Venezuela: Seizing corn meal an option [price controls and communism]

Business Week/Associated Press ^ | January 17, 2006

[grundle]

Venezuelan authorities are prepared to seize inventories of corn meal if producers protesting price controls hoard their supplies, an official said Tuesday.

The South American country has seen coffee disappear from the shelves in recent weeks as producers refused to sell over price controls that they said eliminated profits. Officials said a 60-percent increase in coffee prices announced Monday would make coffee plentiful again.

But some corn producers also have told Venezuelan media they are dissatisfied with current price controls.

"I don't think it's necessary to go straight to expropriation, but it's an option," Food Minister Rafael Oropeza told reporters during a tour of state-operated grain silos in the southwestern state of Barinas.

He said the government is prepared "to defend the right of access to food."

Corn meal is key to Venezuelans' daily diet of "arepas," corn cakes served steaming with chicken, meat or cheese inside. It is one of many basic food products under price controls in Venezuela, where President Hugo Chavez says he is leading a socialist revolution for the poor.

Scattered sellouts of powdered milk, corn meal and sugar have been reported recently, but officials denied there were shortages at a national level and said they would make sure state-run markets are fully stocked.

The consumer protection agency, Indecu, has seized more than 150 metric tons (165 tons) of powdered milk this month from companies hoarding the products, according to its Web site.

Authorities also have seized inventories of coffee allegedly being hoarded by producers and resold at the official price.

The higher price for coffee should help ease the shortage, Light Industries and Commerce Minister Edmee Betancourt told the state-run news agency.

[ozzymandus]

Next, they should confiscate all the farms in the Zimbabwean manner. In a couple of years, the poor will be starving, and hugo will be hiding in the cuban embassy.

[John Lenin]

Commies never learn

[hedgetrimmer]

Its good that you see so much humor.

[hedgetrimmer]

I clearly understand that a communist "free trader" is running his country the way he sees fit. NOTHING he is doing violates any "free trade" agreement.

"In his long May Day speech this year, Venezuela’s president Hugo Chavez claimed that: “It is impossible for us to reach our goals within the confines of capitalism, and it is not possible to find a middle road...I invite the whole of Venezuela to walk on the road of socialism in the new century. We must build a new socialism for the 21st century.”"

[hedgetrimmer]

Commies never learn

No, they don't, especially when they are enabled by the "free traders". Thats why the current "free trade" system is such an abomination. They clearly embrace communist dictators, if it can bring about 'cheaper prices' for goods for export. Just ask 1rudeboy about China and Viet Nam, the latest country welcomed with open arms into the "free trade" family of the WTO.

[hedgetrimmer]

Without giving too much detail, it may be worthwhile to briefly point out what the government so far has accomplished. It has:

Started a land reform with redistribution of uncultivated land to poor peasants and agricultural workers.

Completed a literacy campaign which has taught 1.5 million people how to read and write.

Introduced free education for poor children from primary to tertiary level.

Started a comprehensive skills development programme intended to minimise unemployment.

Built 300 primary health care centres in the poorest communities, providing free health care.

Introduced price control on 160 basic food stuffs and 60 household necessities.

Created a supermarket chain where the food prices are highly subsidised.

Introduced soup kitchens in the poorest communities.

Stopped all plans to privatise the country’s oil industry.

Created new banks to give cheap credit to small companies, workers and women’s cooperatives.

Introduced a Latin American alternative to the free trade area the large companies of the USA want to establish.

See? "free traders" don't care about communism, they can still "free trade" and be communists.

[proud_yank]

You want to see price controls and communism, look no further than right here.

You are very correct. And the rediculous thing, is we turn around and pay welfare to people who can't afford food because it is too expensive. I see an easy way to kill two birds with one stone!

Thomas Sowell's "Basic Economics" covers a lot on agricultural subsidies.

[hedgetrimmer]

This is bought from dairy farmers for no reason other than keeping the prices up.

Where does National Security figure into your statement? Because a decade ago Americans understood when national security was as stake. Nowadays, they don't have the slightest concept that national security can in many ways be associated with a secure food supply. Do you?

[1rudeboy]

See? "free traders" don't care about communism, they can still "free trade" and be communists.

So to return to my previous comment, how do you think "free traders" think about price controls and expropriation?

[CGTRWK]

Yes, I sleep more soundly at night knowing we have a billion gallon strategic milk reserve.

A secure food supply is a good thing. Consistently growing much more than the market has any use for of a few particularly well lobbied types of food is pork plain and simple.

[kublia khan]

Still angry about that Nafta thing I see. How's things down at the union hall anyway???

[hedgetrimmer]

"free traders" think price controlled drugs are fine for export. They can make a mint, by selling drugs subsidized by citizens of foreign countries to the US.

[hedgetrimmer]

You have absolutely no reason to mention unions in that context to me so why did you do it?

[hedgetrimmer]

Nonperishable goods don't need to be replace very often, but you're not talking about them.

[hedgetrimmer]

How about "free trade" with Mexico and Colombia?

Treaty on Free Trade Between the Republic of Colombia, the Republic of Venezuela and the United Mexican States
HEREBY ENTER INTO THIS TREATY ON FREE TRADE in accordance with the GATT, conferring upon it the nature of a Subregional Economic Complementarity Agreement in accordance with the provisions of the Montevideo Treaty of 1980 and Resolution No. 2 of the Council of Foreign Ministers of the Parties thereto.

[kublia khan]

umm because I wanted too???

[Hardastarboard]

economics is subject to diverse and conflicting points of view.

Agreed 100%, and I actually thought of the old joke about why kings prefer a one-armed economist (they can't say "On the other hand. . ."). My point was really directed at the absolute fact (among many other economic absolutes) that you can't keep losing money forever, as you WILL go out of business. Period. Some of this stuff is too subtle and detailed to drag out in detail in an internet post, as you're aware.

Of course, I could bring up chaos theory in physics. :-)

[The Red Zone]

Given that they want to be New Iran, I guess it's a good thing that they're centrally planning their economy into the toilet.

[The Red Zone]

Looks like a biscuit with blackberry jam.

[kittymyrib]

He can only seize it once. After his "poor" supporters eat that, there will be no more.
I'd pay $3/gal. for gas if we would throw an embargo around Venezuela and freeze that tin horn out.