The Devil's Excrement
Observations focused on the problems of an underdeveloped country, Venezuela, with some serendipity about the world (orchids, techs, science, investments, politics) at large. A famous Venezuelan, Juan Pablo Perez Alfonzo, referred to oil as the devil's excrement. For countries, easy wealth appears indeed to be the sure path to failure. Venezuela might be a clear example of that.
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Wednesday, July 09, 2008




Despite changing the definition, reporting it differently, keeping monetary liquidity constant, intervening massively in the parallel market and otherwise attempting to show that inflation is down, the results are not great as shown in the chart above, where I plot the 12-month accumulated inflation for each of the last twelve months. Inflation for the last twelve months has been running at over 30%, about the worst possible thing that can happen to the less well to do. Note the perverse effect last November of the financial transaction tax, as predicted here in an article called "The new magical transaction tax". The only good news is that the CPI should slow its growth since that tax was finally eliminated. It only took the Government eight months to realize what a stupid idea it was!!!

9:54:57 PM    comment []


Politicians by nature like to spin the truth, a small lie here or there, or simply a twist of the truth. All in the name of the success of their project, whether personal or partisan. But nobody can beat the Chavista revolution at the passion with which they can lie and deceive, essentially assuming that their supporters will not notice the inconsistencies, laughing at the intelligence of the people they claim to love and believing in their ability to trust them unconditionally.

The supporters and cheerleaders of the Chavez revolution are no different, they make up facts, dismiss others and try to portray a reality they know little about except that they sympathize with it. Today Quico wrote an excellent article debunking one such article in The Independent, which you can ascribe to either an incredible ignorance by the author, which speaks badly of his professional abilities, or to an incredible lack of ethics by him.

While Quico dealt well with the factual errors of the article, some of them outrageous, what still amazes me is this ability to attempt to suggest that Hugo Chavez has never even come close to supporting the FARC terrorists. This is not only the case in Hari’s article which explicitly says: “You have been told that the Venezuelan President supports the Farc thugs who have been holding her hostage”, but seems to have permeated the PSFhere, ever since Ingrid Betancourt and the other fourteen hostages were rescued by Colombian military authorities.

The passion and intensity with which so many people have attempted to portray Hugo Chavez, as an innocent bystander is simply sickening. Many of these cheerleaders seem to have joined the story only recently, as if Reyes computers were the only source of evidence for Hugo Chavez’ support of the FARC, which at times was blatantly open and for which there is ample evidence factual and very very real:

-Venezuelans will never forget General Gonzalez Gonzalez, an active military General telling the Venezuelan National Assembly that in 1999 and 2000, he brought to the attention of Chavez pictures proving that there were active FARC camps within Venezuelan territory and they should be destroyed. Nothing was ever done about it.

-Or how about the Foreign Minister of the FARC Rodrigo Granda, who was found in Venezuela living in the lap of luxury, with Venezuelan identity papers, provided by none other than the man who is today back into the Ministry of the Interior and Justice. Rodriguez Chacin was later proven to have met Granda at the VIP Government gate at Maiquetia International Airport upon his entrance to the country.

-And since we are speaking of Minister Rodriguez Chacin, can we forget his words on the occasion of the release of two hostages to the soldiers turning over the two former Deputies of the Colombian Congress, saying “we are watching what you are doing, keep it up!” This is a man described by the FARC as a true “badass”, on the occasion of his visit to the FARC to ask for “training” support.

-And by the way, how did that wanted FARC terrorist and criminal Ivan Marquez get all the way to Caracas to meet with…you guessed it, Hugo Chavez at the Venezuelan Presidential Palace? Once again, it was Chavez current Minister Rodriguez Chacin who gave him a lift, all the way to meet the top honcho.

-It was Hugo Chavez who attempted to get a movement going to have the FARC declared a belligerent force by the world. The move never even got off the ground, but is that sympathy or what?.

-Then there is all of the information in Reyes’ computers, which many don’t seem to believe in, but it’s there, certified and consistent. It was actually used by Interpol to jail some people.

Of course, Chavez failed in his efforts and suddenly turned around and has gone back to talking to Alvaro Uribe a man he hailed last November “never to meet again”, when he broke relations with Colombia when Uribe told him that he was no longer welcomed in his negotiation efforts because he had overstep the bounds of the rules agreed to.

But local politicians are equally passionate in their lies and exception. Only ten days ago, Chavista Deputy Carlos Escarra made an impassionate defense of the disqualifications of candidates by the Comptroller. Escarra spoke of the fight against corruption, stopping the robbers of the people and the like. Curiously, we learned yesterday that the same Escarra, then a Deputy but always the lawyer, took on the case of Chavista candidates that were disqualified from running for office, using precisely the opposite legal arguments that he used two weeks ago.

And then there is the august leader of the Venezuelan National Assembly Cilia Flores blasting reporters who wrote about nepotism in the National Assembly. Flores seemed to forget she is the wife of Foreign Minister Maduro, who she succeeded in that Presidency. Of course, she made it sound like the accusations were all false, that there is no nepotism. But besides accusations of a hiring process that did not seem kosher, in the recent hiring process, Flores was lucky enough to place relatives in nine of the sixty permanent positions up for grabs. These included three brothers or sisters, two nephews, a cousin, the mother of that same cousin and her “consuegra” (co-mother in law?) and her aunt.

Flores arguments are simply circular, she complains that nowhere in the article is it mentioned that the workers of the Assembly have better benefits and denies there is nepotism…I guess the Flores’ must be the new Kennedy’s of Venezuela.

But of course, the revolution is full of nepotism anyway. Chavez’ brother was a Minister and Ambassador. His Father Governor (elected, yes, on Chavez’ coattails). His other brother is Secretary General of his father and a cousin is on the Board of PDVSA. Which only proves that nepotism is a way of life in the revolution, but you have to lie passionately and deny it so that the “people” will never find out about it.

It’s a way of life for them…


12:43:57 AM    comment []



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