Chavez’ Ever Morphing Petrorinoco Investment Instrument

September 6, 2012

Remember the Petrorinoco bonds that Chavez said would be used to pay Bs. 40 billion in debt the Government has with public sector workers? Above is the picture of the “bond” Chavez showed in national TV (That’s his hand). However after handing out less than Bs. 1 billion and after failing to issue an official gazette with the conditions of the “bond”, not much was heard again and the electoral promise of handing out billions seemed to die away.

Another failed promise of the fake revolution?

Well, we still don’t know. We now hear from another non-financial expert of the Cabinet (Chavez is the other one) Minister of Higher Education Yadira Córdova that the “bonds” are not going to be quite bonds.

According to Mrs. Córdova (or is it Dr. Córdova?) the investment instrument to be used in paying the public workers can be better defined as “A system or certificate of payment with defined financial characteristics” and that they will have a trust backing it.

To clarify the ever morphing financial instrument, whose main purpose seems to try to obtain votes, Dr./Mrs. Córdova added: “The subject of severance pay is complicated and you can not generate an obligation without it being in the budget”

At this point, you are all lost, so is she. This is not an “obligation”. This is the law, which the Government has bypassed for 14 years, while the private sector can’t miss a payment because the Government raises hell. But the Chavernment is the Chavernment and they are in a world where the rule of law can be suspended at their will. But even worse, is the fact that a bond is precisely that, a promise of payment with a financial instrument, backed by the Government, a trust or whatever. Chavez’ Government did it before and they were called Vebonos.

In closing, the Minister put the nail in the coffin by saying: “There is not a definite date for payment of the labor debt”

Oh Yadira, public workers know that, they haven’t been paid in fourteen years, do you think they believe you one month before the election that you will pay this time?

In the end, using Hugo’s words, the Petrorinoco, is simply part of the show. And as an infamous aspiring little Dictator of Venezuela once said: “The show must go on”

And it does…

21 Responses to “Chavez’ Ever Morphing Petrorinoco Investment Instrument”

  1. Manuel Says:

    I have a feeling the comments section for this one will be short…maybe. The reason I say this is because mainly it boils down to… 1. The government has no idea what theyre talking about and somehow we are supposed to believe the expert analisys of the education minister?? Shocker. 2. ANOTHER promise that goes unmet?? Shocker. 3. The government workers keeeppp hoping after 14 years that they will be treated correctly…hasta CUANDO?? Shocker.

    Then again…the indignation never wavers, and the magnitude of the crap coming out the closer we get to the elections keeps getting bigger and bigger so Im probably wrong.

  2. CharlesC Says:

    This looks like a plain scam. Rip-off! No security. Only BS from
    the biggest bser in Venezuela.
    It is really a bad joke and to think he has the audacity to push/sell
    this just before the election…

  3. David Cheever Says:

    How come we are surprised Hugo Chavez failing to honor one more of his many bogus promises? Just take a look at his many promises and check to see how many were honored. This man keeps crying wolf and as far as I am concerned, we are the fools for believing what comes out of his lying lips.

  4. VJ Says:

    On sep. 4th, the ex-rector of the UCV sent by twitter the following message:

    GIUSEPPE GIANNETTO ‏@RECTORGIANNETTO
    Las caras que yo conozco de Prof ‘s Jubilados de la UCV presentes en el acto son todos chavistas. He alli el metodo de seleccion de pago!
    Abrir
    Responder Retwittear Favorito

  5. Dr. Faustus Says:

    Enjoyed the update on those bonds.

    However, if I may be allowed to get on my high horse again, I noted Juan Cistobal Nagel’s commentary over on Caracas Chronicles (I’m not a contributor over there) and there he stated the most important aspect of this upcoming election. He got it right! It’s crucial to understanding what is about to happen, and it’s coming at us like a freight train. He writes:

    “We are on a kinfe’s edge, and we may well lose. We could even lose big.

    Let’s entertain that thought for a minute, without fear.
    Suppose Chávez wins fair and square on October 7th. Chances are there will be another election some time in the near future, one without Chávez.

    Does anyone here believe Chávez is not gravely ill? Are we convinced Chávez will be around in six years’ time?”

    Exactly! He clearly sees the bigger picture through the fog of battle. All of this is true, ….provided that the names corresponding to the electoral ballots are not changed prior to the week of October 7th. This should be the number 1 topic of political conversation in Venezuela today (sorry, I may have gone overboard again here….), whom are the Venezuelans electing on October 7th? Hugo Chavez or Adan Chavez?

    Again, ….sorry, …..I’m passionate on this topic. The elections are a mere 4 weeks away. The Chavinistas are about to pull a fast one, and it is all there for everyone to see. Pay attention!

    • TV Says:

      I think that MUD should agree to hold yearly primaries for competing in a presidential election that year, should one be held.

    • VJ Says:

      I’m convinced that Capriles wins on 7-O. But if I´m wrong, I think HCHF is going to call a new referendum by december 2012, to be held along with the governors and mayors elections in order to amend the constitution. So in the case he dies before completing the presidential period of 6 years, the vicepresident (Adan?) appointed by him is allowed to finish the term.

      • TV Says:

        My view is that if Hugo looses he will attempt to recover power via a recall referendum within a year or so. It’s pretty clear that the first year of Capriles presidency would have to include a number of less than popular actions, like a currency devaluation. I imagine that a major strike in the oil sector would also occur, to try to force Chavez back in power, and that would result in some pretty severe economic damage. Add a totally hostile, biased court system in the mix, and Chavistas can make his presidency completely impotent.

        If Capriles wins on 7-O (and IF the results will be upheld), it will not be a final victory. It will be the first of many battles.

        • VJ Says:

          Today, Carlos Blanco in his column “Tiempo de Palabra” El Universal newspaper of Caracas writes the following:

          La camarada da unos pasos como en la pasarela de la historia, y dice:
          -Vamos a ganar y a perder. Vamos a ganar este año y a perder el que viene. La crisis no es en 2012 sino en 2013.
          -¿Enfermedad?, inquiero.
          -Todo revuelto. Hugo hace un inmenso sacrificio en traernos vivos hasta el 8 de octubre, pero de allí en adelante el lastre de la descomposición será más potente, a pesar de la “limpieza” que va a hacer. Tenemos un solo posible sustituto que ya ni siquiera Hugo puede parar. Lo más importante es que también hay un núcleo duro de la oposición que se prepara para perder ahora y (cree) ganar en 2013. Cálculo peligroso como pocos.

          http://www.eluniversal.com/opinion/120909/tiempo-de-palabra

  6. Mick Says:

    I think the question should be, “Where is the money going?”

    There are probably thousands of suitcases full of cash moving about. Probably hundreds of millions in HIS cronies offshore accounts. There must be a lot of secretaries or assistants who know where the skeletons are hidden. Is there no way to FOLLOW THE MONEY?

  7. CharlesC Says:

    “One factor that brought down the Soviet Union was a steep drop in the price of oil. It would also be devastating to the Iranian regime and Hugo Chavez. Give us Romney and the Senate and it could happen again. It may anyway because of the natural gas boom but we really need an administration with a sane energy policy and a congress that will back it up. Take away their money and our enemies will be far less dangerous.” (quote from Rancher at PJ Media)

    So what will these billions of PetroOrinoco bonds be worth then?

  8. Roger Says:

    Just more Junk Bonds http://en.wikipedia.org/wiki/High-yield_bond
    and now their trying to pay people with them. Makes one wonder how the gold reserve is doing.

    • Roy Says:

      The gold reserve? You mean the one that they yanked out of the U.S. and Europe to keep it “safe” in Venezuela? The one where we now don’t have anyone but the Chavernment to assure us that it still exists? Do you even have to ask?

  9. CharlesC Says:

    Is there any doubt that if things were to suddenly happen and Chavez is “unpopular” and loses the election-Is there any doubt that he will
    run away to Cuba?

    • CharlesC Says:

      Thank you, Pedro. Very clear.
      Here’s a quote from yesterday Babalu: Una Pregunta-
      “Am I the only one thinking that Cuba facilitating “peace talks” between Colombia and FARC makes about as much sense as say Iran hosting a peace summit between the Israelis and the Palestinians? Cuba is a state sponsor of terrorism, including decades of support for FARC. The only thing I see coming out of this is more propaganda from the regime pretending that Castro’s Cuba is a normal country, and therefore deserving of international credit. All part of the alternate reality plan.”


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