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Venezuela Gov’t Seizes Stores Before Elections

From a cheering Reuters:

Venezuela arrests looters, store bosses in ‘economic war’

By Andrew Cawthorne | November 10, 2013

CARACAS (Reuters) - President Nicolas Maduro’s government announced arrests of both store managers and looters on Sunday as part of what it calls an "economic war" in Venezuela between the socialist state and unscrupulous businessmen.

Of course, the real looters here are from the socialist government.

In a major pre-Christmas offensive reminiscent of the late President Hugo Chavez’s dramatic style, Maduro has sent soldiers to "occupy" one chain of electronics stores and inspectors into scores of others to check for price-gouging.

It’s not a "pre-Christmas offensive," it’s a pre-election offensive. Their presidential elections are in December, too. And Maduro is very unpopular. But Reuters buries this detail because they are his fans.

Thousands of Venezuelans have been flocking to electronics stores, hoping to take advantage of new "fair prices" the government is imposing, sometimes half the previous cost…

Isn’t fairness wonderful? And never mind that the government has also imposed inflation, which has driven up prices by a 1,000 percent.

Authorities announced that five managers, from the local Daka, JVG and Krash, would be prosecuted on charges of unjustified price hikes after importing products with dollars obtained at the official exchange rate of 6.3 bolivars. Officials have displayed for cameras TV’s, washing-machines and air-conditioning units whose prices they say have been hiked 1,000 percent or more by get-rich-quick businessmen.

Many shop owners justify this year’s spiraling prices – annual inflation has hit 54 percent – by saying they are forced to buy greenbacks for imports on an illegal black market at nearly 10 times the official rate.

In other words, they have to pay ten times more because their currency is worthless. But don’t worry, it can’t happen here.

Five people accused of looting Daka’s store in the central city of Valencia have also been arrested, the Attorney General’s office said in a statement. Some Twitter users circulated more images on Sunday of crowds and jostling outside some shops around Venezuela. But there appeared to be no more outright looting as was seen in Valencia, where dozens of people were caught on camera running out of the Daka outlet with flat-screen TVs and boxes.

So there was looting even when things were half price. How typical.

Vice-President Jorge Arreaza promised no let-up in the government’s drive to lower prices.

"The Bolivarian government’s actions against speculators have been and will be firm," he said, using a name that his late father-in-law Chavez added to the government’s formal title in honor of independence hero Simon Bolivar. "We are going to protect the people from bourgeois parasites … We ask for trust and calm."

But Chavez’s son in law is not a parasite.

Seven months after Maduro narrowly beat opposition leader Henrique Capriles at a presidential election to replace his mentor Chavez, Venezuela is once again consumed by bitter politicking ahead of local municipal elections next month…

So Santa Claus is starting early.

At the heart of the campaign is who takes blame for the country’s economic problems: price rises that are hitting the poor majority hard despite the government’s oil-fueled subsidies and welfare programs, shortages of basic products from toilet paper to milk, and a convoluted currency market.

Former bus-driver Maduro, 50, is reviving Chavez’s old bete noire, private businessmen, in an aggressive message that he calculates will appeal to his working-class support base.

But critics say the government has only itself to blame for the problems due to excessive state controls, persecution of the private sector, corruption, failed nationalizations and lack of foreign currency for importers…

What nonsense. The critics just don’t believe in ‘social justice.’

This article was posted by Steve Gilbert on Monday, November 11th, 2013. Comments are currently closed.

One Response to “Venezuela Gov’t Seizes Stores Before Elections”

  1. Coming soon to an Obama Economy near you …`


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