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Friday, June 13, 2014

Something Else: Currency Speculation in Venezuela

Macroeconomists   talk about "Financial Globalization" while thinking, like all of us all the time, about SEX.   Prostitution is legal in Venezuela, but currency trading is not, so sex is affordable in Venezuelan ports.  Because the bolivar is pegged at an untenable exchange rate, a thriving black market exists for dollars. Dollars in the black market are worth 11 times more than the official rate as dollars become more scarce in an economy that imports 70 percent of the goods it consume.
 Blogger Robin writes: Economy Vice President Rafael Ramirez stated in March that “We are going to defeat the parallel dollar.” My response is two-fold: (1) no you’re not with current policies in place and a president who calls the black market “perverse” and “designed by the bourgeoisie to destroy his Socialist government” and (2) what the heck is an Economy Vice President? Given the state of Venezuela’s economy, this guy (and the Economy President) should be fired stat
, Bloomberg tried to reach government spokespeople for comment but none of them are allowed to be named because of “internal policy” (and none of them wanted to talk anyway). Does it not seem oxymoronic to have a spokesperson for the Finance Ministry and for Maduro himself be anonymous? How do they do their speaking? through secret code left at special drops throughout the city. To be fair, if I were a Venezuelan government spokesperson, I wouldn’t want to be identified either

The illustration is from a respected Venezuelan economic magazine (really!). 


  1. Anonymous9:30 AM

    I hope you have arranged to be paid in either dollars, or services rendered, for rescuing Caracas.

    The latter is not easily taxed, although it is more taxing.


  2. Sir,

    "A Polish officer does not accept money!"

    Translation: I dont pay nor accept money for sex.

  3. Anonymous10:11 AM

    Pictured is the new design for the Venezuelan $20 stamp.


  4. One should understand the foreign currency penury that Venezuela is suffering from.

    Cuba is also printing a series of stamps showing its touristical attractions.

    Why is that socialism always ends in general prostitution? The porn industry is "manned" by Ukrainian, Czech, Hungarian, Russian workers.

  5. Anonymous6:30 PM

    Marx said, "From each, according to her ability...".



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