Wednesday, June 05, 2013

The big inflation mystery: 6% or worse?

So, we are on June 5th and May inflation numbers are not out. It is not idle to remind the reader that when Chavez was alive sometimes, when convenient, the Central Bank was able to post inflation numbers for the month BEFORE that month was over....

Thus we need to read foreign outlets to know what is really going on. El Clarin reports on a Barclay's study that says that May inflation is 6%, the annual rate becoming thus 35,1% while the economic contraction may reach 9,7%.

Why? Because the regime through Mision Vivienda to reelect Chavez spent all its income and borrowed heavily and now it is out of dollars for production and the economy is collapsing. That simple.  The massive expenditures for a spectacular, and spectacularly inefficient, housing program has all but bankrupted the country and now we cannot even wipe our asses.

And you know what is really scary? The regime seems not to understand. Since they had to call for municipal elections in December, there are already signs of increasing spending for electoral purposes...  You may start speculating on next year inflation.....

12 comments:

  1. Charly11:15 AM

    "The regime seems not to understand". Daniel, you are a humorist, did uncle Fidel understand?

    ReplyDelete
    Replies
    1. Was I sarcastic or humor full? with these people one never knows what to be....

      Delete
  2. You may be interested in the subject of this opinion article. Unfortunately it is subscription only. It states Maduro cannot last due to the economic woes. But, no one thought Castro would last.
    http://latinvex.com/app/article.aspx?id=787

    ReplyDelete
  3. You worry too much.
    Syria and South Sudan have higher inflation rates than Venezuela and they are doing well.

    ReplyDelete
    Replies
    1. that is right. life is sweet in Damascus.

      Delete
    2. Boludo Tejano5:03 PM

      LOL. The sweet life in Damascus has been enhanced with gasoline shipments from Chavezuela. Or did Maduro cut them off?

      Delete
  4. 1979 BoatPeople3:03 PM

    OT:

    "
    Venezuela money helps fuel Miami housing boom

    "

    http://money.cnn.com/2013/06/05/real_estate/miami-housing/index.html?iid=HP_LN

    ReplyDelete
  5. Anonymous3:39 PM

    Since you explicitly allowed to speculate :)
    I'm guessing 70% this year, 120% next year.

    ReplyDelete
  6. Anonymous5:41 PM

    DolorToday indicates a 62%increase in the cost of the dollar on the street so far this year. SO FAR. Rumors from that last dollar auction put the value at around 15:1. That's a big jump from the official rate of 6.3:1. 100% is probably not out of the question, although the regime will never admit it.

    ReplyDelete
  7. This was predicted last year. Economists clearly warned of the economic crisis. Chavez's legacy? A f#$%ed up economy.

    Let´s just hope dictator Maduro loses plenty of popularity thanks to this mess. Maybe who knows, we could be as lucky as to finally witness a social upheaval of epic proportions against Castro-Communism. It's time for it.




    ReplyDelete
  8. Lula in a visit to Peru said that one term is just not enough time. I guess right wing administration are the only ones that believe in limited terms. The leftist's goal is to used the democratic system to get into power, perpetuate themselves there, and destroy the democratic system that allowed them to gain power.
    The only way Maduro is getting out, is if he turns his back on Cabello, and in the end Venezuela will not be any better.
    What is amazing to me is that having witnessed in Latin America how the different flavors of socialism in different countries are destroying those countries (or sending them back 50 years), from dictatorships in venezuela to narcisistics one in Argentina. So many of you, including daniel, can not bring yourselves to admit that the socialist philosophy has proven to be a disaster in the region and needs to be abandoned.
    Right now the Pacific Alliance shows a lot of potential, truly the only economic block in the region with potential. None of the participating countries are acting with
    socialist tendencies. Can that be just coincidence?
    Yet I get the impression that many of you, including daniel, hope to see a successful leftist goverment in the region...can't you see that leftist and success can't go in the same sentence in this region?

    ReplyDelete
  9. Anonymous10:32 AM

    The socialistic system is a rob-from-the-rich-and-give-to-the-poor scheme. The problem lies in the fact that Robin Hood is taking a sizable chunk for himself and the rich includes anyone who has any savings(the middle class). What they do not realize is that they are really stealing from their own future. They end up with the same number of elite, no middle class, and a huge lower class who can never better themselves because anything they save today will be worthless tomorrow and why work harder when I can just get a check from the government attitude. Entitlement does help get the non-workers off the streets, but it drags almost everyone else down in the process.

    With all those petro dollars, Venezuela should have the best roads, best schools, and one of the strongest economies in South America. They should have been invested in growth and not used as a crutch that many cannot live without. In Venezuela, petroleum makes up 20-30% of the economy. In the US, it makes up less than 2%. Venezuela has plenty of land, minerals, rare and common metals, a great growing climate, and 20 million potential workers. (I am not trying to put the US on a pedestal, I used it as an example because the numbers are readily available).

    ReplyDelete

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