Venezuela Plunges Into Darkness As President Maduro Lays Out Socialist Vision On National TV

Tyler Durden's picture


A mere two months after the last widespread blackout to hit Venezuela, major parts of the nation are once again dark tonight as a power outage hit during President Maduro's evening address laying out his new economic philosophy (the inverse of Bernanke's):


The blackoutt has affected some of the nation's oil refineries (even though they are often powered by separate generator plants). Maduro himself said this evening's blackout cause was "strange," hinting at "sabotage" and not caused by excess demand (since the same substation that was sabotaged in September has failed). Perhaps it is time to spend what little discretionary reserves the nation has left on infrastructure instead of Samsung trinkets and military bonuses to keep the people at bay.


Blackouts reported in at least 11 Venezuelan states, state television reports (via Bloomberg).

• Western Venezuela, including states w/refineries Zulia, Falcon, Carabobo worst affected, says state TV
• PDVSA spokesman couldn’t be reached for comment
Blackout caused by failure in same substation which plunged 60% of Venezuela into darkness for several hours Sept. 3, Electricity Minister Chacon says on state TV
Sept. blackout caused by sabotage: Chacon
At least 4 of Caracas’ 5 boroughs left without power
• Caracas power to be restored in one hour: Chacon
President Maduro ends televised national address in presidential palace during blackout, says blackout cause was “strange”
• Power cut not caused by excessive demand: Chacon

The end result:


Before and After...




Some color on his new vision for the country which was being presented on national TV just before the blackout struk. Via Bloomberg:

Venezuela President Nicolas Maduro, speaking in national address on television and radio, says decree will be ready “within 24 hours.”


* Individuals will be able to open FX accounts in euros or dollars in state banks to import cars: Maduro
* Law decree will lower prices for used, new cars: Maduro
* Govt will set prices for new cars: Maduro
* Manufacturers must inform of weekly car production: Maduro
* Prices for used cars can’t exceed prices for new cars: Maduro
* Venezuelans must save more, consume less: Maduro
* Venezuela economy needs fair prices, reasonable profit margins: Maduro





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Mon, 12/02/2013 - 21:45 | 4208468 22CF45
22CF45's picture

This will not end well...

Mon, 12/02/2013 - 22:00 | 4208515 kridkrid
kridkrid's picture

It's not going to end well anywhere. And the thing is, he's likely right. People should save more and consume less... But not by the barrel of a gun. Rhetoric is always the cover used to control the masses to benefit the few... Doesn't much matter if the rhetoric is socialism or communism or capitalism.

Mon, 12/02/2013 - 22:02 | 4208522 stacking12321
stacking12321's picture


Maduro himself said this evening's blackout cause was "strange," jinting at "sabotage"


is that like jintao? as in hu jintao? as in hu dunnit?

why are the chinese always the fall guy?

Mon, 12/02/2013 - 22:05 | 4208537 insanelysane
insanelysane's picture

Who runs Barter Town or in this case Venezuela?


Mon, 12/02/2013 - 22:10 | 4208561 GetZeeGold
GetZeeGold's picture



Ain't socialism grande?

Mon, 12/02/2013 - 22:14 | 4208577 markmotive
markmotive's picture

Venezuala is a side-show compared to the apocalypse unfolding in the Ukraine.

Tue, 12/03/2013 - 01:31 | 4209126 Four chan
Four chan's picture

that was a nice battle, im taking notes for when it happens here. fire and caustic gasses seem to be a winner against the state.

Tue, 12/03/2013 - 08:33 | 4209518 kralizec
kralizec's picture

Anything incendiary will do.

Tue, 12/03/2013 - 12:25 | 4210321 Leopold B. Scotch
Leopold B. Scotch's picture

If only progressives had more power in Venezuela.

Perhaps Paul Krugman can write a piece about how Venezuela is failing because it does not print more sufficient amounts of money to spend its way to prosperity, like he keeps saying we need to do more of in the United States.

Tue, 12/03/2013 - 03:41 | 4209283 Agent P
Agent P's picture

Love the dude in the knight helmet! 

Tue, 12/03/2013 - 00:36 | 4209044 Anusocracy
Anusocracy's picture

Ain't CIA sabotage mal?

Tue, 12/03/2013 - 05:54 | 4209388 Golden_Rule
Golden_Rule's picture

Good to see it in its true form.  Probably not for the Venezuelans though...

Mon, 12/02/2013 - 22:07 | 4208546 stacking12321
stacking12321's picture

wtf tyler?

you're not allowed to change the article after i've posted and made fun of your spelling error!


Mon, 12/02/2013 - 22:21 | 4208597 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Funny looking eyes and small things which apparently has no impact on reproduction.

Mon, 12/02/2013 - 22:21 | 4208544 hedgeless_horseman
hedgeless_horseman's picture



...not by the barrel of a gun

What barrel?  What gun?


Trijicon or MeproLight tritium night sights, get 'em while you can afford 'em and find 'em. 

Also, to identify targets or friendlies, get a good weapon-mounted light on your long guns, and a tactical flashlight like a Surefire for your support hand to use with your sidearm.

Practice night shooting, and if you can find and afford one, take a nighttime force-on-force course.

Mon, 12/02/2013 - 22:26 | 4208625 DaddyO
DaddyO's picture

And you don't want to be in the city when the flag goes up.

This is a great place to get night vision stuff.

I think the owner has a sale going on right now...


Mon, 12/02/2013 - 22:42 | 4208687 diesheepledie
diesheepledie's picture

and don't forget this ...


Tue, 12/03/2013 - 05:17 | 4209371 zhandax
zhandax's picture

"This is a great place to get night vision stuff."

Reminds me of the Cajun who called off the war because they couldn't afford to feed the US army as prisoners.

Mon, 12/02/2013 - 23:04 | 4208773 wisehiney
wisehiney's picture

That site is nothing but one big wish list! Thanks.

Mon, 12/02/2013 - 23:23 | 4208844 seek
seek's picture

Don't buy anything less than Gen 3. Trust me. If you can only afford Gen 2, keep saving.

Mon, 12/02/2013 - 23:59 | 4208938 PLira
PLira's picture

$100 less than regular sale with goodies and a infared imager for free was on black fri. Just can't pull the trigger myself.

Tue, 12/03/2013 - 08:34 | 4209522 kralizec
kralizec's picture

Saving for FLIR, FLIR rocks!

Mon, 12/02/2013 - 22:40 | 4208680 wisehiney
wisehiney's picture

Done. Nice stocking stuffer for me and CZ 75. Thanks.

Mon, 12/02/2013 - 22:50 | 4208719 August
August's picture

**Practice night shooting, and if you can find and afford one, take a nighttime force-on-force course.**

Quoted for truth.

I'm not much of a shooter, but taking a low-light firearms course was, to say the least, eye-opening.

Tue, 12/03/2013 - 02:18 | 4209191 Freddie
Freddie's picture

Are there any decent lower light and lower cost ACOGs or scopes?

Tue, 12/03/2013 - 04:24 | 4209338 Agent P
Agent P's picture

Mixed feelings about night sights for pistols.  If it's too dark (like your photo), I can't see/identify the target, and if there's going to be an engagement in that environment, it's likely to be at distances where sights are irrelevant.  On the other hand, in environments where I can see/identify the target, there should be enough ambient light to get a decent sight picture with standard contrast sights.

That being said, replacing the standard bead with a Meprolight Tru-Dot bead on my 590a1 was the 2nd best $35 (Amazon) upgrade I've made to any gun...closely behind the $35 Streamlight PolyTac LED mounted on it (mount not included), and the one on my AR, and the one in my car, and the one on my nightstand, and the one in my downstairs pistol box...there is no better flashlight for the money, IMO...they make excellent stocking stuffers!

Mon, 12/02/2013 - 23:32 | 4208875 Chuck Walla
Chuck Walla's picture

Sabotage? But have they burned der Reichstag yet? Then they can go after the "saboteurs".

.Sehr gut!

Mon, 12/02/2013 - 22:19 | 4208592 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

They have free health care so what is the problem?

Mon, 12/02/2013 - 21:46 | 4208471 max2205
max2205's picture

Save more? Not on track with Ben....there's the problem

Mon, 12/02/2013 - 22:00 | 4208520 Oldwood
Oldwood's picture

Save what? Every dollar earned was already spent years ago through national deficit spending. "They fuck you in the drive through". They know you are going to be miles down the road before you realize you're fucked.



Mon, 12/02/2013 - 23:19 | 4208826 Stuck on Zero
Stuck on Zero's picture

Save?  In the local currency what would a Bolivar be worth in ten years at fifty percent inflation?  Answer: a milliBolivar.


Tue, 12/03/2013 - 07:05 | 4209438 Non Passaran
Non Passaran's picture

A Nano-GoldGram?
A Pico-Satoshi?

Mon, 12/02/2013 - 22:03 | 4208536 Possible Impact
Possible Impact's picture

Will they be saving gold and silver?

I think Maduro meant "Investing", and the Banksters have a "real nice" plan for them.


Mon, 12/02/2013 - 21:48 | 4208479 AustrianJim
AustrianJim's picture

They just need to go full-on communist, and they'll be fine.

Mon, 12/02/2013 - 21:56 | 4208497 chump666
chump666's picture

Did you here about the commie who tried to change a light bulb? 

Mon, 12/02/2013 - 22:10 | 4208557 stacking12321
stacking12321's picture

it takes a village + 1

one person to hold the light bulb, and the rest of the people to  rotate the house around him so the light bulb goes in.


Tue, 12/03/2013 - 07:04 | 4209434 Non Passaran
Non Passaran's picture

See, that's a proof that you need a government. Without that visiting government official the village wouldn't be able to change the bulb. Or, save electric power as the case may be in Venezuela.

Tue, 12/03/2013 - 07:23 | 4209452 LookingGoodBillyRay
LookingGoodBillyRay's picture

It takes +0

but two to paint it yellow and convince everyone else it still works.

Mon, 12/02/2013 - 22:12 | 4208573 Yen Cross
Yen Cross's picture

  Hey C666 did you just catch that reversal in aud/usd. As if I didn't see the 4 HOUR CHART? You douche bag cocka'roach basement hedge fund clowns! Your asses are toast!

Mon, 12/02/2013 - 22:28 | 4208630 chump666
chump666's picture

Nope.  But watching the USD not budging is amusing.   The AUD is sell on China GDP and Aust yields.  Could be a juicy short on the AUD coming up

Mon, 12/02/2013 - 23:03 | 4208768 Yen Cross
Yen Cross's picture

@ chump666  BTFD in aud . It's still 2.5% carry. 

Tue, 12/03/2013 - 00:10 | 4208980 chump666
chump666's picture


No one is buying the USD cept the Fed on the 80, my financial conspiracy theory, as they know it's a c-hair away from a freefall.  Similar to the EUR protected by the ECB at 1.30.

AUD looks oversold, should, maybe rally to the 5day on a daily.  All markets could be capped sideways till 2014...unless, yes, war breaks out.  That's the hedge from hell.


Mon, 12/02/2013 - 21:55 | 4208498 QQQBall
QQQBall's picture

save more with inflation out of control. Once again - THE GOVT IS NOT YOUR FREIND. 

Mon, 12/02/2013 - 22:42 | 4208665 OneTinSoldier66
OneTinSoldier66's picture

I agree. But, I have a questions I just want to throw out as food for thought or what have you. I'm thinking... for those more knowledgeable, wiser, and more experienced than me.


If people start saving rather than consumerist spending, what happens to the Velocity of Money? Does the Velocity of Money have meaning? Does MV have any meaning to GreenBenYellin?


Just questions. What happens if MV = 0? Not that I think it would really go there, unless the concept of money is abandoned and there is a return to barter only. Which I don't think will happen either. But what do you think would happen to prices? Do you think prices could remain high with little movement of money in the economy? Or do you think that prices would come down in a significant way in order to try and make a sale? Or do you think, "Only The Shadow Knows".


May you live in interesting times.

Mon, 12/02/2013 - 23:13 | 4208800 Possible Impact
Possible Impact's picture

Only vampires have to worry about the velocity of my money.

Mon, 12/02/2013 - 23:37 | 4208893 OneTinSoldier66
OneTinSoldier66's picture

Good one Possible Impact.


In a Gov't controlled command economy, who knows anyway.

Tue, 12/03/2013 - 00:05 | 4208968 Opinionated Ass
Opinionated Ass's picture

Velocity of money is a monetarist propaganda term. Test: what is the velocity of money in your personal portfolio? See how stupid the concept is? Another test: Austrian economics doesn't use the concept. Hope that helps.

Tue, 12/03/2013 - 01:22 | 4209109 OneTinSoldier66
OneTinSoldier66's picture

Thank you Opinionated Ass. Makes sense.

Tue, 12/03/2013 - 03:34 | 4209269 Serenity Now
Serenity Now's picture

I don't know how to discuss MV.  It doesn't have any meaning to me, and I don't recall studying it in economics (Austrian school of thought).  

However, if people save vs. spend, then demand goes down, and (all else being equal) price goes down.

Tue, 12/03/2013 - 04:53 | 4209356 OneTinSoldier66
OneTinSoldier66's picture

TY Serenity.


From my post above, it made the most sense to me when I was forming the questions in my head that:


"...prices would come down in a significant way in order to try and make a sale"



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