Venezuela Prices Jump Most Since 2008 as Shortages Persist

[Bacchus4.0]

By Anatoly Kurmanaev - Aug 6, 2013 3:17 PM ET ..Facebook Share Tweet LinkedIn Google +1 COMMENTS
Print QUEUE..Venezuela’s consumer prices last month rose at the fastest pace since the index was created in 2008 amid worsening shortages of staple goods such as meat, sugar and milk.

Prices rose 42.6 percent in July from a year earlier and 3.2 percent in the month, the central bank said in an e-mailed statement today. The median forecast of seven economists surveyed by Bloomberg was for a monthly rate of 3.5 percent.

New currency auctions have failed to offset a shortage of dollars that is fueling the fastest inflation among 103 economies tracked worldwide by Bloomberg. The central bank’s scarcity index rose to 19.4 in July from 19.3 in June, meaning that one of every five staple goods is out of stock at any given time.

The central bank sold about $400 million to importers and individuals under a new auction system started last month to damp price pressure. Companies that are unable to access dollars at the official rate pay five times as much on the black market, passing the price premium to customers.
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http://www.bloomberg.com/news/2013-08-06/venezuela-prices-jump-most-since-2008-as-shortages-persist.html

[MADem]

1. The Bolivarian paradise is anything but.

Anyone thinking about moving there needs a very good job to be able to afford a sufficiently nice place to live, security to ensure that one doesn't get kidnapped for ransom, and enough spare change to afford the cost of toilet paper!

This is just insane:

Prices rose 42.6 percent in July from a year earlier and 3.2 percent in the month, the central bank said in an e-mailed statement today.

I wonder if the Army is going to step in....?

[Bacchus4.0]

2. worst government in Latin America without question

Despite all the rhetoric of unity, if the army stepped in not a single country on the continent would lift a finger. Colombia would amasse troops on the border for their own protection. Brazil probably would too. Cuba desparately wants to keep the puppet Manuro but how long can this situation persist?

[MADem]

3. All of the shrieking conspiracy theorists think that the opposition will jump in.

If I had to place a bet, I'd put my money on Hugo's Army buddy, Diosdado Cabello, and the military to do a night of the long knives and TCB.

I get the impression that old Diosdado, he's just waiting for the right moment--he stoops to conquer, as it were.

Unlike Maduro, Diosdado can wear the Army uniform--that whole "Pa' lante Commandante" schtick really only works when there's an "outfit" to go along with the flag waving at rallies.

And the truth is, if anyone wants to play the HUGO card, Diosdado has MUCH better pictures of himself and Hugo together, because they've known each other since they were coup planning a couple of decades ago.

[COLGATE4]

4. I think you've got it exactly right.

Diosdado has been there behind the scene from the onset, waiting for his time to come. He let dumb as a stump Maduro get to carry the can for all the screwups Fearless Leader created causing the economy to crater. He's the logical choice to get the Army's backing to "save the Patria" when they throw Maduro under the bus (no pun intended).












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[MADem]

6. No one wants to blame Hugo, he's dead and deified.

It would invalidate the past decade and a half, and then some, if they did, too.

But hey, plenty thought Diosdado would be "the one" after Hugo, and were surprised at his calm acceptance of the way it all shook out. I think the guy has a long-range game plan!

And the bus driver comes off like a clod. He can't speak like Hugo, he can't tell the difference between the Cuban and Puerto Rican flags, and he can't get a crowd to cheer for him unless he's holding an oversized painting of Hugo.

Time will tell!

[Bacchus4.0]

10. fyi: apparently RIcky Martin tweeted Maduro's idiocy on the flag issue

and Maduro invited him to Venezuela and will give him a Cuban and PR flag. That seems pretty stupid to me since he is the Ven president and the fool that is confused about the flags but I won't try to analyze his stupidity.

[MADem]

11. Ah, yes, I'm sure Ricky will run to visit, since they're so nice to gay folk in VZ! nt

[Bacchus4.0]

5. makes sense. It certainly wouldn't be the opposition

who attempts a military takeover. God-given Hair may "need" to save chavismo through military action before some unaffiliated military leaders take matters into their own hands.

[MADem]

7. And God Given would get along with Cuba, too--he might not be

quite so "roll over and play dead" as Maduro, but they'd do better with him than any other alternative to Maduro...so they might see the handwriting on the wall, as well.

[joshcryer]

18. There's a reason Diosdado's army buddies have top positions.

It ain't no coincidence.

[MADem]

21. Yeah--and I can't help but notice that he keeps his head down.

He doesn't want ANY credit for the mess that is Vz lately...! But we'll see what happens down the road...he just may want to save the joint, in the name and memory of his buddy the Commandante...

[BillyRibs]

8. Screw with the Banks and this is what you get.

I suggest a Guillotine to cut problem bankers and corporate hoarders in short order.

[Bacchus4.0]

9. ummm, what???

importers need to buy products with US dollars. No-one wants worthless Bolivars. Your typical businessman doesn't have access to dollars like corrupt government officials. The small periodic release of dollars is insufficient.

see, businesses can't buy products at one price and sell for a loss at the bogus official rate. It also appears there is no coherent strategy to increase domestic production, or they have simply given up trying.

[BillyRibs]

12. UH yeah!

Yeah, right, Now go be an apologist for someone else and run along.

[Marksman_91]

13. Not a very smart response

At least Bacchus gave a believable explanation regarding why the shortages are happening. All you did was reduce the conversation to a personal bickering battle with your answer, which usually implies you have no valid arguments to back up your claims. Do try and act more mature in these forums, please. I also suggest you take up some economics lessons and see how the hyperinflation and shortages being experienced in Venezuela cannot at all be caused by only a handful of hoarders. The only entity responsible for this mess is the government and nobody else.

[Socialistlemur]

14. I agree with Billy

Venezuela's central bank is run by capitalist roaders and anti patriotic sell outs to capitalism. Their insistence on printing worthless paper and maintaining the exchange rate at 4.3 to prop up a political party is at fault. All these bankers from the central bank should be sent to prison. And anybody who defends these bankers is a world bank lackey.

[Marksman_91]

15. The problem with Billy and other people who support the Venezuelan regime...

... is the fact that they don't believe that the ones running the government are the capitalist roaders and anti patriotic sell outs to capitalism. Not saying that there aren't any at all in the opposition, but to think that the government heads themselves aren't part of this problem is incredibly stupid and naive.

[Socialistlemur]

17. Lets just say naive

It's usually a good trick to label yourself populist and commit to help the masses. Wearing red helps a lot, but fascists like to do it too. The end point is usually the same. What really eats me is the way they fail to think things through.

[joshcryer]

20. Populist regimes have no introspection.

They can't risk sullying the image of the revolution so they let corrupt individuals fly under the radar and don't report or arrest them.

[MADem]

22. Those oligarchs are baaaaaad....but those boligarchs carry "the revolution" in their hearts...

....and plenty of US greenbacks in their wallets!

[joshcryer]

19. Same here, your explaination is more in line with reality.

Whether people like it or not the people in charge in Venezuela are diehard capitalists stealing from the Venezuelan people any chance they get.

[Bacchus4.0]

16. Venezuela imports 70% of its food to meet their needs

unless the government takes over all imports, private entities can only engage in imports if their is a profit.