Weimar or Harare?

Or was that a suicidal note from the regime?

I wrote earlier about the recent "economic policies" of the regime. But I need to add the latest from today, the de facto privatization of the Central Bank of Venezuela, BCV, to Nicolas Maduro and his camarilla.


In what is a gross constitutional violation Maduro modified through law decree the rules over the BCV. His enabling law did not allow him to do so, and the constitution either. Period.

Which are the modifications?

First, the National Assembly, NA, cannot name representatives to the BCV board of directors, they are now named all by the executive branch. That is right, the executive decides on its own on monetary and fiscal policies. No outside input or supervision needed.

Second, the new BCV is under no obligation to make its statistics public, that is, it will send them to the NA if the executive power allows for it. And apparently even then the NA cannot comment on them. One wonders how can the NA legislate if the most important statistics of the country remain hidden from view.

Third, the BCV can now lend to the regime whatever money it needs, and the conditions of such lending may remain confidential if the regime justifies of any crisis. That is, the banknote printing machine depends on whatever petty cash Maduro needs at any given day.

I need not insult the intelligence of the reader that if such a measure is not immediately overturned by the new NA we are going straight ahead into the wall of hyperinflation. Our currency is as of today is, well, worthless (today 847 to 1 USD, I bet you 1,500 by early February). Hello Weimar! Greetings Harare! We may just beat your records!

This suicidal action of the regime, because when hyperinflation comes in I have no idea how they will stop the people from Catia and 23 de Enero to come and burn down Miraflores Palace, has three clear intentions.

One is to avoid asking the new NA for budgets and their extension. Electoral needs will be covered directly through borrowing at the BCV, for example.

The second intention is to delay as much as possible the publication of the catastrophic economic news of 2015 which may well speed up the downfall of the regime.

The third intention, last but not least, principal in my eyes, is to hide the corruption, looting and mismanagement of the country under Maduro. When the numbers come in, when the NA is able to open hearings on some ministers like Rodriguez Torres, Osorio or the BCV director Merentes, these people will be unable to hide their responsibilities and penal measures will have to be required on the spot. Or these people will have to do a coup which would be hard to succeed considering the reasons why they will ask el pueblo for support. Henceforth the neutralization and privatization of the BCV.

I should add a fourth ancillary reason. Funding for Cuba will be very difficult through the NA. There will be a need to hide the looting that needs to maintain alive the Castro criminals. Blocking access to the BCV not only hides what was already given to Cuba but will allow for a year or two more of partial financing of Cuba. Then again since the country is all but bankrupt I wonder how much money can Cuba get anyway.

This, for me, is the worst possible thing the regime could do to itself. It is simply unthinkable and betrays the desperation of the regime and its willingness to disregard any rule, any constitutional obligation. But it also may show that the army is abandoning it. If they need to resort to packing courts and hiding the money it is because they cannot do a coup. Or so I hope for the sake of all of us.