Venezuela inflation soars to 49%; Maduro promises more dollars to help with imports

[Zorro]

President Nicolas Maduro's administration has vowed to rein in inflation this year and on Thursday pledged on national television to auction 900 million dollars a week to companies to help with imports and combat shortages.

The central bank said September's price rises were driven by a 9.7% spike for housing services, a 6.6% jump for alcohol and tobacco, and a 6.3% increase for education.

Shortages of products ranging from corn flour to toilet paper worsened slightly in September versus the previous month, with the bank's “shortage index” rising to 21.2% from 20%.

Central bank officials have indicated that given the new circumstances they will revise the year-end target of between 15% and 20% set last year.

http://en.mercopress.com/2013/10/11/venezuela-inflation-soars-to-49-maduro-promises-more-dollars-to-help-with-imports

[Turbineguy]

1. We could have that too

if only we were smart enough to put the tea party in charge.

[MADem]

2. How will he get those dollars and where will he get them?

Will he sell off even MORE of his country to China?

He can't keep letting the corrupt have their 'taste' AND run the country.

If he doesn't fix this, he's done for...the only question is, who will step up and shove him out of the way?

[ehcross]

3. Maduro's blind promises that even he does not understand

Nicolás Maduro is a Bus driver-turned President, a combination that promises no economic miracles and that so far has failed to show anything but more disaster.

Maduro's background is a sample of the decisions that are being taken in Venezuela. Maduro is a former bus driver in Caracas with absolutely no formal education. Managing a major oil supplier is clearly beyond Maduro's and most Venezuelans' reach. But former Venezuelan president Hugo Chávez imposed Maduro's mandate. Having passed away shortly after Maduro was officialy appointed president, despite loud cries of fraud.

Maduro has sought assistance in the task he has ahead. But mostly he has dedicated his efforts to bring some control to the chaos that reins in Venezuela, the rampant corruption, and the generalized pessimism of the population, with little to show.

Maduro's struggle is wearing down for lack of progress, though he is actively seeking to show evidence of sabotaje by the opposition. But his credibility is on the line and oil exports are suffering great losses.

[Marksman_91]

4. It's too bad the supporters of the Ven. government and its ilk won't accept this reality...

... even when there's clear evidence to show it. It's all black or white to them, and if a government claims to call itself "leftist", then they support it all the way, even when there are mountains of facts showing that these governments are doing a really poor job of running a country.

[Bacchus4.0]

5. Maduro had to correct the 900 million per week number, its 900 million total, oops

also, Gregory Wilpert, author of the Blame It On Caracas story, may have to make some corrections as well.

"Given the lack of information about earlier U.S. actions against Venezuela, distraction appears to be a compelling explanation for Maduro’s apparently irrational attacks against the good-hearted Obama administration. Unfortunately for this narrative, the facts don’t quite fit. That is, while the article cites an unusually high inflation rate of 45 percent for 2013 so far, it fails to mention that inflation has been declining recently, from a high of 6.1 percent in May 2013, and dropping to 3.2 and 3.0 percent in July and August, respectively. Also, while economic growth has been sluggish, it has been fluctuating between 0.5% and 2.6% per quarter this year. Another area that is written about a lot is shortages, but these too have become less acute than earlier this year, according to official statistics. In short, while there are no doubt economic problems in Venezuela, they have been improving recently, contrary to Neuman’s claim that the situation is “getting worse.”

[Socialistlemur]

6. Wilpert was right in one aspect

There's no doubt there are economic problems in Venezuela. And they will get worse unless the government drops the current economics team. Naming Rafael Ramirez to be the economics VP was a serious mistake. He has a problem as it is running PDVSA and a supermarket chain.

I wonder if Maduro gets a basic principle in management, when high level bosses fail they get demoted. Chavez and now Maduro just shuffle the same incompetent dorks around.

[Bacchus4.0]

7. I wonder if they will devalue again after the December elections

they will probably have to.

[Marksman_91]

8. Nepotism runs deep in this government

Almost all the ministers and high-ranking officials have all been in different positions. Can't really run a government well when you're stuck with the same incompetent and corrupt a-holes all the time and simply reshuffle them.