Tuesday, May 17, 2016

Always making money for your partners

If you were a senior policymaker in Venezuela, and you were trying to decide whether to allocate any available cash to dealing with the healthcare nightmare or paying off dodgy Chinese loans, which would you do? Er, paying off dodgy Chinese loans (Reuters) --

Venezuela has reached a deal with its main financier China to improve the conditions of an oil-for-loans deal, giving the OPEC member's crisis-hit economy "oxygen" ahead of heavy debt payments, its top economic official said on Monday. Venezuelan Economy Vice-President Miguel Perez told Reuters that all conditions, including loan time frames, investment amounts and non-financial aspects, had been improved.

In the delusional mindset that has governed the country for years, better terms on those Chinese loans is a victory. Leave aside that the Chinese haven't confirmed the revised terms yet. The point is that these loans are being serviced at all when people are dying for lack of funds. (and yes, we've made this point before).

There are potshots currently being lobbed (and somewhat deserved) at people who praised Chavezonomics when any kind of in-depth knowledge would have given cause for doubt. But this isn't socialism as much as an elite lacking any notion of mercy.

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