Wednesday, January 23, 2008

He Did It

Found this on Drudge Report.

Chavez followed through and confiscated food from a private company. 27 trucks from Polar were stopped and the contents confiscated. Chances are these weren't beer trucks but harina pan, and other food stuffs.

With reports out that Venezuela is reaching an economic crisis, and the government is running out of money, one wonders if this isn't just another way that Chavez is using to 'procure' goods for his state funded food stores.

It's convenient that the excuse for confiscating the goods bound for western Venezuelauy was smuggling to Colombia, and the confiscation of food stuffs in eastern Venezuela was hoarding. (Probably not much smuggling going on with Guyana, thus another excuse has to be given.)

And the number of trucks is curious as well: 27 trucks, 500 tons of food. I bet that Polar sent more trucks than 27. If you suspect someone of smuggling, wouldn't you shut them down completely? Sounds to me like those 27 trucks were the price of Polar doing business.

What I don't understand is that if Chavez really wants to open the floodgates of food, negotiate with the private companies. Buy in bulk to lower the wholesale price and you can sell it cheaper in the government run food stores and not hurt the rest of citizens who shop in regular super markets. I'm sure Polar would be willing to work something out, as long as they wouldn't have to sell at a loss, which is what the government is trying to make them do. Chavez blames the black market for food shortages, while his own economic policies are creating the black market.

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