If It’s Not Economic War, What Then Is Causing the Shortages in Venezuela?

RL: “The shortages of these goods is occurring because the private sector is refusing to make/import them or make/import enough of them.”

Tulio: I’d need further proof of that. The free market should handle such issues. If one manufacturing of widgets is withholding production that’s an opportunity for another to open up and take his market share.

Well, why isn’t the Venezuelan free market operating as it should then? Does the commenter have any theories on what is causing all of these shortages? If it’s not economic warfare, then what the Hell is causing the shortages? You can’t just shoot down theories you don’t like. You have to shoot them down and then offer another theory instead. What does the commenter think is causing all of these shortages in a capitalist-run economy?

Got any theories?

Hint: The business class is trying to take down the Chavistas by creating an economic crisis and using that crisis to take out the Chavistas.

Has the commenter studied what happened when the US got together with the Chilean business class to wage an economic war and make the Chilean economy scream in order to create an economic crisis that they could use as an excuse to stage a coup against Allende? If you study what happened during the economic war that was waged on Allende, you will see that what is happening in Venezuela is almost exactly the same thing that was done in Chile.

Further, members of the Bolivian business community are quoted on the record as being furious that Evo Morales came into power and vowed to take him out with any means they had. Reporters asked them how they would take down the Morales government, and the business leaders stated that they would wage economic war, stop or slow down all production, create massive shortages and an economic crisis, and then use that to take down the Morales government.

So with the evidence from Chile 1970-1973 and the recent comments by Latin American capitalists in Bolivia, we see that economic warfare to get rid of leftwing governments is very much part of the playbook for the Latin American ruling classes and business sectors.

There are price controls on a lot of the goods. You can make a modest profit on the price controlled goods, and the government keeps raising the price controls all the time under pressure from business. But ever since those price controls went in, the entire business sector has refused to produce or import any price controlled products. Only some basic products are price controlled. Most things you find in the stores are not price controlled.

They would produce something similar to the price controlled product but not quite the same. Rice was price controlled, but the capitalists started importing some special rice products that were not controlled where they could make a huge profit. Chicken was price controlled, but the capitalists just started producing some other sort of chicken (rotisserie chicken?) that was not controlled that got a much larger profit.

This caused terrible problems for a while, but finally the state said, “Ok, you capitalists do not want to produce these price controlled products, then we the state will import them.” So for quite a few years, the state used oil money to import all of the products that were price controlled. This worked very well for a long time, and the shelves were full. The capitalists produced or imported more expensive high profit goods, and the state imported price controlled staples.

However, this all came crashing down with the oil price crash. The state is now broke and can no longer import all of the price controlled staple goods. And the business sector has refused to produce or import price controlled staples ever since the controls went in. So there’s a big reason for the shortages right there.

If the capitalists import products, they can make much more money smuggling the goods to Colombia or selling them on the black market as opposed to selling them on the shelves of Venezuelan stores, so that’s what they do with a lot of imported goods. And any goods they produce may also be smuggled to Colombia or sold on the black market because you can make a much higher profit that way instead of selling them to legitimate outlets.

Also the capitalists need dollars to import products. So they get dollars from the state to import things. So the businesses are always going to the state asking for these cheap dollars saying they want them to import things that are in shortage. So the government gives them the dollars to import things, but instead of using them to import the products in shortage, they play money games with the cheap dollars on the currency markets in the black market.

Also a lot of capitalists have simply stopped making much of anything and instead are playing games with money by speculating in the currency market in the black market, where huge profits may be obtained by selling cheap state dollars at the black market price.

37 Comments

Filed under Capitalism, Capitalists, Chile, Colombia, Economics, Government, Latin America, Latin American Right, Left, Political Science, Regional, Scum, South America, USA, Venezuela

37 responses to “If It’s Not Economic War, What Then Is Causing the Shortages in Venezuela?

  1. William

    they can work collectively and hold the economy hostage. That’s why, at bare minimum regulated capitalism is needed.

    See….I’m not some anti-White Jew…I actually talk about more meaningful things for these poor YTs…………….not this nonsense (i.e. Sam) that will do nothing for them in the end…………….
    take that, goys.

  2. William

    Tulio is so pro-capitalist……

    I say, we call him what he really is…Jew-Lio!

  3. TJF

    To Rob:

    If it’s not economic warfare, then what the Hell is causing the shortages?

    http://www.tradingeconomics.com/venezuela/inflation-cpi

    When a country’s inflation rate exceeds certain levels, especially in Venezuela’s case where they have to import food and a substantial number of goods, economic systems start breaking down. The country went from 50% inflation in early 2014 to 180% last year with expectations of 500% this year, indicating that prices double every 2 months. With such high inflation no one wants to accept the currency for any sort of goods, services, or wages. Of course one could easily argue that economic warfare is the cause of the inflation, I know little of Venezuela beyond what I have read in the conventional press.

    • William

      So it’s genuine inflation more than artificial price hikes/trust forming.
      This could hence go on longer than I initially expected
      Interesting.

      Unless it was extended, the state of emergency should have ended July 12, according to Wikipedia.

  4. Jason Y

    Always in the case of discussing third world poverty, you won’t get very far with white supremacists or Republicans cause they will always bring up over-population.

    • William

      Whatever happened to ‘each place gets their own country’ and ‘self-determination’.
      Most “Nationalists” are just blatant White Supremacists pretending to be otherwise. They have ‘Cog Di’ in admitting what they are.

      • Sam

        “…“Nationalists” are just blatant White Supremacists pretending to be otherwise…”

        Your continued equation of WN with White Supremacists shows you are dishonest. What you say can’t be believed.

        I don’t any problem admitting what I am. I also don’t have any problem saying I like to hang out with White and live among Whites more than I do a mish mash of races. In fact MOST races are exactly like this. They like to hang around their own. White people by and large are responsible for what the country was, we lost control of the whole thing in the 60’s, and White people should have a say in who we let in. I would rather have the country primary White. I don’t want more , Mexicans, Asians, Africans.

        • jorge

          A person can be Mexican, Asian or African and be white. In all case, maybe you don’t want more Amerindians/mixed whites, Mongoloids and blacks.

          By the way, from what I see at distance, United States don’t receives many black immigrants (Europe is who receives many), so, blacks are just so American like whites. They were part of American society from the begining. And also I don’t see that receives many Mongoloid immigrants.

        • How many White Asians are there? I have never heard of even one ever? Spill. Let’s hear about these White Asians. Where are they? You mean in North India or Pakistani Punjab? Or in Iran? They don’t exist anywhere else. There’s no such thing as a White East Asian. Show me one White East Asian. I have never heard of such a thing.

    • Sam

      “Always in the case of discussing third world poverty, you won’t get very far with white supremacists or Republicans cause they will always bring up over-population.”

      OK. THEY’RE OVERPOPULATED!!!

      Notice that back in the day, 60’s-70’s the left and all the news said that White countries needed to lower their population increase. What happened? We did. We are less than re-population levels of births. So now other countries who had babies out the gazoots are crowding into our countries. Even worse those of us who want our countries nice and not overpopulated are called names constantly for wanting to live in a nice uncrowded place. People who say anyone against masses of third world people coming to their country are Supremacist are dishonest lying propagandist. They are also anti-Whites who hate White people.

      Why the hell should we want all these people? If you import a bunch of people from a hell hole eventually the place they end up at will be a hell hole. If they had so many kids that they overpopulated their country they should live there in their hell hole and not bring it to us.

      • William

        I see you can’t read.

        I said nothing of “importing these people”.
        I said;

        They have a right to control their population if you are a nationalist, that is (which you are actually a White supremacist masquerading as one).
        Their population went from 7.5 to 30.5. Ours went from 100.5 to 325 . There not growing that fast either. (like 3x to 4x, so they grew x1.33 faster). https://www.google.com/#q=U.S.+population
        https://www.google.com/#q=Venezuela+population+

        WNs can’t stop lying.

        • William

          1.33x is not that much.

          You openly admit that U.S. sanctions are the problem, then turn around and say “overpopulation” just because you have to get in the fact that you hate the browns.
          and these people are in their own country!

          Are you actually a nationalist?

        • William

          I now see you weren’t referring to me.

          BUT…
          your comment was still bullshit.
          #realitysucks

      • William

        AND….
        that’s not even relevant to what I said.

        Jews are so fucking predictable.

      • Jason Y

        It depends on which immigrants your speaking of. A humble Chinese family setting up a restaurant or karate school in some small town is more likely to be welcome rather than hated.

        On the other hand, a lot of latinos would be resented by working class people in competition with them, say a lawn mowing business.

        • Jason Y

          In math it’s actually a fact there aren’t enough native born graduates to fill a lot of advanced jobs, so they hire people from other nations. Hence, that’s why you see so many foreign professors, not cause they’re trying to be PC.

        • Jason Y

          Generally math and physics departments will kiss the ass of whoever decides to major in the subject. It’s like your volunteering to be the volcano sacrifice. That would only be the case if there was a native born shortage, which according to WN thinking would be a fantasy.

        • William

          Jason-
          I’m sure TJF would disagree with you in the highly skilled regard.

          That being said, in fairness to the “cucks” most of the “programmers” in Silicon valley that are White are from uber liberal areas and detest the firing breathing WNs (despite being in competition with them).

        • William

          with non-Whites, that is.

        • Jason Y

          Programmers a long with so many of the college educated winners are definitely a resented class. They live in another world then a lot of the resentful blue collar people, and they think they’re better than the blue collar people.

          Possibly they might be quick to say racism is wrong and other beauty queen contestant airhead remarks, without understanding the underlying root of childhood bullying etc…

          It’s difficult for people who have always made money to understand what’s it’s like to be a loser. Kind of like my Yuppie brother who lives in Yuppieland and has no real concerns other than who wins the Manchester United soccer match or which tent to buy for his mountain hiking expedition.

          Then again after all the hard work he did, always the right thing, while all the stoners were getting high, perhaps my brother deserves the snobby attitude.

        • Jason Y

          😆 My brother kind of reminds me of the guy that works fast food on the movie Fast Times at Ridgemont High (and he was in high school at that time). Yes, he was the guy who always did the right thing, while everybody else was partying etc..

          He was playing football, making As and Bs, preparing fo the future… Now he lives the wine sipping good life and everybody hates him, and everybody is a parasite wanting stuff from him..

        • Jason Y

          That’s not saying that humble good people don’t work at McDonalds or at blue collar work. That’s far from the truth. I was basically contrasting my brother’s work ethic with people who are stoners etc.. who basically are just reaping what they have sown in life, and now are parasitic.

      • Tony Swagger

        If those third world parasites are going to enrich any economy and make it more vibrant according to our elites (hebe controlled), why cant they chose to go to places like Africa which are so vast and abundant with all natural resources. Given their “skills”, they could make them equal to the first world isn;t it. Africa has a huge land mass abundant of natural resources, poor negroes couldn’t get them to full use. Why cant they lend their shoulders to the negro? Why do they want to immigrate to some place which they hate from their bottom of their hearts. Look Europe, im losing count of no of attacks that keeps happening on daily basis, it just looks like normal crimes that happen in every other countries. The impact of the viciousness of the crime nature has even mellowed in the minds of readers because of the frequency of attacks, Why cant israhell be so diverse and set an example of what she preaches. So let israel first have diversity. Refugees can easily travel to israel so easily given its proximity to their nation.

  5. Sam

    I have no doubt that the US and other countries are making it difficult for Venezuela. At the same time I KNOW that the price level that they set for basic commodities is lower than what the shop keepers, or evil capitalist if you wish, can make a profit on. How do I know this? You said so yourself.

    “…However, this all came crashing down with the oil price crash. The state is now broke and can no longer import all of the price controlled staple goods. And the business sector has refused to produce or import price controlled staples ever since the controls went in. So there’s a big reason for the shortages right there…”

    If the price level was at a level that a profit or break even then the government could import these goods for eternity. That the government can’t “afford” to do so means it cost them money. They are paying more than they are selling for.

    I’m not against people controlling their resources. I’m not against the government subsidizing basic commodities. I am against the government forcing people to sell at a loss. That’s forced labor or slavery.

    • They can certainly make a modest profit on price controlled goods. Anyway the business sector is always screaming about raising the price controls, and Maduro keeps caving. The prices of the price controlled keeps going up.

      Did you see that about 500% inflation? And it was bad before too. You don’t think they need price controls. That’s why they put them, to control the wild inflation.

      They can make a modest profit, but they can make a MUCH LARGER profit by importing non price controlled stuff, so that’s what they did. They were just trying to get around the price controls because they thought the profit margin as too modest. They’re dicks. They have been refusing to cooperate with the Chavistas ever since soon after they took office.

      Most of the stuff that is in shortage is not even price controlled anyway.

      There’s 500 PERCENT inflation. And you advocate lifting price controls? Are you crazy?

      Prices of staples have always been too high in Venezuela and in 1989, 90% of Venezuelans could only afford one meal a day. So the price controls allowed the poor to buy much more food and hence caloric intake skyrocketed and malnutrition crashed after the price controls went in.

    • You must understand that the government might have been selling that price controlled stuff at prices even lower than those set on the price controls.

      But they really do not have any money to keep on importing food. Governments usually don’t make money on food distribution anyway. It’s not something states get rich off. They’re flat-ass broke due to the oil price crash and they cannot import the staples anymore and the private sector refuses to import them or imports and them smuggles them out of the country.

      It’s not true that the price controlled products were money losers for business. As I understand it, you could generally make a modest profit on the price controlled goods. The Chavistas have been trying to get the private sector to go along since Day One. They would not force them to lose money selling basic goods.

      • AC in NC

        Monetary Policy and Currency Pegs and Valuations are difficult subjects.

        While I would not deny that the private sector might be doing something to add pressure on the system, I don’t think that is the root cause. The government price controls, starting with currency valuation and gasoline subsidy, are the reason for the inflation.

        I know there will be an objection that rice is different from gasoline or that the private sector is not allowed to sell gasoline. But just as an example, how could the private sector import gasoline and make a modest profit selling it for US$0.60 per gallon (recently raised from US$0.06)?

        The cost of imports is not going to be related to the official exchange rate. It’s going to be related to the black (free) market exchange rate. What does the private sector have to exchange with the world to pay for those imports?

        [ducks incoming fire]

  6. William

    Contrary to White supremacist bullshit, Latin America is not just as shitty as Africa.
    The population is growing scarcely at a rate above the U.S., at least in Venezuela, no where near the levels of Africa.

    Mongoloids are typically more k-selective than Caucasians.

    But que the cries of “anti-White” and “Jew”.
    It’s honestly more ridiculous than “dat’s racist”!

  7. Jason Y

    Sorry to bring up Asia and I will try to reduce comments regarding it.

    However, ESL teachers are generally well loved and welcome in South Korea, Japan etc… However, there always is an amount of resentment cause the young men live on peanuts and are jealous of the money and attention of 33 – 30 something old guys who make 2,000 a month + free apartment and get so much attention, often for shallow things like simply being white.

    Also, as I stated in another post, the corrupt system and job shortage leads to a lot of incompetent teachers of which I guess was a victim. So obviously everyone wants to anal rape you for that.

    • Jason Y

      So relating to the comments above, I’d say the situation with immigrants is more complex than it seems, and people’s reaction, as in Asia in regards to white people, is mixed. For instance, I know a family restaurant with lots of Mexicans and a Mexican manager. There isn’t a lot of hate against them. Obviously if it were thru the roof, then the Mexicans would leave.

      • Jason Y

        The IHOP restaurant has gay people, native country type whites, Mexicans, a few blacks though not as many as before (something weird going on?), Everybody gets a long fine. It’s basically a showcase for diversity in Tennessee.

        They should make a TV comedy sitcom of the restaurant, lol.

  8. jorge

    Robert Lindsay

    “How many White Asians are there? I have never heard of even one ever? Spill. Let’s hear about these White Asians. Where are they? You mean in North India or Pakistani Punjab? Or in Iran? They don’t exist anywhere else. There’s no such thing as a White East Asian. Show me one White East Asian. I have never heard of such a thing.”

    If this was for me, all Middle East is white, also part of India, part of Central Asia, the Caucasus…

    So yes, there are white Asians.

    And about East Asia, surely there are some isolated whites from there.

  9. Ultra Cool

    There was a White tribe in China called Yuezhi, I think.

  10. Roger Frost

    I don’t doubt that the elites in Venezuela were not enamored of Chavismo. Their power, wealth and privilege were diminished. But like most of these Socialist Revolutions, one corrupt elite was replaced with another. Chavez , his family and his cronies looted the treasury and the oil revenues to enrich themselves to obscene levels. His daughter Maria has billions . Most of the upper echelon Chavistas are fabulously wealthy. This fuels much of the resentment taking place.

    • EPGAH

      Who was it that said, “If you steal from me, you become my enemy”?

      Chavez goes out of his way to make enemies of capitalists, including joining terrorists in calling America “Great Satan”, then acts surprised when the people he made enemies of act like well, ENEMIES?

      What did he expect? To be thanked for fucking them over?

  11. JPW

    : The business class is trying to take down Chavez by creating an economic crisis and using that crisis to take out the Chavistas.

    Given that Chavez is dead already, it would be a a typical screw-up of American FP.

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