The plan is …


MaduroMarcoSo what did Venezuelan President Maduro say yesterday after Venezuela suffered a heavy blow at the OPEC meeting? Basically, we will not cut anything significant in the budget. Social and military investment – whatever that is – will not suffer. Not a single bolívar will be cut from the budget (hint: why would they? they can just keep on printing the bills for it). If they’re going to cut anything, it will be their own salaries.

Oh … and our Finance Minister Rodolfo Marco Torres is going to China for a “work meeting.”

So, the plan is to print money, borrow money, and lie.

We’re in safe hands, folks.

Caracas Chronicles is 100% reader-supported. Support independent Venezuelan journalism by making a donation.


  1. The Bolivar is currently quoted at 144, down ~40% against the greenback in just two months. The government is paying year-end bonuses with fiat money. I see signs of panic buying. If full panic sets in, and people simply start buying anything they can get their hands on anticipating the further erosion of the Bolivar, they may strip the stores bare before Christmas. I have noted recently that some people are beginning to carry some dollars in their wallets. Eventually, I suspect we will have an unofficial (but very real) dual monetary system: Bolivars for state goods and services and Dollars for everything else. This is what Cuba has now. The dollarization of Venezuela will occur without a single decision taken to make it happen.

    • 149Bs/$ at this time.
      And yes, the people are doing whatever they can to get rid of the useless bolivars to get some value on their savings, and most people do so buying appliances and electronic devices.

  2. If they adjust course or slow down, that could be taken as an admission that the past behavior wasn’t perfect. The front bumper long ago hit the wall and they still refuse to hit the brakes. They will keep going and keep blaming others for everything. We’ve seen this elsewhere with hardheaded leaders. Hugo Chávez even rightfully designated one such leader, impervious to logic and argument, as “un burro.”

  3. People currently working in the BCV told me that they are planning to take the gold to Switzerland later this month to use it as a guarantee for borrowing… I guess it will happen during Christmas eve so no one notices.

    • Heheheh, yeah, “magnicidio” without any corpse.
      These red /b/tards are really desperate.
      They also want to bring the elections for assembly to april and have tibisay “tendencia irreversible” along with sandra oblitas “no haremos auditoría, máquina mata voto” again in the CÑE.

    • hmm, funny how Pandetrigo doesn’t mention the infamous ‘economic war’ that PSUV has blamed for years for inflation, scarcity, loss of value of the BsF… not even once! Instead he claims that “Most of these problems can be traced to the country’s dysfunctional exchange rate system”?? Et tu, Brutus?!

    • This guy is the purest definition of the phrase “sin verguensa”.

      However, it is interesting to note that his statistics are a couple months out of date, even though the article was published yesterday.

    • I read that a few weeks ago. Notice how he claims that they can’t fix the exchange rate because the people reject that solution. He discards, without discussion, the idea that regime insiders need them crazy change rate for their moneymaking sidelines.

      So it’s not the regime’s fault, it’s the fault of “the people”.

  4. Where you expecting a good new plan from them JC? You have to realize that THIS is their plan and they are applying it successfully!

    This guys will stay the course all the way to the total destruction of Venezuela and total power for them, that is all they care about. If a famine starts then better for them. They want all dissenters to leave or die, whoever stays is going to receive whatever they seem fit, and that is it!

    The problem here is that they are in war with us and we are… I guess that we are trying to win an election against them. So the reality of the opposition does not fit with their plan, but it fits perfectly with the plan of the government.

    • I agree, and this same strategy worked fine for Fidel, didn’t it?

      To empoverish even more the Venezuelan society can only be beneficial for those in power, because when the ones who could do something to stop the madness must spend all their time trying to find milk, bread or visas to leave the country, there isn’t too much time left to resist the government. There are some at the Venezuelan opposition who think that the opposition will get stronger as the economic crisis deepens, but that’s very unlikely.

      The poorer a country gets, the more freedom the tyrant enjoys to rule over every living thing.

    • That is the way I see it too. Same formula that Fidel used. What I wonder, though, is when hundreds of thousands of refugees start streaming into Colombia and Brazil with horror stories that the press will reprint endlessly, will the neighbors make a move?

      • I don’t doubt for a second that they will simply close the frontiers and kill anybody that tries to escape.

        Or at least they will try.

        • No. That wasn’t how Fidel did it. He wanted as many of his opponents to escape as possible. It left the remainder more pliable. Besides, it will be impossible to “close” the borders effectively. There is just too much border to control with the army and the terrain doesn’t lend itself to artificial barriers.

    • You are absolutely correct. However, Venezuela historically has needed a strong leader/leadership to achieve major change (e. g.,Romulo Betancourt), and, the few in the MUD capable of this are either jailed (LL), or being jailed (MCM). Movements of masses from below, which can bring major change (Caracazo, etc.), are usually Leftist-instigated, and the Left is now governing. I believe that only when the Petrostate Peons begin suffering even greater hardship/even hunger, which will come soon, will there be a chance for major change (military or civilian uprising). The alternative is a slightly better Venezuelan Cubanized state.

    • And, ….and,….if the revolution comes, wearing multi-colored, Venezuelan-flag-inspired track suits to any official event, by ANY public official, will heretofore be banned by the new constitution. Sorry, I just carried away……

    • Think about the following scenario: Venezuelans take to the streets en masse, Maduro capitulates due to unrest and convenes a rapid election which is won by an opposition figure, who quickly applies macroeconomic corrections and… ?? One possible scenario is that the corrections trigger counter-demonstrations that topple the government and bring a chavista again to the top, who claims credit for the economic improvements resulting from the correction. And back and forth we go. This is not impossible. Countries like Ecuador have undergone periods of enormous political instability (6 presidents in 10 years).

      Who will take the responsibility of applying the macro (and other) corrections? We can guess that the reason why Maduro has not done more than tinker with the exchange rate and claim that he is thinking about raising gas prices is that it would unsettle the ranks. Key questions are, how long will Maduro et al wait under current conditions. How soon before the chavista base makes serious demands for a change at the top or some serious macroeconomic adjustments are applied?

      If an opposition administration takes over, it will be very unstable. The list of roadblocks to getting anything done is long. It will have to gain the support from quarters of the government/military that have been virulently antagonistic. This may be why Capriles comes across as wishy-washy. Chavistas claim that the first order of business of an opposition figure would be to purge them from the government and its contractors. Do we want to perform a de-chavezification in a country that is already unstable and plagued by violence? To what extent will inclusiveness be a better strategy? Capriles will have to win over a good fraction of the chavistas if he ever comes to power to get anything done. How much will he be allowed to do? How to handle the purse-strings to keep everyone happy during an interim period?

      It’s a catch-22: if you don’t give the patient his medicine he will not heal, but, pushing the analogy, nobody wants to be the doctor that gets shot.

  5. Yes, most people around the world have trouble understanding macroeconomic issues and economic policies…but they can…anyone can, whether in Venezuela or in Rwanda, in Bolivia or Japan, learn something, enough to open the eyes…if someone else is there to talk in very plain talk, talk honestly.
    I still am trying to figure out to what extent most oppo politicians understand the problem. Everything I hear is “es que les estamos regalando el petróleo a los cubanos”, “es que los del gobierno son incapaces/corruptos”.
    That is absolutely correct but that is not the whole story.

    As long as the leaders of PJ, UNT, VP are not able to explain it, the regime will keep that proud 30% hard core Chavistas. I believe we could take away a considerable amount of them…not for us but at least neutralise them.

  6. Just receive one of those Facebook memes, comparing our coins of one bolivar fuerte against one metal packing ring, not sure if it is true but the packing ring is 3 times more expensive than a 1 bolivar fuerte coin.

    Actually i don’t know if it is true but it made me remember once some time ago when our coins, almost all of them disappeared from circulation; it turned out that the metal this coins were made of were more expensive than the coin itself, i’m afraid it will happen again.

  7. I have maintained for awhile now, that the plan is worked very well fro the actual people running the show.

    The cuban metropolis is just exerting rent from its colony, while it plays all kinds of social control plots to keep the local population dumb and numb.

    If some unforeseen event happens to topple the current unstable equilibrium (100 k occupation forces vs. 30 M inhabitants), its game over. and live goes on for them.

    The divided society left behind in Venezuela will have to deal with a broken economy, and a major social explosion among the interests of upcoming narco cartels, Big oil coming back for the take, and neighbouring nations so “keen in helping out”!

    The 27N Vienna faux-paux and embarrassment is only another one of many to come!
    Hold tight, shit is hitting the fan!


Please enter your comment!
Please enter your name here