Archive for the 'Uncategorized' Category

Enabling Chavez’ Pantomime

December 12, 2010

In his grand style, the little Dictator asked for his fourth Enabling Bill, which will allow him to legislate by decree,  to help him to face the emergency and the tragedy that is affecting Venezuela. But this is all simply another pantomime by Chavez, another expression that he is an actor and a Dictator at heart, because the last thing he truly needs is an Enabling Bill to confront and deal with the recent floods.

This is all a pantomime by Hugo, a show for the gallery that he expects will make him look like the hero he is not.

Because if he had any clue as to how to attack the emergency and the crisis he would ask some very basic questions: Who, with what and how?

And neither of these requires legislation.

Because when he calls on Farruco Sesto to lead another new Minsitry, this time for the Reconstruction, he is naming as gray a character as he can. Sesto, an architect by training, had publicly said he had no interest in urban planning, which never stopped Chavez from naming him Minsiter of Housing in between to long stays at the Ministry of Culture, Sesto’s real interest. And you have to wonder why Sesto’s time at the Minsitry of Hosuing was so short. If that is all Chavez can come up with in terms of who will lead the emergency, then he is in real trouble.

As to the resources, Chavez controls all the purse strings of the Nation, both the visible and the invisible ones, so there is little that an Enabling Bill will contribute financially to ease the pain of those affected by the floods. Chavez has all of the pockets, coffers and accounts needed, legislation will not helped. He has used the Development Fund Fonden and PDVSA as his petty cash funds, why not do it again.

As to the how. Of what we need is housing, to do that you need land and materials. The land, Chavez has been taking without any compensation for the past few years at will, so it should not be a problem. As to construction materials, Chavez nationalized the cement and steel companies that produce some of the most basic elements of housing. And he did it all without any special legislation and ignoring the mandate of the Constitution for expropriation. In fact, he has yet to compensate the cement companies. So, why go through this Enabling Farce?

The truth is that that is all Chavez is: a farce. He needs the Enabling Bill, because he knows the opposition will cry bloody murder and then he can point to how heartless they are and how they don’t care for the “people”. Because he is on his fourth Bill and he bypasses laws most of the time, so in the end what matters is the announcement, the propaganda, the view from below, not what he is going to accomplish or not with this Bill.

Beacuse for almost 12 years, Chavez has failed to build housing, but seems to have never asked why this is. By choosing the same incompetent comrades that suck up to him all the time, he is condemned to fail and he either knows this or thinks he can compensate for it by having these displays of doing something, which in the end has no impact on any results, if any, in dealing with the crisis.

But he needs the pantomime, the show, the images of a very clean Chavez “managing” the problem, calling on the National Assembly to help him urgenly, saying he used the phoen and told the President of the Assembly to approve the required legislation.

In his heart Chavez must also be relishing the fact that he may even extend his Enabling Powers beyond the 23 days left for the current National Assembly to legislate. On Jan. 5th. the new Assembly comes in and it would obviously be a Constitutional coup to extend the proposed Bill beyond that. But there have been so many coups of this sort that who cares? Really. We held a referendum for Constitutional Reform which Chavez lots, the people spoke and the President went on to legislate 80% of what was rejected by the voters.

What else is new?

All they will do is enable Chavez to continue to look like he is managing the country, until tragedy strikes again.

Venezuelan rainy musings

December 3, 2010

With the tragedy of the rains flooding Venezuela, it would be improper to suggest responsibility for the many horrific scenes we are witnessing today. Natural phenomena can’t be predicted, you just need to have the best contingency plan possible just in case.

But the citizens of Vargas State can definetely complain. Eleven years ago they lived through exactly the same thing and nothing much has changed in that state. Remarkably Vargas is a very pro-Chavez state, although by now Chavez’ lead in that state has been cut significantly, with PSUV losing 16% of the vote in the recent elections.

Vargas could have been a showcase for the revolution if Chavez had wanted it to be after the tragic floods of 2000. It was just a matter of deciding it.

Let’s suppose the subsidy for gasoline had been cut in half given the national emergency in 2000. That means that PDVSA would have received some US$ 55 billlion in additional revenue. Assume also, that you let PDVSA keep half of that for its projects. You are left with US$27.5 billion. Further assume that you gave each state its fair share, Vargas would have received around one billion US dollars. Assume further that you would have used this money to build safe housing on safe ground. If each house cost US$ 25,000, you could have built 40,000 housing units during this time.

Well, estimates are that Vargas has around 300,000 inhabitants. At an average of four people per home, you could have relocated half the population of that state.

Of course, the numbers are more complicated than that, you also need infrastructure to protect the housing from flooding, roads and the like, but when you consider how much has been spent in foreign aid to Cuba, Nicaragua, Bolivia and the like, how much has been spent on weapons and how much has been wasted on graft, there should have been plenty of money for this.

Sadly, Corpovargas never really got off the ground, experts were never called in and Chief Economist Hugo has been more interested in rifles and his glory than anything else.

Yes, something could have been done, but nothing is being done even today…

Who is afraid of the irrelevant Wikileaks?

November 30, 2010

So, through the magic of the bad, evil world of wikileaks we have learned so far the following:

-Some French diplomat says Chavez is crazy

What else is new? Even Edmundo Chirinos was saying that like in 2000

-Cuban intelligence officers compete with Venezuelan intelligence services for Hugo’s attention.

Well, duh, we have known about that for years. In fact, anyone that believes that the words Venezuelan intelligence services can all be used at the same time is out of touch.

-Venezuela’s Embassy sends a cable saying that medical services have deteriorated.

Jeez, replace medical with any word and you got a correct statement.

-Brazil’s Defense Minister all but acknowledged the presence of the FARC in Venezuela, except that admitting that would “ruin Brazil’s ability to mediate”

Wow! FARC in Venezuela! Who would have thought that? Those Brazilians are really clever. Do you mean they vacation in Venezuela? Or do you want videos proving it?

-The US is trying to isolate Venezuela.

You are kidding me? I thought Venezuela was trying to undermine the US openly, then isn’t that called fair play? Didn’t we know about it? Nothing new, that’s like saying Castro wants to end capitalism. Oh? You mean Hugo wants to do that too?

-Israel wants to blow Iran out of the water…

Change Israel for Iran and what else is new? It’s love at first blast, no?

So, so far, not much of interest, after all, who cares about Cristina and her mental state before or after Nestor’s death? Maybe now its more interesting. I am still falling sleep.

But if you ask for Hillary’s resignation Hugo, you should have resigned long ago, like you should have never been sworn in, just for being so out of touch. Do you know it’s raining?…

The revolution gives away Hato Piñero to the Lybians, after stealing it in the name of its fake socialism

November 29, 2010

I was going to write about the fact that the Chavez Government stole Hato Piñero from its rightful owners, only to give it away to the Lybians for God knows what reason. But then I saw this Editorial in Sunday’s El Nacional and decided it was just best to translate it.

The Sad revolution, Editorial from El Nacional

Libya in Cojedes

Just about three years ago, the President traveled to Cojedes, and among his innumerable promises (you can’t deny the the richness of his imagination), he told the people of the area that the expropriation of Hato Piñero would take place ” with the objective of forming a unit of socialist development unit ” The revolutionary leader added: “We will place a large development center for the people of Cojedes and all the people of Venezuela and its products will not be to enrich minorities, because that is capitalism. The meat, food, animals, vegetables, milk, cheese, corn and everything will be produced here will provide cheap food and goods for the people of Venezuela. ”

The President, addressing the state’s governor, said, “Continue following down that road, Theodore. Hit hard the large farm estates and  the capitalist speculators, always in defense of the people” He added that “the national government is committed to the recovery of businesses and estates and houses of leisure abandoned to consolidate projects in order to conform the socialist economy.”

That was in the midst of the campaign for the constitutional referendum in 2007. Chavez traveled around the country expropriating and promising villas and castles. Hato Piñero, a farming unit located between the municipalities of Pao  and Girardot, in the southeastern state of Cojedes, had special connotations because it was sheltering large areas and preserved several species. It was one of the rare places in Venezuela, intimately connected with our history and traditions.

Three years later, there is no such socialist development nor is Hato Piñero being devoted to  the enjoyment of the people of Cojedes. The decline replaced the splendor of nature that was preserved with passion with the care of the species that make their habitat there. Then after such demagoguery came the surprise filtered, incidentally, when the commitments signed with the Arab Socialist Republic of Libya, the country ruled for half a century by Colonel Gaddafi were revealed. It just so happens that Hato Piñero has been negotiated with Libya to develop it. (We Venezuelans are useless).

This is more serious than people realize when they see these stories lost among so many that overwhelm and confuse. We are an open country and we have no discrimination. But for those familiar with the ideas of Colonel Gaddafi criticized for his worldwide sponsorship of causes incompatible with freedom, and familiar with  his doctrine of the Green Book, the handing out of Hato Piñero to Libya generates all sorts of anguish. Gaddafi will install in the 75,000 hectares a Lybian colony, and, when Venezuelans awaken, we will find an irreversible fait accompli. Grave. Very grave.

Venezuela and Chavez rank low on wikileak files

November 28, 2010

Hugo Chavez is not going to be very happy when he sees this graph (click on it to see it larger) showing the relative unimportance of Venezuela in terms of material in the wikileaks files taken from US Embassy cables. The dark blue bar shows the number of messages relating to Venezuela, a quarter of those from Iran. In fact, the juiciest stuff so far comes not from the US, but from France as French diplomat Levitte calls Hugo crazy and suggesting Chavez is turning Venezuela into Zimbabwe. I wonder if Levitte knows Zimbabwe does not have oil.

There is also some stuff about Palestinian connections to Chavez and Venezuela, but nothing major. Hugo will be mighty mad that he ranks so low on importance on the US’ radar. Maybe he will pick a fight with France now.

Chavez’ “Muzzle” media law to be extended to the control of the Internet

November 25, 2010

Today we get the news that the Government wants to extend the so called “Muzzle Law” to the Internet. While some have reported this as a “rumor”, this is not simply a rumor as this document clearly shows. It is a proposal made to the Venezuelan Vice-President Elias Jaua by the country’s telecom commission CONATEL and aims to:

“Have the State protect collective interests, particularly those of kids and adolescents, as receptors of messages via…electronic media, through resounding measures that would allow the control by these actors for the effective compliance with the laws”

later the document adds:

“Inclusion of electronic media as part of the Law; Due to the fact that this service has turned, thanks to the policies of the Bolivarian Government, in one of the main forms of communication which are received by the collective in general. basically without regulation in terms of content, which requires that the Government insure that it may be “apt” especially to kids and adolescents, because currently content is transmitted with apologies for crime which attempt against the peace, security and citizen education, it is necessary to establish responsibilities for those that issue these measures, because of the consequences it may have, as well as the adoption of immediate measures that allow for the withdrawal of such content”

Of course, this is nothing new, it just formalizes the intent of the Government to penalize the use of the Internet in any way it wants, punishing those responsible and forcing for the withdrawal of such messages.

The content is clear, while it aims at protecting kids and young people, making it sound as if the Government wants to control inapropiate content, it later includes messages that attempt against the peace and security as well as theeducation of citizens. i.e, anything the Government finds offensive.

Of course, to enforce these laws, the Government will have to be able to block content coming from abroad, since it will not be able to to force “the withdrawal of such content” and give way to all sorts of controls by the Government over the Internet.

This is simply an extension and formalization of previous actions, as offensive tweets by Venezuelan twitters have already been persecuted, showing clearly that the Government can pinpoint who and where tweets using cell phones originate (All cases so far have been those associated with cellphones, no land lines). Thus, this would become a more formal excuse to block sites, content and scare and persecute and prosecute content depending on Chavez’ whims.

Nothing new, just more of the same. Less democracy, more censorship, more totalitarianism by a Government that believes only in that and has a total disregard for people’s rights and democracy.

Can the Venezuelan oil industry survive another decade under Chavez?

November 22, 2010

A reader was kind enough to send me a report by Raymond James, a well respected regional broker in the US. Here is the conclusion, to a report entitled: “Muchos Problemas: Can the Venezuelan Oil Industry Survive Another Decade of Chavez?”:

Conclusion
“Venezuela’s 40% oil production decline since 2000 – nearly the world’s worst track record – is a story of politically motivated mismanagement on a grand scale. Chavez, in power since 1998, is poised to win re-election in 2012, and with term limits abolished, there is no end in sight to his virulently anti-business energy policy. We project a 2% production decline in 2011, with flattish production thereafter. PdVSA’s production targets of 5 MMbpd by 2015 and 6.5 MMbpd by 2020 are good for comic relief, but nothing else in our view. It would take a policy shift of drastic proportions to turn around PdVSA, and under Chavez that just ain’t happening. From a big picture standpoint, production declines in Venezuela put further downward pressure on OPEC’s already limited excess production capacity – a key element of our structurally bullish long-term stance on oil.”

I only disagree with “poised to win in 2012” we shall see…

Thanks to the anonymous reader.

Will someone ever tell Chavez he is out of touch with reality?

November 14, 2010

(If you invent the wheel, I will invent communism and take the wheel away from you. Get it?)

Chavez comments today in his Alo Presidente simply show how out of touch he is these days. The man who used to walk the streets, no longer even rides the subway, limiting himself to making statements of what he is told and clearly, he is not being told the truth. He rides in helicopters accompanied by more helicopters. He is simply out of touch:

–“It would be good for Polar workers to determine who exploits them if it is Chavez or Mendoza?

Well, let’s see: Polar pays higher. Polar will pay tomorrow four months year and bonus, while Chavez will pay three in three installments. Polar pays severance when your leave. Polar does not force its workers to go to political rallies or wear any t-shirts. Polar gives each worker two cases of beer every month.

Should I go on Hugo?

–“Opposition parties want to make the subway chaotic

Did you even see the people that were jailed? Did you ask where they live? They all live on your once stronghold of the West of Caracas. These “politicians” included a lactating woman, also a pregnant one, this all happened in Pro-Patria, once your enclave, not in fancy neighborhoods, very far from the oligarchs. The bald guy who was prominent on the pictures said: I am just a user of the subway, all we ask is that the Government respond and fixed the subway”

Hugo why don’t you jail those that gave the maintenance contract to the Spaniards, who now have no clue how to fix things? Take a ride in the subway, but don’t call in advance. Look at the pictures.

–“Per capita income in Venezuela is among the highest, the problem is that we spend it all

Hugo, Hugo. You should read the book how to lies with statistics. If you calculate the same per capita income using the SITME exchange rate, it is no longer among the highest. And if those that suck up to you did not fake numbers so much, you would realize that it is impossible to save money to anyone earning even two or three times minimum wage. Do you know how much salaries have gone up this year in the public sector? 6.5% when inflation, so far in the year is 23%. You have all your expenses paid for, go out, try to buy something even in your Bolivarian supermarkets.

–“Real State crooks should go to jail

Unfortunately Hugo, if you apply the same criteria, then you are the biggest crook of them all. You have promised housing over and over again and have been unable to build more houses than Caldera did in any given year in any of your long and tiring eleven years in Government. Why don’t you measure yourself against the same criteria?

If you did, you and your urban planners would all be in jail. Same if you jail those that do not complete housing projects.And please don’t make empty promises again that sound so fake like you did today: “Now we really are going to build housing”

Really?

With that sentence you admit you have failed and you are once again promising what you can’t deliver.

–“Public Employees should not spend it all, they should invest in the Public Stock Market…if they buy CANTV shares, this would allow CANTV to invest

Hugo, Hugo. If you barely understand socialism and hate capitalism, why do you even want to play being capitalist? When someone buys a share of CANTV (Of which you own 95%) CANTV gets nothing, the owner of the shares does. So, when shares trade hand, the company that issued the shares gets absolutely nothing. Only when you do an IPO (Initial Public Offering) does the company get something. And Hugo, let me tell you, in your long eleven years in power, there was only ONE, yes, just “UNO” IPO’s in the local exchange and I don’t want to say the name, because you hate that company.

But going back to CANTV, you own the shares. You removed the possibility of Venezuelans buying CANTV shares, because you monopolized them all. In fact, so far in 2010 a total of 170,000 shares of CANTV have traded in the Caracas Stock Exchange that you want to compete with. At Bs. 3.35 per share average, that is about Bs. 565,000 total for the whole year (About $120,000 at the Bs. 4.3 rate). At Bs. 10,000 per worker like you suggested today, the whole of CANTV trading would acommodate about 56 (five six) of your three million public workers. Not simple Hugo.

Think about it, at 0.5% commission, all of CANTV would generate in all of 2010 about Bs. 2,000 in commissions for your public exchange (About 500 bucks ta the higher rate of Bs. 4.3). That does not even pay the daily lunch of the President of that new Exchange.

You better ask your advisers about these numbers, you are about to create a whole bureaucracy and subsidy…for nothing.

But again, you are a socialist, why your interest in developing capitalism?

–Finally Hugo, just a suggestion, why don’t you say you will jail any of your collaborators that offers you something and fails by say 20%. Thus, if next year GDP grows by less than 1.6%, there goes Giordani to jail. If inflation is more than 27%, uups.., there goes Giordani again to jail. If oil production falls, uups, there goes Ramirez.

It may just work better than the current system.

Just a thought! Get in touch with your reality!

And on the fifth day, Chavez promoted General Rangel Silva

November 11, 2010

And on the fifth day after General Rangel Silva said the Armed Forces would not recognize an opposition victory and after national and international outcries to remove General Rangel Silva…

Chavez promoted him to General in Chief…

Drug kingpin, pro-Dictator, fanatic…perfect for the post…

The pretty revolution at work

If you want to understand why Fondur can’t finish housing, look at its website

November 10, 2010

In the previous post I showed unfinished buildings by Fondur, the Government’s urban fund. Reader AIO tried to find information about Fondur on the Internet and found this image on its site which is simply hilarious: