That's tiny!

Dude, Your Strategic Fund Has Less than a Week’s Worth of Imports In It

For years – literally years – we’ve been wondering exactly how much money the Venezuelan government had squirrelled away in its “parafiscal funds”: Fonden- and Fondo Chino-style unaudited, unreported, wholly discretionary accounting black boxes. Finally, yesterday, Maduro let the cat out of the bag: announcing he would finally unite all of these different pots into a…

Left-leaning horse being added to this logo as we speak

The “no comment” revolution

Financial markets are spooked about the last bastion of reason in the Venezuelan government finally falling, according to Bloomberg’s Anatoly Kurmanaev – whose work continues to be interesting and thought-provoking. The money quote: “A spokesman for the Finance Ministry declined to comment on potential bond sales … A spokeswoman for the central bank declined to…

Tail-between-my-legs Chronicles

Venezuela is now the riskiest country in the world. This damning-yet-not-completely-unexpected development is not unrelated with what is happening in Buenos Aires. Argentina, who for years has been the international financial community’s “enemigo público número uno,” has lost a string of court battles in the World Bank’s ICSID arbitration court. They have even lost battles…

The Lexical Innovations of the Revolution

Let us all thank Jorge Giordani that this phrase is now in a Bloomberg headline. From the piece itself… One dollar buys 41.2 bolivars on the black market, compared with 6.3 bolivars at the official rate… 41.20! que bolas… Update: But as a commenter points out, the best of this too-fun-for-a-proper-business-wire story is this borderline…

Baby steps toward freedom?

This is huge. Apparently, if you’re a person (not a company) and you buy currency through the new SICAD dollar auctions, you can buy as many dollars as you want as long as they are for traveling, education, or health purposes. Regardless of how we all agree this dual exchange rate system is boneheaded (it…

S&P to Maduro: down you go

Standard & Poor’s downgraded Venezuela’s debt from junk to useless junk. Why should you care? Because the lower our debt rating, the higher the interest rates we have to pay when we take out loans to pay for election binge spending. In other words, your grandchildren just got poorer, courtesy of S&P.