Seeking Remittances

For Wednesday, August 29, 2018. Translated by Javier Liendo.

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Photo: El Universal

The Bureau of Banking Sector Institutions (Sudeban) ratified the information disseminated this Monday on social networks about the new restrictions designed by the national government to force Venezuelans to make transactions through them.

Superintendent Antonio Morales said that remittances must be sent through authorized exchange houses, that they can’t be sent through transfers between natural or judicial persons, adding that non-compliance with these measures may carry legal sanctions. The cutest part? Morales replaced the term “force” with “encourage”, claiming that the goal is to encourage the use of exchange houses. In his imagination, dealing with the most corrupt government in our history is a gratification. There’s still much to say about this matter. The government knows that the black market is as stubborn as they are. Even more serious is that official figures reveal that monetary liquidity reached four quadrillion bolívares fuertes (Bs.S. 40,167,000,000.) A week after the reconversion, liquidity grew by 19.19%, the most important variation in the Central Bank’s economic history.

More on economy

What Sudeban doesn’t know is how the payment for pensioners through the “mobile wallet” will be made, according to Emilio Lozada, head of the National Federation of Retirees and Pensioners, after his meeting with Sudeban representatives. The Customs and Tax National Service (SENIAT) announced the dates for early payments of the VAT and Income Tax, which must be made between September and December 2018, restating that VAT retentions will be declared weekly and that payment will be demandable on the same day of the declaration. The Industry and National Production Ministry created an organizational structure in the Venezuelan Corporation of Guayana, which will temporarily coexist with the current structure to “energize” the processes; more bureaucracy and new names for a sector destroyed by chavismo; as if new names could increase the production of iron, steel and aluminum. By the way: the main oil post in Venezuela, Jose, is partially operational after a ship crashed against a dock during the weekend, reducing PDVSA’s capacity to export enhanced crude and to receive imported diluents. Todo bello.

Briefs and serious

  • Starting on September 1, CLAP boxes will cost Bs.S. 150 (Bs.F 15 million.)
  • Interior Minister Néstor Reverol announced that the prohibition to carry firearms will remain in place for another year, as if it had helped at all to reduce our crime rates.
  • José Rafael Baldó, vice-president of the National Association of Garage and Parking Lot Owners and Managers (Anpage), said that fees could be adjusted up to Bs.S. 50 (Bs.F 5 million,) blaming the VAT increase (16%) for the huge adjustment.
  • Venezuelan academics and scientists issued a statement condemning Nicolás’s proposal of a new “Health System Plan,” which deals with the transformation and integration of the Public Health System with the focus of the Barrio Adentro programme, emphasizing among other terrible ideas, the removal of basic academic requirements that integral community “doctors“ must fulfill in order to access specialization courses and post-grade studies.
  • Finance vice-minister Nathalia Fong said that the period granted for banks to publish the referential indicators for the petro will expire on September 3.

Newsicolás

Exploiting the sensible void of a dismantled opposition, Nicolás has increased the rhythm of his TV speeches to “set the pace” even if it’s with absurdities and lies, in a terrible update script for his economic “recovery” plan, rotating the company, while Cilia Flores keeps dyeing her hair a little lighter each day. This Tuesday’s show included calls for business owners and investors to understand the country that chavismo deinstitutionalized as a land of opportunities; that’s why he extended the invitation for business owners to save in gold (certificates) and claimed that the oil, petrochemical and gas industries will give the country “the resources to expand productive forces,” announcing the signing of seven agreements (for $430 million) of a total of 14 currently in process.

He restated the message for Venezuelans “who are enslaved (…) return to Venezuela and stop cleaning toilettes abroad, come to live in the country.” Henrique Capriles retorted: “It’s criminal to mock Venezuelans who leave the country. Cleaning toilettes isn’t unworthy, what’s unworthy are the corrupt authorities who looted the country.” But Nicolás won’t listen.

We, migrants

The authorities of Colombia and Peru, the countries that receive the largest number of Venezuelan migrants, announced that they’ll share a database (with figures about health, education and security) of the citizens that enter, remain and leave their territories to facilitate decision making and implement mechanisms to tackle this phenomenon, seeking and orderly and safe migration. Meanwhile, Peru declared emergency for 60 days in three district bordering with Ecuador—Aguas Verdes, Zarumilla and Tumbes—due to the increasing Venezuelan migration and how the volume is affected health and sanitation services. Ecuador announced that they’ve extended until September 30 “the declared emergency” that facilitates activities involved in the management of the migration situation. Brazil announced the transfer of 278 Venezuelans to six cities as part of the migrant “interiorization” process. Later, President Michel Temer ordered the army to mobilize to protect the border with Venezuela, announcing that he’ll seek international support to face the crisis that, according to him, “threatens the harmony of the entire continent.”

Also yesterday, OAS chief Luis Almagro called for more sanctions against Nicolás’s dictatorship. A detail: in a technical table about Venezuelan migration in Bucaramanga, a new problem was discussed along with citizen insecurity and invasion of public spaces, and it’s that infidelity cases have spiked due to the arrival of “young attractive women that can cause this kind of situations.”

We go on.

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52 COMMENTS

  1. Naky, good article in El Nacional echoing your point.

    The economic plan is pure bullshit. Their goal is to nothing more than sell this bullshit to the gullible public at a faster pace than the fractured opposition can generate bad news about them. IT IS A MARKETING STRATEGY, NOT A FEASIBLE ECONOMIC PLAN. Yet the comemierdas in the barrio eat this shit up and keep begging for more shit to be shoveled down their throats.

    http://www.el-nacional.com/noticias/gobierno/plan-del-gobierno-pretende-crear-ilusiones-para-imponer-nuevo-modelo_249724

    • This is why your Amazing Chavismo section will be filled up each and everyday. They have to keep coming up with something new and and even more amazing each day. That way they can peoples attention focused on something new other than the thousand things that are already broke. Pathetic.

      The silver lining is when they cry wolf too much where even the comemierdas in the barrio do not believe their bullshit anymore. Wishful thinking eh?…

      Their strategy and tactics are far too obvious, it is time people stop taking them at their word (gold savings, petro, gov subsidizing minimum wage are just smoke in mirrors) and realize that the emperor has no clothes. They are broke as a joke and no better off than a bum on the street wallowing in a puddle of his own puke, but they are playing it off as if they are the sugar daddy (papi gobierno) that the pathetic uneducated barrio scum adore.

      • Remember that the true chavistas on the ground are the frustrated impotent bullies of youth. Chavismo is only a power vehicle for them and the moment they step off they will be ripped to shreds. True/false, right/wrong are not questions that enter their minds — only keep riding the bicycle, keep peddling the crap they are given.

        They sold their souls (and their neighbors’ lives) for a red t-shirt — even a common thief has a more rational motive.

  2. Return to Venezuela and stop cleaning toilets abroad, come to live in the country that the regime has turned into a toilet.
    At least toilets abroad have running water. That is more than many people in Venezuela have.
    The regime is bankrupt. It is that simple. Oil production has collapsed to the point that the connected can’t get any more lucre from the criminal enterprise that is the Venezuelan regime.
    The bank account is empty. The credit cards have been cancelled. The repo man is circling the block looking for the vehicles. The utilities are soon to be shut off.
    The factions of the military that are in control of gold mining and imports are probably the only two factions that are still handling money.
    An increasingly larger portion of imports will be needed to pacify the military. As more and more people flee the country, it is reasonable to assume that remittances are increasing. The regime covets these remittances as one of the few sources of foreign reserves.
    Last week I asked the readers about imports coming into the country outside of the regime’s control. The people that replied seemed to think that the generals and the military have complete control of imports. Hard currency is needed for imports. I doubt that anyone selling to Venezuela accepts the Bolivar 3.0 or the Petro.
    For those of us that have been sending supplies into the country this is worrying. Theft as packages transit Venezuelan Customs is very high. Many freight forwarders in the Miami area have ceased shipping to Venezuela because of the losses in Customs. This can only get worse as less merchandise is shipped and the bureaucrats get more desperate.
    Waltz, I hope you see this.
    Check your e-mail and Spam folders.
    Raul from CC sent me a reply yesterday saying that he had sent you my contact details.
    Bread for MRubio!! 🙂
    MRubio, Vicky has been contacted by Crystal’s mother. Everything is arranged.

  3. Saw another report this morning from SkyNews (YouTube) about the horrible hospital situation. An interesting sidenote is that it seems the regime has given up on preventing reporting/filming of the tragic suffering and deaths.

    Or the boots on the ground are ignoring the regime’s orders.

    Jesus fucking Christ, I can not believe what I’m seeing. And I can’t believe people are still against military intervention.

    The U.S. medical ship Comfort is going to be docking off the Colombian coast to provide urgent care for VZ migrants, but I’ll never forget when Chavez The Fucker ordered that same ship to leave VZ waters shortly after the mudslides disaster in Falcon, Vargas, etc., when the Venezuelans were begging them to stay because they were still needed.

    Then, like now, Chavismo values power and ideology over Venezuelan lives.

    • Ira,
      I have mixed feelings regarding any intervention by the US.
      I’m sure that you know of my activities to try to help as many people as possible.
      Military interventions very rarely have the rosy outcomes that proponents claim when they are attempting to swing public opinion in their favor. You broke it, you bought it comes to mind. Never mind that Venezuela is already broken. The people that intervene will be responsible for the repair of this mess.
      No Latin American country has the economy to support the current flow of refugees, let alone the amount of money that an intervention would require.
      Invading and destroying the Venezuelan military is the easy part. The US military’s capabilities make that a given. It is the nation building that is where anyone that gets involved in Venezuela is going to become mired. How do you create a government legitimate structure? The Venezuelan culture is corrupt from the regime to the cop on the street and the bureaucrat with any authority or in any public position. Revenge attacks may be a very real problem once the current band of criminals are disarmed. Creating a new threat to the country. Replacing the collectives with bands of vigilantes is still a threat to society.
      Should the Venezuelan people assemble a recognized government in exile and begin an armed struggle against the regime, I am certain that much assistance would quickly be provided by the US. President Trump doesn’t care what criticism may come from it.
      Without a recognized chain of command from a government authority to boots on the ground that assistance will be much more difficult to acquire. The regional “leaders” that condemn Maduro also condemned President Trump when he mused about military intervention. Publicly these “leaders” will not change their stance until their own people begin to demand a stop to the tide of refugees.
      As the conditions deteriorate the threats to neighboring countries and the world are multiplied. The reports that weapons are being smuggled out of the country is concerning. If a MANPAD takes down a commercial airliner or makes its way to a terrorist organization such as Hezbollah, the debate may change rapidly.
      In the meantime things will continue to deteriorate. I am not familiar with any plan, outside of the failed political paths, to removing the regime AND stopping the deterioration of the country.
      It is a given that humanitarian aid is desperately needed. Humanitarian aid will only be a stop gap response. Not a solution.
      The people need to lead the movement to change the regime. If the people don’t think that their freedom is worth fighting for, why should an American risk their life for it?

      • John, true. Venezuelans need to take charge. Sadly to say, somebody else has to punch the bully in the mouth first before the rest jump in. This government could fall like a house of cards in seconds, we just need somebody to throw that first punch, and not just more rhetoric.

        Parking an aircraft carrier offshore, alongside with a massive militarization of the borders, drills and everything, would be a huge help!! Not that there will be an invasion, but that you will divert most of the military to the frontiers (where they do not want to go) and force Chavismo to fight battles on all fronts.

        All options on the table, means all options on the table. At minimum, some gunboat diplomacy by Trump right now would be much needed.

      • Rebuilding the country is a non-issue. That’s political hyperbole. Venezuela has hit rock bottom.

        You could install Fred Flinstone as president and he would do a much better job than THESE assholes.

      • El pueblo is predisposed to hate others. They are indoctrinated to hate norteamericanos more. They hate those who help them even more because it reminds them of why they hate themselves (the most of all) and that is the best reason to stay out of Vz.

        Self-hate is usually justified — just look what el pueblo has done to themselves, their neighbors, and their nation.

    • I’m all for military action. Providing it doesn’t involve the US military.

      Any “coup” internally would be a fiasco as the current Chavist moron would be replaced by a Cuban/military Chavist moron. Different moron, same disaster. Just rearranging the deck chairs.

      Clearly the answer is a civil uprising… the problem being they love Chavismo… it’s just not being done right!

      • It depends, if the coup is carried out by the low/mid-tier officers (the ones that are more likely not chavista but simply smart enough to go with the flow, or not, given the recent arrests) then you might be (potentially) looking at a good outcome in the future.

        But like i said in a previous post, i simply don’t see a civilian government taking over after this, this is much more different from a simple “The dictator is dead, long live democracy!” sort of scenario, you’re looking at a country that has been completely wiped out.

        Malnutrition rates in children equaling those in North Korea, collapsed economic activity in all sectors, a brain drain that will take generations to fix, and widespread poverty and hunger.

        Think Syria, but with the infrastructure (mostly) left standing.

        • “…low/mid-tier officers (the ones that are more likely not chavista but simply smart enough to go with the flow, or not, given the recent arrests)…”

          I don’t disagree, but we must acknowledge that they are, by definition, pragmatic more than principled and thus will go whatever direction the popular winds blow in the future. Military revolutions (mutinies) rarely achieve long term success.

          Let Venezuela die on the vine and descend fully into mob rule. Only then can a new culture emerge.

          • Modern Chile was born out of a military revolution that crushed the invading communist regime.

            You know what’s the mob rule? Yeah, all those african countries that have been returned to stone age after decades of “mob rule”, a rule that could easily be wiped out with a couple of missiles to the bosses’ lairs, but then, that bullshit about sovereign countries and all that manure comes as an excuse to let the tyrants to slaughter millions at their leisure.

          • While Chile is an exception in many ways, Venezuela does not need a different authoritarian government — Venezuela needs a very different culture.

            I grieve for Venezolanos and I don’t imagine there is an easy way forward.

      • I agree, Mr. Guapo, that the impending coup will bring Chavismo 3.0. Of course a new Chavista government will give them some breathing room to keep trying chavismo insanity, but I think it would be short lived because with the lack of money there is little maneuvering they can do. Also a fractured Chavismo is proportionally weaker.

  4. “Good morning, Señora Vargas! I see your son has sent you a thousand USD from Miami. How would you like us to process this? Would you like us to put some in your savings account in government gold certificates? Or how about some Petros in your virtual wallet? Or just plain cash in sovereign Bolivars? To the right of the window are posted the official exchange rates for today.

  5. “Morales replaced the term “force” with “encourage”, claiming that the goal is to encourage the use of exchange houses.”
    For Morales and other high ranking Chavistas the word is ‘encourage’. For all others the word is ‘force’.

    The Castros collect a fortune from overseas remittances to families in Cuba. Maduro clearly wants the same. Pure theft and corruption.

    • Cuba’s leading export product is people that are able to making a living in other countries, in particular the US, with enough left over to send it back to Cuba. Cuba exports people and imports the cash that the people send. Simple as that from a macro level. People are a huge (“uge”) export from Mexico to the US, and a whole lot of USD flow back to Mexico.

      Venezuela wants to be in the same business.

    • Castros also collected a bunch by “renting” out doctors and advisers in exchange for hard currency (e.g., doctors sent to Brazil) or cheap-free oil (e.g., “advisers” sent to Venezuela).

      So, having the Venny oil cut off not an option. I think this is at least in part why Maduro is opening the oil fields back up to gringos. Now, if the gringos are stupid enough to partner with Maduro, they deserve what they get. Fool me once, shame on you ….

  6. The loans to pay for the minimum wage increase and the new regulations for foreign remittances will give the Chavistas total economic control over Venezuela. I understand that they had near total control before but this will give them total control. And we and I mean everyone here and the experts and the media think the Chavistas are stupid. Who predicted this severe an outcome when el finado (?) first took over the presidency.

  7. Cuba is a country with a small population and few resources. Who would have thought that the Cuban system would be copied in a rich, populous country.

  8. “A detail: in a technical table about Venezuelan migration in Bucaramanga, a new problem was discussed along with citizen insecurity and invasion of public spaces, and it’s that infidelity cases have spiked due to the arrival of “young attractive women that can cause this kind of situations.””

    So many snarky responses are possible. Too many. Let it go.

    • Peruvian males are borderline entering India levels of sexual aggression because of Venezuelan women, i got a friend who told me that in his first day at the job the first conversation approach he had at work by his co-workers he was surrounded when he went to pick up some coffee and was asked if he had some females Venezuelan friends that he can set them up with.

      • Heck, I don’t know, I am thinking I could use another dressing down from his highness Mr. Perfection of the frozen north criticizing my gender, my age, my race, my country, my politics, my president, the fact that I eat meat ( ok I made that one up lol).

        • No, not made up–ice fishing is correct, and, for sport, curling (not the kind that’s going on in Peru with young Venezuelan damsels in distress).

  9. So, the regime’s plan is to let half the Venezuelans leave and keep the other half as permanent hostages, relying on the first half to pay the regime to allow the second half to survive.

    Have I got this right?

    • Maybe the 50/50 ratio is off, but otherwise “yes”.

      This has worked well for Cuba, or at least as well as can be expected. But I wonder whether new generations of US citizens with Cuban roots will keep sending $$ to people that are distant cousins. You need recent escapees with current relatives, wives, kids, parents.

      Mexico does very well on this plan. And, it works out well for the US who employs them, IMO. And until I see a bunch of “underemployed” US youth demand jobs busing tables, cleaning dishes, cleaning hotel rooms and picking strawberries, mowing lawns, plucking chickens, etc., that remains my opinion.

    • Also, the regime wants to keep 90% of the payments to continue buying whiskey and paying tribute to the cuban bosses.

      Gringo, the Mexico / US case is different since the exchange houses that trade dollars for pesos don’t steal 60% of the dollar value like the chabizta traders do (They want to buy $ at 6 million Bs but the actual price is over 12 million)

      • Ulamog – you are right. It is not the same to compare a truly free currency exchange (and in Mexico they usually take USD anyways) in which the government does not get a cut, although it helps their economy and provides a relief valve to allow poor folks to live a little better, with with an authoritarian regime with a fake destroyed currency that steals much of the remittances through a BS exchange rate (Cuba and now Venezuela).

        This stuff is world wide. Poor people go to rich countries to do menial jobs and send money back home. Indonesian maids in Saudi, etc.

  10. And we have:

    “Antonio Morales, head of Sudeban denounced that close to 30 % of the distribution of banknotes being made by the Central Bank of Venezuela (BCV) is diverted to the border.

    Thus the enchufados, with government support, are using the new currency to extract dollars from Venezolanos at the border cambio houses. They created the scarcity of billetes to force el pueblo to give up their remittance dollars. They probably paid nothing for the new bills.

  11. Comic Relief courtesy of TeleSUR:
    Venezuela’s oil production will exceed its low current daily rate after foreign investors committed to donating US$430 million as part of the Economic Recovery, President Nicolas Maduro said Tuesday.
    Seven of the 14 oil contracts have been signed as part of an initiative of the state’s oil company, Petroleos de Venezuela (Pdvsa), to develop Venezuela’s Orinoco Oil Belt, the president announced, following a meeting with a group of entrepreneurs.
    “This is a recovery plan for oil wells that are inactive due to the United States’s sanctions towards Venezuela. Investment facilities will be provided to companies that contribute their resources,” said Maduro. “The incorporation of technology and investment contribute to the recovery of production and will increase to 641 thousand barrels of oil per day in 14 wells, which will total more than 1.25 million barrels per day,” said the president. The current plan is to increase production in intervals of a million barrels to reach 6 million before 2019.

    Amazing Chavismo…He only has three months to get to 6 mil barrels a day. We shall see.

  12. It seems many analysts think that if the agreement exists at all it won’t go through because of continued and worsening instability in the country.

  13. schadenfreude. You let illiterate gimme mobs vote in an illiterate “colonel” then back him up with a more illiterate bus driver. Then 20 yrs of theft and fuckery. Now plead the need for foreign intervention. Your masses believe their rulers it appears, or are to lazy to rebel. Wallow in your filth and misery. The educated and well to do fled and nobody wanted to fight for their right or properties. An entire population is reaping what is sowed. Stop looking at America for blame or intervention. Solve your own problem.

    • I’ve been seeing the same thing for years.

      El Pueblo doesn’t want an end to Chavismo. It wants effective Chavist leadership. Preferably with the reincarnation of St. Hugo.

    • Yeah mate tell it like it is, the vast majority of el pendejo pueblo is too ignorant to see whats happening or too indifferent to do anything against. This dictatorship is well established, has settled in nicely and will be around for many years to come …. maybe even decades.

      Chapeau Chavismo, you kept your eye on the ball, you followed the plan, followed Castro’s instructions. In less than 2 decades you’ve became filthy rich and powerful. Posterchild for “crime does pay”.

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