Sunday, November 10, 2013

Venezuelan Military Seizes Major Retail Chain

Now this is a final collapse type phase. You have high price inflation, followed by price controls which make the economy worse, followed be even more government interventions that cause even more distortions and suffocations of the economy.

USA Today reports:
  Thousands of Venezuelans lined up outside the country's equivalent of Best Buy, a chain of electronics stores known as Daka, hoping for a bargain after the socialist government forced the company to charge customers "fair" prices.

President Nicolás Maduro ordered a military "occupation" of the company's five stores as he continues the government's crackdown on an "economic war" it says is being waged against the country[...]

Members of Venezuela's National Guard, some of whom carried assault rifles, kept order at the stores as bargain hunters rushed to get inside.[...]

"I have no love for this government," said Gabriela Campo, 33, a businesswoman, hoping to take home a cut-price television and fridge. "They're doing this for nothing but political reasons, in time for December's elections."

Maduro faces municipal elections on Dec. 8. His popularity has dropped significantly in recent months, with shortages of basic items such as chicken, milk and toilet paper as well as soaring inflation, at 54.3% over the past 12 months[...]

The president, who took over from Hugo Chávez in April 2013, appeared on state television Friday calling for the "occupation" of the chain, which employs some 500 staff.

"This is for the good of the nation," Maduro said. "Leave nothing on the shelves, nothing in the warehouses … Let nothing remain in stock!"

Of course, who is going to produce goods and restock shelves, when goods are being forced at gun point to be given away below cost?

16 comments:

  1. It's not really final until the Maduro government falls. Any thoughts on how and when? The example will be instructive, but pity the Venezuelans for being subjects of the experiment.

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  2. I started to send this yesterday after I saw it on ZeroHedge.

    This is what we need to look for. Scary.

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    1. This is basically what Obamacare does with the Pre-existing condition mandate. Insurance companies have to sell a much more expensive product at the same price as a much less expensive one.

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    2. The unfortunate situation in Venezuela is "apples and oranges" to what is happening in our country. As a military retiree, the thought of military utilization with this event is appalling.

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    3. Wow, for the Venezuelan president to have their military takeover to an electronics chain...as a U.S. military retiree, this is appalling to utilize their forces in this manner! Additionally, in our history, we (as well as other countries) have had to make tweaks/adjustments and additions to systems in attempts to reach and serve the majority (discrimination against pre-existing conditions). We have Medicare and Social Security, which in history, had the same rough initiation path and political partisan debate. The republican Mitt Romney (former Massachusetts Governor) weathered the storm when he launched his legislation ... which its residents continuously hail that as an achievement--same model for Obamacare. Things like what Venezuela is enduring makes one look at their own country and realize modernized programs they take for granted!

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  3. But the stock market in Caracas is up 275% this year, so the people must be happy and gay!

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  4. "Of course, who is going to produce goods and restock shelves, when goods are being forced at gun point to be given away below cost? ..."

    This is only a concern of those who are not in power there. Remember Solzhenitzyn recounting the cry of the prisoner who wanted to appeal to Stalin about the atrocities that were being carried out under his name when it was Stalin who ordered the Deaths.

    Mao knew of the Great Starvation.

    They always know and IT DOES NOT MATTER. There is no conceivable set of circumstances that allows for Maduro to backtrack. None.

    It's over. Sooo...Next up: Death! 'N mebbe a Walter Duranty type from the NYT to proclaim that "They're just building Socialism! They're just Nationalists...Agrarian Reformers."

    CW

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  5. Move over Genie of the Lamp. Step aside Magical Wishing Cauldron. The shelves of Venezuela will be restocked with the unified will of the Pure Proletarian People Power. It summons forth all wants and needs from the trans-dimensional kingdom ruled by the recently ascended Hugo Chavez, blessed are we under his eternal and infinite benevolence, wisdom, and potency.

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    1. Wow, Sean, you totally get it!! Pass the bong, eh?
      BTW, humour, eh?

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    2. Step 1: Enter into a deep state of contemplative selflessness. Step 2: Call upon the Transcendental Spirit of the Eternal Chavez. Step 3: Newly infused with Hugo Power* conjure up a brand new Hitachi LCD 52 inch widescreen for you and your family to enjoy!

      * For American readers it should be noted that 1 Hugo is equivalent to 3.26 Baracks.

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  6. If Ken Rogoff thinks 6% annual inflation is a good thing, he must be jumping for joy at the sight of 54% annual inflation in Venezuela. This must mean that the Venezuelan economy is booming. It is hard to understand the thought process behind such idiocy.

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  7. Another krugman miracle!

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  8. But Venezuela has won the Miss Universe competition in three of the last six years! Wait, is this part of the Plot?

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  9. 'N the hits just keep on a'comin':

    http://www.myfoxny.com/Story/23934016/venezuela-to-toughen-price-controls-set-profits

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  10. "with shortages of basic items such as chicken, milk and toilet paper"

    Soon it will be rice, beans, fruits, etc., too, in short supply. Just as sound economic theory predicts.

    Then boat people trying to escape and the usual suspects refusing to blame socialism.

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    Replies
    1. No, the U.S. will announce sanctions against Venezuela so it'll be OUR fault. Evil capitalists.

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