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Venezuela State Close To Total Collapse, Merchants Demanding Payments

Published

9 years ago

on

(Via Reuters)

By Eyanir Chinea and Maria Ramirez

CARACAS/CIUDAD GUAYANA, Venezuela (Reuters) – There was no way Jose Ramon Garcia, a food transporter in Venezuela, could afford new tires for his van at $350 each.

Whether he opted to pay in U.S. currency or in the devalued local bolivar currency at the equivalent black market price, Garcia would have had to save up for years.

Though used to expensive repairs, this one was too much and put him out of business. “Repairs cost an arm and a leg in Venezuela,” said the now-unemployed 42-year-old Garcia, who has a wife and two children to support in the southern city of Guayana.

“There’s no point keeping bolivars.”

For a decade and a half, strict exchange controls have severely limited access to dollars. A black market in hard currency has spread in response, and as once-sky-high oil revenue runs dry, Venezuela’s economy is in free-fall.

The practice adopted by gourmet and design stores in Caracas over the last couple of years to charge in dollars to a select group of expatriates or Venezuelans with access to greenbacks is fast spreading.

Food sellers, dental and medical clinics, and others are starting to charge in dollars or their black market equivalent – putting many basic goods and services out of reach for a large number of Venezuelans.

According to the opposition-led National Assembly, November’s rise in prices topped academics’ traditional benchmark for hyperinflation of more than 50 percent a month – and could end the year at 2,000 percent. The government has not published inflation data for more than a year.

“I can’t think in bolivars anymore, because you have to give a different price every hour,” said Yoselin Aguirre, 27, who makes and sells jewelry in the Paraguana peninsula and has recently pegged prices to the dollar. “To survive, you have to dollarize.”

The socialist government of the late president Hugo Chavez in 2003 brought in the strict controls in order to curb capital flight, as the wealthy sought to move money out of Venezuela after a coup attempt and major oil strike the previous year.

Oil revenue was initially able to bolster artificial exchange rates, though the black market grew and now is becoming unmanageable for the government.

TRIM THE TREE WITH BOLIVARS

President Nicolas Maduro has maintained his predecessor’s policies on capital controls. Yet, the spread between the strongest official rate, of some 10 bolivars per dollar, and the black market rate, of around 110,000 per dollar, is now huge.

While sellers see a shift to hard currency as necessary, buyers sometimes blame them for speculating.

Rafael Vetencourt, 55, a steel worker in Ciudad Guayana, needed a prostate operation priced at $250.

“We don’t earn in dollars. It’s abusive to charge in dollars!” said Vetencourt, who had to decimate his savings to pay for the surgery.

In just one year, Venezuela’s currency has weakened 97.5 per cent against the greenback, meaning $1,000 of local currency purchased then would be worth just $25 now.

Maduro blames black market rate-publishing websites such as DolarToday for inflating the numbers, part of an “economic war” he says is designed by the opposition and Washington to topple him.

On Venezuela’s borders with Brazil and Colombia, the prices of imported oil, eggs and wheat flour vary daily in line with the black market price for bolivars.

In an upscale Caracas market, cheese-filled arepas, the traditional breakfast made with corn flour, increased 65 percent in price in just two weeks, according to tracking by Reuters reporters. In the same period, a kilogram of ham jumped a whopping 171 percent.

The runaway prices have dampened Christmas celebrations, which this season were characterized by shortages of pine trees and toys, as well as meat, chicken and cornmeal for the preparation of typical dishes.

In one grim festive joke, a Christmas tree in Maracaibo, the country’s oil capital and second city, was decorated with virtually worthless low-denomination bolivar bills.

Most Venezuelans, earning just $5 a month at the black market rate, are nowhere near being able to save hard currency.

“How do I do it? I earn in bolivars and have no way to buy foreign currency,” said Cristina Centeno, a 31-year-old teacher who, like many, was seeking remote work online before Christmas in order to bring in some hard currency.

(Additional reporting by Andreina Aponte and Leon Wietfeld in Caracas, Mircely Guanipa in Maracay, Anggy Polanco in San Cristobal, Lenin Danieri in Maracaibo; Writing by Girish Gupta; Editing by Leslie Adler)

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Politics

Bannon An ‘Oppurtunist’ – Trump Jr & Newt Gingrich

Published

1 week ago

on

June 20, 2026

By

(Via Zerohedge)

In the course of less than a day, former Trump strategist Steve Bannon has gone from simply “former Trump strategist” to “radioactive backstabber,” after The Guardian reported that Bannon, in Michael Wolff’s new book “Fire and Fury, called a June 2016 meeting at Trump tower involving Russian attorney Natalia Veselnitskaya “treasonous” and “unpatriotic.”


“Even if you thought that this was not treasonous, or unpatriotic, or bad shit, and I happen to think it’s all of that, you should have called the FBI immediately.”

In response, President Trump issued a four-paragraph scorching reply, saying Bannon had “lost his mind.” Donald Trump Jr. also responded, calling his father’s former chief strategist “backstabbing, harassing, leaking, lying & undermining the President,” adding “Steve is not a strategist, he is an opportunist.”

Newt Gingrich chimed in on Fox News, telling Neil Cavuto, “I think that Bannon thinks he’s extraordinarily important. But the fact is, Trump had won the nomination without Bannon. Trump would have won the presidency without Bannon. And Trump has governed without Bannon.”

So I think there’s an exaggerated sense of who Steve is. And I think, remember, this is a guy who got fired. So you have a guy who has been fired who is trying to claim a bunch of things, which he apparently did not claim at the time.

And I think you have to just say, you know, it’s noise. It has nothing to do with — the things that matter to America and the things that matter to the American people have no relationship to the kind of noise that we’re going to spend all day today with.

And luckily for the president, he’s really come to distinguish between the things that matter and the things that don’t. The meeting this weekend at Camp David matters with the Republican leadership. Steve Bannon saying a bunch of junk doesn’t really matter in the long run. It will disappear. -Newt Gingrich

Trump Jr. also replied to a tweet by conservative pundit Bill Mitchell, which quotes a portion of Bannon’s book, reading:

“On Election Night, when the unexpected trend , Trump might actually win, seemed confirmed, Don Jr. told a friend that his father, or DJT, as he calls him, looked as if he had seen a ghost. Melania was in tears—and not of joy.”


Trump Jr. responded: “Another good one. Anyone who knows me or follows me knows that’s about as far from something I would say or how I speak as possible… What a joke.”

And earlier in the day, Trump Jr. tweeted “Andrew Breitbart would be ashamed of the division and lies Steve Bannon is spreading!,” after tweeting “Wow, just looked at the comments section on Breitbart. Wow. When Bannon has lost Breitbart, he’s left with . . . umm, nothing.”

And now, it appears as though Bannon may have lost any hope of cobbling together political capital. As US News reports;

Despite his blatant miscalculation and the animosity he stirred among traditional Republicans, Bannon’s enduring influence was that he purportedly had a direct line to Trump – the White House confirmed they spoke by phone last month – and could help mold the president’s thoughts on policy and political strategy.

Now, that line appears lacerated.

“Now that he is on his own, Steve is learning that winning isn’t as easy as I make it look,” Trump said in the statement. “Steve doesn’t represent my base – he’s only in it for himself.”

The extraordinary breakup between the two larger-than-life comrades led to immediate fallout across the Republican Party. GOP leadership rejoiced at Bannon’s fall from grace, with allies of Senate Majority Leader Mitch McConnell reveling in and sharing the president’s takedown.

Bannon’s split from the Trumps puts wealthy GOP donor Robert Mercer and his daughter, Rebekah Mercer in an awkward spot – as the financier have financially supported Breitbart, while also supporting President Trump and his GOP causes. Mercer announced in November that he was selling his stake in his company to his daughters – while at the time, making it clear that while he occasionally discusses politics with Bannon, he’s not always aligned with him.

And as Trump Jr. said earlier today – when Bannon has lost Breitbart, “he’s left with … ummm, nothing.”

In September, Bannon appeared on 60 minutes where heb called himself a “street fighter” and “declared war on the GOP” for trying to “nullify the election.” Bannon also said that the Trump administration made the “original sin” of embracing the establishment. “I mean, we totally embraced the establishment … Because ya had to staff a government.”

Bannon also said he was going to be Trump’s “wing man outside for the entire time, to protect [Trump] and to “make sure his enemies know that there’s no free shot on goal.”

Well – it looks like Bannon just took a shot on his own goal, and will be cast into radioactive irrelevancy for time immemorial.

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Iowa

Blexit / WalkAway: Majority of Non-White Voters Plan To Vote Republican in Iowa’s 1st District According to NYT Poll

Published

1 week ago

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June 20, 2026

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In what seems to be a testament against a “blue wave”, according to a NYT poll taken back in September, it shows that 45% of non-white participants, the majority, plan to vote Republican. With 42% voting Democrat are 13% undecided. Non-white people were 7% of those polled entirely.

What also is interesting is it shows 52% white people voting Democrat, with 37% voting Republican, and 11% Undecided. Showing a higher rate of non white people voting for Republicans than white people.

Now overall this poll also showed Abby trouncing Blum, and while we disagree with the polling numbers to that extent because it seems that they may have over sampled Democrats, although we can’t tell because the poll data does not show party affiliation.

No matter how you frame it, it shows the media’s race baiting narrative hasn’t worked in Iowa’s first district as much as they hoped and non white people are a powerful force within the Republican party.

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Media

Bill Maher Brings On Vaccines Skeptic, Gets Railed By Media

Published

1 week ago

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June 20, 2026

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This past Friday Bill Maher brought on a “questionable” guest as his first on his show ‘Real Time’ on HBO. The guest in question —, is a known Vaccine Skeptic. It was quickly noticeable from the crowd reaction, which is usually sporadically either clapping or laughing, often mocked by Bill himself, was very quiet and toned down, most likely thrown off guard. This issue, like many Bill champions on his show, are issues he prides as fringe on both sides of the aisle, the far-left and far-right often being huge skeptic of establishment Scientist and Doctor opinions.

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