Monday, January 18, 2010

Chavez keeps rolling toward his own self created abyss

So Chavez today decided that the Franco-Colombian distribution group EXITO should be nationalized because, see, they increased prices as soon as the devaluation was announced.  Yeah, right...  What is the truth here?  Very simple:

-- the electricity rationing has failed
-- the devaluation is the acknowledgment of failure
-- the announced minimum wage increases are not fooling anyone
-- and many other issues from health system degradation though the Mercal empty shelves.

So Chavez needs some bold, daring, measure against somebody that is powerless and who he can bully at will and make pass as the guilty party of all of Chavez mistakes and failures.

The hypocrisy is simply un-stomach-able.

First, EXITO (and its associated lower middle class food distribution stores CADA) did not increase their prices more or less than Central Madeirense, UNICASA, or other groceries stores closed for one day last week by the fascistic overzealous INDEPABIS acting on Chavez orders.  In San Felipe not only my Central was closed for a day but so did the bakery next door, depriving me from the groceries I needed that day.

Second, January ALWAYS sees a price variation from December, the more so when adjusting for inflation cannot be avoided any longer.  With or without devaluation prices would have gone up.  And what does it matter if devaluation price adjusting is done last week or next one?  It will have to be done or otherwise these stores will go bankrupt.

Third, it is half Colombian and thus he gets, cheaply, a winnable war against Colombia without having to fire a shot. Or does he? Does anyone think that Uribe and Sarkozy will allow a company of their nationals unjustly punished and spoiled?

Of course, if this nationalization indeed takes place guess what the result would be? Have you seen the Mercal stores recently? Run down, shelves depleted... Do you think that a government that cannot run Mercal will be able to run a sophisticated operation like EXITO?

And the customer will pay fast for this because wherever there is an EXITO there is significant price competition as EXITO is a discount store. Now, with an empty shelved EXITO the other grocery stores will be able to raise their prices more easily.

The stupidity and vindictiveness of Chavez will never cease to amaze me.  But I am happy because he is digging his hole faster everyday.  Many chavistas go to CADA and EXITO and once they find out that they cannot find half of the stuff they used to find, and at lower quality, guess what will happen?

PS later: read Miguel post on how liberty of expression is once again attacked, on the same day where Chavez orders his goons to take over EXITO.  I love it!  That is a governmet shitting its pants!!

12 comments:

  1. Javier Cáceres12:54 AM

    Yeah Daniel, and let's ask, what does he think he is nationalizing ? physical infrastructure and what's there, because once the shelves and deposits are empty how are they going to be restocked ? Or maybe Chavez thinks that nationalizing he will have access to the owner's know-how, merchandise providers, lines of credit etc. ?

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  2. Soon the only places to buy food will be Hugo-Mart, then the items available will be unpredictable and expensive.

    I guess soldiers will be the checkout guys.

    ReplyDelete
  3. Javier

    Chavez is an idiot, but a mean one with access to guns.

    He does not care whether he will destroy a productive and useful distribution system as long as he can find ways to feed for cheap HIS voters until September. If the country is destroyed after the vote, he does not care, he will start shooting.

    But it will not work because as you said, the people who produce for EXITO will not want to produce for the Empresa de Consumo Socialista because they will not get paid for their goods.

    I am going to starve but I am going to enjoy watching chavistas starve too. There is no other way for them to understand the value of work and responsibility above the emptiness of populism.

    ReplyDelete
  4. 1979 Boat People2:00 AM

    "
    Sony's PlayStation is 'poison' to children: Chavez
    "

    http://www.google.com/hostednews/afp/article/ALeqM5h0pLR7_-bFm07MYtwOWdy5uMT_mQ

    From the article:

    "
    ...
    "Those games they call 'PlayStation' are poison. Some games teach you to kill. They once put my face on a game, 'you've got to find Chavez to kill him.'"
    ...
    "

    Really?

    ReplyDelete
  5. sheik yer bouti6:39 AM

    soo...is it time YET for someone in Venz to grow a set of balls and shoot this menta midget yet? what are you waiting for? you are a laughing stock as a people.

    ReplyDelete
  6. This is what I've been telling people, food is going to become a major issue. Control the food, control the people...

    My most convenient supermarket is a Cada, which I can walk to. There are some independent Chinese grocers down the road, but that means using the car or taxi.

    Next he'll go after CM and Unicasa.

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  7. concerned8:38 AM

    Except for the distribution of appliances before the last election, the distribution of food items is his greatest motivator for votes. Chavez will make the people more dependent on his handouts leading up to elections. They have short memories and will be thankful for the food in exchange for signing their X. Only after the elections when they are forgotten again will they miss their Exito.

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  8. So now thanks to Chavez EXITO will turn to FRACASO.
    We all know he's got the Midas touch in reverse.

    ReplyDelete
  9. Daniel,

    Love your site. It is interesting to read about the state of the Mercals. I think I know why this may be. I was in Los Roques over Christmas and there was a huge yacht parked off one of the beaches. All the locals were saying that the yacht belonged to the Venezuelan food minister (Félix Osorio?). They said that he often went there on vacation with Chavez' pilot and several prostitutes...from Russia no less.

    My Venezuelan wife laughed and said "at least he could have supported Venezuela and used Venezuelan prostitutes."

    Seeing how beautiful the yacht was, it is easy to understand why the Mercals are struggling.

    ReplyDelete
  10. An Interested Observer7:17 AM

    1979BP, I think he's referring to the game mentioned here: http://www.reuters.com/article/idUSN2947129120080830 . He's obviously only heard tell of it, because it doesn't include his face, let alone his name - though he clearly inspired the gamemakers. I wonder if they had included his face if it would have sold better? :) (Plus that quote at the end of the article - it does sum up Chavez's accomplishments, but he'd never say such a thing.)

    ReplyDelete
  11. 1979 Boat People11:07 AM

    AIO,

    LOL!

    ReplyDelete
  12. Anonymous1:25 PM

    1 - Chavez has the help and advice of the Cuban oppression machine to suppress dissent before it spreads.

    2 - Chavez has been importing weapons on the premise of a U.S. invasion, when in fact it is for the suppression of internal dissent.

    3 - The Chavez machine still has has inertia, but time is critical....the race is between Chavez organizing an effective surveillance and police state, and the collapse of the economy....Will the people revolt before it is too late, or will the incremental erosion of democracy result in another fear society....

    Like Cuba, it's about Power and Money - the Bolivarian Revolution is a Facade....

    WAKE UP PEOPLE!!!!!

    ReplyDelete

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