Voodoo economics in Cubazuela: Maduro’s Mojo kicks into high gear

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Maduro waves his magic Chavez-Bird hat as he mutters magic incantation passed on to him by Cuban advisers, “Alamierda-Kon-Todo”

Abracadabra, Meka-Leka-Hi Meka-Hiney-Ho, Presto-Kalaka-Melaka-Mekago-En-Tumama.

It’s like magic, you know.  With inflation at 54% per year –and a thriving black market supported by two distinct currencies, Castro-style, with the real one pegged on the US Dollar– dictator Nicolas Maduro has found a way to keep prices from rising.

Now that the national assembly has granted him the power to rule by absolute fiat, he has declared it illegal for any merchant to increase prices.  He has also arbitrarily set a low price on all commercial rentals, and banned the use of the U.S. Dollar.

In other words, he has just decreed inflation illegal.  Never mind whatever is really happening.  What Maduro wants, Maduro makes real.  So what if merchants have to pay more for their stuff at wholesale on the world market due to the sinking value of the increasingly worthless Venezuelan currency?   Screw them.  They are supposed to sell goods at a loss.

And if they refuse to continue selling goods at a loss until they go bankrupt, the bourgeois parasites will be arrested.

What happens when all the “parasites” go bankrupt has yet to be figured out.  Or maybe Maduro and his Castronoid advisors have another powerful voodoo incantation that will take care of that problem too.

According to Cuban exiles questioned in Miami, that incantation is “Alamierda-Kon-Todo.”

Yes, that’s powerful magic.  As McKinley Morganfield (a.k.a. Muddy Waters) would say: “he’s got his Mojo woikin’…got his Mojo woikin’…”

But the question remains: is it woikin’ on you, Cubazuela?

From AFP, via Yahoo News:

Venezuela’s Maduro threatens arrests over prices

Caracas (AFP) – Venezuelan President Nicolas Maduro vowed Friday to arrest shopkeepers who defy government price controls, the latest salvo in a populist “economic war” ahead of key municipal elections.

Maduro delivered the warning in a nationally televised address that laid the ground for tougher enforcement of a three-week-old crackdown on actions seen as fueling Venezuela’s soaring inflation.

He urged authorities who find retail prices that have been raised “to act with all the severity of the law and, because they are crimes in flagrante, to proceed immediately to detain those responsible.”

Using new powers to rule by decree, the socialist leader also ordered lower rents for commercial spaces and barred property owners from asking for payments in foreign currency.

“We are going all out. We are taking measures with even more authority,” he said.The latest declarations came with Maduro facing a key test of political strength on December 8, when municipal elections will take place in the midst of a burgeoning economic crisis.

It will be the first elections since Maduro succeeded his political mentor, late leader Hugo Chavez, in April elections whose tight results the opposition has refused to recognize.

Inflation is running at 54 percent a year, shortages of basic goods are widespread despite the country’s oil wealth and a hard currency crunch wreaking havoc on the import-dependent domestic economy.

More to read HERE.