Chavez cracks down on Smugglers

[tjinaz]

In a country awash in oil revenues what do you smuggle?

Food? How is this happening? All of that oil money coming in and they the government is seizing food? Especially in South America. Isn't that one of the most fertile places on earth? I know the Argentines have awesome beef and grain.

http://tvnz.co.nz/view/page/536641/1555965

[Cowperson]

Business leaders say shortages of these products are caused by strict price controls, which have lagged inflation that is Latin America's highest.

As noted before, this is Zimbabwe Part Deux.

He claims the USA is going to invade, yet its obvious all they have to do is sit back and watch him destroy himself. The petro-dollars slow the process a bit but he's on an inevitable curve.

You can almost put this one in a textbook.

Cowperson

[mykalberta]

Its too bad, alot of Venezualans are good people.

Its one of those situations where yes they (US) can just stand back and let the country implode on its own, then come in with Brazil and assist in cleaning up the mess.

[BlackEleven]

Originally Posted by tjinaz

In a country awash in oil revenues what do you smuggle?

You smuggle whatever makes you money.

By artifically restricting the prices of food, Chavez created a huge demand -- so large, that supply could not keep up. Under normal circumstances, the high demand and low supply would create a high price to curb the demand. However, under circumstances where the market has been artificially restricted, it won't take long before a black market emerges where the price reflects the natural supply and demand curves and suppliers (or smugglers) can sell their wares at an enormous profit.

[tjinaz]

That just boggles my mind. I guess I am spoiled in North America where we pay farmers to NOT grow food that in a country with such an abundance of Oil they are smuggling food. I can live with out oil for a short term. I can't live with out food. That is just crazy. I can't believe Chavez enjoys the support he does with food prices being so high.

[DESS]

For some reason I read that title as "Chaves chows down at smugglers".