More from The Devil’s Excrement on the Venezuelan Bolivar Fuerte devaluation. It seems that the U.S. dollars that were auctioned off for Bolivars went for Bs. 12.5 and Bs. 18 per US$. That’s a pretty big range, but perhaps they think big in Venezuela. Good change? Bad change? It may even be for the better; it would be difficult for most anything to be for the worse, as the late lamented el Presidente himself demonstrated over the years.

The Devil's Excrement

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I have been pondering about the new foreign exchange auction system SICAD since it was first discussed. Besides all of its weirdness, what I have had the toughest time dealing with is very simple:

Why?

Why the rush? Why the second price for the US dollar even if it is a State secret? Why before the election? Why take the risk? Why devote so much time to it?

It can’t be to get more Bolivars. It can’t be to lower the black rate. It can’t be to reduce shortages.

And now that one auction has taken place and Bolivars reportedly assigned to a range between Bs. 12.5 and Bs. 18 per US$, I am left with only one theory:

Someone sat down with Maduro and explained to him that what Giordani wanted was a sure path to self destruction and convinced Maduro to change the whole system and manage the…

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About danmillerinpanama

I was graduated from Yale University in 1963 with a B.A. in economics and from the University of Virginia School of law, where I was the notes editor of the Virginia Law Review in 1966. Following four years of active duty with the Army JAG Corps, with two tours in Korea, I entered private practice in Washington, D.C. specializing in communications law. I retired in 1996 to sail with my wife, Jeanie, on our sailboat Namaste to and in the Caribbean. In 2002, we settled in the Republic of Panama and live in a very rural area up in the mountains. I have contributed to Pajamas Media and Pajamas Tatler. In addition to my own blog, Dan Miller in Panama, I an an editor of Warsclerotic and contribute to China Daily Mail when I have something to write about North Korea.
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One Response to

  1. Tex says:

    Reblogged this on Es ist ein Klaüsterfökken. and commented:
    No. It is merely an obfuscation of the manner in which the economy is mis-managed. Arm up and become self sufficient. you will not have years to prepare.

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