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Nye Bevan

(25,406 posts)
Thu Apr 3, 2014, 01:23 AM Apr 2014

Wow. Maduro has absolutely wrecked Venezuela's economy.

Battling food shortages, the government is rolling out a new ID system that is either a grocery loyalty card with extra muscle or the most dramatic step yet toward rationing in Venezuela, depending on who is describing it.

.....

"The rich people have things all hoarded away, and they pull the strings," said Juan Rodriguez, who waited two hours to enter the government-run Abastos Bicentenario supermarket near downtown Caracas on Monday, and then waited another three hours to check out. Rigid currency controls and a shortage of U.S. dollars make it increasingly difficult for Venezuelans to find imported basic products like milk, flour, toilet paper and cooking oil. Price controls don't help either, with producers complaining that some goods are priced too low to make a profit and justify production.

......

Checkout workers at Abastos Bicentenario were taking down customers' cellphone numbers Monday, to ensure they couldn't return for eight days. Shoppers said employees also banned purchases by minors, to stop parents from using their children to engage in hoarding, which the government calls "nervous buying."

.......

Expressionless men with rifles patrolled the warehouse-size supermarket Monday as shoppers hurried by, focusing on grabbing meat and pantry items before they were gone. Long shelves that should have been heaped with rice and coffee instead displayed six brands of ketchup. There was plenty of frozen beef selling for 22.64 bolivars a kilogram - $3.59 at the official exchange rate, or 32 cents at the black market rate increasingly used in pricing goods.

http://hosted.ap.org/dynamic/stories/L/LT_VENEZUELA_RATIONING?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2014-04-01-00-32-05


What a mess.
20 replies = new reply since forum marked as read
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Response to Nye Bevan (Original post)

Recursion

(56,582 posts)
2. Well, he had help...
Thu Apr 3, 2014, 01:51 AM
Apr 2014

But seriously... price controls? Is this 1971? Even Cuba believes in the price signal now...

enid602

(8,652 posts)
3. "imported basic products like milk, flour, toilet paper and cooking oil."
Thu Apr 3, 2014, 03:01 AM
Apr 2014

It's obscene to think that a country as rich as Venezuela with a relatively small population has to import such basics.

MADem

(135,425 posts)
4. He told everyone to "eat less" before rolling out this klunker of a plan.
Thu Apr 3, 2014, 03:24 AM
Apr 2014

He doesn't look like he misses any meals.


delrem

(9,688 posts)
5. This story is really making the rounds.
Thu Apr 3, 2014, 04:18 AM
Apr 2014

A bit of context might help tea partiers to understand it.

http://en.wikipedia.org/wiki/Mission_Mercal

"Mission Mercal (officially launched on 24 April 2003) is a Bolivarian Mission established in Venezuela under the government of Hugo Chávez. The Mission involves a state-run company called Mercados de Alimentos, C.A. (MERCAL), which provides subsidised food and basic goods through a nationwide chain of stores. In 2010 Mercal was reported as having 16,600 outlets, "ranging from street-corner shops to huge warehouse stores," in addition to 6000 soup kitchens. Mercal employs 85,000 workers.

Mission Mercal stores and cooperatives are mostly located in impoverished areas and sell generic-branded foods at discounts as great as 50%. While the company is heavily funded by the government, the goal is to become self-sufficient by replacing food imports with products from local farmers, small businesses, and cooperatives (many of whom have received microcredits from Mercal). This endogenous development is central to Chávez's stated goal of non-capitalistic development from the bottom up."

malaise

(269,157 posts)
6. This mess was created by the Chamber of Commerce and their allies
Thu Apr 3, 2014, 06:07 AM
Apr 2014

It's always trade over people for these folks and they are well known for linking up with elites at home and abroad to sabotaging socialist governments in our hemisphere (well financed by outsiders including US Aid and NGOs).

I lived it - I know the pattern.

brooklynite

(94,729 posts)
7. This mess was created by setting up a tinpot authoritarian banana republic
Thu Apr 3, 2014, 07:21 AM
Apr 2014

Controlling the media; suppressing dissent. I lived that - I know the pattern.

The Magistrate

(95,255 posts)
8. Indeed, Ma'am: Mr. Rodrieguez In The Queue Seems To Understand The Situation Perfectly
Thu Apr 3, 2014, 08:58 AM
Apr 2014

'"The rich people have things all hoarded away, and they pull the strings," said Juan Rodriguez, who waited two hours to enter the government-run Abastos Bicentenario supermarket near downtown Caracas on Monday, and then waited another three hours to check out.'

malaise

(269,157 posts)
9. I watched our supermarket shelves empty
Thu Apr 3, 2014, 09:01 AM
Apr 2014

in the late 1970s and early 1980. The weapons flowed in as well. Manley was routed - and oh yes we had no authoritarian here - free and fair elections brought Manley to power.

The Magistrate

(95,255 posts)
10. Those 'Economic Laws' Do Not Enforce Themselves, Ma'am
Thu Apr 3, 2014, 09:08 AM
Apr 2014

Anyone who does not recognize the deliberate sabotage of Venezuela's economy being carried out by capital interests is either just not paying attention or deliberately turning a blind eye because they side with the wreckers.

malaise

(269,157 posts)
20. That simple
Thu Apr 3, 2014, 05:34 PM
Apr 2014

but I cannot be fooled twice - I lived it right here in Jamaica. I know sabotage when I see it.

The Magistrate

(95,255 posts)
13. That May Well Be, Ma'am
Thu Apr 3, 2014, 09:19 AM
Apr 2014

Col. Chavez was an exceptional and charismatic man, and very adroit.

Mr. Maduro may not be up to the task of preventing the old oligarchs from retaking political power in Venezuela, or at least preventing them doing so with the minimum of violence Col. Chavez was capable of.

We both know that in the great majority of instances in Latin America where 'dissent' of the scale seen in Venezuela occured, and in all instances where such 'dissent' originated from the left, it would have been drowned in bloody massacre long since, and the lid kept on by death squads hunting out supporters, actual, potential, or merely looking likely....

hack89

(39,171 posts)
14. Their inability to import enough food items is the bigger problem
Thu Apr 3, 2014, 09:37 AM
Apr 2014

an inability brought about by ten years of moronic currency laws.

http://knowledge.wharton.upenn.edu/article/the-law-of-unintended-consequences-sitme-and-venezuelas-currency-market/

The shortage of commodities and declining domestic economic activity can be directly attributed to the shortages of foreign reserves - the government does not have enough dollars to allow companies to import critical goods.

Zorra

(27,670 posts)
19. This is "bottom line" of what is really happening to Venezuela:
Thu Apr 3, 2014, 12:49 PM
Apr 2014

Anyone interested in getting a grasp on global megapolitical imperialism might find the essay below enlightening ~

The Seven Loose Pieces of the Global Jigsaw Puzzle

"The global power of the financial centers is so great, that they can afford not to worry about the political tendency of those who hold power in a nation, if the economic program (in other words, the role that nation has in the global economic megaprogram) remains unaltered. The financial disciplines impose themselves upon the different colors of the world political spectrum in regards to the government of any nation. The great world power can tolerate a leftist government in any part of the world, as long as the government does not take measures that go against the needs of the world financial centers. But in no way will it tolerate that an alternative economic, political and social organization consolidate. For the megapolitics, the national politics are dwarfed and submit to the dictates of the financial centers. It will be this way until the dwarfs rebel . . ."


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