ALI BABA AND MADURO

Published by El Nuevo Herald on July 17, 2016

In Venezuela cash monetary arrangements are known as "stews". Facetiously, several political veterans have earned the nickname "Paprika" because they are present in all  "stews".

The Guri dam in Venezuela was of such magnitude that its launch in 1976 advertised its capacity to supply electricity to much of South America; however, we see that since April this year, the electricity rationing in Venezuela was a painful reality in several cities of the country.

Socialism of the XXI century has been characterized by creating all possible unrest in the population, then offer some solutions in order to pretend that is helping the suffering people.

Maduro recently announced the end of electricity rationing and implementation of "Operation Cambalache".

Such an operation is to give air conditioners to those owners guzzling units in the three hottest states. We wonder who will benefit from this massive purchase.

In Venezuela everything has been carefully calculated to destroy the country. Since 2003 a deadly exchange of control prices was set. That is, employers could not buy what they wanted and could not sell at the right price. Consequently, it became easier to import, this is  why industrial plants were rendered useless, and even obsolete.

Of the $ 960.000 million received by Venezuela from 2003 to 2014, an estimated $ 300.000 billion went to dubious destinations, according to statements by former ministers Jorge Giordani and Hector Navarro.

Moreover, the president of the Central Bank of Venezuela in 2003, Edmee Betancourt, was even more specific: "Of the $ 59.000 million granted to import this year, between $ 15,000 and $ 20.000 million were awarded to phantom companies".

And it is that the Venezuelan government has stood by its economic mismanagement, accompanied by rampant corruption. For example, since 2003, according FEDECAMARAS, they have expropriated more than 1,300 companies, including Siderurgica del Orinoco (Sidor) from Argentine owners; Cemex, the Mexican cement, and Exito supermarket chain, which has become the Bicentennial chain. All of them went bankrupt.

As a result of this corruption in Venezuela it has emerged a new breed of super-rich, who confidently tell their relatives Democrats: "I am not Chavista but trader".

Within this breed it is common to see dozens of boys under 30 with fortunes of $ 100 million each. They are easily recognizable because they are ostentatious. Some are mid-level public servants. Others have no fixed job. However, drive vehicles of more than $ 100,000, leave tips of $ 3,000 restaurants, regularly travel to Las Vegas, Orlando and Paris, maintain costly lovers, have yachts that exceed one million dollars and have multiple investments ranging from preferred shares, land, racehorses, even entire neighborhoods on behalf of figureheads.

It is known that the great fortunes were born in the shadow of governments. A classic example is the origin of world bankers known as the Rothschild family. It is often said that their wealth began to multiply under the protection of the kings of France and the Austrian Prince Metternich Von.

In Venezuela it can happen something similar. After three generations, several names will be illustrious and its past will be "washed" with time.

No one will remember the origin of Ali Baba and his commander in chief.

Benjamin F. DeYurre
Economist and Journalist
@DeYURRE