Chavez sends troops to rice companies This government is here to protect the people not the rich

[seemslikeadream]

http://www.iht.com/articles/ap/2009/03/01/business/LT-Venezuela-Chavez-Rice.php


CARACAS, Venezuela: President Hugo Chavez on Saturday ordered troops to temporarily seize control of all Venezuelan rice processing plants to ensure they produce at full capacity amid soaring inflation and persisting reports of food shortages.

Chavez told the National Guard to "take control of and intervene in all of these businesses that process rice in Venezuela," including at least a half-dozen local and foreign private companies.

"This government is here to protect the people, not the bourgeoisie or the rich," Chavez said, accusing some companies of slowing production to evade price caps that have slashed their profit margins. He did not say what the takeover would involve or how long it would last.

Chavez imposed price caps on scores of basic foodstuffs including chicken, rice and sugar in 2003 to combat rising inflation, which at 31 percent is now Latin America's highest. He last raised rice prices a year ago to just over $1 per kilogram ($0.46 a pound).

Agriculture Minister Elias Jaua said troops would occupy company installations as "the first measure" in an unspecified takeover process, beginning with a rice plant owned by Empresas Polar, the country's largest food producer.

[alittlelark]

1. If the rice co. is producing below poss. levels for economic reasons

It makes sense.

[Sarah Ibarruri]

2. I like Chavez - he doesn't like economic terrorism against the people nt

[silverweb]

3. Government for the people.

The way it's supposed to be.

No wonder the people love him.

Viva Chavez!

[Traveling_Home]

4. Price Caps when there's is 30% inflation???

Something isn't working right. Easy to see.

[excess_3]

5. prices ... official exchange rate, or blackmarket . n/t

[devilgrrl]

6. What an evil f%#@!

:sarcasm:

[ProgressiveProfessor]

7. The Mugabe of South America...

Turn over the means of production to those who know nothing about it and things will magically improve.

[Lydia Leftcoast]

8. Since the agricultural sector has not been nationalized, it's pretty clear that

that the food producers of Venezuela are conducting a "capital strike," that is, deliberately cutting back on production in order to create unemployment and shortages in an attempt to increase discontent with the government.

This is what happened in Chile before the CIA-inspired coup against Salvador Allende.

[originalpckelly]

12. It's not unreasonable to think our imperial government is interfering in their political system...

but on the other hand, to think there are always unintended consequences from planned economies is not altogether a bad conclusion.

Just because we're interfering in their government, doesn't mean their government isn't full of shit. Life is never that simple, there is no black or white solution to anything, sometimes it's gray. In the arena of international relations, it's bound to be that complex with so many different people involved.

[C_eh_N_eh_D_eh]

9. It's nice to see that Chavez cares about the little guy.

I'm a little worried about his eagerness to drop soldiers on his own people, though.

[malaise]

10. That's exactly what the Chamber of Commerce

the US, Brits and right wing Jamaicans did to us in Jamaica between 1978 and 1980. As soon as the pro-US, pro-IMF government won the election the supermarket shelves were full.

Sometimes they call it official sanctions (Cuba, Iraq, Iran, Zimbabwe); other times they get together and decide to starve the population until they seize state power.

Chavez has studied their tactics.

[Judi Lynn]

11. Didn't know it happened in Jamaica. "Making the economy scream."

That's what Richard M. Nixon told his CIA guy, Richard Helms, who made a note of it, as they plotted the way to wreck Salvador Allende's Presidency through sabotage, as in a massive truckers' strike which left food and other merchandise unable to get to the stores, and ships lined up in the harbors, unable to move their products to the trucks and on to the stores.

Thanks for the benefit of your experience.

[originalpckelly]

13. While in these situations it can be attributed to outside intervention...

there is a legitimate reason to be worried about problems associated with planned economies. The Soviet Union didn't have problems feeding its people because they were being interfered with by the CIA.

[Lydia Leftcoast]

14. But Venezuela isn't a planned economy like the Soviet Union

The agricultural sector and the retail sector are in private hands.

[EFerrari]

15. I just saw a local news report last night that said corn, sugar and milk

have gone down in cost over the last six months and yet the cost at the grocery stores has gone up form 9 to 20%. Thanks, Safeway!

And Venezuela has a mixed economy.