Venezuelan economic crisis

All this crisis that began 4 years ago when there was no type of foreign sanctions (which began last year) is taking place, in essence, because 97% of all dollars that entered the country was by PDVSA. The fall in oil prices but especially the fall in production have destroyed the economic capacity of a rentier Venezuela, which never developed its productive apparatus.

Now, why is PDVSA today producing just 1.5 million barrels per day (MBD) and is production still in free fall if it was 3 million barrels a day 4 years ago?

The reason is because it has not made adequate investments in preventive and predictive maintenance, in addition to investments in drills and wells to replace natural falls from the production of old wells, and refineries are devastated, among other operational factors.

Why PDVSA has not made the investments? Because he does not have bolivars to do it. Yes, as well as listening. It does not have bolivars. And how is it that by giving PDVSA to the Central Bank billions of dollars a year, is Bolívares not to operate? Because until a few days ago and for years, PDVSA changed the dollars to the BCV at a rate of 10 Bs / $. That is, for PDVSA to pay a month's salary to a worker who charges 1,000,000 Bs / month, PDVSA had to give the BCV 100,000 $, to receive one million Bs.

How has PDVSA done then to operate? It receives from the BCV loans in Bs with inorganic money, that is to say, money that the BCV produces without a national production that backs it. Economists mention this informally as "turn on the machine to print bills without backup," but in reality do not know printed tickets, only digital money was created and transferred to PDVSA. So PDVSA has operated by injecting huge amounts of inorganic money into the economy, generating huge and unstoppable inflation.

Explained this in a very general way, it can be understood that, at that rate of change, the industry had to collapse. This was noticed for years. Because the government then kept a dollar at 10 Bs for so long and still keeps a ridiculously low DIPRO dollar?

The Government's argument is "attention to the poor, investment in agriculture, investment in hospitals, etc." We have to ask ourselves: How are the poor, how is agriculture and how are the hospitals today, better or worse than 4 years ago?

The reality is that you never get any imported product on the street at dollar prices of 10 Bs. Not even the CLAP box sells it at 10Bs dollar.

Let's see, a CLAP box is worth $ 30 put in Venezuela. You buy with a 10 Bs dollar. Of course you have to add the commissions that can end up selling it at around 100 $, or what is equivalent to 1,000 Bs, calculated to 10 Bs / $ dollar. However, the boxes began to sell them at 10,000 Bs. Was the Government earning 9,000 Bs each box? No. The Government was paying them in 10,000 Bs and selling them to the town in 10,000 Bs, without utility.

Who then stayed with the $ 70 plus the $ 9,000 per CLAP box? Ghost companies created for these businesses. Who chooses these companies to give them the dollars of all Venezuelans? Certain actors of the high Government. Who are these companies? Family members, friends and partners of high government officials.

Worst of all, this subsidy to the dollar ends up subsidizing international food producers instead of having used this money to produce that food here in Venezuela, which would undoubtedly have come out much cheaper than bringing them from abroad, generating jobs in Venezuela .

Let's recap

1. The country is broken and bruised, tens of thousands on the verge of death due to hunger, thousands dead due to lack of medication, chronic patients dying, etc., because PDVSA is destroyed.
2. PDSVA is destroyed by the absurd insistence of maintaining a subsidized dollar (which subsidizes international producers and bankrupts domestic producers) to 10 Bs / $.
3. One dollar remained at 10 Bs / $ and still remains at a ridiculous price, so that ghost companies continue to receive those dollars, do business certain currents of high government and become millionaires.

So, we can conclude that this Government, at the cost of the death of tens of thousands of people, has broken the country and PDVSA to be able to steal.

Now that same high government asks us to sacrifice our table and economy, for them. You have to be very cynical to ask the poor people for more sacrifices.

Could it be that we are so unconscious and masochistic to ratify this government in power, clearly a traitor to the emancipation project of the Constitution of 99?

The thing is pretty clear. Let's not support hunger. We do not endorse this Government. Protect our family, do not protect thieves. On May 20 the government is punished by not voting to lose all legitimacy of origin, because the legitimacy of performance and lost some time ago.

Let us organize the people for civil struggle and the exercise of our constitutional rights in the recovery of the Constitution, democracy and the rule of law, in order to rebuild Venezuela, choosing a patriotic, democratic government that agreed to all honest Venezuelans , for Venezuela.

Enough of so much impunity and sinverguesura! It is time to bring order and that will only be done by the organized and mobilized Venezuelan people, making their rights respected.

15/04/2018

Paoli