Archive for December 31st, 2005

Happy 2006 to all

December 31, 2005

Getting late, even if I am not partying tonight, I want to wish
everyone a great 2006 and wish that the New Year will make people think
about all of the changes this country needs that are not being made.
That 2006 will become the year of a single country for all Venezuelans.

Distortions and contradictions in the Venezuelan economy.

December 31, 2005


The
Venezuelan economy has always had contradictions and distortions that
eventually need to be resolved and cause a lot of pain, grief and damage n the
popeulation. Irresponsible Governments use oil money to create artificialities
that eventually blow up in their faces as the strain on the economy becomes simply
too much. Here are some of the more significant ones in 2005, most of which
will likely get worse in 2006:

-The
Venezuelan economy grew by 9.4% in 2005, but the oil economy grew by only 1.2%.

-The
Venezuelan economy grew by 9.4% in 2005, but the Caracas Stock Market was the
worst performing market in the world of the 79 covered by Bloomberg, down 32.4%
for the year in US$.


-Inflation
in 2005 was 14.4% but the yield on a 91 day Treasury Bolivar note closed the
year at 7.83%.

-The
country received US$ 48.34 billion for its oil exports and only US$ 7.25
billion for non-oil exports, an increase of only 6% for the latter.

-The
country had imports of US$ 25. 17 billion, an increase of 45% over the previous
year and a historical high.


-Venezuela issued over US$ 4.1 billion in new foreign
debt, but purchased over a billion US$ 1 billion in Argentina’s debt.

-The
Government says unemployment is at 8.4%, but 45% of the workforce is part of
the informal economy and not measured.

-Controlled
prices were up 10.2% in 2005, those not undrer control were up 18.1% in 2005.

Two pictures of misery around Caracas from Awacate

December 31, 2005

Good friend (and photographer!) Awacate,
sends these two pictures taken near La Bandera. These makeshift homes
under bridges (above left) are now all over the city and pictures like
the one on the right can be taken at any time.

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