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Bacchus4.0

(6,837 posts)
Wed Jan 22, 2014, 04:22 PM Jan 2014

Venezuela’s Largest Food Co. Says Dollar Delays Threaten Supply

http://www.bloomberg.com/news/2014-01-22/venezuela-s-largest-food-co-says-dollar-delays-threaten-supply.html

Empresas Polar SA, Venezuela’s largest privately-held company, said food production is at risk from record delays in the release of foreign currency by the government, fueling shortages of goods such as rice and milk.

Polar, which produces everything from beer to corn flour, can’t import more raw materials, equipment and packaging, the company said in an e-mailed statement today. Dollar shortages have increased the company’s debt with foreign suppliers by 194 percent in the past two years to $463 million, the Caracas-based company said.

Foreign currency reserves have fallen to a 10-year low in Venezuela, which imports about 70 percent of the goods it consumes. The government stopped publishing scarcity statistics in November, after the previous month’s data showed about one in five basic goods was out of stock at any given time.

President Nicolas Maduro and his late predecessor Hugo Chavez have accused Polar’s billionaire owner Lorenzo Mendoza of worsening shortages by artificially cutting production. Mendoza said the company is producing all it can and that food should not be politicized, after he met Maduro in May.


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Venezuela’s Largest Food Co. Says Dollar Delays Threaten Supply (Original Post) Bacchus4.0 Jan 2014 OP
I wish our DU researchers would see what's behind this. loudsue Jan 2014 #1
what doesn't seem right to you? Bacchus4.0 Jan 2014 #2
Well, their economy doesn't sound as bad as a whole lot of economies.. loudsue Jan 2014 #3
what does that have to do with the availability of dollars for companies to buy materials? Bacchus4.0 Jan 2014 #4
It'd be nice if you didn't used utterly biased sources like VenezuelaAnaylsis. Marksman_91 Jan 2014 #5

Bacchus4.0

(6,837 posts)
2. what doesn't seem right to you?
Wed Jan 22, 2014, 04:30 PM
Jan 2014

they can't produce food out of thin air. Venezuela imports 70% of its food products. No foreign producer is going to sell at a loss just because Venezuela's fiscal house is a disaster.

loudsue

(14,087 posts)
3. Well, their economy doesn't sound as bad as a whole lot of economies..
Wed Jan 22, 2014, 10:07 PM
Jan 2014

Sounds like it's on better ground than Greece, Portugal, and others:
http://venezuelanalysis.com/news/10283


"Merida, 15th January 2014 (Venezuelanalysis.com) – Agricultural loans, micro-financing and other financing for national development projects rose by 50.73% in Venezuela last year, according to the country's Superintendent of Banks (Sudeban).

Subeban's latest report indicates that development loans rose from BsF 179 billion (US$ 28.4 billion) at the end of 2012 to BsF 270 billion (US$ 42.9 billion) by last month.

Financing for agriculture reached BsF 108 billion (US$ 17.1 billion) in December; up 2.21% from November."


And then there's this about minimum wage and food subsidies:

http://venezuelanalysis.com/news/10266


"Merida, 7th January 2014 (Venezuelanalysis.com) – Yesterday President Nicolas Maduro announced a new minimum wage increase of 10%, to be applied as of this month.

The measure would bring wages above inflation levels. Inflation in 2013 was 56.2%, while minimum wage increases last year totalled 45%, with 20% applied in May, 10% in September, and 10% in November. With January’s increase, the minimum wage has now increased by 59% between May 2013 and January 2014.

The increase “brings us above the criminal inflation brought about by the economic war”, Maduro said.

The minimum wage is now Bs 3,270, or Bs 4,408 when food tickets of Bs 1,138 are included. Venezuelans also benefit from free health, education, and other services, and workers can buy highly subsidised food through the Mercal Obrero program."

Bacchus4.0

(6,837 posts)
4. what does that have to do with the availability of dollars for companies to buy materials?
Thu Jan 23, 2014, 09:44 AM
Jan 2014

The minimum wage is what the gov requires businesses to pay employees. Its easy for them to make that requirement. Venezuela imports 70% of its food products so agricultural production has light years to go before Ven becomes a self sufficient country.

 

Marksman_91

(2,035 posts)
5. It'd be nice if you didn't used utterly biased sources like VenezuelaAnaylsis.
Thu Jan 23, 2014, 07:02 PM
Jan 2014

See, this is an article from a website that is also biased in favor of the Venezuelan government, but instead talks about a very grim scenario, which makes it far more believable, because when a story is inconvenient from a biased source's perspective, it tends to hold greater truth:

http://www.aporrea.org/ideologia/a180516.html

Socialismo devaluado
Por: Carlos Sanchez | Miércoles, 22/01/2014 03:16 PM |
Se puede decir mucho sobre el socialismo. Recientemente se han hecho reclamos públicos acerca del socialismo venezolano y se ha instalado una especie de debate acerca del asunto. El camarada presidente ha salido en defensa ante quienes acusan a la revolución de desviarse del socialismo hacia el capitalismo. En su defensa el presidente ha dicho que el socialismo que se construye en Venezuela es un socialismo a la venezolana que no tiene porque ser igual a otros modelos socialistas del pasado.

Si bien el socialismo ha dado cabida a tantas formas distintas desde el comunismo hasta el anarquismo, no se puede caer en contradicciones. Es decir, se puede establecer un socialismo original, pero nunca caer en contradicciones.

Una de las máximas del socialismo propuesto por Marx es la liberación del proletario de la opresión del capitalista. Esa liberación significa que, entre otras cosas, el trabajador reciba lo que se merece por su trabajo, significa que el trabajo recupere su valor y haga desaparecer la plusvalía. En ese sentido, un sistema socialista debería siempre tener como norte elevar la calidad de vida de los trabajadores otorgándole mayor valor a su trabajo.

Si es así, un sistema socialista jamás debería subvalorar el trabajo, es decir, un sistema socialista no se puede permitir DEVALUAR el trabajo. Porque entonces entra en contradicción con la esencia del socialismo. Entrar con contradicción con un principio fundamental del socialismo significa que eso no es socialismo.

Así las cosas, la devaluación de la moneda significa en la realidad la devaluación del valor-trabajo. Cuando el bolívar se devalúa de 6,30 a 11,30, es decir, una devaluación del casi 100%. Eso significa que el valor- trabajo del ciudadano se reduce a la mitad. De manera que si su jornada de trabajo vale 100, con la devaluación pasa a valer 50. Eso, por más explicaciones que traten de dar, eso es una contradicción y por lo tanto, es una medida netamente capitalista porque en vez de reducir, aumenta la opresión que sufre el proletario, según el pensamiento Marxista. Y que me disculpe el Ministro Ramírez. Pero él puede decir que no hay devaluación, y eso se lo puede creer el que no tiene formación. Porque en la práctica ha ocurrido una devaluación peor a la del año 2013. Si en 2013 los precios se dispararon al mil por ciento con una devaluación del 46%, no me quiero imaginar que ocurrirá con una devaluación del 100%.

Entonces, ¿cómo puede decir un gobierno ser socialista cuando, en vez de revalorizar, devalúa el trabajo? ¿A quien beneficia una devaluación? La devaluación solamente beneficia al estado y a la burguesía. Porque los efectos de la devaluación los termina pagando el consumidor de bienes y servicios, pues los burgueses con aumentar los precios resuelven.

¿por qué se devalúa? Un gobierno devalúa cuando necesita dinero, es decir, por cada dolar que entra recibe 6.30 bolívares, al devaluar, por cada dolar que ingresa recibe más. El estado devalúa porque no tiene dinero suficiente para cubrir sus gastos.

El dolar a 6,30 será sólo para alimentos y medicinas, de manera que zapatos, ropa, electrodomésticos, computadoras, carros, repuestos, teléfonos y todo lo demás costará el doble.

Creo que ya es hora de quitarse la careta de socialismo y definirse como un capitalismo de estado u otra forma política-económica que se prefiera. Pero bajo ningún razonamiento posible se puede llamar socialista un estado que devalúa el valor-trabajo, no se puede llamar socialista un estado que beneficia a los ricos y perjudica a los pobres, no, realmente no.

Y si a esta devaluación, le agregamos el inminente aumento de la gasolina, pues esto es un gran paquetazo económico al mejor estilo de CAP. Si el estado va a aumentar la gasolina para obtener más dinero, jamás, como revolucionario convencido, jamás imaginé que habría devaluación: mis amigos opositores me hablaban de la devaluación y yo ingenuo les decía que no devaluarían porque con el aumento de la gasolina basta. pero me equivoqué, lamento decirlo, no solo habrá aumento de la gasolina, sino que hubo devaluación. un gran paquetazo económico capitalista. Es la realidad.

El camarada Ramírez dice que no es una devaluación (ya no sé si llamarle camarada), dice que no es devaluación porque los sectores prioritarios se mantendrán a 6.30. ¿cuáles son esos sectores? Medicina y alimentos. Ya está de más decir que estos sectores tienen unos precios que nada tienen que ver con el 6.30, sobretodo medicinas. Pero según el ministro no hay devaluación porque estos sectores se mantienen a 6,30. Supongo yo que el el ministro Ramirez y el camarada Maduro no saben que los Venezolanos, además de comer y medicarnos, nos vestimos, usamos zapatos, usamos teléfonos fijos y móviles, utilizamos computadoras para el trabajo y los estudios, compramos impresoras y cartuchos, tenemos carros porque el transporte público no existe en Venezuela, lo que existe es transporte privado y es un desastre, usamos lavadoras, licuadoras, cocinas, neveras, aire acondicionado, leemos libros, nos duchamos, etc, etc, etc. Pues bien, todos esos productos han pasado de 6.30 a 11.30 o más. Entonces, ¿cómo se le llama a eso? DEVALUACIÓN. Y con esto paso a estar convencido que estás medidas de socialistas no tienen absolutamente nada. Que a partir de hoy el pobre es más pobre y el rico es más rico. Y que el sueldo que recibimos 15 y último ahora menos alcanzará para cubrir los gastos.

Yo veía con recelo las aptitudes de algunos camaradas que vienen anunciando un distanciamiento del gobierno y el socialismo, pensé que estos camaradas eran unos necios. Pero ahora los entiendo perfectamente. Porque un estado que se define como socialista no puede tomar medidas económicas que perjudican el valor del trabajo. Esas medidas son netamente capitalistas. De manera que socialismo, en Venezuela, no existe.


TRANSLATION

Devaluated Socialism

One can say a lot about socialism. Recently there have been many public claims regarding Venezuelan socialism and a certain kind of debate has been established about the subject. The comrade president has come out in defense against those who accuse the revolution of deviating from socialism towards to capitalism. In his defense, the president has said that the socialism in Venezuela is one that is done Venezuelan-style and does not have to be like other socialist models of the past.

If socialism has had many distinct forms ranging from communism to anarchism, one cannot fall in contradictions. As in, a truly original type of socialism can be established, but you never fall in contradictions.

One of the rules of socialism established by Marx is the liberation of the proletariat from the capitalist oppression. That liberation means, among other things, that the worker should receive what he deserves for his work, that his work recovers his value and makes added value disappear. In this sense, a socialist system should always have as primary objective to elevate the quality of life of workers granting them more value to their work.

If this is so, a socialist system should NEVER devalue work, as in, a socialist system should not be allowed to DEVALUE work. Because then comes the contradiction with the essence of socialism. Coming in contradiction with the fundamental principle of socialism means that this is not socialism.

With that in mind, the devaluation of the currency means the devaluation of the work-value. When the bolivar is devaluated from 6.30 (per dollar) to 11.30, as in, a devaluation close to 100%, this means that the work-value of the citizen is reduced by half. In such a way that if a worker's labor is worth 100, with the devaluation it is now worth 50. No matter how many times they try to give explanations, this is a contradiction and, as such, is a measure utterly capitalist because instead of reducing, it increases the oppression that the proletariat suffers, according to Marxist thought. And may the Minister Ramirez forgive me, but he may say there is no devaluation, and only a person without proper education may believe it. Because in practice, what has happened is a devaluation worse than that of 2013. If in 2013 the prices skyrocketed to 1000% by a 46% devaluation, I don't even want to imagine what will happen with a 100% devaluation.

So, how can a government say it's socialist when, instead of revaluing, it devalues work? Who benefits a devaluation? The devaluation only benefits the state and the oligarchs. Because the effects of the devaluation end up being paid for by the consumer of goods and services, so the bourgeoisie can simply increase prices and that settles it for them.

Why is there a devaluation? A government devalues when it needs money, as in, for every dollar one receives 6.30 bolivars. After devaluating, one receives more. The state is devaluing because it does not have enough cash to pay its expenditures.

The dollar at 6.30 will be only for food and medical supplies, meaning that other items like shoes, clothing, electronics, computers, cars, spare parts, telephones and everything else will cost double.

I think it's time to remove the mask of socialism and redefine this system as state capitalism or another economical-political form. But under not rationalization possible can one call a state that devalues the work-value "socialist". One cannot call "socialist" a state that benefits the rich and jeopardizes the poor.

And if we add to this devaluation the imminent increase of gasoline, well, this is one big economic "paquetazo" in the style of Carlos Andrés Pérez (referring to the "paquetazo" delievered by CAP in 1989 which caused the Caracazo. Read more here: http://en.wikipedia.org/wiki/Caracazo). If the state is going to increase gasoline to obtain more money, never, as a convinced revolutionary, never did I imagine that there would a devaluation: my friends from the opposition had told me about the devaluation and I, being naive, told them that the state would not devalue because with the increase of the gasoline it would be enough. But I was wrong, I'm afraid to say. Not only will there be an increase in gas prices, there was also a devaluation. A great, big capitalist economic package. It's the reality.

The comrade Ramirez says that it's NOT a devaluation (I don't know if I should even call him "comrade" anymore), and says that it is not so because the priority sectors will remain at 6.30. What are those sectors? Medical supplies and food. But we all know that these sectors already have prices that have nothing to do with a 6.30 dollar, especially medical products. But according to the minister, "there is no devaluation" because these sectors remain at 6.30. I suppose the minister Ramirez and comrade Maduro don't know that Venezuelans, besides eating and taking care of our health, also require clothing, use shoes, use telephones, use computers for work and school, by printers and ink cartridges, have cars because public transport does not exist in Venezuela (what there is is public transport and it's a disaster), we use washing machines, blenders, kitchens, refrigerators, air conditioning, we read books, we shower, etc, etc, etc. And now all those products went from 6.30 to 11.30 or maybe even more. So, what is this called? DEVALUATION! And with this I'm now convinced that these measures supposedly socialist are not at all like that, that starting today, the poor is even poorer, and rich are even richer. And the salary we receive will now cover even less of the expenses.

I watched with suspicion the aptitudes of certain comrades who came announcing a distancing of the government from socialism. I thought that these comrades were being foolish. But now I understand perfectly. Because a state that defines itself as socialist cannot apply such economic measures that jeopardize the value of work. These measures are utterly capitalist. In this way, socialism, in Venezuela, DOES NOT EXIST.


There's another one from another author, if you'd like. It's essentially saying the same thing, but in different words: http://www.aporrea.org/actualidad/a180554.html
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