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.....

Tuesday, June 04, 2013

Media shopping and its future use

We are in an economic crisis of increasing dramatic proportions and yet "groups of investors" are buying media groups....

Food card rationing, XXI century style

The mind reels.

The government of Zulia state has announced that a new system to control purchases will be set in place sometime in June. Although full details are not available yet, we must assume that through an electronic ID system the state will know who buys what and where out of a list of 20 "monitored" items.  That is, maybe through some form of finger printing as for the voting system, or though presentation of your ID card to the cashier, you will be allowed to buy, say, 2 sticks of margarine and a tube of toothpaste, every so often, no matter what store you go.  That is right, you will need an ID to shop. No ration cards, Windows 7 or Linux will take care of the rest once your ID is shown. Forget leaving home in a rush to the corner store for a last minute purchase of a pound of corn flour: no shoes, no shirts, no ID, no service.

Now, the terrifying thing in this is that once the system is set, it opens itself to include all forms of electronic discrimination, which will have the advantage of not being as easily traceable as if they were printed on a ration card.  The picture attached will give you the idea.

And of course forget about the contraband it is supposed to stop as subsidized food items leave Venezuela for resale in Colombia. Those that do and control that traffic are in the army and you can bet anything that the electronic system will fail to detect them....

Monday, June 03, 2013

Back home and it got worse

The strangest thing upon my return home is that things visibly deteriorated in a mere 3 weeks. I am not talking about the physical degradation of the country, I am talking about the general mood, the political exchanges, the perspectives of a somber future. Maybe it is the lack of toilet paper, of basic food items, or the impression that the regime is doing nothing to solve our problems, but I am surprised at how noticeable the general degradation has been. Clearly, we are entering into the real crisis as people realized that the last election solved nothing.  In fact since 2006 no election has settled any issue and maybe this is what is driving the negativity that we can almost touch.


Sweet and Sour France

A chapel for fishermen (click to enlarge)
There is sweet living in France, in spite of the crisis. And yet I have more mixed feelings this time around.

The stay is in a fancy resort area of France where relatives happened to live way before it became a famous resort area. Living is cool, for the rich, the casual visitor or the native still hanging there. They all go to the same market two days a week, carrying all their grocery bag as there is no more the "paper or plastic" dreadful question in France: you bring your bags now, almost everywhere.  All mix, whether they come from the fancy villa hidden in the pine forest or the fisherman shack.  There is something about relentless sand and pines and rain that brings up a notch humility in all.

Civility in France is a welcome relief from the unbending vulgarity here, one that this time around I appreciated more than ever.   In Paris we saw Nathalie Kosciusko-Morizet walk in front of us while we had diner at a brasserie. What is noteworthy here is that the woman is the top challenger for Paris mayor election next year and she was walking alone in a busy street, no one stopping here, no body guards accompanying her, and yet recognized.  This is simply inconceivable in Venezuela where one year ago I saw Ismael Garcia attend the same pedicure as I do, accompanied with two body guards in a closed mall....

Sunday, June 02, 2013

Capriles in Bogota, or yet more evidence of a failed Brazilian imperialist policy

There is no need to expand on the diplomatic fiasco that Maduro's "new" team has suffered from Bogota this week. What is more interesting to note is that were Brazilian foreign policy a success, it probably would have never happened. True, there is always some small room left to suspect that the whole thing was a Machiavellian manipulation of Itamaraty to have Santos do the deed, but how unlikely an explanation....

First, a short summary of the events.

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