The crony economic and political spiral in Venezuela

“For those that underestimate me, I say I’m a socialist and I know what I’m doing,”

-Nicholas Maduro

(Don’t all socialists think that?)

Maduro cc

Chavez is dead and the Venezuelan economy is dying.

In a fit of panic the current president of Venezuela, Nicholas Maduro, is consolidating military power (likely it’s consolidating itself) and deploying draconian price controls.

The guy is fitting the noose around his own neck, but he must be delusional because I don’t think he’s suicidal. Actually given the above quote, and the state of his country, he must exist in an alternate reality.

(From Bloomberg.com)

Venezuelan President Nicolas Maduro is turning to an army brigadier general to run the economy, two months after using troops to control prices and slow the world’s fastest inflation.

Rodolfo Marco Torres was named finance minister yesterday, replacing Nelson Merentes, whose attempts to improve relations with businessmen failed to prevent inflation doubling to 56 percent during his nine months in office. Merentes will return to head the country’s central bank, Maduro said in a state of the nation address to congress.

Active or retired officers now control a quarter of Maduro’s cabinet as he looks to shore up their support after the death of former President Hugo Chavez, according to Rocio San Miguel, president of Caracas-based security research organization Citizens’ Control. Their increasing role indicates greater state involvement in the economy and prompted bonds to fall to a six-week low today.

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