Reply #102: "Vibrant" mixed economy? There are food shortages. Chavez is screwing w/the economy & he's no expert [View All]

[KittyWampus]

I've asked DU'ere who blindly and unfailingly support everything he does WHO IS HIS PAUL KRUGMAN.

He is screwing around with the economy piecemeal. He makes one change, something goes wrong and he does something else.

For example:

From BBCNews

Venezuelan shoppers face food shortages
By Greg Morsbach
BBC News, Caracas


Coffee and sugar shoppers are met with empty shelves
President Hugo Chavez's policy of keeping a tight control on food retail prices while doubling the price of raw coffee beans back in December may have backfired. For at least a week, there has been no roasted coffee available on the shelves of Venezuelan supermarkets as wholesalers and coffee producers have been withholding their coffee from sale.

Since 2003, President Chavez has maintained a strict price regime on some basic foods like coffee, beans, sugar and powdered milk. But this measure designed to curb inflation has alienated Venezuela's coffee producers who say their profit margins have been reduced to nothing.

Coffee farmers have seen a 100% increase in the state-controlled price of raw coffee. The price of unroasted coffee beans doubled overnight. However, the government has so far been reluctant to increase retail prices to a level acceptable to coffee roasters and traders.

The reaction by coffee companies has been to hoard tens of thousands of tonnes of coffee in warehouses in the hope that the government would eventually announce fair prices. "You can't blame us for keeping the coffee to ourselves for the moment," says Eduardo Bianco, a senior executive at Cafe Madrid, Venezuela's largest coffee producer. "Would you sell your products on the open market if you were sure you were going to make a loss?"

Government minister and coffee executives have been locked in long talks to try to resolve the deadlock.

Some industry insiders say a compromise is imminent, others are more cautious.

snip

Venezuela's leftwing leader has authorised the use of the National Guard to "find every last kilogram of coffee" being stockpiled by coffee roasters.

He even raised the prospect of nationalising the industry as a last resort.

"As far as the law is concerned, we're absolutely within our rights to seize coffee which is deliberately being withheld from sale," insists Samuel Ruh, a government appointed monitor of consumer rights.

"In fact, we have already carried out several successful raids at premises illegally holding thousands of tonnes of coffee."

Yet several food stores in Venezuela's capital city Caracas say the coffee raids are not addressing the fact that shops are also running low on sugar, maize, powdered milk and beans.

Store managers insist they are not being supplied with new stock from wholesalers and importers, who were also complaining that the prices set by the government are too low.