (below on the right), which he read and he was clearly wearing make up.

My suspicion is that the first video we saw was before the second operation, the change is huge between the two pictures above. They made the first video, Chavez got worse and they decided to show it to calm things down, but at the time he was really at his lowest point. The moment he recovered he gave the speech. The only thing that contradicts this is the date of the newspaper, but you all can see the difference.

We then don’t see him for six days, when he arrived in Venezuela and was clearly not as thin, but looked weak (picture on the left below).

The next picture supposedly was taken on July 6th., but my feeling is that it came from the early days in June, before the operations.

On July 10th. we were shown videos or pictures of Chavez watching the soccer game (below on the left) and with his father and mother (below on the right). Again looking better.

The next two pictures are from July 14th and 15th.

Below are the pictures yesterday on Friday July 15th. requesting permission to leave and today where he looks better, but the big shirt hides how much weight he has lost if you compare with the first four pictures above.

From these, it is my take that they did something to him in Caracas before he left for Ecuador, Brazil and Cuba, around May 9th. They hid this behind his supposed “knee” problem, but knew he had to go elsewhere and left for Cuba, via the other two countries to hide the problem. In Cuba, he underwent two operations. The pictures with the Castro brothers i after the first one and then the videos and his first are after the second one. He has said that he was in intensive care, clearly this was after the second operation, between the 19th. and the 29th.

The mystery is why two operations and why intensive care after the second one. Either he got an infection after the first one, or they found during the first procedure much more than they could deal with without being prepared for it.

What do you think?

Case Study: A Rejected Fishing Project For The People or The Destructive Abilities of the Bolivarian Revolution

July 14, 2011

To Guillermo and to so many other dreamers…

Calle Real, Chuspa

In Spanish here

I “met” Guillermo Mantovani (@cplpesca) via Twitter, the same way he “met”the Head of Insopesca, the fishing Institute that has to approve the technical aspects of his project for him to obtain financing from the Government. The Head of Insopesca asked him to resubmit his rejected project, which was rejected again. I just asked him to send me the material on his project. While it is easy to write about macroeconomic numbers and distortions in the economy, it is the micro stuff that really tells the story about what is going on in Chavez’ Bolivarian Revolution. But in the end, both lead to the same conclusion, the revolution destroys in the name of ideology, but it is that same “ideology” that does not allow it to build anything. Everything is stuck in the empty and impractical minds of bureaucrats, who have never managed anything, but live comfortably on their Government salary and perks. Meanwhile, Guillermo and the people who could benefit from his project, wait the eternal promise of a non-existing revolution and the ever evolving and distorted ideology that is behind it.

Mr. Mantovani saw the town of Chuspa in the Coast of Vargas State for the first time in ’99, right before the mudslides that destroyed that State (another failure of reconstruction, even if the destruction can’t be blamed on the revolution). He liked the town and the area and felt moving to Chuspa would provide a good balance, an active retirement in a place that needed everything, a change of pace and a cleansing of the mind, far from what people call civilization. Slowly, he became an accepted resident of Chuspa.

His diagnose of the town was clear: Low levels of education, no healthcare, huge unemployment, sub-employment in fishing and few opportunities for women, which destroys their self-esteem and their lives. Mr. Mantovani got involved. He helped improve telephone services. Helped get some “Info-Centros” set up there to give people Internet access. He talked to hundreds of people, including Chavez who visited Chuspa in 2003. He participated in Mision Sucre and Mision Ribas. The road was improved after Chavez’ visit, but unemployment and under employment in fishing was pervasive. He started organizing the fisherman in the town and those nearby. When the Government invented coops, they already had two, the number reached eight. The interest in the coops on the part of the Government died, it was another Bolivarian fashion, he had to leave for two years, resources never arrived, the coops died. They are no longer there.

Kiosks along the Malecon, Chuspa

He never lost touch and when PDVAL was created, he got PDVAL interested in fishing and its products, they funded a center for stock-piling fish, 100 boats for the fishermen and promised a processing plant. Oil prices dropped, money was spent only in t-shirts, hats and transportation to political rallies. Nothing happened.

Mr. Mantovani decided then to start a company and submitted a proposal entitled: “Recovery and development of the socioeconomic structure of the Litoral central, via the activation of their tourism-fishing towns”. The plan contemplates to start a company that will be in full motion in 120 days, creating jobs, particularly for women, who can only aspire to have cleaning jobs from the regional Government. The goal was to create 700 jobs, between fishermen and the processing plant, including 220 jobs for women.

Juana’s Kiosk, Chuspa

The company would provide fishermen all of the materials, from gas, to bait, to the ice needed. It would set up the stock piling centers to work 24 hours a day and acquire the infrastructure necessary for processing. A turnkey, 5Ton/day plant would be purchased from a Spanish company and the company would set up distribution, including ice making in Chuspa, transportation to markets, a distribution center near Caracas.The company would buy 25 small boats and 15 “palangreros”, the type of boat that carries an array of hooks below it. The proposal details time frames, methods and even a savings plan and independence plans for the fishermen. It looks at the market and all of its possibilities, even the type of fish to be processed and sold, with emphasis in selling to PDVAL, small fish stores and if there is excess production to restaurants and larger markets.

The project requests Bs. 30 million in financing, about US$ 7 million at the official rate of exchange. The company is owned by Mr. Mantovani, but he has agreed to give 20% of the company to the Communal Council of Chuspa, once the financing is obtained. The company will direct 5% of its gross income for social responsibility and 5% to improve the conditions of personnel. The Chuspa communal council backs the project and it has other approvals from Government entities.

The problem?

In order to obtain financing, Insopesca, the National Institute for Fishing and Aquaculture has to give its technical approval of the project. The project was rejected once and Mr. Mantovani resubmitted after the exchange via Twitter with Mr. Gilberto Gimenez, President of Insopesca. Here is an excerpt of the second rejection, denying the “technical” backing necessary for the project to receive financing:

“The project is conceived under the concept of a private company, which leads us to suggest that models aligned with the new economic and productive policies be used. Even if the vision of the project is to administer goods and means of production for the fishermen, it sets up a situation which legally privileges the consortium, which promotes only one Director, as the only shareholder of the consortium (Did they even read the project???), which blurs the current context for the promotion of socio-productive organizations. It also describes a potentially monopolistic model, that is, under this scheme there will be a great power over the market, which will be the only one to own the product, the resources, the service and the goods, with the risk that the fishermen will return to the old scheme of exploitation and dependence on the boss to whom they will have to report”

So much for a technical evaluation of the project. It even sounds like they did not even bother to read it, since 20% of the company would be given to the communal council. The evaluation never even considers any of the parts of the projects proposed, its viability, the fact that it will generate employment in an area that has no sources of employment other than the local Government. It is just ideological “paja” by someone who has no clue as to even start running a project. To hell the inhabitants of Chuspa and the fisherman. Let them continue living a precarious, but ideologically “pure” life. So much for loving “the people”.

I bet those that asked for financing for setting up a red shirt or cap factory, got it. But Mr. Mantovani dared to dream, wanted to help, adapted his structure to the Government’s guidelines, coops then, communal council now. He also adjusted the structure so it would fit the local idiosyncrasies, customs and problems. He tried, but some bureaucrat shot him down in the name of ideology.

But, as Mr. Mantovani more or less said, either in his emails with me or one of the many documents he sent me: “It just seems as when it comes to facts, some of us are more socialist than others”

Drum Square, Chuspa

All pictures courtesy of Guillermo Mantovani

Venezuelan Opposition Politician Sentenced to Two Years in Jail For Giving “False Information”

July 13, 2011

Tonight, former Presidential candidate and Governor of Zulia, Oswaldo Alvarez Paz, was sentenced to two years in prison (Not clear how he will serve it!) for giving “false information” in a TV program. Much like Francisco Uson, the former General and Minister of Finance, who was sentenced to five years in prison for suggestion in TV that some soldiers had been killed by a flame thrower, Alvarez Paz is sentenced for saying something the UN says. (And so says the US, which directly involves leading Chavista Generals and even Chavez’ brother)

But if you get in Chavez’ eyesight, there is no chance you will get Justice in Venezuela. Alvarez Paz was stating the obvious, not lying, but in the worst case, he was giving an opinion, something guaranteed by the Venezuelan Constitution.

Come on, if you are talking about giving false information, all of Chavez’ entourage should go to jail. The President of the National Assembly said in early June that if Chavez had cancer, he would be the first to tell the country. Jose Vicente Rangel said the President is in good health and he will return whenever he feels like it. Then last weekend, Jose Vicente said that Chavez does not need chemotherapy. But Chavez himself said last night the tumor he had was the size of a baseball and he will need either chemotherapy or radiotherapy.

So much for Chavista veracity!

But, of course, these are all of the President’s buddies and they will not be accused of anything, even if they have been lying through their teeth all along. Chavez has been sick since March and even today, we are not being told the truth.

Talk about lying! These guys should get life in prison, because they know the real prognosis and it’s worse than we are being told, much worse.

But that is another post.

But all of this is not about Justice. This is about revenge. This is about hate. If Chavez could turn on Uson, a man that served him well, but one day decided he had had enough. Or Raul Baduel, another loyal buddy that Chavez decided to punish, despite Baduel saving Chavez’ presidency in 2002.

Why Alvarez Paz?

Who knows! Chavez’ convoluted mind is like that. Maybe because Alvarez was Governor at the time of the coup and convinced Arias Cardenas to give up (While Chavez failed…) Maybe Alvarez looks too oligarchic. Whatever the case may be, today was Alvarez Paz’ turn.

Just hope tomorrow will not be yours. Chavez’ is an inefficient Dictatorship. Not all enemies are treated equally. Just pray he will not set his sight on you or whatever part of everyday life you lead in Venezuela.

If he does, expect the worst, even if there is no reason for it.

Another video, more questions, but Hugo Chavez is certainly recovering from something serious

June 29, 2011

Today we were presented with another video which certainly convinces people that Hugo Chavez is alive, but he is definitely not well. You may want to watch the whole thing, but it is boring, here it is, for all you masochists or Chavologists out there:

The video is certainly made to convince us that Chavez is fine, showing him talking this time around and reading the headlines as “proof of life”, but the President is certainly thinner, less energetic and definitely recovering from something. What it is, is anybody’s guess at this time, but he disappeared for 18 days and right now he is still not well enough to either address the Nation or hold the Summit to celebrate Venezuela bicentennial next week on July 5th. That is  a total recovery time of 24 days total, not common in surgery even for very serious procedures unless there is a follow up treatment that knocks you out.  The Summit has been officially cancelled, even if Chavez could still try to show up for the military parade that day.

And as La Patilla showed, a key fact about the President’s health is seen in the first few seconds of the video above, when Chavez is shown walking out of the building followed by a wheelchair, the speculation being that he got out of it right before the video began. You can also see the wheelchair in the distance in minute 3:20 or so of the video. But here it is in the first few seconds of the video:

since Chavez is walking towards Fidel and greets him later in the video, it follows that he was brought out in the chair and it was kept nearby just in case and to move him around in the parts of the meeting between Fidel Castro and Chavez which are not shown in the video.

What is clear is that, as I suggested a couple of days ago, Chavez has been very ill, is recovering and receiving “strict medical treatment” as stated in the press release cancelling the Summit. The videos seem aimed more at Chavismo than the rest of the world, sort of sending the message he is still around, don’t stir the pot and follow the party line or else.

But there is no question that things will be different if Chavez’s illness is chronic or serious and will diminish his ability to campaign and/or run the country. This changes the game. With a Chavez with diminished popularity, the upcoming campaign already required his full attention and convincing the people to vote for him. If what he has is a long term problem, and his three week disappearance indicates that whatever it is, it is not trivial, then not only his supporters, but his collaborators will begin questioning whether he should be or not the revolution’s candidate in 2012. This in itself may result in a weaker effort by Chavez’ supporters, worried about their long term future and stability and the possible demise of the Bolivarian revolution.

In fact, this proof of Chavez’ life, resulted in another rally in the country’s debt today. A weakened Chavez is better than no Chavez at all, which would lead to uncertainty and a possibly chaotic future for the country between now and December 2012. And the possibility of a Chavez exit after December 2012, kept investors bullish about the prospects for the country’s debt.

If a picture is worth 10,000 words, judge Hugo Chavez’ health by these faces

June 27, 2011

This is a picture of the leaders of Chavez’ party PSUV after they had the joy of talking to their boss from Cuba. They all tweeted in unison when this happened, but somehow the picture does not fit the news, or the faces do not fit the news. As we say in Spanish the “carometro” or “facemeter” is not the bearer of good news.

If a picture is worth 10,000 words, then judge Hugo’s health by these faces.

Thanks ErneX!

By now, you can even bet on the outcome of Hugo Chavez’ health

June 27, 2011

By now, you can even trade (or bet!) on the possibility that Chavez will not be President by the end of this year.

Is that cute or what?

Markets, love them and hate them!

(Thanks to you know who!)

Note added: Venezuelan bonds went up sharply today, as people bet that Chavez may be out of the picture in the future. It is not a bad bet, if Venezuela’s risk goes down 300 points, the Global 2027 bond goes up 19 points or 25%. If nothing happens you collect 13% annualized.

An ominous warning against democracy from Hugo Chavez’ brother

June 27, 2011

Given the uncertainty and rumors about President Hugo Chavez’ health, today’s warning from the President’s brother Adan Chavez is quite ominous. In a speech in Barinas State, Adan Chavez said:

“The revolution was born in the Bicentennial era and it made it through elections and we want it to continue that way, following a peaceful path that allows us to build Bolivarian socialism, but aware of the dangers that beset us and that the enemy does not rest, we can not forget as authentic revolutionaries, other methods of struggle. ”

He then proceeded to quote Che Guevara:

It would be inexcusable to limit ourselves to only the electoral and not see other forms of struggle, including the armed struggle.

Combined with the uncertainty over Chavez’ health, the fact that the President has no successor that could match his electoral abilities, this warning represents a very real threat to what little is left of democracy in Venezuela and should be condemned by the opposition and international organizations.

Looking backwards and forward at Chavez’ absence

June 26, 2011

By now, the media and the country are full of rumors and tips about Chavez health. While few believe Wikileaks Argentina’s story that the President passed away, one can’t help but wonder what Foreign Minister Maduro meant by saying “Chavez battles for his life” or why Chavez’ mother said “I pray to God that he heals him fast and brings him back”.

In Venezuela, people go back and forth between Chavez’ demise and the other extreme, that this is just a ploy to bring back a triumphant and healthy Chavez as a way to prop back his popularity.

I subscribe to neither of these scenarios. I think that we are simply playing out the same scenario that led me to write a post on May 29th. , that received little attention. Now, I did not write that post because I had a vision, a particularly insight or anything of the sort, I wrote it because I received information that Chavez had something which was not the knee, it was something debilitating, something very painful, but not something fatal. This simply meant that the upcoming presidential campaign would have a diminished Chavez, which given his lower popularity and increasing protests would imply the opposition had a better chance that I give it credit for.

What seems to have happened since then is that there were sequels from the operation which have made Chavez’ condition worse, from an infection of the wound to a possible expansion of the cancerous prostate. This last part I have been unable to confirm, but it does not change the outlook dramatically. Removal of the prostate and the cancer related to it and it surrounding is not something that causes death in 90-plus percent of the cases. Chavez is relatively young (younger than me, thus young in my book), which is both good (stronger), but also bad (tumors speaed faster in younger people).

Thus, to me things look the same as they did two weeks ago, there are complications, but so far, the original story given to me is true: he has a debilitating, painful and likely non-fatal illness which will diminish his physical and likely mental ability to develop his typical frontal, twenty four hour, seven days a week campaign that he has done in the past. This weakens him at a time of weak popularity and as I said in the comments, it is a game changer.

There is also now the theory that this is simply a ploy to bring back a triumphant Chavez. While Chavismo may be thinking about that, I don’t believe for a minute that this was the original plan.The reasons are many.

To begin with, there is no question that Chavez has been ill. He was absent form the media in May, had a cane and talked about a knee problem. As I said in my first post on the subject, a painful knee does not stop you from sitting in front of a camera and give a speech, even a short one if you are taking very strong pain killers.

The subsequent events after May also don’t fit this picture. We saw no picture with Lula, but they clearly met. He then left for a meeting with Brazil’s President and he looked better, still using a cane. Then came the news from Cuba. If the ploy to bring back a resurgent Chavez began then and his operation there was fake, why have him speak for twenty minutes on Sunday June 12th., only to later silence him? Why turn twitter on and off in bursts that do exactly the opposite of their intent?

Chavze also missed too many chances to blast the enemies, when PDVSA received sanctions from the US Government or to say something about his Comptroller, who died in Cuba a week ago, or the 190th. anniversary of the Battle that seal Venezuela’s independence which was last Friday.

It may be that now that he is getting better this is what they are thinking of doing, but they have to be pretty sure that a) Chavez will recover by a certain date, July 5th. the 200th. anniversary of our Independence and b) that Chavez will look fine then. It does not appear they are.

In fact, the most damaging comment was Adan Chavez’ (his brother) comment saying Chavez would be back in ten or twelve days. Such a specific period implies a medical opinion, a procedure that last that long, otherwise you would say the President will be back whenever he wants or something like that.

And then we got the statements from Maduro and Chavez’ mother about his health. From Maduro I would belive a ploy, but to involve Chavez’ mother, I simply don’t buy it. He is sick, recovering and we will see him at some point.

That’s my take.

Best kept secret in Caracas? Chavez has PC?

June 23, 2011

Seems to the best kept secret in Caracas, Chavez has prostate cancer, his prostate was removed and prognosis is not so hot. The news and the uncertainty is spreading like wildfire, even the Wall Street Journal is running with it.

The story is, at least consistent with the way it has played out.

Revisiting Venezuela’s Debt

June 23, 2011

With the new debt announced two weeks ago and approved by now, it is interesting to revisit the country’s debt. First, let’s look at the evolution of local debt, which with the new Bill will now grow to Bs. 135 billion, as shown in the graph below:

Of course, this debt is not as worrisome, as it can always be devalued out of the picture. In fact, if you divide each year above by the exchange rate at the time (using the official rate of exchange), then the graph is as follows:

Despite the fact that total debt in Bs. went up from last year to this year, for example (I am including half of the new Bill as issued in 2011), local debt in US$ actually went down, thanks to the devaluation in January.

That is why foreign debt is more important. If one adds Venezuela’s and PDVSA’s bonds (I am not taking into account Chinese loans, other loans and the like), then you get the following graph, in which you can see the effect of all of the debt that PDVSA has been issuing in the last few years. Essentially the Republic’s debt has barely gone up, the increase in the graph below is all coming from new PDVSA issues. (I am excluding in the graph the payment of US$ 2.5 billion coming up on July 10th., but I am including US$ 5 billion as part of the new Bill, but I just learned that PDVSA issued today US$ 1.5 billion of PDVSA 2022 which it sold to the Venezuelan Central Bank. The latter is not included)

Finally if you add both local and total external debt you get:

Since GDP is US$ 235 billion, then Debt to GDP ratio is around 40% without the Chinese funds and other loans which would bring it up to 50% or so. (Of course, GDP is measured in Bs. at Bs. 4.3, so that the true GDP measure is lower)

The reason that many investors are not as concerned is that when you look at maturities:


You can see, that there is no bond due next year, only US$ 2 billion in 2013 and a little over US$ 4 billion in 2014. It is not until 2017 that things could get hairy, as over US$ 7 billion come due (Note there are two bonds due that year) and, of course, you have to pay interest.

The big problem is then the slope at which debt is increasing. Venezuela and PDVSA can not continue issuing debt at this rate, something has to give. Total debt payments each year are now US$ 4 billion. If no debt were issued between now and 2017, that year it will be US$ 7 billion in capital, US$ 4 billion in interest, that is a total of US$ 13 billion, not exactly a small piece of change. But the reality is that under current planning by then, Venezuela would have issued another US$ 40 or 50 billion in debt, which would almost double interest payments.

And that is the real problem, the current model is simply unsustainable when the country produces less oil each year and all of these bonds are issued not to invest, but to maintain a lower rate of exchange.

Crazy!