Latin America
Related: About this forumVenezuela seizes warehouses packed with medical goods, food
http://www.reuters.com/article/2014/10/24/us-venezuela-economy-idUSKCN0ID00A20141024?feedType=RSS&feedName=topNewsPresident Nicolas Maduro's government said on Thursday it had taken over warehouses around Venezuela crammed with medical goods and food that "bourgeois criminals" were hoarding for speculation and contraband. The socialist government says businessmen and wealthy opponents are trying to sabotage the economy to bring Maduro down, while also seeking to make profits from hoarding, price-gouging and smuggling across the border to Colombia...Maduro gave a live address to the nation from one of two warehouses seized in central Aragua state, where he said 14 million syringes and 2 million surgical gloves were among a massive hoard of medical equipment bound for Colombia.
"There's enough medical equipment here to cover Aragua's needs for a year. This is the criminal bourgeoisie. They are going to pay with jail, I swear it," Maduro said, standing in front of piles of boxes and wheelchairs.
"The bourgeois parasites are hurting the people's health."
Maduro, the 51-year-old successor to the late Hugo Chavez who died of cancer last year, said the goods had been bought with dollars obtained from the state's foreign exchange board and were due to be sold across the border in Colombia. The government has in recent months undertaken a huge crackdown on smuggling, including closing the border at night and arresting 1,266 people.
Critics say Venezuela's security forces have been at the heart of the trade for years, and contend contraband will not go away as long as state subsidies and exchange controls create price disparities offering tempting opportunities.
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Erich Bloodaxe BSN
(14,733 posts)Apparently Maduro hasn't been paying attention if he thinks the real 'parasites' are the middle class and small store owners.
Hey Maduro, seize the assets of your parasites at the top. While you're right that 'speculators' damage the economy and drive up prices for the poor, the people who speculate the most are those who are throwing big money into buying 'commodities' on global markets to simply drive up prices and resell. They're doing far more damage than Mom and Pop shop owners.
MADem
(135,425 posts)Judi Lynn
(160,542 posts)Venezuela-Colombia Smuggling Trade Thrives
By Kathleen Caulderwood @katcaulderk.caulderwood@ibtimes.com on June 09 2014 5:12 PM
After months of violent protests by opponents demanding an end to the economic crisis and crime wave, Venezuelan President Nicolás Maduro is facing another, growing problem. Government-subsidized scarce goods are making their way to Colombia as part of a massive smuggling trade that moves tons of gasoline, car parts and food. Governments, business leaders and even the smugglers themselves arent happy with current developments.
The oil-rich country relies heavily on imports, but strict currency controls have hindered its ability to pay for foreign-made products, and locals are suffering amid product shortages that have sparked massive protests around the country in recent months.
Its not an easy task because there is a reality on our side of the border, where we have a system of protection for the people, food subsidy, and fair prices; and without a doubt on the other side its not like that, Vice President Jorge Arreza said in a recent address, according to The Wall Street Journal.
These days, a kilogram of corn flour costs about 20 cents (14 bolivares) in the border city of San Cristobal, Venezuela, while the same amount will sell for about $1.25 in Cucuta, Colombia, according to the Economist. The local state government estimates that as much as 40 percent of imported food ends up in Colombia.
Venezuelas military leader Vladimir Padrino said on state television that the border patrol confiscated enough food to feed about 400,000 people for a month in the first three months of 2014, up from just 20,000 tons seized in all of last year. Many people take bags of groceries or small goods over the border by bus to make some quick cash.
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http://www.ibtimes.com/venezuela-colombia-smuggling-trade-thrives-1596379