The Chaotic Venezuelan State! An answer to myself again... Fucking Mature!

Maduro surpassed himself. I was wrong when Chavez died and I gave an answer to myself last year, but now I have to give another one. WOW he can do it! He could make a complete unexpected scenario out of chaos... the order in Venezuela became real alearoty in politics following one order of chaotic implementation of behavior in military actions against the population and a complete out of order economy, with an inflation just like Versailles Treaty imposed, but in those eras was a warfare case, now is juts a lack of chromossomic capacity of the president in put order and uncapability of governance.

Well, the implementation of a politician well accepted in the XIX century showed itself uncapable to solve problems of the comtemprary scenario of international relations, in the clash of civilizations ideals and the international anarchy, the security dilema and the new spheres of warfare attacking in physical and economic terrain, showed that the complexity of the international relations is much more than a rural country that lives in the socialistic utopia.

The brutal corruption in the country show how the leadership is a bunch of jerks with full control and the action of militias against the society makes their needs accepted, just like a perverted with a sadistic sexual desire controling the whole situation.

The logic of mutual assistance in the world's anarchy is a kind of distant thing to happen when the country is up to face a inflation of 1 million percent and there is no credibility on negociate the oil with them, because they cannot honor the compromisses. The only thing they must is to survive till the Bolivarian government really, in the sense of the word, dies. Because there is no legal opposition and the system is corrupted. 

After this 'utopia banished' from the world order, the chaotic implementation of a 'failed socialist' model that URSS used during the Great War, the model that Marx stipulated to Germany, not following the complexity of the technological demands or the demands for a private life and capability of aquiring their needs. The model of Venezuela, is one model that no one can do nothing, never, and forever in the name of Chavez... 

Why this? Because Maduro surpassed himself on being an incompetent loutish buffoon... 

And the solution for the economy is to sell gold! *clap* So genius!

As if the Venezuelan Bolivar can have total credibility in the world and Venezuela have this same credibility on honor the compromisses and being so trustful in economy, the new Bretton Woods will come from Venezuela, to save the country's economy!

So, let's see... militias action, social control and now, the brilliant idea on people to sell gold to save their private finances... In front of the oil crisis in the country and the face of a inflation of one million percent a year, what really this gold can represent I mean nothing... I don't know how many people will accept sell gold for Bolivars if the money costs 0,0000040 U.S. Dollars.

Maduro could and he did it! I don't even know what to say... 

The situation is gettint complicated with the migration crisis, because Venezuela cannot promote life quality without equality to their people, and people are running from the country... Maduro really bankrupted the country and he didn't assume that... because he is a... 

The country crisis didn't start in Chavismo, it started in the 1970's and is a reflex from the XIX century, but the economy grew with the oil industry, and the per capta gross domestic product grew 250% in 1977. The inflation was low till the administration of the Carlos Andrés Pérez (1974-1979) - if you don't know this is because Chavez have hiden the history of the country from Bolivar to him - when there was a strong currency in the money and the urbanisation process was renowed, when had a beacon of democracy in the Americas. Was the period of Operation Condor in Americas and the Military was in power in the nations, during the Cold War.

Since 2012 the clash of the Chavez was abrupt, and the heritage was the high prices of the barrel, like 100 Dollars per barrel. Maduro, so, swore to assume the Republic, but was against the advances of Chavez, that started a strike on military industry with the clash of the protests on the military complex, the society demanded for new government, and the oil got the prices low, it's beause the president's were in a fortune that was not paralel to the prices of international oil prices, with the statization of oil industry the the other complex sectors and the implementation of aggressive anti-poverty programs, includind subsides for houses, adult education, programs for university and assiatance for poors to have capability on buying food.

The reduction of the economy showed the lack of capability on solve the problems, because the nation cannot produce to accomplish the demands of the population and the credibility of the country in international scenarion and international supra national organisations gives to credit to a mutual assistance beyond the borders of few alies, like Bolivia or Ecuador.

Venezuela to Sell Gold Ingots to Pensioners as Inflation Soars

By Patricia Laya  and Noris Soto

27 de agosto de 2018 20:20 BRT

https://www.theguardian.com/world/2018/jul/25/venezuela-inflation-crisis-nicolas-maduro

President Nicolas Maduro said Venezuela will begin to sell certificates backed by gold ingots as a savings mechanism starting next month.

The certificates, backed by 1.5 grams and 2.5 grams of gold, are meant as tools for pensioners and others to save money and use as credit lines to acquire cars and other items, Maduro said in a televised address. The gold is meant as a more stable way for Venezuelans to hold their diminishing funds as inflation in the socialist nation runs at over 100,000 percent.

“We have found the formula to advance towards socialism, equality and the development of national productive forces,” Maduro said, speaking from Venezuela’s Mint.

Earlier this month Maduro announced a 95 percent currency devaluation and a minimum wage hike of more than 3,000 percent, decisions that were a tacit acceptance of the ubiquitous black-market exchange rate. They accompanied the roll-out of new banknotes that dropped five zeroes -- the second time such a measure was implemented in the past decade -- to simplify transactions.

Starting Sept. 11, the gold certificates will be sold at around 3,500 sovereign bolivars and 5,800 sovereign bolivars depending on the weight.

During his address Maduro also appointed William Contreras as head of the newly-formed Interior Commerce Ministry. Contreras used to serve as as the director of Venezuela’s pricing authority.

Life's a struggle as Venezuela inflation heads for one million per cent

https://www.theguardian.com/world/2018/jul/25/venezuela-inflation-crisis-nicolas-maduro

The IMF has drastically upped its inflation prediction, with people unable to afford food and medicine – even as Nicolás Maduro tightens his grip on power

Two years ago, shoppers in Venezuela would pay fruit sellers like José Pacheco with boxfuls of 100 bolívar notes – then the currency’s highest denomination. Now, thanks to rampant hyperinflation, even those are useless.

“It’s crazy to accept notes of 100, 500, or 1,000 bolivares,” said Pacheco, a wiry 61-year-old, whose humble stall clings to the fringe of one of the major markets in Ciudad Guayana, a city in Venezuela’s southern Bolívar state.

He now only accepts newly minted 100,000 bolívar notes, which due to demand are hard to come by. “Otherwise it’s a box [full of notes] that afterwards we have to take to the bank,” he said.

Venezuela: inflation could top 1 million percent by year's end, IMF warns

Inflation in the embattled South American country could reach one million per cent by December, the International Monetary Fund (IMF) warned this week, reflecting an economic crisis comparable to Germany’s after the first world war and Zimbabwe’s at the beginning of the last decade.

The prediction marks a drastic jump from just last April when the IMF predicted inflation would reach a mere 13,000%.

Venezuela, which has the largest proven oil reserves on the planet, is in the midst of a five-year crisis that has left many of its people unable to afford food and medicine, with shelves bare in supermarkets. Crime rates continue to set records, with local residents fearful to leave the house at night.

Alejandro Werner, the head of the IMF’s western hemisphere department, elaborated on the grim prognosis. “We expect the government to continue to run wide fiscal deficits financed entirely by an expansion in base money,” he wrote in a blogpost on Monday night, “which will continue to fuel an acceleration of inflation as money demand continues to collapse.”

For Venezuelans, everyday life has become a struggle to survive. The minimum wage is 5m bolivares a month, which at the official rate is approximately £31 ($41). But very few people have access to that rate in practice, and resort to the black market where they get about £1.

“We are millionaires, but we are poor,” said Maigualida Oronoz, a 43-year-old nurse, who says her minimum wage is barely enough to buy a kilogram of meat to feed her children. “We can just about eat, but if some health emergency happens we’ll die because the prices of medicines are sky-high and rise every day.”

Many blame the country’s woes on President Nicolás Maduro, who in turn alleges that Venezuela is on the receiving end of an “economic war” waged by the United States and Europe.

Despite spiraling hyperinflation, Maduro has continued to tighten his grip on the power he inherited from Hugo Chávez, Venezuela’s late leader, whose charisma carried him through tough times.

Maduro, who lacks his mentor’s charm, won a second six-year term in elections held in May, though opposition politicians and many countries say the result was illegitimate.

Maduro has alleged that private bankers are smuggling cash into neighbouring Colombia as part of an elaborate conspiracy to sabotage the economy, and he has rejected calls to lift currency controls.

One of Maduro’s plans to alleviate inflation is to issue new banknotes with the last three zeros lopped off, though economists say that will do little to help.

“It’s a cosmetic solution that won’t do anything,” said Asdrubal Oliveros, director of Ecoanalítica, a Caracas-based economics consultancy. “With inflation this wild, in a few months we’ll be back in the same situation.”

Unlike in 1920s Germany, people in today’s Venezuela are not carrying wheelbarrows of cash to buy groceries. Instead, they have turned to electronic transactions. But 40% of Venezuelans do not have bank accounts, while others are unwilling to use credit cards or bitcoin to pay for smaller items, so bartering has become common.

“The paradox is that this is a country undergoing a deep inflation crisis and yet nobody actually has any cash,” said Geoff Ramsey, assistant director for Venezuela at the Washington Office on Latin America, a DC-based thinktank. “You’re seeing wealthy people pay for parking with granola bars.”

Hit particularly hard are pensioners who receive their monthly payments in cash. Saúl Aponte, a 73-year-old retiree, currently buys half a carton of eggs with 20 100,000-bolívar notes. “At the end of the year, if they pay the pension in cash we will have to go with a wheelbarrow to buy the same half a carton,” he said outside a shopping mall in the city centre.

Fed up with economic despair, masses of Venezuelans are simply fleeing. More than a million have arrived in Colombia, where, in the border city of Cúcuta, some entrepreneurial Venezuelans have begun weaving valueless banknotes into handbags that sell for 20,000 Colombian pesos (approximately £5).

Experts say that Venezuela’s vast potential oil wealth will not give the country a lifeline: the country’s oil industry is beset with bad management, a lack of investment, cashflow problems and a crumbling infrastructure.

The US Energy Information Administration (EIA) predicts that oil production could fall to 1m barrels per day (bpd) this year, and again to 700,000 by December 2019.

“Venezuela’s problems are so profound that even the increase in crude prices can’t improve its industry’s situation,” Lejla Villar, an EIA analyst told a local website on Tuesday. “They don’t have trained personnel, they don’t have rigs or parts.”

Back in Ciudad Guayana, Elisa González, a homemaker, relies on handouts sent from a sister that moved to Peru. “I don’t know how much longer we can survive like this,” González said, adding that she had to put two daughters through school. “With or without a job, what you earn isn’t enough to pay your kids’ school fees … and feeding yourself is mission impossible.”

Some analysts are hoping that the dizzying inflation rates could precipitate an end to Maduro’s regime. “History tells that the governments that bring us inflation aren’t usually the ones to get us out of it,” said Oliveros at Ecoanalítica.

“Venezuela is regrettably headed for a lot of economic and political instability, even towards ungovernability, but there could be a political transition at that point,” said Oliveros. “It would be very disorganised, of course, but in the end it would be a transition.”

Venezuela's oil crisis can't be stopped

Nick Cunningham, OilPrice.com Mar. 19, 2018, 7:02 PM

https://www.businessinsider.com/venezuelas-oil-criss-cant-be-stopped-2018-3

Venezuela's oil production fell by another 52,000 bpd in February from a month earlier, according to OPEC's secondary sources data.

That put Venezuela's oil output at 1.548 mb/d for February, down 100,000 bpd since December and down 600,000 bpd from 2016. Output will almost certainly continue to head south for the foreseeable future.

"Production is collapsing in a way rarely seen in the absence of a war," Francisco Monaldi, fellow in Latin American Energy at the Baker Institute for Public Policy at Rice University, wrote in a new report published by the Atlantic Council. "The country is also suffering the worst economic depression ever recorded in Latin America." GDP shrank by 16.5 percent in 2016 and 12 percent in 2017. The IMF predicts the economy will contract by another 15 percent this year.

The Atlantic Council report points out the roots of the country's oil production problems. Former President Hugo Chavez sacked thousands of workers after a strike in 2003, decimating much of the company's technical expertise. He partially nationalized some oil projects a few years later, leading to the exodus of ExxonMobil and ConocoPhillips from the country. Meanwhile, revenues from state-owned PDVSA were diverted for social policies, which, while they helped reduce poverty, left little for the oil company to reinvest in its operations. Output eroded steadily over time.

Falling production is compounded by the fact that Venezuela only takes in revenue on a portion of its exports. More than half of what it produces is already earmarked for China and Russia, or otherwise sold to the domestic market at a loss because of price controls. That means that out of the 1.8 mb/d that Venezuela produced in November 2017, PDVSA was only generating revenues on about 850,000 bpd in November, the Atlantic Council report concluded.

Worse, the production losses are set to continue. Half of the country's output comes from joint ventures between PDVSA and international companies, but because PDVSA is way behind on payments to these companies, activity is taking a hit. Private firms are scaling back their operations and declining to make further investments. The rig count in the country has fallen by nearly a third since 2014.

That's a notable problem because output from the joint ventures had held up better than production that came solely from PDVSA's operations. With the joint ventures now suffering from declining output, overall production is in a freefall.

Another problem is that a lot of the recent production declines have come from conventional oil fields. Heavy oil production is also falling, but has done so at a slower rate. That means that over the past few years, Venezuela's production mix has become relatively heavier, which is less profitable and harder to process (and requires imported diluents).

Production is expected to fall to something like 1.4 mb/d this year, according to various forecasts, although there is deeper downside risk. The U.S. has reportedly been considering stronger sanctions against Venezuela, whether in the form of financial sanctions, or perhaps a ban on U.S. diluent heading to Venezuela, or even a ban on Venezuelan oil imports into the U.S.

The removal of Secretary of State Rex Tillerson by the Trump administration and replacing him with current CIA Director Mike Pompeo could also result in an escalation of action against Venezuela.

The financial screws from Washington and Brussels are making things a lot worse for the Venezuelan government. "Buyers are trying to find alternative sources to Venezuela's supplies, and banks are unwilling to give letters of credit to PDVSA," the Atlantic Council report concluded. "As a result, Venezuelan exports to the United States, which had been relatively stable for the previous four years, collapsed in 2017." Because PDVSA had higher margins in the U.S. market, trying to reroute oil shipments will cut into revenues. Selling oil to India or China is possible, but will require steep discounts and higher transportation costs.

A default on debt this year seems likely. Venezuela has less than $10 billion in cash reserves and over $8 billion in maturing debt. A major default could lead to the seizure of PDVSA's oil shipments, which would plunge the company - and the country - into a much deeper crisis. "These conditions indicate a bleak scenario for 2018 and for the immediate future of Venezuela," Francisco Monaldi wrote in the Atlantic Council report.

Through all this mess, President Nicolas Maduro seems undeterred, and has announced elections for May. And while China and Russia are unlikely to throw the country a lifeline in a major way as they have in the past, because their state-owned oil companies are taking on a larger role in the country, they could market Venezuela's oil exports as a way to ensure the oil continues to flow. Even in a pessimistic scenario in which western oil firms exit the country, and Venezuela's oil production plunges to about 1.2 mb/d, "that may still be enough to sustain an internationally isolated authoritarian government," Monaldi wrote in the Atlantic Council report.

Read the original article on OilPrice.com. Copyright 2018.

Venezuelan army, civil militias hold exercises after Trump threat

https://www.reuters.com/article/us-venezuela-politics/venezuelan-army-civil-militias-hold-exercises-after-trump-threat-idUSKCN1B60KA

CARACAS (Reuters) - Venezuela held nationwide armed forces exercises on Saturday, calling on civilians to join reserve units to defend against a possible attack after U.S. President Donald Trump warned that a “military option” was on the table for the crisis-hit country.

Venezuela: Popular Militia Advances

https://venezuelanalysis.com/analysis/13968

"Latest steps to strengthen both the military and popular resistance and to defend the opportunity for the workers and farmers of Venezuela to struggle for a socialist future can only be applauded by those who support a sovereign Venezuela."

In the face of economic sabotage, subversion, an abortive military coup and threats of open military intervention from U.S. imperialism and its puppet gangster regime in Colombia, the Bolivarian government of Venezuela has taken steps to strengthen its armed forces and to reinforce ties among the soldiers, workers and peasants of the country.

In May, the government arrested 40 officers of the armed forces after it discovered a plot to kidnap President Nicolás Maduro and put him on trial. For a more long-term plan to eliminate the threat of a coup and to strengthen popular defense of the country, the Bolivarian government announced steps in early July to integrate popular organizations with the armed forces.

The most important step is to activate local defense committees, officially called “Committees for Security and Integral Defense,” and to select one person from each of the 50,000 local committees to train with the country’s Bolivarian Militia units.