When Foreign Policy asked me for a long piece on where Venezuela is headed in 2014, I had to sit back and think of the big picture. After a tumultous year that saw a presidential death, a massive funeral, two elections, the early ripples of a profound economic crisis, and even the craziness of Daka, you have to distill the issues to their essence.
Where are we going? Or more importantly, what are the factors that will determine where we are going?
I have a confession to make: after the April election, a rift appeared between Quico and I, one that has not healed. We still cannot find common ground on our appreciation of what happened in April, and on whether the opposition’s response was adequate or not.
In spite of this, we have come to a common conclusion: none of it matters, because whatever happens in Venezuela in the coming months … is not in the opposition’s hands.
Neither Capriles nor the other leaders, nor even the MUD itself can affect the outcomes, just like it couldn’t affect the outcome all year long. We can discuss strategy all we want, we can fret about them saying this or that, but ultimately, it doesn’t amount to a hill of beans. The opposition, roughly half the country at this point, is irrelevant – candidates for political roadkill. This is a petro-state autocracy, and there are only three factors that are relevant.
First, and foremost, is the price of oil. Never has a regime that on appearance seemed rock solid depended so much on the price of a single commodity. If the price of oil surges, we can simply say goodbye to any chance of regime change. If it stays the same, we will keep muddling through. If it plummets – well, all bets are off. Can it really be that simple? Part of me thinks yes.
The second aspect is the government’s popularity. During the last few months, we have been keeping track of communicational hegemony if only for the simple reason that the government’s complete monopolization of the airwaves is a necessary, but not sufficient, condition for maintaining the veneer of popular legitimacy it clearly holds so dear. As long as the regime is popular, and as long as everyone knows it is popular, or as long as everyone thinks it is popular … nothing is going to happen. That is why it is so important to maintain popularity, but if that fails, to maintain an illusion of popularity.
This is not to say that a deeply unpopular government can “fake it” if it controls all the media. What it means is that it can fake it … for a few months. What it means is that it can find scapegoats to keep the illusion going while it buys time and appliances. The regime is populist in nature, and like Luis Vicente León said in the aftermath of Daka, “populism … is popular.” This means that populism breeds popularity, but it also suggests that popularity feeds a populist regime – it gives it life, and it sustains it. It may have been the phrase of the year.
The third aspect, one that I tried to delve into in my piece, is the military.
Right now, the Armed Forces are willing accomplices of everything that is happening in Venezuela. But while it’s tempting to say this is a “military” regime, the reality is that Maduro and the Cubans are outsiders with regard to the military. There is a tacit agreement between these two very distinct players, held together by the grinding machine of subsidies, distortions, and oil money that keeps the coalition together.
What happens when and if Venezuela’s economy plummets? That is anyone’s guess. My intuition is that it won’t be easy to keep revolutionary unity if, say, the price of gasoline goes up, eating away at the smuggling that part of the military thrives on. And what will happen when Cadivi is no longer the source of inmense rents for a few fat, very fat cats? And when do the “institutional” members of the Armed Forces reach a tipping point and demand an end to corruption and the infiltration of Cuban influence?
——–
As for this blog, 2013 was memorable in many ways. Quico and I published our first compilation, and the response was overwhelming, so a big thanks go out to all of you for supporting it. Particular gratitude goes to the many people who took time to review the book.
My thoughts go back to last February, at the height of the Chilean summer, when I hunkered down in a cabin in Patagonia and decided we simply had to get the book finished, knowing as we all did that Chávez had only a few days to live. The book’s launch date was moved up when Ernesto Villegas somberly announced, on March 4th, that Chávez’s health had taken a turn for the worst. The media surge that followed was an exciting learning experience for both of us.
We also have to thank Emiliana and Gustavo for helping us continue with this little enterprise, and for bringing their own unique perspectives to the blog. And of course, thanks go out to you, our loyal readers, who keep this place buzzing with interesting perspective.
I must say – I did not think Caracas Chronicles would outlive Hugo Chávez for long. Chávez was such a huge story, and Maduro is such an underwhelming historical figure, that I simply assumed once the fat man was dead we would all move on.
But as I see the government shut down all remaining spaces of dissent, I realize that spaces like Caracas Chronicles – small, tiny spaces of freedom – are necessary. Television channels have all gone red, as have most radio stations. Newspapers will follow next year. But the Internet will remain, so we bear a tiny bit of responsibility in keeping the flame alive. This was brought home the other day in Caracas when I met a man on the street, a stranger, who greeted me and told me he read me. That … blew me away.
Anyway, that is one mighty long way to say goodbye to 2013. In 2014, we hope to continue chronicling the revolution’s crumbling. Let’s hope this time it’s for good.
Now go back to eating your hallacas sin Chávez.
What a perfect photo to go with that title!
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Happy New Year to all!
“If it (oil) plummets – well, all bets are off. Can it really be that simple? Part of me thinks yes.”
My prediction for 2014: Oil WILL plummet. 70 dollars a barrel by mid year.
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Proof: http://online.barrons.com/article/SB50001424053111904742804579276381678723344.html
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Yes, in the US oil patch I have heard that oil will go to $60-65/bbl in 2014, but I took it as a reflection of the incredible results being achieved in the US with the new oil and gas technologies.
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More news on US drilling results: http://www.bloomberg.com/news/2014-01-08/unforseen-u-s-oil-boom-upends-world-markets-as-drilling-spreads.html
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Glad the rift between you, Juan, and Quico has not overly affected Quico’s brainchild that you have both worked hard at keeping alive, thanks too, to input from GEHA and Emiliana, the occasional guest poster, and of course, the FRAY!
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Yes! Just added props to commenters.
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By the way, Juan: the author of that phrase you quote and attribute to Bolívar (“Quito is a convent, Bogotá is a university, and Caracas … is a military barrack.”) actually is Ecuadoran novelist Juan Montalvo.
See, for instance, http://books.google.co.ve/books?id=pq-MSJfoCDcC&pg=PA89&lpg=PA89&dq=juan+montalvo+nueva+granada&source=bl&ots=_9YRTnimza&sig=TNVGmayZhRak-ugddKjGlg-vARE&hl=en&sa=X&ei=yWtvULGIEImy0QHQqYCAAQ&ved=0CBcQ6AEwADgK#v=onepage&q=juan%20montalvo%20nueva%20granada&f=false
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That’s interesting. Considering Simón Bolívar himself was THE great promotor of the personality cult towards the military, this is not surprising.
There is one thing Alexander von Humboldt remarked in 1800: Venezuelans (or inhabitants of Caracas) dedicate more time to the development of music than science as opposed to Mexicans or Granadinos (not that they did much about it, but just comparatively speaking) and are, together with those of Cuba, the most obsessed with politics. It didn’t pay: we have really screwed it with our political decisions.
And if we see the number of patents Venezuela has been producing in the last 14 years (almost none) compared to those of Colombia and Mexico (increasing and more than Venezuela ever did), we need to be worried.
Colombia has a Santander and Bolívar region. The US has a couple of Washington. But there is absolutely no country on Earth where more than a third of all municipios are called after military guys.
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Thanks, Ana! While growing in Caracas, I periodically heard my father (generación del 28) quote … y Bolívar decía ….
But I thought he mentioned the countries, not the capital cities … que Colombia era para poetas y Venezuela era un cuartel .. algo por el estilo, aunque la memoria me traiciona.
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Thanks Ana!
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Thank you Francisco, Juan, Gustavo and Emiliana for your ever enlightening thoughts in this space. You have a dedicated readership and if there were not differences among you this blog would resemble more what you all are speaking out against, and with a less dedicated readership. A healthy, happy new year to you all.
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This piece carries a very sharp and honest analysis of Venezuelas current situation . We havent seen such kind of analysis for a long time Juan is to be congratulated for writing it !! He makes clear many things which we have roughly thought of but didnt quite find the right way of articulating to ourselves . It brings phocus and clarity to many ideas which have been hovering over the blogs readers minds but never have been articulated with quite such nitid force. The oppo’s job now is to keep its fires burning until circumstances call on it to play a more impacting role on events we cannot now predict will happen , or how they will happen . The ball is on the other sides court . or rather in the hands of blind providence . I find it strange that the Daka phenomena which was basically a big city event could have such impact on the middle to small size towns where the govt got its biggest support in the last elections . Things have to get pretty bad before the military think of intervening in any way , the supervening unpopularity of Maduro ( if conditions continue to worsen) wont necessarily translate into a cross over of former Chavista loyalist to Capriles camp , there is an emotional identity divide which persist even as people become dissapointed with Maduros govt. They d love for another Chavez to rise up inside their own camp and replace Maduro but that isnt happening , nor is capriles nor any one of the main oppo leaders likely to become a figure which they can take a fancy for as they did for Chavez. That leaves us in a kind of political limbo as regards the uniting of most venezuelans arround a figure that leads the way out of the morass in which the country is stuck. If populism is popular then any one wanting to come to power through electoral means is going to have to play the populist hand whatever misgivings we have about it , At most you can limit the amount of damage populism causes and start a slow process where people become conscious of its vices . Evidently this is no time for ideological puritans or the democratically straight laced but for people who dont fear to be bold and sagacious . .
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I was thinking the other way: how many military guys do we have?
A few days back I read Maduro had talked about more than 250 thousand “soldados y soldadas” getting some benefits. I wonder how many we have now. Just as reference: Germany, with 81 million people, has less than 150 thousand military personnel…of which at least 6000 are still based abroad (in places such as the middle of Africa or Afghanistan).
I did the maths on previous years and the Venezuelan military caste got at least on two occasions pay raises that clearly compensated for inflation.
Now think about this: there are the military and then the milicias. Also consider: for the first time the ones in power came from the plans of indoctrination planned by Douglas Bravo et alia (not least the Cubans).
You can see here (sorry for the “percentage” label on the right)
the expected inflation for 2010 (which was “only” like 5 points lower than the real one, unlike now), the planned salary raises for the general population and the salary raise for the military caste.
Things to bear in mind, I think.
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And here:
http://www.eluniversal.com/nacional-y-politica/131231/anuncian-aumento-de-sueldos-para-la-tropa-y-oficiales-de-la-fanb
And I don’t see anyone from the oppo trying to approach them.
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It was a tumultuous year. You guys created some order within the chaos. Thank you for that. Have a happy new year.
The best is yet to come.
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This should be the main concern in the months ahead…”But while it’s tempting to say this is a “military” regime, the reality is that Maduro and the Cubans are outsiders with regard to the military.” Great post, thanks to all of you. Enjoy your New Year celebrations.
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This regime will unravel thru the infighting of the different factions within it. Just like Peronismo, the BS legacy of Chavez will still be around decades from now. And, yes, the price of oil will determine the slope and speed and intensity of the process.
Thank you all for helping make sense of all this.
Salud y prospreridad!
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this year we went from having a tiny hope of change to near complete helplesness, somehow I dont think that oil price will go down anytime soon, those arabs may create a new crisis just for the sake of having high prices, anyway, at the rate the reds are wasting that revenue it seems not even at 200us$/barrel would be enough for all the subsidies, the thing that remains unanswered is how far is the venezuelan people willing to endure before we produce change.
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At a time of the year when optimism is to be encouraged I was biting my cyber lengua, fact is I don’t think oil prices will matter anymore – look at North Korea or Zimbawe, total hegemony is able to replace Dakazos with Conazos if necessary. Abandon all hope ye’ who cross thru the gates of Maiquetia
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Exactly right, particularly when you consider that Zimbabwe or North Korea don’t have the immense natural resources at Venezuela’s disposal to offset any potential collapse. The Chavistas in one form or another are here for the long term. The only hope for the masses is a miscalculation – admittedly possible given the dissarray surrounding every necessary decision.
I predict 2014 will be known as the last year you could get out of the country with any meaningful assets.
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Certainly, abandon all checked valuables…
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For me, CC is a small oasis of sanity on Venezuelan affairs. Thank you for that.
Happy new year, everyone!
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Ditto, J Navarro says it for us all !!
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Great article, JC. A wonderful post to end this ride of a year (and preparing for what’s coming).
If I might add something, 2013 was the year the whole investment in the communicational hegemony paid off. The government knows it and will keep spending a lot on it, regardless of the dire condition of our hospitals, schools or highways. Keeping the illusion of control comes first…
I want to thank Quico, Juan and Emi for all the effort and hope that CC will continue doing the good work in 2014. To the readers, fellow bloggers and commenters, my deepest gratitude.
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Many thanks and Happy New Year to the entirety of the CC family. The hard work is sincerely appreciated. Keep it up!
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Thank you and Happy New Year for 2014; keep up the good work. Only one point re the excellent post above: I would say that “populism breeds popularity” is wrong: it does not breed it, it buys it and sooner or later that hunger/thirst/want needs re buying again…and again; when it doesn’t’t get bought, well, then there is hope.
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Cc has been a great place to follow what’s happening in venezuela, thanks!
With respect to your post, you shouldn’t lose view of the importance of digital media and especially social media. There is good reason for Maduro to hold a grudge against twitter. The balance of power is bound to shift if the “popular” behind the populist regime takes an exit.
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a rift appeared between Quico and I, one that has not healed… a buen culebron! you must know that many people that don’t interact w/the blog nonetheless read it, with great interest, more so if there is disagreement… Feliz Anio
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1. Isn’t Chavismo getting more and more an excellent example of “robust” in the categorization of robust | fragile | anti-fragile by esayista de moda Nassim Taleb?
2. Recently I’ve read something about the Stroessner era in Paraguay (“El regimen de Stroessner (1954-1989)”, in Historia del Paraguay (2010))
Of course its always problematic to compare, but both regimes might bear more and more resemblance… and Stroessner set up a very robust system.
– both regimes based on disciplined pillars of a political party and the military.
– both leaders are not charismatic, but are overwhelmingly present in the life of the citizens
– patronage network, that reaches up to supporters in lower ranks.
– regime heavily legitimizes itself by shady nationalistic references to a constructed heroic past
– both regimes enjoyed times of exceptionally high growth rates due to external shocks (oil price, Itaipu dam)
– both regimes were economic underperformers most of the the time.
– both regimes had a lot of popular support due to manipulation and corruption
– propaganda heavily presents Government as a protector against an external threat (Communism, Neoliberalism/Imperialism)
– failed agrarian reforms
– opposition to regime confined to big cities. Of course there is much more opposition in Venezuela.
– both regimes strongly opposed to pacific transference of power
– Government and Military used public funds as if they belonged to them
– Foreign countries heavily benefited economically from the Regimes (Brazil in case of Paraguay, Venezuela: quite a bunch of countries)
– both regimes attached importance to a democratic facade
– there is more
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Those are very interesting parallelisms. It had never occurred to me to compare Paraguay with Venezuela. Of course, there are also important differences, like the oil and the times and the ethnic composition.
But then we can make parallelisms to many other countries and systems, even to Putin’s (although I have to say Putin’s extremely corrupted system is a marvel compared to Venezuela and there is not this socio-economic war crap).
What is worrying me is the level of brain washing taking place in Venezuela. You would not notice it if you live in Caracas-East, not at the level you see if you are a teacher at a public school in Tocuyito, Morón, Punto Fijo.
I was a pupil at public schools in the IV Republic and we never ever ever had the servile attitude towards the government in power (in as much as young boys and girls were talking about politics). Now it’s amazing how half of them are talking like parrots about the fake revolution.
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I agree that the Opposition is irrelevant now. Capriles let the country down in April when they were ready to let him lead a popular revolution, and he backed down in the face of threats of violence from Chavismo. Venezuelans understood the risks, and understood that there would be some violence, but they were willing to accept this in return for hope for a better future. Capriles failed to “seize the moment” and that will forever mark him as a failure. This lack of leadership tainted the whole of the MUD leadership, and that is why the Opposition is irrelevant today.
I disagree that the price of oil remaining static means that the Government can simply muddle through. It is clear to me that the status quo is not sustainable. The economic actions taken prior to the election demonstrate this. They simply did not have the cash available to pursue their normal give-away strategy, and had to resort to cannibalism. The damage they did to the commercial sector is not going to be forgotten. I think Juan is underestimating the fragility of the economy. In the first two months of this year, we will see over half of the stores in the country closing their doors. Many other ancillary business will close as well, and we will see another spike in inflation. The result will be a surge in unemployment and drop in the overall standard of living that will be felt strongly by April and will produce nationwide general discontent. Only if the price of oil rises, will the Government be able to buy its way out of the mess, and I see this as only a remote possibility.
So, how will the government react as the nation becomes increasingly ungovernable? Their instincts will be blame the Opposition, of course. They will blame the banking sector and expropriate them, but this will only create more inflation and economic chaos as the Bolivar becomes increasingly undesirable. By June, my crystal ball gets fuzzier. Much of what happens next will depend on the military and whether they will participate in massive repression.
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Oh, and a Happy New Year to all of you as well… :)
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I’m seeing the same things but from a different angle. First of all, the regime is not in a good place now. In fact, I see nothing positive for them. The economy is depending on importing basic goods, while oil revenues are in decline. The regime is depending on increased debt to maintain whatever it can of the status quo while the availability of debt is in decline. The regime is more dependent than ever on domestic production from private enterprise while taxing them more and more with price and currency exchange controls. The regime is focusing more and more on reducing public consumption and rationing, controlling information, controlling the political opposition, controlling labor, maintaining its leadership in the face of widespread and increasing discontent, and all this while giving away televisions and washing machines and blaming those who complain. It doesn’t look good to me. I would not want to be in the position that the regime is facing now!
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There is an old saying that in war ( and we are engaged in a war) that party wins which makes the least mistakes , which assummes that everybody will make mistakes and that mistakes are to be expected , In the kind of conditions we are in , we wont ever really know when something is a mistake or not because we dont have a full understanding of the consequences that can follow from choosing some options while abandoning others , so maybe people are soemtimes prone to play it safe and thats not very heroic but…… very human . I think we should fear failure small or large less and take the view that in a fight your are going to get hit a lot of times but that ultimately things are always fluid and capable of offering surprises and opportunities . As Ortega said ( in a phrase I like repeating ) an intellectual pursuing a conclusion should not be afraid of mistakes same as a soldier entering battle should not be overly concerned with being wounded or hurt , because thats part of the game and pros should be prepared to take the falls that their chosen profession demands of them in order to pursue final success . The patriotss in our war of independence went through many horrible defeats before in the end they managed to prevail , If you look at US history the same . I have a hard time visualizing how under present conditions we may be surprised with a regime change but I do know it can happen any time, when least expected , from some silly little crack in the edifice of the regimes power props and we must recognize that there are a lot of cracks opening wide next year.
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Correction …’this year’….
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Bill,
Well said. I think we can count on the Chavistas making a lot of mistakes this year. I cannot say that I am confident that we will see a change for the better this year. But I am confident that we will see a major change in the status quo.
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First of all I want to wish everybody a happy new year and congratulate you guys on a great blog. In my opinion the price of oil, unfortunately, will remain around/above a $100 because Iran will soon be allowed to start exporting again and is aiming for around 4 million barrels a day. Also Libya is producing more and more each day, trying to get back in the game. As OPEC will want to keep to price high other OPEC members will have to give way to them and lower their production. The sad thing is that Venezuela is already producing less and less due to bad maintenance and mismanagment.
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I don’t follow your logic. More supply means lower prices. Especially when part of the supply is outside of the control of the OPEC cartel.
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There ain’t no logic there. It’s New Year Year’s hangover time. :-p
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There factors other than world crude prices influencing the amount of income Venezuela gets from its oil .for instance the challenge that falling or stagnating oil production represents to Pdvsa , specially as it affects the more luchrative (and aging) mid and light crude fields, the speed and success with which the heavy oricono crude fields are developed (and new upgrading facilities built to refine such crude) and concurrently the huge costs and difficulties of these new developments , The capacity of Pdvsa to fund and succesfully restore the now much deteriorated refining infrastructure and its refining capacity to their former levels . On the other hand prices are affected not only by increased world production ( such as we can expect from countries like Iran , Irak and other oil producing areas ) but also from the rate of increase in world demand for oil , not in the developed world but in countries with rising standards of living and healthy economic growth in the far east and other places. Maintaining and or increasing Venezuelas oil production is not going to be easy quick nor cheap. The impact of any problem arising from any of these factors in the capacity of the govt to meet the countries demand for essential goods and services and therefore the quality of peoples lives can be high in terms of peoples degree of dissattisfaction with the regime. The idea now being suggested is that because the govt has a vise handle on the mass media messaging it will be able to maintain the govts popularity ( or fake the perception of such popularity) regardless of any dramatic fall in peoples quality of life . To me its an open question . Time will tell !!
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Both Iran and Libya are OPEC members, http://en.wikipedia.org/wiki/OPEC , and since OPEC wants to maintain the price high and these two countries will want to regain their production levels other OPEC countries will lower their production in order to keep the price above $100.
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http://www.washingtonpost.com/business/economy/at-opec-meeting-iran-says-it-plans-big-oil-production-hike-if-sanctions-end/2013/12/04/237c27ae-5d39-11e3-be07-006c776266ed_story.html
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I truly believe this will be a good new year for all! Happy new year to all! It is so refreshing to see a discussion with so much thought, so much exchange of ideas, so much respect for differing opinions, hungering for facts, willingness to confront uncertainty and complexity, willingness to search through history and compare parallels elsewhere in the world. All these make me optimistic! As for this blog and the notion it could not outlive Hugo Chavez, the solutions of the future are yet to be discovered! The opposition is unified against a common enemy, but how will that alliance fare in finding a common future? They will need all the values and virtues of which this blog and it’s community of readers exemplify. The end of Chavismo will only be the beginning!
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Hey, I see too many factors pointing to a rise in oil production ( US fracking operations on the rise, possible Iran entering the market, Lybia starting to produce again, Mexico increasing and helping foreign investment in oil production……) I don t see how such an increase in the offer will not impact the price. Still, a collapse in oil prices and, a corresponding collapse of the economy ( which I doubt) if it happens, will do nothing to advance the oppo if they are not prepared, organized for this fight and understands who is the enemy and the lengths this enemy is prepared to go in order to maintain power………Anyway, this Is a great blog. Congratulations to its creators and producers and writers. Wish you and Venezuela the best for the new year 2014.
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And, just for the record, we had hallacas with ghost of Chavez… just like last year.
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are you not in Finland?
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Finished my project. Back in Venezuela. Quiero ver como termina esta vaina!
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