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Showing posts with label communism. Show all posts
Showing posts with label communism. Show all posts

Sunday, 7 August 2016

Narko-Radikalismus

When everything fails, repeat it all. In particular the parts that clearly are rotten at the root.

This is what Maduro has done last week.

The paradox in covering Venezuela lately is that change is so continuous that it is enough to write about tendency. The rest are details quickly swept under the rug, no need to write about it unless you have time on your hands or are paid for that (lucky you!).

Roughly the story.

*Maduro cannot provide food.
*He names his minister of defense, Padrino, as food tsar, making him a de facto co president.
*Then, as an after thought he decides that it may have been a mistake to give such leeway to the military so he changes three of the non military cabinet position to set in three of the most radical elements he can find.
*Add to this that in the background the few ministers that have suggested change have been immediately shut down by radicals pols not inside of the current cabinet.

Explanations?

*In the previous entry I explained why the regime cannot get out of the currency control policy as its whole graft power based structure will fall in weeks. As such it does not matter who Maduro names as his co president, that befuddled person will not be able to bring diner to the Venezuelan table as the cupboards are empty and stores stopped deliveries until they get paid.

*Surely Padrino must have known that and he took the job for some other reason. Whatever the reasons are for him to become co-president (real president?) he needs to act fast because within two weeks of his nomination nothing has improved. Which were the reasons? One is that the regime being a military sponsored dictatorship it is just natural that the military start assuming a more public role. A novel XXI century military dictatorship if you like.  A velvet coup some have said.

*Alternatively it is possible that he military have decided to get get rid of Maduro and the ascension of Padrino is the first sign of a bona fide transition (towards democracy? open dictatorship? but maduroless for sure). Thus the reaction of Maduro to surround himself of radicals he is used to as a counterweight to Padrino. The real question would thus be how come Padrino did allow those changes.

It is important to note that one of the ministers fired was the lone "pragmatic" one who suggested that currency control had served its course. He was replaced by a communist and that is that (Carlos Faria). It is even more important to note that Ricardo Molina was brought back from the National Assembly to occupy one of the posts where money and graft opportunities abound. He was the radical firing any ministry worker that was not red enough to his taste. But do not think that he is a pure radical: nepotism is also his trade mark as it is apparently the case from Nicaragua to Maduro's wife Cilia Flores. Mouth on the left, privileges on the right, they all are.

And in case you do not get the point that Maduro has no better idea but to veer left/radical for his own protection by hiring ideologues that will be willing to take the fall for him, he also hired as interior minister Nestor Reverol, former Nazional Guard head. The problem here is that Reverol has just been indicted in the US for drug trafficking.  Clearly, Maduro knows that Reverol loyalty is assured since there is nowhere else for him to go.

Why this whole charade of pursuing policies that have failed, making them harsher if possible and have drug traffickers hired for protection?

Besides the obvious, that Miraflores Palace is a nest of scoundrels, assorted thugs and mafiosi, and thus they relate to what they already know, we need to look elsewhere.

This is a strategy to gain time, to intimidate and have people beyond the pale do whatever it takes to ensure Maduro's survival, even if it is for a previous few additional months.

The final question becomes thus who can possibly be so desperate to accept the utter ruin of Venezuela?

Blaming this on people like Diosdado Cabello is not enough, After all someone must have pointed out to him that sanguinary tyrants that die in their beds like Stalin are less frequent than those who meet less settled endings. People like Diosdado are hysterically radical as a way to force unacceptable conditions in an eventual negotiation.

So, who really pushes Maduro to such radicalization, harbinger of disaster without any historical exception? Only someone who will not be directly affected by the eventual collapse of the regime; or at least that will be far enough from ground zero when the day comes.  There is only one candidate that fits the bill and that is Cuba and the Castros. By forcing their creature Maduro to ravage the country to its last penny to support Cuba they know the regime dooms itself and any political future it may have thereafter. But they do not care, they need that extra little bit of money to bridge the gap until they finish negotiating with the US, Europe and even China.

Only a regime as vile as the Cuban one can prod Maduro into doing what he is doing these days. Then again the Castros have a long experience in starving people to death.



Friday, 15 January 2016

Nationalization of Venezuelan Economy + Bolivarian Corralito

The regime has decided this noon to ask the National Assembly to grant it a decree of "economic emergency" for 60 days, extendable to 60 more. The objective is to face the "economic war" which is what made it lose the election. That economic war modality has never been explained but we were told it was waged on the regime by these nasty capitalist. So it is time to put them under real control.
Minister Salas as he read
the infamous decree against
the economic war, whatever
that is/was/will

Here follows the highlights as I weigh them and at the end I will attempt an interpretation. Note: this decree was issued BEFORE Maduro goes to the Assembly for his State of the Nation speech in a few minutes. I am not commenting all articles.

Article 2.

1- Because of inflation the regime has some budgetary crumbs, it seems, and they will use them at discretion, without need to go through the assembly. The excuse is to maintain the "misiones" working.

2- Confirmation that resources may be used within the budget or outside of it to guarantee welfare of "el pueblo".

4- Let's not bother with bidding.

6- Exempt certain goods from importation permits.

7- Suspend for some the requirements for obtaining foreign currency for import (What foreign currency? Oil barrel is at 24).

8- Demand that public and private enterprise produce in full capacity to provide the markets. Yes, that is right, I kid you not. This is my favorite!  There is no raw material, there is no USD to import it, The harvest is in the dumps this year. And we are ORDERED to increase production.

9- The nationalization part. My translation and emphasis:

el ejecutivo nacional podrá requerir de las personas naturales o jurídicas, propietarias o poseedoras, los medios de transporte, canales de distribución, centros de acopio, beneficiadoras, y demás establecimientos, bienes inmuebles y demás mercancías que resulten necesarios para garantizar el abastecimiento oportuno de alimentos a los venezolanos, así como otros bienes de primera necesidad.

The executive branch will be able to request from private persons or businesses, owners or users (?) the means to carry, distribution systems, regional distribution warehouses, animal processing plants and other assorted establishments, real estate and other products that may be necessary to guarantee the prompt supply of food to Venezuelasn, as well as other basic necessities goods. 
In short, the regime can take over ANY business that works with food, produces it, distributes it, sells it. ANY, courtesy of the vagueness in it. In theory it will return them to their owners at the end of the emergency but in which conditions? Will they pay for what they used, wore out, etc...?

10- Bring in foreign investment and jump start exportations. Yeah, right.... In 60 days....  With full trust....

Article 3. Maduro can dictate other measures that will be necessary to protect living standards of families, children, teenagers and elderly. I kid you not, the redaction is much worse in Spanish.

Article 4. The "corralito" article. Simply: in rather vague terms the regime gets the right to control the flow of money inside the country, establishing limits for financial and banking transaction. In short: you cannot dispose of your money as you will, you need a permit to buy and sell. Note: "corralito" was what Argentina did in 2002 crisis where people could not get money out of their bank beyond a certain amount, or Greece a few months ago.

Article 6. People are not invited, they are summoned to participate in this economic offensive. the list of people that must partake include artists, sportsmen, youths, students and what not. In short ALL of US. Otherwise? My translation:

a la consecución de los más altos objetivos de consolidación de la patria productiva y económicamente independiente, como fiel manifestación de la cohesión existente entre los venezolanos en el desarrollo económico nacional y contra las acciones ejercidas por factores internos y externos que pretenden la desestabilización económica del país.

to the pursuit of the highest objectives of the productive fatherland economically independent, as the faithful manifestation of the existing cohesion among Venezuelans for the national economic development and against the actions undertaken by internal and external factors who pretend to destabilize the country's economy.
Important note: in the summoned "pueblo" there is no call to any established authority, be it governors, mayors, etc...  But all the parallel organizations such as consejos comunales, parlamentos comunales, etc are summoned and will be the enforcers. That is, the only organizations called to support the emergency decree are all the structures controlled by the PSUV that have no legal basis but are given it now for their action, whether they have any legality or legitimacy. Mob rule in the works. Paramilitary colectivos to the rescue.

Article 8 and 10. They contradict themselves. The regime announces that as soon as the decree is published in the official journal, it can be applied. However the Assembly has 8 days to consider it. Is the regime planning already some demagogic action during these few days, like taking over Polar?

My interpretation.

This decree is clear and direct announcement that the regime will take over all what it needs to take to make things work. The excuse for that is that nothing about the actual food shortage crisis is its fault, that all has been caused by the private sector. Just like that, point blank.

Of course, the decree is unworkable, it is only the paroxysm of a failed model of outrageous controls that have resulted in a worthless currency, massive food and medicine shortages and even loss of independence. If this decree is enforced total ruin awaits Venezuela.

Why is a regime that has lost an election a month ago under the clear perception by the voters that the crisis is due to the mismanagement of Maduro and the extensive corruption?

One thing is that the regime truly does not understand why it lost the December election. Thus they are trying through a nuclear bomb decree to prove that they have been right all along. And along the way establish rationing under the excuse of the emergency, even if not directly noted in the decree.

Another thing is that the regime is preparing for an election, more likely to change Madruo or to change the constitution to get rid of the National Assembly.

But what I think is going on is that the regime, or rather the Maduro faction has decided to gamble it all on this provocation. Because it is a provocation, the National Assembly cannot possibly approve of such an emergency decree that not only will void its authority but will block any reform it may wish to make. Never mind that the Assembly cannot allow Maduro to put the blame on the Assembly. Not only there will be a rejection but it will have to be forceful.

From this confrontation there are only two possible results: Maduro leaves office or a coup is perpetrated.

---------------

Note: the economic war theory has been advanced a few months into Maduro's tenure. The Dakazo was one of his first campaigns. Apparently business deliberately hide their production, or paralyze them so that prices increase and people get upset and blame the regime.

And yet there is no credible case where such a political/economic strategy has been proven except in the case of some isolated stores which at most had supplies for a couple of weeks stashed away. The big players have always been irreproachable no matter how many controls the government has put on them. I think of the Polar Group, for example. Let me put it this way: if Polar were successful in hiding corn flour it would need dozens of gigantic warehouses. Where would those ones be? How come in two years the regime could not find any?

What makes it worse is that it si public knowledge that all the industries and lands expropriated under Chavez are either closed, unproductive, deficient and what not.

The regime had no other option but to invent an imaginary economic war to cover its ineptness and today it is forging ahead even if the risk is a total collapse in a matter of weeks.  Not months, weeks, as in 4,5 weeks.