Posted on 03/04/2009 6:21:08 PM PST by bruinbirdman
President Hugo Chavez is tightening state control over Venezuela's food supply, setting quotas for food staples which are to be sold at government-imposed prices.
Venezuela's public finances are unravelling, with oil prices at $40 a barrel, while the national budget is calculated at $60 a barrel. Inflation is running at over 30 per cent, yet with the new measures Mr Chavez is seeking to ensure that his core support, the poor, can still fill their shopping baskets with food.
"If any industry wants to ride roughshod over the consumers, with a view to getting better dividends, we are going to act," said Carlos Osorio, the national superintendent of silos and storage. "For the government, access to food is a matter of national security."
Production quotas and prices have now been set for cooking oil, white rice, sugar, coffee, flour, margarine, pasta, cheeses and tomato sauce.
White rice, the staple for many Venezuelans, can now only be sold at a price of 2.15 bolivares (71p) per kilo. Private companies insist that production of that kilo costs 4.41 bolivares (£1.46) and that government regulations are impossible to fulfil and companies will quickly go broke. Companies that are dedicated to rice production must ensure that 80 per cent of their efforts are dedicated to white rice. The new regulations set production percentages, as companies were rebranding their products to avoid the government controls, like flavouring the rice, as the price restrictions apply only to white rice.
"Forcing companies to produce rice at a loss will not resolve the situation, simply make it worse," said Luis Carmona of Polar, a rice company that has been singled out by the government for trying to sidestep restrictions.
Government price controls on basic goods have been in place, in various forms, since 2003. But
(Excerpt) Read more at telegraph.co.uk ...
Viktor MuChavez?
from Venezwabwe?
US to follow
Yes, this will end well. Venezuelans will end up looking like Ethiopians.
search and replace:
Obama for Chavez
US for Venezuela
And if production quotas aren't met? Heads will roll. Hyperinflation's ugly.
Yeah, coming to a country near you!
It is in the air, sorry to say.
CASTRO II
Obama’s hero.
These dictators never learn anything, do they? Everything Chavez is trying has failed before.
I think I know Obamas role model now. I wonder how many stimulus packages Chavis tried.
So I offer you, my friends of Venezuela, edible light bulbs from your friends in the US Democrapic Party.
Socialism doesn’t work.
Chavez has one consolation in his trials. The DU still thinks he’s great.
And if he gets thrown out, he can always be an advisor to the Democrats.
yitbos
You got it. This is where Barrack Hussein Mugabe is sending the USA soon to be Islamo-MexiAmeriAfrica
I think Sean Pencilhead ought to loan ol’ Hugo a few bucks, to help him out.
They just don't care about that. It's about the power and the control. They don't care about what works. We're seeing that right here at home.
Those bulbs are made in China, full of mercury and they are a freaking scam. Supposed to last 5 years but die faster than regular 30 cent lightbulbs.
Chinese mercuyry bulbs brought to you by the soon to be bankrupt General Electric. Exporting lightbulb jobs to China.
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