Venezuela hikes wages 35x, $0.87 to $30/mo - Workers will be on the government's payroll for 90 days

Heya pol,
why dont you read a book or even what we wrote here.

He literally just went and raised the minimum wage by 3364% overnight. Do you think there are brakes on this train?
Unofficial dollar went from 6 million to 12 million bolivares and back to 9 million since he said that yesterday. People aren't even getting paid yet.

That is well below a fucking million percent. And unlike capitalist scaremongering, a N% increase in minimum wage does not result in N% inflation, because:
1. Wage is just a part of the costs, and as such the cost increase will always be lower than N%
2. Tons of people already made above the minimum wage so their wage wont affect shit

Get a grip brainlet

But you are not white, you are most likely just some american mongrel

I just don't understand how Chavez could have let things get so bad. Why didn't he invest in other industries besides oil? How could they not think that if the Oil market went through a big downturn that it wouldn't immediately send Venezuela into the gutter?

He also spent a great deal on social welfare so that people could eat things besides arepas. Unfortunately, Venezuela is not very agriculturally productive so the country just became more reliant on imports and thus on the continued stability of international currency markets.

1,000,000% annual inflation is:
115.44% monthly inflation
19.38% weekly inflation
2.56% daily inflation

Inflation in July was 125%. finanzasdigital.com/2018/08/an-tasa-de-inflacion-mensual-en-julio-2018-125-acumulada-10-6647-y-anual-en-82-766/
Do you read what you post?

Or did you really not know how inflation was calculated?
N% increases in minimum wage have directly resulted in N% inflation in Venezuela for the past few years, and there is absolutely no reason to believe that it will be different this time. June was when prices started doubling in less than a month.

Scenario: You are suddenly leader of Venezuela, wat do?

Galaxy brain

I'm from Venezuela, the money is going to be handed directly through the fatherland's card

*snap*
yep this one is going into my cringe compilation

Venezuela's white population has been perpetually declining since the 50s, they have been majority mullato and mestizo for quite some time now

This is a super gambit to destroy Colombia's gas smuggling and get that income back to our state.

The minimum wage is now set to the petro's value, it doesn't matter if the Bolivar gets devaluated again against the dollar by means of supply /demand. The minimun wage is 1/2 petros. And that's about $30. They would have to pay $30 dollars regardless of the value of bolivar in exchanges.

I'm a Venezuelan ask me anything and I will try to clarify.

Try to diversify industry? Give peasants a bunch of land and guns directly instead of trying to do things through the infrastructure of the liberal democracy? Not saying this is the right path genuinely asking if this isnt viable and if not why not. It seems like they have pushed the capitalist state to the breaking point and the remnants of it have resisted nationalization, it seems to me like doubling down on SocDem policies instead of moving outside of the existing state is a mistake.

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proofs? sorry but u know where we are

And does tying the minimum wage to the petro cryptocurrency mean it wont be effected by inflation? How is that, if the petro is based on the value of the oil?

Literally close to half of Venezuela's population is still white.

The wh*tes are mostly in the opposition though, the government's ethnic composition is Zig Forums's nightmare.

>>>Zig Forums

I've never seen anything showing that Venezuela's whites support the opposition by a majority. It is true that the opposition is mostly white but then again, it is rather small in numbers.

whites are the racial bourgeoisie wherever they dwell, this is why Nazi masturbation fantasy and class are fundamentally inseparable

1. They're going to pay in bolivares anyway, so that only works if they give the bolivar a real floating exchange rate.
2. The petro doesn't exist, it's just something Maduro pulled out of his ass. See: bitcointalk.org/index.php?topic=3006037.msg41376201#msg41376201

Depends on what you mean by opposition. People who support the politicians currently going against the government: There's barely anyone left.
People who are against the government, or their current policies: They're a pretty visible majority, and Colombia is being flooded by Venezuelan refugees atm, so you don't even have to look at Venezuela to see them.

What do you want as proofs? What would suffice?

Anyway, to answer your question.

The petro's value is the price of one barrel of venezuelan oil, right now that is about $60.

The sovereign bolivar is set to start at 3600 = 1 petro. Which sets the new bolivar/dollar relation 60 to 1. 60BsS = $1. That was the price or is the price right now of the black market dollar. The government sort of legalized this rate, which wasn't official, and legalized the free exchange of currency between people and businesses. They are going to allow exchange houses? offices to exist ( I don't remember the right word in English)

On another side, there are 50 basic, necessary products that their prices were agreed between big private corporations and the government a couple of months ago. The prices are supposedly tied to the petro and take as reference the international price. Let's say the international average price of 1Kg of rice is $3, well that means the agreed price would be 0,05 petros in bolivares would be 180. That price is fixed then, also the minimum wage is fixed to 0,5 petros in bolivares 1800BsS.

So what I suppose would happen is they (the businesses) would try to devalue the bolivar in the exchanges to try to double it against the dollar, which is the excuse and the reason why they increase the prices, but if they increase prices let's say the bolivar loses ground against the dollar and the exchange rate is 200BsS = $1, then they would sell the Kg of rice in 600BsS more than double, but regardless of that they would be forced then to comply with the minimum wage of 0,5 petros, so they would have to increase wages too from 1800BsS to 6000BsS.

Also, the government said that from this 20 of August,that It will assume the payroll of small and middle businesses, the difference between the old minimum wage and the new one, will come out of the state's pocket. So these businesses would be experiencing and increase in sales because the people finally have recovered their consumption power or acquiring power (I don't know the exact term in English) would be having higher profits that would activate them again and escape the consumption contraction of the hyperinflation, leading them in theory to produce more and invest because people would be able to buy the stuff they would sell.

I'm not an economist but that's what I see how this may play out.

I KNOW I live here dummy. Of course the BsS is going to have a floating exchange rate, but wages and some products prices are going to be tied to the value of the petro.

It doesn't matter if you aren't going to use petro, you want dollars? You would need to pass through the petro exchange rate first. Like a conversion box or something that establishes a reference that only the international oil market oscillations can affect.

So is this also a bid to win over the petit bourgeoisie and self employed and undermine support for the reactionary opposition? Where is the government getting the money to pay all these minimum wages, not printing more I hope?

Joke

Yeah that's probably true, I was assuming that white Venezuelans were a smaller percentage of the population than they apparently are.

Yeah sort of, but some of the petite bourgeoisie and self employed are so deluded and stubborn that they are still thinking these measures are against their interests in the long run. The measures if any, would probably keep in check and reduce the big players profits and influence, by taxing them more and more regularly, and trying to tie their schemes to a system that if they do damage they would be hurt back proportionately.

Where is the government getting the money to pay all these minimum wages, not printing more I hope?

Maduro made this comment regarding printing money, I just googled translated because I'm lazy at this hour:

Right now by tying the sovereign bolivar to the petro, the issuance of bolivares will be limited to the number of petros. Kind of like if the bolivar would be backed by gold or another commodity.

Where is the money coming from then?

Well I believe it's going to come in two ways:

First, one of the measures that few people are taking into consideration, is the fact that the government just put a whole block of oil bed/deposit of the Orinoco oil belt (Bear with me with the technical terms please) in the Central Bank as reserve, a financial asset?, something like they do with gold. This represents about 29.298 million oil barrels, which if we multiply by $60 each, we get about 1.757.880 million dollars. What do you call that? 2 Billions? 2 Trillions?.

Second, by reducing considerably the fuel smuggling through our evil neighbors the Colombians, by increasing the fuel, gas price to international levels and subsidizing it directly to the Venezuelan people through the fatherland's card. The state would be gaining back around 10.000 million dollars a month. The amount of money that conservatively speaking is "lost" in these illegal practices.

I'm white by venezuelan standards. And I don't support the opposition.

I wrote these comments

FUUUCCK SAKE

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Oh ok that actually sounds fairly promising. Dont mean to sound negative just seems like a grim situation. Whats life like on the ground there? Of course I know that the hardships arent the fault of socialism and I know about the dedicated campaign to strangle your economy but is there truth to reports about mass shortages and desperation?

You don't print the corresponding number of old bills, you make new bill designs. Because all the zeros get hard to read, the numbers on these new bills gets written like this:
>50 million Shithole Dollars
or this:
>50 New Shithole Dollars
With 1 New Shithole Dollar = 1 000 000 old Shithole Dollars. Plenty of countries have done this. Extreme inflation has been much more common in the world than you think.

Inflation estimates usually refer to the devaluation happening over the span of a year.

Land-value tax and talking about the wonders of vegetarianism 24/7 on TV like a huge faggot.

Good shit

Wow, this is sounding kind of promising now. Very creative too.

because buying in industrial equipment and spare parts from developed countries is quite difficult when they hate you, and exporting manufactured goods to those countries is even more difficult.
the situation is more nuanced than that, but it's not like they were completely ignorant and ignored the problem. efforts were almost certainly made to avoid it, and those efforts failed.

Why is Venezuela so worse off than Cuba even during the wild 90's? It is even worse of than North Korea which has a space program.

Venezuela should just become part of North Korea.

Return to the gold standard (maybe the bimetallic standard since Venezuela has high silver deposits) and correspondingly nationalising metallic extraction of whatever you are pegging your currency to.
Syndicalise (yes syndicalise) oil production, separating refining, distribution and extraction. This should help deal with the working morale issues and improving productivity.
Short term I would seek some capital, maybe from China, to ensure you can give the economy a kick.
Oh also subsidies for imports from literally anyone, just to bring the circulation of goods up.

Good points, but rather than attracting capital I would rather attract engineers and other advisers from countries like North Korea, Belarus and Cuba.

They aren't though.

Why do american't conservatives whine only about Venezuela and why does Venezuela has higher crime rate, lover life expectancy than Cuba?

How do you think the black market of dollar exchange was created?

That is a good point I forgot to adress, rather than make subsedision, better just give people welfare.

Because venezuela is bigger and more powerfull, as well as not geographically isolated.

Because venezuela is shittier and cuba has stellar welfare build up over the past 60 years.

In the 90's cuba was litterally starving to death, venezuela is not starving to death.

How do you envision Venezuela in fiveyears?

I hope going full commie or at the very least in control of its national industry

Nah advisers don't mean shit if you can't actual do anything based on their advice. Also 1) Venezuela has a fucktonne of advisers from Cuba 2) NK would be useful if VN was developed Nukes or trying to manage a planned economy (it is doing neither of these things) 3) Why fucking belarus? Please don't tell me you buy the Lukashenko is a socialist thing…
Also if anything, it needs to copy the bolivian model of industrial syndicalisation, that has worked pretty well down there.

Let me rephrase that. I don't mean "hurr pay for imports" I mean using distribution methods that have been nationalised import goods at a state level and distributing them into shops more efficiently, to act as a counterweight to the supply shortages caused by inflation.

North Korean advisers because Venezuela should embrace planed economy.

Belarus because they maintain competent bureaucracy. They even make their own Ipones, tractors and very good agricultural policy

Really random and stupid post.

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I am really tired of 'muh venezuela' memes. American't dissease is spreading into Russia and I am really unhappy about that.

For the record, all Venezuela needs to reach 1 million percent annual inflation is to average 150% monthly inflation from August to December. Remember that there's a 100% increase between 1,000,000 and 2,000,000.

They've always done that. There were noticeable shortages in 2013, after they scared enough foreign companies off, and that's how they tried to solve it. But it just isn't sustainable.

Do you guys think cybernetics would help Venezuela?

For cybernetics to be implemented you need to do the following steps

At the moment venezuela is at step 1, and even that is debateable given the power the reactionaries and capitalists still have.
Venezuela is not on the stage yet where they can do it. Its still very low tech compared to what it takes. Cybernetics could be instantly deployed in hightech countries like the netherlands (which has all the infrastructure and tech already at all levels), not a third/second world unstable rather analogue nation like venezuela.

According to this map Soviet Estonia was the richest republic and had the highest standards of living because of computerization. I wonder how much truth is there in that, and what can be learned from that practice.

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I think this is more of a chicken and the egg thing.
Maybe they had more computers because they were richer, not the other way around. Or maybe its both.
But computerization obviously has a fuckton of benefits in regards to productivity and efficiency.

that picture is really aestheticslly pleasing tbh

You forgot "be able to produce computers of some sophistication and keep them in working order," since if you got that far you can count on massive sanctions.

What stops the government from nationalizing everything? They already have an approval rate of over 60$( I believe?) and they got full control of the army. So what stops them from doing this?

If Allende could start implementing cybersocialism in fucking 1971 with Telex Machines, Maduro could do it today with cell phones.

This, also rip Allende, national hero.

What allende did was nothing like what leftypol means when they talk about "cybernetics".
Allende basically just build an extremely simple bookkeeping network. Impressive at the time, not so much now. With cybernetics here we usually mean a planned economy with some sort of labour voucher system.

Actually Cockshott was able to do it on a phone microchip of like have a gig of RAM.

The hardest part here is not the computers themselves, but the information infrastructure.
We can see that cuba has difficulty building internet due to the embargos of routers and whatnot.

internet intranet potayto potahto

But Cockblast upholds Cybersyn as an example. He is for transitional stages.
Actually, the oil commodity bitcoin money with direct stipends on credit cards is sort of similar to cybersocialism in some respects.

OK, what you say is getting so stupid that it has to be deliberate.

That's not true at all. What the fuck makes you even think that?

*60% goddamn it

The vote percentage in an election with an absurdly low turnout isn't the same as an aproval rating. But it's not like the opinions of unarmed civilians matter anyway, they have been doing whatever the fuck they have wanted since 2015. Nothing is stopping them.

Chavismo has been in power for 19 years and a half. If they actually wanted to implement something like that they would have done it eons ago.
.

The government announced that 300 currency exchange houses will be opened (date not specified). el-carabobeno.com/gobierno-venezolano-anuncia-la-apertura-de-300-franquicias-de-casas-de-cambio/ (Spanish)

I mean you can't even drink two beers without putting in danger your whole month budget, but, a little contradictory is the fact that you pay almost nothing for a whole box of groceries called CLAP sent by the government. In my case, I live alone in my apartment, that box last for a month and a half.

Electricity is practically free, gas to cook is free too, internet? really really cheap in comparison to let's say buy a mayo jar.

I use my monthly wage to buy 1/2Kg meat, 1 frozen chicken, 15 eggs. You know stuff with protein and to fill my bread or arepa, accompany my rice, make tomato sauce and eat with pasta etc… Beans come with the box, but wow you can get pretty tired of eating that almost everyday.

Also if I'm smart I'll save some money to buy, onions, pepper, tomatoes, chives, garlic, and other vegetables to season my food or to do salads.

Of course all the stuff I did one year ago, like going to parties, drinking a lot, going to a hotel with my girl, taking her to dinner or lunch etc… is IMPOSSIBLE! unless I have access to dollars. And I don't have access or have an income in dollars, like some people do. The people that have access of dollars are practically GODS they can do anything, buy anything, go anywhere. And that's the trick. Some people gets benefited with this crises and they don't want it to end.

How much do you earn? A half kilo of meat costed 5 million bolivares here last week.

I earn a little more than 30 million Bs.F a month.

...

That sounds like shit comrade I'm really sorry to hear it, hope things improve soon.

im glad it looks like venezuela is fixing most of its problem by fixing some currency values and pegging some things to the price of oil. America really is inept if this is their best stab at overthrowing Maduro

Despite their best efforts, Russia can only make chips at late 90s specifications. Venezuela is isolated economically and academically to a much greater degree, so I really don't know how much they could manage.

wow. I have access to dollars. Does this mean I can take a plane to Caracas and cuckold all the venezuelan bfs for like $50 a day?

Not something to be proud of, but yes, you could actually do that.

In fact, a lo of what do you people call them? "incels?" well, anyway, if you have at least 10K in your account, you can actually buy an apartment and a really nice used car and still have money to drink, have sex, get a serious girlfriend etc… get back to your country work some weeks and then repeat.

Don't encourage them. Sex tourists are not a path to national development that you want to walk.

So,they are like…getting money from the oil (again and very careful), with the carnet de la patria are going to cut the smuggling and making a, shock (like Peru in the 90s…the exchange rate of intis to new soles was, terrible 1million of intis to 1 new sun)

Irrelevant. The computing power necessary for something like TANS is already there (whether "there" is Venezuela, Cuba, DPRK, or some African country), many, many times over. Embargo, shmembargo. It's impossible to prevent getting something a tiny as a few microchips into the country, we are not talking about smuggling in big tanks and planes. Even if a super-vacuum embargo were possible, it wouldn't be relevant. Think of the microchips already in the country. A microchip can last for years, even a few decades, before giving up the ghost. The main opposition against something like TANS is powerful bureaucrats in these countries themselves, not an evil outside force.

They cant nationalize undustry and go full ml ☭TANKIE☭ yet
In their material conditions now at least not: they have imperialist porkies to fight first; Venezuelan proletariat can't handle fighting against both of them
I mean they have two choices here: either they make the imperialist and national burgeoisie ally and fight them by going full commie or fight one bourgeoisie at a time and not making the conditions of the proletariat worsen so much as in the first case

So is PSUV going to throw any money or guns into the ELN in Colombia to spread the revolution so it isn't just Venezuela, Cuba, and Nicaragua against the US?

You also need to keep track of every product and intermediate in the national economy. Even if a little linear programming isn't the most intensive calculation in the world, you still need networked computer terminals at every factory, mine, farm, and store.

I know is very disgusting. But I have confidence that these new measures will at least stabilize the economy and correct those kind of distortions. Needless to say this situation has made many couples and families to break up. In fact there was one marriage that went on the news that the wife went to panama to emigrate and she lied to her husband here telling him she had a decent job, turns out she was a prostitute. The husband went later to panama in order to be together because the plan was for her to go first then him etc… Long story short the guy got to panama found out she was a sex worker and killed her a few hours of arriving in the country. This has happened in several countries across Latin America. The worst cases are in Mexico following Colombia, Peru and Chile.

If you have a telephone line, you have a line computers can transmit data over. And if you have a cell phone, you have a computer. It is not a technical problem now. It wasn't a technical problem ten years ago either.

We're in 2018, "printing money" doesn't mean that they're literally manufacturing a lot of high-value banknotes. There are other ways to increase the amount of circulating currency. There's a serious cash shortage and bank transfer bolivares aren't worth as much as physical bolivares.

2 weeks ago, if you wanted 100,000 bolivares in cash, you would have to transfer 700,000 bolivares to the guy selling them. Don't know what the prices are like now.

Abbreviated list.

It's breathtaking, watching them continue to reboot their failures.

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But this is how eras change, you right wing piece of shit. It took hundreds of years to change from slavery to feudalism and then it took over 200 years since American and French revolutions to move onto capitalism. It was over 100 years since American revolution until America became what you idiots call democracy with universal suffrage and so called 'free market' and still it is only two party system with retarded college vote.