Wednesday, November 19, 2014

28 new laws are going to solve all of our problems

Maduro is finishing his week the enabling law period. So, as it has always been the case since Chavez reached office, every hitlerian enabling law lasts one to two years but 90% of the "laws" decreed are published in the very final couple of weeks. One truly wonders why the urgency of an enabling law if the future alleged positive effects of such dictatorial measure will be announced at the very end of the period. Of course, for those new to this sick game, the whole point of the regime during these months of wait is to test political waters and announce political laws in bulk so that opposition will be drown under the flood. Remember: this is ALL about control, NOTHING about sound economics.

So tonight Maduro tells us that there will be 28 more new decrees that will be laws and we only have hints at it. In the rush they do not even bother to publish them a few days ahead so people have time to read them before they get into application..... From the little bit I can read it is more of the same, more revamped stuff, more attempts at making past approved controls that failed into refurbished items that we are absolutely sure will work this time around...

One example is a new "Ley Gran Sistema Nacional Agroalimentario" law for the great national agroalimentary system, or something like that. This time, we are told, the state will now exactly what is produced and where so contraband will be impossible. Yeah, right...  Long time readers of this blog now that wince 2010 there have been diverse instruments like SADA which were designed to monitor ALL interstate food and ingredients shipment. That is right, since 2010 if you manufacture food or an ingredient that goes into food, you need a permit from the state before your truck can leave the manufacturing plant. And the guys at the receiving end must report that they received it.

Clearly, in 4 years the system has failed and could never stop contraband at the Colombian border or that street vendors received all sorts of food items that technically it was not possible for them to receive. The only way, THE ONLY WAY I stress, for these illegal shipments to operate is that the military does not fulfill its duties since they are the one in charge to monitor the roads through which these shipments go.  Long time readers of this blog know of course the extensive bevy of military corruption that I have written about over the years. Military get rich by allowing those who pay for it to bypass these controls. Does any one seriously think that rewriting the law will stop corrupt military of a corrupt military regime?

There are also delicious contractions. A law will be published to try to encourage foreign investors. On the other hand another law will allow for direct confiscation of anything that is not shipped as some fat military thinks it should be shipped.  At least before if you were caught "speculating" or "hoarding" supposedly the military would force you to sell at the regulated price and let you cash that money (remember the dakazo?). Now they will be able to confiscate it outright. Bureaucratic simplification we should call it. We are absolutely sure that foreign investors are going to flock in.

Meanwhile the parallel exchange rate for the dollar was today at 124,57 Bs. for one dollar. That is already a 20% depreciation of the bolivar in not even two weeks.  Let's see what is the value in a few days.


  1. Anonymous12:47 PM

    What is your opinion about the increment of the reserves by using the "cloudy" Fondo Chino.
    To me it looks like an accounting trick used by Enron and Bearns.

  2. Anonymous2:37 PM

    Maduro enabled 28 new laws. The big issue, brought up in the essay, is how will they be enforced. For opposition members, the the laws will be strictly enforced with a loose interpretation. The laws were really not meant for Chavistas and no enforcement is needed.

    The expression "you better be careful of what you ask for, because you might get it" might come back on Maduro hard if he looses power even to another Chavista.

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