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| Caribbean-Latin America | ||
| Chavez Calls for Farm Seizures, Raises Prices Amid Shortages | ||
| 2008-02-11 | ||
It was at least the fourth time this year that Chavez's government has threatened to use expropriation to deal with shortages of milk, rice, cooking oil and other price-controlled basic foods.
The government says the shortages are the result of smuggling of the food out of the country, hoarding by wholesalers who hope to force price increases and growing consumption as poor people get more disposable income. Farm groups have repeatedly called on the government to remove price controls and criticized previous seizures of land and farm equipment as counterproductive. Chavez also announced projects to improve farm-to-market roads and irrigation systems. | ||
| Posted by:Steve White |
| #9 There's also limits to how much help he can get from the Chinese. They don't just buy the oil, they sign an agreement to exploit the field themselves and then they bring in _their_ people to do it. To run the rigs and support infrastructure. And they wind up working out of dormitories and sending all their pay home; it doesn't get recycled into the economy. And I doubt whatever contract they've written pays as much for their oil as Yugo would get selling it on the spot market. I have heard that both Yugo's union and the competing union have both sent guys by the Chinese work locations to get the union fees for allowing their employees to get to work and have been told to get stuffed. SO not only do they get less cash to begin with for selling to China, less Venezuelans get employed and less money circulates from what foreigners are employed back into the economy. Oh, but Yugo will tell you all about how it's the Americans who are exploitive. |
| Posted by: Abdominal Snowman 2008-02-11 13:05 |
| #8 ¡Ay, caramba! |
| Posted by: Farmino B. Hardo 2008-02-11 12:32 |
| #7 Comrade Chavez is gonna collectivize Venezuelan farms? Get ready for the famine. Millions of Russians starved when Stalin did that in the 1930's. |
| Posted by: Ebbang Uluque6305 2008-02-11 12:28 |
| #6 It could be arranged BA. Venezuela's oil infrastructure is falling apart. A sub-contractor we have did work for them three years ago, then was never paid after the "nationalization" of the oil company. They confirm that the entire infrastructure is close to collapse. Their oil isn't light sweet crude and not many companies will buy it as they don't have the refineries for it. The Chinese are trying to help by sending engineers to prop up the whole mess, but a few "accidents" could bring down the whole house of cards real quick and no western nation will help to rebuild it again after getting screwed. Yes, not even the French. They are owed billions for work as well. Cash up front Chavez. |
| Posted by: DarthVader 2008-02-11 10:12 |
| #5 While I agree with the assessment that he's following in Mugabe's footsteps, I don't think Venezuela will EVER reach the levels of inflation that BobLand have seen. With oil in the mix, I doubt that'd be "allowed" to happen by that mean arbiter of pricing...the world market. |
| Posted by: BA 2008-02-11 09:49 |
| #4 I see a lot of coca leaf chewing in the future for his constituency. |
| Posted by: Procopius2k 2008-02-11 09:42 |
| #3 And this worked sooo well for Zimbabwe too. |
| Posted by: DarthVader 2008-02-11 09:40 |
| #2 He'll start babbling about "juche" soon, I think... |
| Posted by: Unatle Tojo8595 2008-02-11 01:01 |
| #1 Strangle the chicken to enhance egg production. Leftist are so cute (and smart) when they're hungry.. |
| Posted by: M. Murcek 2008-02-11 00:29 |