Maduro Government 'Occupies' Venezuela Electronics Chain

Don · Nov 10, 2013

Venezuela continues its role as cautionary tale/canary in the coal mine.

Venezuela's President Nicolas Maduro has ordered the “occupation” of a chain of electronic goods stores in a crackdown on what the socialist government views as price-gouging hobbling the country's economy.

Various managers of the five-store, 500-employee Daka chain have been arrested, and the company will now be forced to sell products at “fair prices,” Maduro said late on Friday.
...
“We're doing this for the good of the nation,” said Maduro, 50, who accuses wealthy businessmen and right-wing political opponents backed by the United States of waging an economic “war” against him.

Of course it's the price-gouging capitalists killing the country's economy, not the 54% annual inflation or an official price for the currency in terms of dollars that's 1/10[SUP]th[/SUP] the actual market price.

Under price controls set up a decade ago, the state sells a limited amount of dollars at 6.3 bolivars, but given the short supply, some importers complain they are forced into a black market where the price is nearly ten-fold higher.

“Because they don't allow me to buy dollars at the official rate of 6.3, I have to buy goods with black market dollars at about 60 bolivars, so how can I be expected to sell things at a loss? Can my children eat with that?” added the businessman, who asked not to be named.

Maduro's still got some fans left, though.

“Inflation's killing us. I'm not sure if this was the right way, but something had to be done. I think it's right to make people sell things at fair prices,” said Carlos Rangel, 37, among about 500 people queuing outside a Daka store in Caracas.
...
Maduro retains support from large sections of the population, particularly the poor who benefit from massive state welfare programs and who remain loyal to Chavez's dying exhortation to support his chosen successor.

How's Venezuela going to recover from this mess?

William Haskins · Nov 10, 2013

Don said:
How's Venezuela going to recover from this mess?

chained cpi.

Don · Nov 16, 2013

Apparently he's going to be chaining a lot more than the CPI.

Venezuela's socialist government has arrested more than 100 "bourgeois" businessmen in a crackdown on alleged price-gouging at hundreds of shops and companies since the weekend, President Nicolas Maduro said on Thursday.

"They are barbaric, these capitalist parasites!" Maduro thundered in the latest of his lengthy daily speeches. "We have more than 100 of the bourgeoisie behind bars at the moment."

Of course there are two sides to every story.

Officials say unscrupulous companies have been hiking prices of electronics and other goods more than 1,000 percent. Critics say failed socialist economic policies and restricted access to foreign currency are behind Venezuela's runaway inflation.

But Maduro's sure he'll get a handle on it any day now...

Venezuela's official inflation, 54 percent annually, is the highest in the Americas.

Maduro said the forced price discounts should lead to negative inflation of 15 percent in November and 50 percent in December - forecasts that brought immediate mockery from critics on Twitter.

Immediate mockery on Twitter seems highly appropriate.

This is what happens when an economy is run by the whims of an economically-illiterate overlord with virtually unlimited power. Sounds like a marvelous idea, doesn't it? We definitely need to give the Ruling 545 in Mordor on the Potomac Moar Powr!!!

Synonym · Nov 16, 2013

My good lord. That country is on the verge of collapse. Maduro can wish in one hand and. Well, we know how that saying ends.

Economy finito. Black market burgeoning. The population loses. The only winners will be at the top of the food chain, or rather the government chain.

Xelebes · Nov 16, 2013

It would appear that descipte all the eccentricity of Chavez, he exercised quite a bit of restraint and maintained a balance. Maduro doesn't look like he knows what he is doing and is giving the neo-colonialist opposition the arm up.

Synonym · Nov 17, 2013

This is where Chavez started in his bid to expropriate:

2007

President Chávez acquires a majority stake in four oil projects worth approximately US$30 billion operating in the Orinoco river basin.
Government nationalizes CANTV, the country’s largest telecommunications company.
In a national referendum, Venezuelans overwhelmingly reject Chávez’s bid to reform the country’s Constitution.
Venezuelan government buys electric company, Seneca, and over 82% of Caracas’ electricity, both formerly controlled by American capital.
American-based companies Exxon Mobil and ConocoPhillips reject an offer to create a mixed enterprise with PDVSA in the Orinoco region; both companies file a lawsuit against the Venezuelan government.

The timeline into 2012 can be followed here.

Maduro may indeed be clueless, but he's also running out of big foreign owned targets, (because there's hardly any left), in favor of privately owned business.

Don · Nov 17, 2013

Synonym said:
My good lord. That country is on the verge of collapse. Maduro can wish in one hand and. Well, we know how that saying ends.

Economy finito. Black market burgeoning. The population loses. The only winners will be at the top of the food chain, or rather the government chain.

Well, those people who were smart enough to recognize the signs and drop into the underground economy will certainly come out better than most people.

Synonym said:
This is where Chavez started in his bid to expropriate:

2007

President Chávez acquires a majority stake in four oil projects worth approximately US$30 billion operating in the Orinoco river basin.

Government nationalizes CANTV, the country’s largest telecommunications company.

In a national referendum, Venezuelans overwhelmingly reject Chávez’s bid to reform the country’s Constitution.

Venezuelan government buys electric company, Seneca, and over 82% of Caracas’ electricity, both formerly controlled by American capital.

American-based companies Exxon Mobil and ConocoPhillips reject an offer to create a mixed enterprise with PDVSA in the Orinoco region; both companies file a lawsuit against the Venezuelan government.

The timeline into 2012 can be followed here.

Maduro may indeed be clueless, but he's also running out of big foreign owned targets, (because there's hardly any left), in favor of privately owned business.

Chávez and now Maduro's actions are eerily reminiscent of the actions of the People's State of Mexico in Atlas Shrugged. Maybe it'll turn out better in real life.

Xelebes · Nov 17, 2013

So you would also have similar problems with Canada nationalising a whole bunch of its industries, which it has done lots of in the past?

Synonym · Nov 17, 2013

Did they offer fair market value to the original owners, or appropriate them at pennies on the dollar?

Xelebes · Nov 17, 2013

Synonym said:
Did they offer fair market value to the original owners, or appropriate them at pennies on the dollar?

Does it matter?

Synonym · Nov 17, 2013

One way suggests theft and abuse of power, X.

Xelebes · Nov 17, 2013

Okay. So what if the settled price was 90%? 80%?

What about the political reality underpinning it? What if they are trying to move their foreign interests to friendlier nations (towards Bolivia and Peru, for example)?

Maybe it isn't so much theft as it is war.

Synonym · Nov 17, 2013

What? Wait a minute. Businesses based in Canada were moving to South America? I'm lost here.

Xelebes · Nov 17, 2013

Synonym said:
What? Wait a minute. Businesses based in Canada were moving to South America? I'm lost here.

Canada offered close to par because it wanted to maintain good relations with the US. Venezuela could not care less whether its relationship with the US and Europe was amicable.

Synonym · Nov 17, 2013

Xelebes said:
Canada offered close to par because it wanted to maintain good relations with the US. Venezuela could not care less whether its relationship with the US and Europe was amicable.

True, he did not care who he ran over in his bid to control as much as he could. Even to the point of 'cutting off his nose to spite his face'?

A report released by the United Nations Economic Commission for Latin America and the Caribbean (ECLA) concludes that, in 2009 alone, Mr. Chávez’s systematic nationalization of major industries has caused a negative inflow of $3.1 billion in foreign investment dollars in Venezuela.

And: An analysis by the Venezuelan Confederation of Industries (Conindustria) reveals that from 2002 to 2012 the Chávez government has taken over 1168 foreign and domestic companies.

In the process, he appropriated Spanish and Canadian interests as well. While he destested the US, I don't believe that was the only reason he appropriated the companies and equipment. Nearly everyone with property, especially expensive industrial property, in that country was fair game. Now they're run for the hills, and will not be returning anytime soon.

Anyone residing in Venezuela that still owns property, (that has value or is considered a vital resource), probably has a bad case of nerves too. If you criticize the political party in power, they have proved that they aren't bothered in the least about confiscating personal property. For whatever handy reason they wish to offer.

Xelebes · Nov 17, 2013

That is all short term results. When you are in the long-game, you can expect big losses but the gamble is in big gains. Venezuela is pushing away from Canada, US, Spain and the rest of Europe. The aim of Chavez is to fight against the colonial powers that have let foreign investment mistreat the people there. Foreign investment is a problem there, not a gain, not some wonderful potential to lift it from poverty. You cannot forget how the various forces from beyond have sought to exploit, enslave and extract from the people who live there.

Synonym · Nov 17, 2013

Ah, well X, I see where you're arguing from now.

He seems to be punishing his own people now, isn't he? Or his successor at least.

Historically, this sort of action usually rewards the supporters of the party in power, (with better perks and a better standard of living). The rest of the population slides backwards to a substandard level of existence, while the cream keeps being skimmed to reward the right-thinkers. Eventually, no one will want to show initiative or get noticed for doing better than their neighbor, since it may get snatched away. Don was right about the black market. It will become massive.

Xelebes · Nov 17, 2013

That is going to be a big factor in determining whether or not the Chavetist governments are going to be successful. If the Chavetist governments punish the people too much, the people will flock to the neo-colonialist opposition.

But the big objective for the Chavetist government is whether or not it gets the self-determination it wants.

It is also worthy of note that Bolivia is the only native American state after having kicked out the Spanish colonialist powers. It is poor, but it gets to decide who it wants to associate with.

Synonym · Nov 17, 2013

It can self-determine all it wants, until the people get tired of it or the military decides to take over. That seems to happen quite often too.

Xelebes · Nov 17, 2013

Synonym said:
It can self-determine all it wants, until the people get tired of it or the military decides to take over. That seems to happen quite often too.

It would depend on who leads the army.

Synonym · Nov 17, 2013

Of course it would. Or whether someone in the Army decides that they have enough loyalty from the troops, and a better way of leading the country.

blacbird · Nov 17, 2013

Don said:
How's Venezuela going to recover from this mess?

Obvious, isn't it? We invade, take over, and install a truly democratic government. Oh, yeah . . . and they do have a lot of oil, don't they?

Sorry . . . having a Dick Cheney-Don Rumsfeld moment there.

caw

maxmordon · Nov 17, 2013

You know, I kinda remember when my country didn't sound like the setup of a Tom Clancy-inspired FPS videogame.

It was a long, long time, though.

Synonym · Nov 18, 2013

Max, I really am sorry that this is happening. I can't imagine living with that kind of turmoil.

Maduro Government 'Occupies' Venezuela Electronics Chain

Don

All Living is Local

William Haskins

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Don

All Living is Local

Synonym

Xelebes

Delerium ex Ennui

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Don

All Living is Local

Xelebes

Delerium ex Ennui

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Xelebes

Delerium ex Ennui

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Xelebes

Delerium ex Ennui

Synonym

Xelebes

Delerium ex Ennui

Synonym

Xelebes

Delerium ex Ennui

Synonym

Xelebes

Delerium ex Ennui

Synonym

Xelebes

Delerium ex Ennui

Synonym

blacbird

maxmordon

Penúltimo

Synonym