Maduro

Socialist Venezuela, Where Everyone Is a Millionaire and No One Can Afford Eggs

What if I told you that in the socialist paradise of Venezuela, everyone’s a millionaire? The Bolivarian Revolution has raised the minimum wage over 50 times throughout the past 20 years. As of May 2020, it’s been set at 400,000 bolivars, plus a 400,000 socialist food ticket bonus, bringing it to an astounding total of 800,000 bolivars per month. Millions of people rely only on minimum wage incomes. The government keeps the number of people on minimum wage in the country largely under wraps, although everyone that works in the public sector is pretty much subject to minimum wage (salaries in the dwindling private sector are usually better-ish). The elderly under pension (4.5 million citizens as of a year ago) are also subject to it. Sounds great, doesn’t it? I mean, that’s a pretty looking number — then you realize that those amount to approximately $4-5 USD per month, and the reality kicks in. Hyperinflation, price controls, and barely symbolic minimum wage raises: these three elements have caused incalculable headaches to the citizens of Venezuela over the past decade, to the point that they’ve become borderline elements of our folklore amidst the ongoing collapse of socialist Venezuela. It’s a repeat of the never-ending cycle that we’ve been entrapped for so many years now, except now it comes with a twist: The ongoing coronavirus pandemic that has disrupted everyone’s lives and has greatly exacerbated those three heads of the socialist hydra. The added novelty, if it can be called that, is that the mandatory masks visually cover your astonishment (or lack thereof) when something you bought last week is suddenly twice as expensive. What can you buy with this brand new minimum wage of 800,000 bolivars per month? Not much, really. Even though the bolivar received a facelift and a new currency scale in August 2018, we’re already at a point where spending millions on the most basic things shouldn’t be cause for concern. I carried out my weekly supermarket grocery run on May 4 and I asked for 250 grams (a little more than half a pound) of the cheapest ham and cheese they had available, this is how much they went for: That’s 633,356 bolivars right there. The cheapest loaf of sandwich bread that I could find went for 259,700 bolivars, bringing these three items to a whopping 893,056 bolivars – roughly $5 depending on the day’s exchange rate. So, realistically, the minimum wage is so absurdly low that it’s not sufficient to make enough sandwiches for a month. Sure, you could find cheaper alternatives, but it’d still devour most of it. These minimum wage raises used to be a matter of praise and celebration for the Bolivarian Revolution and its grotesque media machine – the below poster, for example, from dictator Nicolás Maduro’s state television propaganda outlet boasts of 47 minimum wage increases in the history of the socialist regime in Venezuela that began in 1999, as of January 2019. Two years ago, it was very common to have them occur almost every two months, which was akin to putting out a fire by spraying gasoline at it. Now that the damage is done, they come at a more sparse rate and are announced as discreetly as possible without any of the fanfare — yet the regime retains the sheer audacity of claiming that Venezuela is “the only country that has raised wages amidst the pandemic,” heralding $4 per month was some utopian socialist achievement. While minimum wages have progressively grown, they never have amounted to much. It’s a cat (hyperinflation) and mouse (wages) game where the mouse is already dead from the get-go. Around mid-September 2019, I purchased the same type of bread as in the above photo, except that the price at the time was 38,800 bolivars, not 259,700 bolivars. If we go by an average exchange rate at the time it was produced, it gives you roughly $1.75. The minimum wage at the time was 40,000 — or $1.80. If we do the same conversion to the loaf of bread that I bought this week (259,700.00 with an exchange rate of 178,502.21) it gives you $1.45. It would seem like the bread itself has gotten cheaper. Then again, in October 2019, the minimum wage was increased from 40,000 to 300,000 bolivars (150,000 bolivars plus a 150,000 “socialist basket ticket” food bonus). Going by an average exchange rate at the time it was introduced, the minimum wage translated to $14 per month. All of these minimum wage increases have not only amounted to nothing, but whatever meager gains they have created are rapidly devoured by hyperinflation. Like I said, a game of cat and mouse where the mouse is already dead from the start.

THIS is the failures of socialism.  THIS is what Bernie, AOC, and the rest of their ilk want America to be like.  A big thanks to Christian K. Caruzo for that eye-opening account of life in Venezuela.  Christian is a Venezuelan writer and documents life under socialism. You can follow him on Twitter.  For more, click on the text above.

U.S. expands Navy presence in Caribbean. Is military action against Maduro more likely?

When President Donald Trump weighed the options earlier last year to address the political and humanitarian consequences of Nicolás Maduro’s tight grip on power in Venezuela, he realized his harsh rhetoric against the South American leader was not backed up by a show of force in the region. That was corrected Wednesday, as Trump, surrounded by the country’s top officials, announced an expanded military presence near the Venezuelan shores that had been unseen for decades. Secretary of Defense Mark Esper, National Security Council Director Robert O’Brien and Attorney General William Barr all said during the press conference that the additional military is meant to crack down on “counternarcotics operations,” but is also aimed at denying funds to Maduro and his closest allies, who have been recently indicted in the U.S. on drug trafficking charges. “When we started the maximum pressure policy in January, the president analyzed what our military assets were in the Western Hemisphere because obviously, all the options were and are on the table,” a senior administration official told the Miami Herald. “There was no balance; most of our assets were in the Middle East, Asia, etc., so he asked to recalibrate those assets to have the necessary presence in the hemisphere to see where this situation was going” regarding Venezuela, he added. The move was in line with Trump’s longtime belief that the U.S. should not spend resources on faraway regions, the official said. The shift from considering Maduro “illegitimate” to being publicly labeled a “narco-terrorist” provided a rationale for the military moves, despite government data suggesting Venezuela is not a primary transit country for U.S.-bound cocaine. The official also cited the destabilization that the Venezuelan political and humanitarian crises have caused in the region, with millions of Venezuelans overwhelming neighboring countries such as Colombia, as another imperative to expand U.S. military presence in the hemisphere. Colombian President Iván Duque was one of the loudest voices asking for more support to deal with the migrants but also with the “narco-terrorists” of Colombia’s two main guerrilla groups, the FARC and the ELN, both harbored by Maduro in Venezuela. Esper published a list of the forces mobilized for the mission, including Navy destroyers, Coast Guard cutters, Navy littoral combat ships, helicopters, Navy P-8 patrol aircraft, along with Air Force E-3 AWACS and E-8 JSTARS to carry out airborne surveillance, control, and communications. The operation includes security forces assistance brigades. At the press conference Wednesday, Gen. Mark Milley, Chairman of the Joint Chiefs of Staff, said there were “thousands” of sailors, Coast Guardsmen, soldiers, airmen and Marines involved. Some experts have been surprised by some of the assets mobilized to the region. “There is some serious military hardware listed here,” said Adam Isaacson, the director of the Defense Oversight program at the Washington Office on Latin America. I can’t recall the last time there were U.S. Navy destroyers in the Caribbean or the eastern Pacific coast [on operations, not exercises]. And each E-3 AWACS plane costs more than a quarter-billion dollars,” he said on Twitter. According to the U.S. Southern Command, in charge of carrying out the operation in the Caribbean and the Pacific Eastern coast, those aircraft have been in use in the region. “AWACs is one of the aircraft we have used to conduct detection and monitoring operations in the past,” José Ruiz, a media relations officer at Southcom, told the Miami Herald. “Insofar as Navy ships are concerned, flight-deck capable ships are one of the assets that comprise the kind of force package that enables the disruption of illicit drugs flowing into the U.S.” Such Coast Guard “force packages” — patrol aircraft, ships with flight decks, helicopters and law enforcement detachments — are standard in counternarcotics operations, Southcom’s commander, Navy Adm. Craig Faller, has been advocating for more resources for counternarcotics operations in Central and South America. In a congressional hearing in March, he announced that U.S. military presence would increase in the region in terms of ships, aircraft, and security forces to “reassure partners” in combating “illicit narco-terrorism.” News of the operation has unsettled Venezuelan leaders and revived hopes within the Venezuelan population that a U.S. military action against Maduro is in the making.

Ya never know..  Maduro is probably terrified he might end up like former Panamanian dictator Manuel Noriega, whom we captured back in 1989 for similar narco trafficking reasons, and put him in federal prison.  We’ll, of course, keep an eye on this developing story.  For more, click on the text above.

Citigroup to sell more than $1B in Venezuelan gold in blow to Maduro regime, reports say

Citigroup Inc. plans to sell several tons of Venezuelan gold it received as collateral from the Maduro regime to settle the country’s $1.6 billion loan after the deadline to repurchase the precious metal expired earlier this month, reports said Wednesday. Venezuela was due to repay $1.1 billion of the loan March 11, according to the terms of the 2015 deal with Citigroup’s Citibank, four sources familiar with the matter told Reuters. The remainder of the loan is due next year. Citibank now plans to sell the gold, valued at roughly $1.358 billion, to recover the first tranche of the loan, two of the sources told the outlet. The excess $258 million from the sale will be deposited into a U.S. bank account in New York. The development marks another financial blow to President Nicolas Maduro’s regime. Not only won’t it be able to access the cash in the U.S. account, but it could see it handed over to the transitional government being formed by opposition leader Juan Guaido, Bloomberg reported, citing sources with knowledge of the matter. The socialist regime previously faced a financial setback in January when the Bank of England denied Maduro’s request to withdraw $1.2 billion of gold stored there. A week later, Venezuelan officials reportedly planned to ship 20 tons of gold, worth around $850 million, overseas to protect the country’s hard assets amid international pressure mounting against Maduro to cede power. The plan was reportedly halted before the gold could be loaded in Caracas onto an airliner from Russia, a major financial backer of Maduro’s presidency, along with Turkey and China. The ultimate destination of the bars was unknown. Maduro depleted more than 40 percent of the country’s gold reserves last year in a desperate bid to pay creditors and fund government programs as the nation deals with a crippling economy, a lack of basic necessities for its people and rising inflation under his socialist rule, Bloomberg reported. All that remains of the central bank’s dwindling international reserves is $8.7 billion, most of which is held in physical gold, the outlet reported.

Someone needs to confront Bernie, AOC, and the rest of the Democrat socialists on camera with this story and ask why, here in America, should embrace such failed economic policies.  We have the most robust economy probably ever, thanks to DEregulation, and the Dems are running on what?  Reversing that success?  President Trump needs to stop talking about Mueller, Russia, and the late Sen. John McCain (R), and instead hammer away at the economic successes of the last two years….and stay focused on that.  There are SO many success stories there!  Then, contrast it with the failed socialism of Venezuela.  Keep it focused and simple.