Wednesday, May 26, 2010

The Central Bank of Venezuela FINALLY publishes the first quarter results

The economy shrunk by an official 5.8% in the first quarter of 2010FIVE POINT EIGHT PER CENT.

You want to know why?  Read the two preceding posts and you will have a good hint.

But agricultrue is not the main culprit since it went South long ago.  This time is manufacturing (-9.9%) and commerce (-11.8%).  that is right, there is less to shop for but there is less people to shop for too, something that chavistas will probably find positive.  And with the inflation of 5.6 in April, well, I do not need to explain to you what this all means. Oh, heck!  I will explain it to you: Chavez economic ship is sinking faster than expected.

Ah!  I forgot, Giordani IS STILL in charge!!!!

And if you think that maybe they will start getting the hint that they might just need to correct something, forget it!  Today Felix Osorio the Food minister stated that they will go against any retail chain that considers food a merchandise (mercancia).  Yes, that is right, I AM NOT MAKING THIS UP!  Nor the title "ministro de la alimentacion".  You can read it here in English or the original in Spanish here.  I suppose soon we will be told to produce food for free becasue you know, it is for El Pueblo!


  1. Félix Osorio: alférez (did not know, that is the lowest rank you can get when you get out of milico school) of 1990 promotion, took part in the first 1992 military coup, got the Order of February 4th from Comandante-Presidente Hugo the Small

    Los milicos son realmente una plaga absoluta para Venezuela.

  2. That's much worse than I would have guessed. I mean, I'm not there to witness it, but I didn't think that Chavez could screw things up this badly. Call me an optimist.

    Osorio is clearly an idiot - at best. Just take this at face value: "Según Osorio, la mayoría de las frutas (Manzana, Pera) y productos de mar que permanece en las cavas de Friosa carecen de permiso sanitario y de importación", therefore they will sell those products at Mercal at a "precio solidario." The stuff isn't safe, but we'll sell it anyways!

    Maybe they're trying to boost PIB again by forcing people to increase spending on health care. (Perhaps I'm not such an optimist after all...)

  3. Island Canuck4:04 PM

    Stop laughing. Getting up off the floor:

    The director del Instituto Nacional de Estadísticas, Elias Eljuri says:

    " se puede descartar que el mercado permuta haya influido en la disminución de 5,8% en el producto interno bruto, PIB, durante el primer trimestre del año. Pero consideró que este efecto se podrá observar realmente en el segundo trimestre."

    We can't eliminate the permuta market has influenced the drop of -5.8% the the PIB during the 1st quarter of the year. But just wait for the second quarter when it will be much worse. (my translation) Ha, ha , ha

    What a bobo! Doesn't he know that it was primarily the actions of his emperor & the lack of funds from CADIVI that mainly caused the drop.

  4. He thinks the unofficial exchange market can drive down GDP??? I really don't know what he's trying to say about the next quarter though. Is he saying GDP will drop even MORE?

    One relevant factor, which certainly should not be omitted from the analysis, is that oil prices ROSE in the first quarter, compared to 1Q2009. About 80%, even. Where else can an 80% increase in the primary source of revenue turn into -5.8% in GDP?

    A few years back, oil price increases were driving all of the growth in Venezuela. Now they're no longer enough to stabilize it.


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