Maduro Scrambles To Defuse "Explosive" Situation As Supreme Court Reverses Ruling

Tyler Durden's picture

While investors had largely given Venezuela's economic catastrophe the benefit of the doubt for the past two years as crude collapsed and the country's CDS soared to record highs only to normalize subsequently, yesterday bond investors got very nervous for the first time in a while, as the Venezuela 9.25% of 2027 bonds crashed on fears a presidential coup may be imminent after Wednesday's decision by the pro-Maduro supreme court to assume the functions of congress, in effect making Venezuela a Maduro dictatorship. The opposition promptly slammed the decision as a "coup" against an elected body and demanded army intervention, and the tipping point came when even a formerly pro-Maduro Attorney General, Luisa Ortega, slammed the "unconstitutional" usurpation of power.

One day later, the bond selloff, coupled with a dire surge in domestic anger and protests, as well as international condemnation, appears to have been sufficient to spook Maduro that this may be one of his last (bad) decisions because on Saturday morning, Venezuela's Supreme Court reversed its decision to strip congress of its legislative powers.

"This controversy is over ... the constitution has won," Maduro said in a televised speech just after midnight to a specially convened state security committee that ordered the top court to reconsider its rulings. The Supreme Court duly erased the two controversial judgments during the morning, the information minister said.

In an amusing twist, Maduro tried to cast the U-turn as his own personal achievement, one of a wise statesman resolving a power conflict, everyone and certainly his opponents said it was a hypocritical row-back by an unpopular government that overplayed its hand.

"You can't pretend to just normalize the nation after carrying out a 'coup,'" said Julio Borges, leader of the National Assembly legislature, quoted by Reuters. He publicly tore up the court rulings this week and refused to attend the security committee, which includes the heads of major institutions.

While the Supreme Court flip-flop may take the edge off protests, Maduro's opponents at home and abroad will seek to maintain the pressure. They are furious that authorities thwarted a push for a referendum to recall Maduro last year and also postponed local elections scheduled for 2016. Now they are calling for next year's presidential election to be brought forward and the delayed local polls to be held, confident the ruling Socialist Party would lose.

"It's time to mobilize!" student David Pernia, 29, said in western San Cristobal city, adding Venezuelans were fed up with autocratic rule and economic hardship. "Women don't have food for their children, people don't have medicines."

Venezuelan Bolivarian National guards officers are confronted by university students

during a protest outside of the Supreme Court in Caracas, on March 31, 2017

As mentioned yesterday, today the National Assembly plans an open-air meeting in Caracas, while South America's UNASUR bloc was to meet in Argentina with most of its members unhappy at Venezuela. The hemispheric Organization of American States (OAS) had a special session slated for Monday in Washington.

As Reuters adds, even before this week's events, OAS head Luis Almagro had been pushing for Venezuela's suspension, but he is unlikely to garner the two-thirds support needed in the 34-nation block despite hardening sentiment toward Maduro round the region.

That said, Venezuela can still count on support from fellow leftist allies and other small nations grateful for subsidized oil dating from the 1999-2013 rule of late leader Hugo Chavez. Maduro accuses the United States of orchestrating a campaign to oust him and said he had been subject this week to a "political, media and diplomatic lynching."

A woman wears a banner over her mouth with a message that reads in Spanish:
"Venezuela lives in a dictatorship" during a protest, in Caracas

Serious criticism even came from within government, with Venezuela's attorney general Luisa Ortega rebuking the court in an extremely rare show of dissent from a senior official. "It constitutes a rupture of the constitutional order," he said in a speech on state television on Friday.

The Supreme Court's decision helped to further galvanize resistance to Maduro, Pockets of protesters had blocked roads, chanted slogans and waved banners saying "No To Dictatorship" around Venezuela on Friday, leading to some clashes with security forces. Given past failures of opposition street protests, however, it is unlikely there will be mass support for a new wave. Rather, the opposition will be hoping ramped-up foreign pressure or a nudge from the powerful military may force Maduro into calling an early election.

* * *

Meanwhile, the nation continues to disintegrate, with Reuters reporting that Venezuela's murder rate rose to an average 60 per day last year, up from about 45 per day in 2015, the attorney general's office said on Friday, as the country's worst economic and political crisis in history continues to claim victims Official data put the murder rate at 70.1 per 100,000 inhabitants last year, one of the highest in the world and up from 58 in 2015.

Violent crime is one of the most pervasive anxieties for Venezuelans, especially in poor slums dominated by gangs and rife with guns. Numerous state security plans and disarmament drives in recent years have failed to curb violence given easy access to weapons, police participation in crime, and high levels of impunity in the nation of 30 million people.

A brutal economic recession that has millions skipping meals has pushed more Venezuelans towards crime, according to officials, rights groups and neighborhood organizations. Recently, Venezuela - the country's with the world's largest proven oil reserves, ran out of gasoline.

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TeamDepends's picture

Socialism- It's what's for dinner, literally!

y3maxx's picture

-Time to send in moderate, pro democracy, ISIS freedom fighters.

sarc off

y3maxx's picture

-If USA conquered/colonized more need for mid east oil and even stop fracking on home ground

Venezuela has world's largest oil reserves.

MillionDollarBonus_'s picture

Venezuela is yet another example of capitalism failing. Oil companies and capitalist countries collaborated to crash the price of oil, in order to destroy Venezuela. They just couldn’t stand seeing ordinary people get free healthcare, free food and free schooling! Capitalism fails everywhere it is tried!


Timeless Wisdom From Pop Culture Icons

BaBaBouy's picture

Get This Dude Outta There Already ...

Future Jim's picture

How could they be mad at Maduro given how we learned recently on ZH that Venezualans lost an average of 19 pounds each last year?

The miracle of socialism!

Maybe America should try it again:

Then again, the socialist diet was killing me:

aloha_snakbar's picture

Wake me up when they lose 100% of their body weight...

Richard Chesler's picture

"high levels of impunity"

That's because the thugs and crimminals are the only ones that support the socialist thieves.

Richard Chesler's picture

"high levels of impunity"

That's because the thugs and crimminals are the only ones that support the socialist thieves.

PGR88's picture

what color is the sky in your world?

City_Of_Champyinz's picture

Go away useless troll idiot. You are the prime example of why brothers and sisters should not breed.

eatthebanksters's picture

I hope Maduro has his favorite wall picked out.

css1971's picture

No, you need to talk to some more snowflakes.

Venezuela is Not Real Socialism. it's State Capitalism you see. So was the USSR, Cambodia, and PRC.

Dilluminati's picture

You are that remarkable example of dumbfuck which proves some moters should be slapped at birth and not the baby which is better of dead.

JB Say's picture

This is satire people. Accredited Times is funny stuff. Send a link to your prog friend and see who takes the bait. Good fun.

StychoKiller's picture

O.T. question:  HOW is "Luisa Ortega" a Guy's name?

SilverDOG's picture

If capitalism equals central bank debt leveraging for corporations... SURE !


Coming to a county near you, yes COUNTY.

estebanDido's picture

The stinking USA wants the oil period. After that Venezuela will live as happy as Mexico, Colombia etc, with no presence in the MSM stinking press.

TruthHunter's picture

Capitalism is too vague a term for your complaint. Venezuela has been an example of economic proletarianism. Chavez exploited the inevitable discontent.

Anteater's picture

Yupp, the UNELECTED Czar and Czarina of All Things serve up a comingled dish of hot Corporate-State Socialism every night at the White House. It's what's for dinner!

Bay of Pigs's picture

They need to give Maduro the Mussolini treatment and hang him upside down in the Caracus town square after the firing squad.

City_Of_Champyinz's picture

As Savage has been saying lately: Communism begins with a gun in your face, Socialism ends with a gun in your face.

estebanDido's picture

Why no US invasion so far . What  are they afraid off. They are going to get their ass kick.

Supafly's picture

Acts more like his long lost brother Saddam every day.


Reaper's picture

Their god, Marx, is dead.

css1971's picture

No. Marx is just their prophet.

Their god, is The State & Das Kapital their holy book.

Parafuso's picture

This fucking idiot was elected.... viva....

Secret Weapon's picture

Don't laugh.  We elected our own version of the brown clown.

Weirdly's picture

The US elected a community organizer lawyer, not a bus driver. 

Secret Weapon's picture

Don't laugh.  We elected our own version of the brown clown.

brushhog's picture

Socialism is the equivalent of bleeding a sick patient to make him well.

Beans's picture

JWO going full tilt at the South Americans

BritBob's picture

Venezuela appears for the first time as "not free" country report of Freedom House organization attributed the new category to "the combination of extreme economic mismanagement and heavy-handed Government" of President Nicolas Maduro.

Maduro is a keen supporter of Argentina's mythical Malvinas claim even speaking at regional conference on behalf of Argentina (CELAC).

How can Argentina claim the Falklands when she has never legally owned them?

Falklands- Never Belonged to Argentina:


Still, why let a good old socialist distraction get in the way of the truth.

Spine of Ruprecht's picture

Prediction:  In 20 years, as a new, ignorant generation rises in Venezuela, watch them do the "Hitler Flip".


That's the one where Socialists pretend Hitler wasn't a Socialist.


Pol Pot lives.  His daughters wear pussified Khmer Rouge hats.  Venezuela will get her Socialism back.

El_Puerco's picture

HEY!...people!...Sometimes is nice to go on the original language!


C/P:  English translation on his own account...





El Tribunal Superior de Justicia  asume de manera accidental y coyuntural funciones de la Asamblea Nacional. Existe plena libertad de expresión dentro del país, la participación política es plural dentro del país, los partidos existen y hay libre acceso a la justicia. La oposicion autoresolvio manejar Venezuela desde la Asamblea Nacional desconociendo los otros cuatro poderes del Estado, el ejecutivo, el judicial, ciudadano y electoral. El TSJ se lo advirtió en varias oportunidades e hicieron caso omiso. Entraron en desacato. Ahora el TSJ se los cobró. “No se puede servir a  dos Señores al mismo tiempo”decía Jesús.


Por Isaias Rodríguez





RevIdahoSpud3's picture

Maybe even the judges were starting to get hungry?

Barrock's picture

Venezuela's Supreme Court reversed its decision this morning.  Future Supreme Court decisions are subject to reversal, depending on the political outcome.  What a great justice system.  

Benjamin123's picture

Theres no reversal. The crucial point is maduro's authority to get loans and bring foreign mining and oil corporations to Venezuela. No exxon of course, but foreign companies.

Currently, any agreement needs to be authorized by congress. Congress has warned the companies that no illegal agreement will stand after Maduro finishes his term, and that they stand to lose their investments. Maduro tried to bypass congress by abolishing it, now he backtracks, but still kept the "legal" right to bring foreign mining and oil companies.

Without those investments he is toast. Basically he is auctioning 10% of Venezuela, in the Amazon jungle, to chinese and korean mining giants. 

God willing those companies understand the risks and will refuse from dealing with Maduro until law and order are restored.

orangegeek's picture

And where's that fucking cocksucker Sean Penn???


Hey Penn you nazi pig - you should be shot and pissed on you fuck!!!

Peter41's picture

Time for the Venezuelan people to eradicate this fool and his thugs.

MrSteve's picture

Fool is the wrong word for an animal who profits from starving the poor. Chavez's daughter is a billionaire, showing how the country is really being run. Cuban security specialists are advising the Maduro government, another indication of ruthless power-mad mis-leadership. I wonder why we don't hear condemnations of this regime from Leftist here in the USA; starving the poor must be an approved policy, if you bow to the Left.

Karl Marxist's picture

Please Venezualans -- settle your scores but for God's sake don't come here hat in hand demanding some free shit. Everyone got to stand up and get shot to make real change. Part of that change is helping Americans to oust the very powers in Washington that make your country a living shithole.

marcel tjoeng's picture


Venezuala is at the moment about fully financed by China ..



biker's picture
biker (not verified) Apr 1, 2017 11:42 AM

Energía gratis para todos. Desafío a todos los ingenieros.

aloha_snakbar's picture

Latrinos are about the most annoying semi-humans on the planet...

Dilluminati's picture

Watch closely, this is your future.

The USA is racing torwards a failed nation state.

yngso's picture

The day the "security" forces shoot at the crowds, the goodies bought with narco money for the military won't matter any more. Chavismo will be gone. The inMaduro and his handler narcobaron Diosdado Cabello know this and are walking a very loose tightrope.

The insults - more than usual - various top Chavistas have been hurling lately show how desperate they are.

biker's picture
biker (not verified) Apr 1, 2017 12:36 PM

Abandonar el banco mundial, crear nueva moneda respaldada por los trabajadores. Joder banqueros del mundo.