Showing posts with label embezzlement. Show all posts
Showing posts with label embezzlement. Show all posts

Tuesday, December 22, 2015

Government by gentlemen's agreement: Punto Fijo I and Punto Fijo.II ?

A question for Mark Weisbrot : Can Venezuela have "normal" (bipartisan ) "nonpolarized" politics while the country lies bleeding with widespread hunger and a foreign debt that exceeds reserves?
How do you fix an import dependant economy where short term loans due exceed reserves and there is a gaping wound built into the system? 

We in the US would call it bi partisanship 

The live and let live concensus. How can it work when Venezuelan hard currency reserves are at less than $15,000,000,000 and foreign debt due in 2016 is higher than that? 
No public debate of serious issues, smoke filled backroom deals, sharing of government departments,  jobs, contracts,  major policy decisions. Today in Venezuela this could include a consensus to make international debt payments come hell or high water. And not rock the boat with a transparent popular audit of the embezzlement,  with an eye to recovery of all that can be recovered,  exemplary punishment of embezzlers who might get caught, priority to food, medicines,  all necessities for the Venezuelan people over foreign debt repayment.  Moratorium at least until it's determined what debts are lawful and legitimate. 

 I was looking for any acknowledgement of the embezzlement or  looting of $259,000,000,000 by persons unknown from the patrimony of the Venezuelan people. I found an analysis  or perhaps autopsy on the Venezuelan economy  in the opposition blog Caracas Chronicles but somehow the folks over there haven't yet made a connection between a missing several billions, possibly  $259,000,000,000 and the growing humanitarian crisis in Venezuela.  I only find reference to the embezzlement and the looming debt train wreck from the marginaized Marea Socialista and allies like the Bolivarian Circles and former close aides to the late President Chavez.

Saturday, December 19, 2015

I was Googlin' around when I tripped over this article by Mark Weisbrot, economist and Venezuela pundit.  It was from July, 2014 and from Fortune Magazine.  Mark Weisbrot was prescribing how Venezuela could fix it's dysfunctional foreign exchange system. Of course he described the system as it was then, and the Government has tinkered with it since then, but what hit me right between the eyes was where he said that the black market dollar was stabilized at around 79 bolivars to the dollar.  Of course, since those happy days the dollar now fetches around 850 of those same bolivars.  Not too stable at all.

So I went looking for something more recent from Weisbrot,  to see if, perhaps he had something to say about this development. But first, I recalled a very optimistic Weisbrot piece in The Guardian.
This was back in 2013, when oil was around $100 a barrel. 



http://www.theguardian.com/commentisfree/2013/nov/07/venezuela-not-greece-latin-america-oil-poverty

Okay, let's see,  fast forward to 2015 after the election catastrophe. People are still looking to Weisbrot for wisdom when it comes to Venezuela.
Well, I have a strong interest in Venezuela,  not only because of the importance of the country and the fate of its socialist experiment but because I have family there who are not experiencing good times. I worry about what's next for Venezuela.  So I asked Weisbrot,  through the comments on his recent piece in The Hill, I asked him a question. 
Okay I made a factual error.  The bolivar was 79 to the dollar,  not 73. My comment was posted ten days after Weisbrot posted his article,  it's possible he won't even be aware of it, so I'm posting it here. As is my custom, I'll be spreading it around.
PS I know Weisbrot 's area of specializaton is economics,  but I'm wondering what he, or anyone, thinks the impact the new cocaine smuggling cases will have on Venezuela.