Thursday, November 7, 2013

Great idea, Nick

When your plans hit reality (and reality hits back), double down;
Venezuela's President Nicolás Maduro has announced a number of steps to face the factors that "disturb the march of the economy" and build "a new order" guiding "transition to socialism."
He explained that the first goal of the "economic offensive" starting soon is protecting "the Venezuelan people against speculation of parasitic bourgeoisie and its intent to plunder them."
The modest goals;
The measures are aimed as well at overhauling and adjusting all existing agencies, mechanisms and policies to stabilize production, transport, supply, fair and healthy trade, the foreign currency administration system and domestic institutions.
All of the things that happen in market driven economies without the interference of the political elites.

This time he's determined to get it right;
The Venezuelan government has activated a new system for the distribution of US dollars in the country. The move involves the incorporation of new institutions aimed at reinforcing controls, drafting a budget that will include all the needs of the economy, centralizing imports and exports, and deterring the mechanisms that lead forex-related frauds.
'All the needs of the economy', determined how? Oh, by the same methods used to get Venezuela where it is now, central economic planning;
In this context, via a presidential decree authorities are to incorporate in the next few days the National Center for Foreign Trade, aimed at regulating the sale of US dollars to both the public and private sectors. The center will have control over the Foreign Exchange Administration Commission (Cadivi), the Ancillary Foreign Currency Administration System (Sicad), the Foreign Trade Bank (Bancoex), and any other public financial institution.
The other piece in the puzzle is the National Corporation of Foreign Trade, entrusted with the selection and coordination of state-owned and private companies for purposes of imports and exports.
"The two corporations will single out which products should be brought into the country and where such products can be purchased under the best terms and conditions. Reports indicate that over-billing in imports accounts for 30-40%, that is, USD 10 billion in 2013," Venezuelan President Nicolás Maduro said on Wednesday.
Iow, Venezuelans can expect more, and worse, to come. Unless there's an Augusto Pinochet in their future.

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