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Page added on August 7, 2015
Venezuela farmers ordered to turn over their food to the government
As Venezuela’s economy continues to worsen — its currency having entered “free fall mode,” according to the Financial Times — the desperate Maduro government has taken the extreme measure of nationalizing the nation’s food industry.
Venezuelan farmers and food producers are now required to sell anywhere from 30 percent to 100 percent of their products to state-owned stores. The order covers staple foods such as rice, milk, oil, sugar and flour.
Shortages and long lines in stores have become common since Venezuela’s economy began sliding into inflation — a situation that placed them at the top of the list in the world for inflation in 2014. The official inflation rate was 65 percent last year, and in the last month the currency has lost another 43 percent of its value. Oil prices once again have dropped, causing further strain on Venezuela’s struggling economy.
The recent free fall of the country’s currency — the bolivar — is evidence, according to FT.com, of “the growing inability of Nicolas Maduro, Venezuela’s president, to stabilise the country’s fast deteriorating economy.”
Maduro’s Leftist government has attempted to cover its debts by printing money, a move which has pushed the country towards a state of hyperinflation, according to leading economists. Venezuela’s money supply has increased 85 percent in the last year, while the currency continues to devalue. The black market value of the bolivar has nearly reached the 700 to one dollar mark — a figure roughly one-hundredth of the official government rate of 6.3 bolivars to the dollar.
Many observers believe that the move to nationalize the food supply will only worsen the situation, especially for Venezuela’s lower income citizens.
Pablo Baraybar, president of the Venezuelan Food Industry Chamber, says the order is “illogical”
and will harm consumers:
Taking products from the supermarkets and shops to hand them over to the state network doesn’t help in any way. And problems like speculating will only get worse, because the foods will be concentrated precisely in the areas where the resellers go.
Speculation and exploitation
The “speculating” that Baraybar refers to is the widespread practice of private retailers in Venezuela purchasing and hoarding cheap food products from the state-owned markets for resale at greatly inflated prices in the private stores.
The speculators, nicknamed “bachaqueros” (giant ants), buy goods from the three state-owned store chains, then resell them at a profit.
The nationalization will also lead to even longer lines in the markets, according to Baraybar, because “goods will be available in fewer stores.”
From the Telegraph.com:
The state owns 7,245 stores, compared to more than 113,000 in private hands. Mr Baraybar said that many of the private shops were in densely-populated areas, meaning that people will now be forced to make longer journeys to the state stores.
Solution: increased production, not nationalization
Baraybar says that the Venezuelan Food Industry Chamber was not informed about the order and has called for a meeting with the government to discuss the plan. He says that the move “does absolutely nothing to help with the shortages” and that increased national production is the solution.
For years now, Venezuela has exercised strict price controls on many basic goods in an effort to keep them affordable for the country’s poor, but manufacturers claim that high production costs make it impossible to for them to operate, leading to further shortages.
Meanwhile, the government accuses the producers of greedy speculation and trying to undermine the revolution.
The socialist model has proven to be disastrous to Venezuela’s economy, as it has in other countries which opted for the same approach. Simply taking over the private sector will never be a formula for economic success.
30 Comments on "Venezuela farmers ordered to turn over their food to the government"
Apneaman on Fri, 7th Aug 2015 7:01 pm
natural news? My my are we ever getting desperate to play devils advocate.
“NaturalNews.com (formerly Newstarget) is an anti-science conspiracy website founded by Mike Adams (self-labeled “The Health Ranger”) which promotes numerous alternative medicines and assorted woo.[2] Even other quacks think it’s a quack site.[3]
The site particularly specializes in vaccine denialism and woo,[4] AIDS/HIV denialism,[5] quack cancer treatments,[6] and conspiracy theories about “Big Pharma”[7] and modern medicine in toto.
Furthermore, Adams supports quantum woo, specifically quantum healing[8] and quantum consciousness.[9] NaturalNews advances a hard green position, even though the site also promotes global warming denialism.[10] To top it off, Adams promotes conspiracy theories about gun control.[11]
If you cite NaturalNews on any matter whatsoever, you are almost certainly wrong.”
http://rationalwiki.org/wiki/NaturalNews
Plantagenet on Fri, 7th Aug 2015 7:08 pm
Sociallismo in Venezuela isn’t working out very well. Venezuela should be one of the wealthiest countries in the world, given their huge oil resources. Instead they are following the lead of Cuba into deep poverty and leftist totalitarianism.
Apneaman on Fri, 7th Aug 2015 8:11 pm
Postcapitalism – Critical Views
“To some extent we are already are living in postcapitalism. A common refrain on the libertarian right is “Capitalism is a great system, we should try it sometime.” Well, we did try it, and it failed miserably. To some extent we are now replaying that experiment with the same disastrous results – economic stagnation, lowered living standards, widespread unemployment, social dysfunction, tent cities, extreme inequality, decaying infrastructure, political corruption, plutocracy, lawless financialization, out-of-touch elites, private affluence amid public squalor, etc.”
http://hipcrime.blogspot.ca/2015/08/postcapitalism-critical-views.html
Davy on Fri, 7th Aug 2015 8:33 pm
Venezuela and Greece are two countries we should be watching closely for what happens to populations and economies that begin the decay process. We see all those elements of descent come into play. We see irrational policies, dysfunctional networks, and economic abandonment. Social tension and economic turmoil lead to more in a vicious cycle down.
Folks, food is what underlies stability. This has always been the case. We need to respect the food variable. It will be interesting to watch how disrupted the food system in Venezuela becomes. Venezuela was once food self-sufficient but now imports 70% of its needs. http://panampost.com/panam-staff/2015/01/12/crossing-the-line-venezuelas-food-shortages-no-joke/. “Osorio’s title, major general and vice president of Food Sovereignty, is ironic to say the least, given that Venezuela has to import up to 70 percent of the foodstuffs it consumes. Up until 1998, when Chavismo took power, the country was self-sufficient in its food production.”
Both Greece and Venezuela have been gutted and have little chance of a recovery. In some sense they are the lucky ones. Their economies and social fabric will be forced into collapse and adapt. It will be painful and ugly but they are the early ones and they are collapsing while there still is a functioning global system to soften the descent. Imagine collapsing in a collapsed global system. This is a very important point because a collapse without outside help could quickly become a famine if you are importing 70% of your needs. This is a dangerous situation for many countries.
Plantagenet on Fri, 7th Aug 2015 9:02 pm
Both Venezuela and Greece can recover, but they have to turn their backs on socialism. Venezuela has some of the largest oil reserves in the world. These should be privatized so they can be produced without political interference. Similarly, Greece has literally thousands of small islands where the government owns virtually all the land. By selling lots or even entire islands, the Greek government could earn huge amounts of money and be solvent again.
Davy on Fri, 7th Aug 2015 9:14 pm
Damn, planter you just caused me the reflux of spitting out what I was drinking from hearing a funny. Please be more considerate!
dubya on Fri, 7th Aug 2015 9:21 pm
Plantagenet:
“Venezuela should be one of the wealthiest countries in the world, given their huge oil resources.”
This seems a common opinion but it seems more random than that.
The Saudis fit this description, but other places don’t:
Newfoundland – Hibernia didn’t really raise the provincial standard of living.
Alberta – World’s biggest oil reserves, can’t balance their budget.
Nigeria – Gong Show.
I’m sure there are examples both ways, but I’m surprised how often oil does not equal benefit to the local populace.
It doesn’t even seem to be related to the form of governance.
Luis on Fri, 7th Aug 2015 9:52 pm
The most obnoxious , lazy , two faced people , ill mannered have always being the Venezuelians.
The current shape of the country is only the consequence of their over inflated ego and their laziness.
WTF on Fri, 7th Aug 2015 10:16 pm
Oil is cheap and Americas enemies are on their knees. Gotta admit Obams has a master plan and it’s working perfectly. He’s possibly the most brilliant President we’ve ever had. In a world of chaos and doom America is riding high on a wave of prosperity. Obama should be allowed a third term.
Makati1 on Fri, 7th Aug 2015 10:22 pm
WTF…is appropriate to your ideas…lol.
America’s enemies are stronger than ever and are kicking it’s butt. Put down the cool aid and open your eyes.
You better watch what is happening in Greece and Venezuela, because it is already starting in the US of A.
Makati1 on Sat, 8th Aug 2015 3:31 am
As if it could NOT happen in the uS…
http://www.shtfplan.com/headline-news/executive-order-obama-and-his-fellow-communists-can-seize-any-resource-property-or-person-at-any-time-for-any-reason_08062015
“Editor’s Comment: This scenario surfaces again and again because there is a deep and uncomfortable truth to it. The federal government has carefully and painstakingly laid over decades of policy work and special rules establishing emergency powers to take complete and utter control in a declared emergency powers. This includes: — outright martial law and — the suspension of civil rights, and
— it also includes seizing and directing the entire economy and infrastructure.”
http://www.thecommonsenseshow.com/2015/08/02/obama-nationalizes-all-food-and-this-will-force-millions-of-americans-into-fema-camps/
“With the stroke of his pen, Obama has total and absolute control over all food where his EO 13603 states:
e) “Food resources” means all commodities and products, (simple, mixed, or compound), or complements to such commodities or products, that are capable of being ingested by either human beings or animals, irrespective of other uses to which such commodities or products may be put, at all stages of processing from the raw commodity to the products thereof in vendible form for human or animal consumption. “Food resources” also means potable water packaged in commercially marketable containers, all starches, sugars, vegetable and animal or marine fats and oils, seed, cotton, hemp, and flax fiber, but does not mean any such material after it loses its identity as an agricultural commodity or agricultural product.
(f) “Food resource facilities” means plants, machinery, vehicles (including on farm), and other facilities required for the production, processing, distribution, and storage (including cold storage) of food resources, and for the domestic distribution of farm equipment and fertilizer…””
What defines a dictator?
Roger on Sat, 8th Aug 2015 6:14 am
History seems to repeat itself. Venezuela is becoming Ukraine, circa 1930.
Cloud9 on Sat, 8th Aug 2015 7:59 am
I thought Cuba had reverted to capitalism after the oil crisis hit Cuba.
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0CB8QtwIwAGoVChMI7MOt7cSZxwIVjF0eCh1GVwH7&url=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3D-O3InwwKnXA&ei=3fzFVazhIIy7ecauhdgP&usg=AFQjCNHYCEG-RdV_JeQltnqT0JYGEU1wRA&bvm=bv.99804247,d.dmo
Davy on Sat, 8th Aug 2015 8:07 am
Mak, I am glad the feds have a plan for what will surely be an ugly situation. This is better than what will likely occur on your small Island where mad max will fill the streets. This is something I have been talking about here for the two years I have been here. Martial law will surely be a reality when food and fuel go into shortages. Our society is too exposed to food and fuel. We have been delocalized so food could rot in the fields as people go hungry.
We are a society that is based on personal transport primarily with oil. We are in a population overshoot per any kind of reduced carrying capacity whether economic or environmental. We are a society in consumption overshoot requiring high energy intensity and resource requirements to maintain our social networks and economic fabric. We are a nation of delocalized locals interconnected nationally and globally.
It is amazing we have not had any pre-collapse episodes. I guess we can thank king oil and favorable climate. I wish this could have been different. Imagine a crisis that would have shaken us to the core that we recovered from. OH, I forgot that was 08. We were there folks and most don’t even realize how bad it almost was. We nearly had a Minsky moment where the world economy seized up because of lack of liquidity and confidence.
Next time there will likely not be a recovery. I say recovery but 08 was just cannibalization of our social and economic fabric by a 1% who have now opened the door to an end game. What could have been a possible time of change turn out to be extend and pretend. In any case any significant disruption will collapse the status quo so they just put off the radical medical procedure required.
There was actually no other option to the status quo. Those who say this or that system could have been embraced are not think it through. Our system is so brittle any large change will destroy it. This is part of the reason I am so doomer. When people get angry and desperate they force change. This is not the 19 century French revolution this is a global interconnected fragile human arrangement of delocalized locals nakedly exposed to a unstable global.
DMyers on Sat, 8th Aug 2015 10:27 am
Maduro is a young, Hugo Chavez look alike, who has no clue as to what’s going on or what to do about it but plays the role of a tough front man. I agree with the point of the article, that this takeover of private property is perfectly in keeping with the leftist script, but it’s a very stupid way of dealing with the problem and will only make it worse.
For that, this may be simple illustration of the Response phase in J.M. Greer’s recent treatise on societal collapse: “….the phase of response, by making believe that changing something other than the things that are causing the problems will fix the problems.” [quoted from The Archdruid Report, “The Era of Breakdown”,6/3/2015]
Pierre on Sat, 8th Aug 2015 1:22 pm
Socialist-Capitalist that the way to go!
wrd9 on Sat, 8th Aug 2015 1:42 pm
@dubya – What an idiot you are. Alberta has to support the leeching Canadian provinces like Quebec. If they were a separate country then they would be fine. Like Norway. Which is doing a bang up job managing its oil. They have a huge oil fund set aside for the present and future, worth almost a trillion dollars. Every Norwegian is a theoretical millionaire now. And it’s certainly the govt and culture that makes a difference. Latin America and Africa are 3rd world cesspools with corrupt govts and corrupt, violent people.
apneaman on Sat, 8th Aug 2015 2:34 pm
wrd9, unlike Alberta, Norway does not have a populous of fat assed, entitled, sickly, lazy, diabetic, resource draining gang of gluttons and they also get their moneys worth for their education dollar and only a small part of that is because they don’t waste students time and taxpayer money on studying and praying to the invisible man in the sky (Church of Rome version). Norwegians also don’t waste resources on paving over useful farmland to create a money pit suburban sprawl as far as the eye can see filled with McMansions, all with a couple of giant unnecessary pickup trucks and SUV’s in every fucking driveway. They build transit and use it and walk and ride bikes. They plan walkable communities and walk. Alberta vs Norway – Apples to Oranges – Grasshopper to Ant. I was born in Calgary and have been around for a half century and this is far from the first time I have heard these whining claims. Swagger and bragging on the BOOM. Sniveling and blaming on the BUST. Same shit different decade. Take a look in the mirror.
Gomer Wumphf on Sat, 8th Aug 2015 2:41 pm
Why bother to continue working the farm?
Ain’t socialism great? It takes real genius to bankrupt a small country with the largest oil reserves on the planet! Oh well at least the food shortage will help solve the toilet paper shortage.
micky on Sat, 8th Aug 2015 6:55 pm
The sooner an intelligent person could assume the presidency of Venezuela the better for the country, the present stupid one cant’t do it.
Apneaman on Sat, 8th Aug 2015 8:06 pm
Gomer, no asswipe, but they still got water to flush………and drink. What kind of capitalist paradise doesn’t have water?
California’s Drought Is So Bad That Thousands Are Living Without Running Water
http://www.motherjones.com/environment/2015/07/drought-5000-californians-dont-have-running-water
Apneaman on Sat, 8th Aug 2015 8:10 pm
I bet this kid wished he lived in Venezuela.
Land of the Free – Crying 8-Year-Old with Disabilities Shackled in Handcuffs at Kentucky School VIDEO
“In the video, shot last November by a staff member of the public school in which the third grader was studying, Sumner can be seen applying the handcuffs around SR’s biceps as the boy’s wrists are too small to restrain. “You can do what we have asked you to do, or you can suffer the consequences,” the police officer tells the child.”
http://libertyblitzkrieg.com/2015/08/05/land-of-the-free-crying-8-year-old-with-disabilities-shackled-in-handcuffs-at-kentucky-school/
Boat on Sat, 8th Aug 2015 9:37 pm
Ape,
From your own post, do you read them?
over a third of the population lives below the federal poverty line, and 56 percent of adults didn’t make it through high school. About three quarters of residents are Latino, and about a third say they don’t speak English “very well.”
This is why immigration and migration does not work. At some point the US has to think sustainability.
Makati1 on Sat, 8th Aug 2015 9:49 pm
Boat, the US is NOT going to close it’s borders. It’s going to eventually add Mexico to it’s North American Union, so it is not likely to do anything really drastic to prevent that. Eventually, if there isn’t a major war, Mexico, Canada and the US will be level in all respects and bound by a EU style setup with Washington dictating like Germany does in the EU. What does that say for the American lifestyle? At least that is the ‘behind the curtain’ plan.
apneaman on Sat, 8th Aug 2015 11:14 pm
Boat, how did you make the leap from my pointing out that Socialist Venezuela is not unique among countries or ideologies experiencing major structural problems to illegal immigration? Illegal immigration in a symptom of a failing, corrupt, dying system – not the cause. Do you really expect anyone to believe that there are so many illegals because some bleeding heart liberals voted the wrong way? That they do the shittiest job for slave wages with no labor practices and thus further enrich the 1% has nothing to do with it at all eh?. Do you get a stiffy when 1%er Trump starts a hating and a blaming boaty?
Boat on Sat, 8th Aug 2015 11:51 pm
Trump ain’t got nothing to do with it other than if we jailed anyone who hired an illegal I bet the jobs would dry up real quick and we could spend much less than the 18 billion we now spend on the fence. No need for all that money wasted on their prisons, lawyers, courts etc.
I do believe Trump could easily be one of the first ones jailed for breaking the law. You don’t know me or my politics Apey. LOL keep assuming.
Boat on Sat, 8th Aug 2015 11:52 pm
Apey,
Speaking of Trump hating wasn’t it you that hated the entire middle class of an entire country? Talk about misplaced emotion.
apneaman on Sun, 9th Aug 2015 12:02 am
They guilty.
Makati1 on Sun, 9th Aug 2015 4:11 am
Boat, if they jail one, the other millions of illegal immigrant employers would burn down Washington. Washington’s oligarchs WANT the wage level of the Us to go down, down down, until it is equal with the rest of the world. Why else does every president ignore the open door? Dilution of the work force by large numbers! It gives the 1/10% wet dreams. (BTW: Laborers here in the Ps makes ~$10 PER DAY. How far does the Us have to drop? LOL
Boat on Sun, 9th Aug 2015 8:11 am
No different in Houston. That’s the standard wage in a lot of construction anyways.