Price of corn flour in Venezuela soars 900 percent

[Freddie Stubbs]

Source: Agence France-Presse

Caracas (AFP) - Venezuelans on Tuesday woke up to discover that the government-controlled price of corn flour -- used to make corn patty arepas, a staple of local cuisine -- has risen 900 percent.

The socialist government of President Nicolas Maduro had kept the price of corn flour frozen for 15 months at 19 bolivares a kilogram (two pounds).

But late Monday the government's Superintendent of Fair Prices increased the price to 190 bolivares a kilo, or $19 at the government rate used for imports such as medicine and scarce food.

Flour is one of the most scarce food basics, and the Venezuelan Association of Corn Flour Industrialists has been asking for a price increase, arguing that the low government-set price does not cover the cost of production.

Read more: https://www.yahoo.com/news/price-corn-flour-venezuela-soars-900-percent-115846076.html?ref=gs

---

Anyone who thinks that nominating Bernie Sanders is good idea needs to start paying attention of what is happening Venezuela. It will be all too easy for Republicans to use Venezuela as a cautionary tale for what could happen to this country if an admitted Socialist were in the White House.

[SusanLarson]

1. This is a joke right?

You are joking right? LOL. There's a big difference between a socialist and a democratic socialist. Why don't you invoke Mother Russia while you are at it Comrade. LOL

[leftynyc]

20. And you trust the average

American voter to make that distinction? I sure don't.

[mpcamb]

29. I think the real question is "What are we doing to help the poor and hospitalized

during this financial crisis in Venezuela?'
This is about human suffering, too, tho the mainstream US press seems deaf to it.

[Freddie Stubbs]

52. If Sanders has to spend all of him explaining what type of socialist he is, he will lose

[forest444]

55. Nicely put, Susan.

DU prides itself - and rightfully so - as a red baiting-free zone. Every now and again one slips through though.

[Archae]

2. Sanders has nothing to do with Maduro.

This is really a stretch, to tie in the two.

Maduro is incompetent, dictatorial, greedy and authoritarian.

Sanders is not.

[sabbat hunter]

46. You and I know that

but Trump appeals to low information voters and will try to blur the lines between them.

[Archae]

48. We both have already seen that.

When Trump called Sanders a "communist."

Trump is really, just a nothing.

Like Hillary said, how can he have gone bankrupt running a casino?

[sabbat hunter]

51. he never went bankrupt

he made millions if not billions on them. But he never used his own money, he had the companies borrow money at high interest rates, ones that he knew would eventually cause problems, but only after he made his money on them.

[Rex]

66. He filed for bankruptcy 3 times, I wonder if a fourth is in order?

I hear his brand is tanking...poor baby.

[Freddie Stubbs]

53. Not too much of a stretch when they are both admitted socialists

[lapfog_1]

3. This isn't the fault of socialism as much as it is the fault of

disaster capitalism.

Couple that with a collapse of global oil prices brought about by Saudi Arabia desperate fight to stave off higher oil production from North America (tar sands, North Dakota, fracking everywhere)... and you get Venezuela.

Not to mention that Bernie isn't a communist or true(tm) socialist... he is a Democratic Socialist.

[SusanLarson]

5. We have a direct vested interest in destablizing a government of the people.

In 1970, U.S. President Richard Nixon ordered the CIA to make the “Chilean economy scream,” a conspiracy to overthrow the first democratically elected socialist government of Latin America that was accompanied by disappearing basic products from the shelves of stores across the country.

The same plan was implemented against Venezuela. And the fact that after the Dec. 6 victory of the right-wing opposition, according to many social media users in Venezuela, basic products are beginning to appear in stores throughout the South American nation, suggests that the right-wing opposition, backed by the U.S., implemented the same plan.

Basic Goods 'Suspiciously' Begin to Appear in Venezuela Stores, CIA Venezuela Destabilization Memo Surfaces, and The Truth Behind Shortages in Venezuela.

Try getting away from American News outlets they are a propaganda arm of the Government of this country.

[Archae]

7. Telesur is the "Russia Today" of South America...

Owned and run by Maduro and his goons.

La Nueva Televisora del Sur (teleSUR, English: The New Television Station of the South) is multi-state funded, pan–Latin American terrestrial and satellite television network sponsored by the governments of Venezuela, Cuba, Ecuador, Nicaragua, Uruguay, and Bolivia that is headquartered in Caracas, Venezuela.
(Wikipedia)

(Rational Wiki looks at Maduro's and Castro's propaganda outlet)
http://rationalwiki.org/wiki/TeleSUR

[SusanLarson]

10. Rebut the facts

Then rebut the facts contained in the articles don't attack the source. Even Fox News publishes real news now and then.

[Archae]

13. Then publish some facts, from a credible source.

Like here.

http://rationalwiki.org/wiki/TeleSUR

[SusanLarson]

15. ignored

Blocked for being a troll

[Marengo]

18. You can block someone from LBN?

[leftynyc]

19. Are you seriously

(with your less than 200 posts) calling a DUer with over 36,000 posts a troll? Try learning some manners.

[Archae]

27. This is the "Maduro can do no wrong" mindset.

The only reason there hasn't been a military coup in VN is because Maduro promotes military loyalists.

But the shortages are affecting the military now too, a group of soldiers were caught stealing goats, since they are hungry.

[Bacchus4.0]

17. Basic goods have NOT begun to appear in stores. They are out of sugar and beer now

http://www.ajc.com/news/news/national/venezuelas-food-shortage-drains-its-beer-and-coca-/nrRM9/

Coca-Cola and beer might soon be harder to come by in Venezuela.

That's because the low price of oil, Venezuela's main export, has burdened the country's economy. Now, it's dealing with a food shortage, as well as riots, rolling blackouts and rising crime rates.

The food shortage includes sugar, which has halted production at the local Coca-Cola plant. And the country's largest beer manufacturer says a lack of barley forced it to stop production last month.

[Freddie Stubbs]

54. Funny how Venezuela is the only OPEC nation on the verge of collapse

[zazen]

4. PLUS the "cautionary tales" from Canada, Switzerland, GB, France, Iceland. . . the horror! n/t

[christx30]

11. You mean people are able to go to the hospital for

live saving treatment, and NOT end up in horrible, massive debt?! The horror! They need some FREEDOM.

[former9thward]

49. Those are all market based economies.

Not remotely socialist.

[Freddie Stubbs]

56. None of those countries have admitted socialists as a head of state

[SpankMe]

6. Socialism

Socialism: a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

Seems to me that Venezuela has very poorly managed socialism - if you can even call that means of public affairs management "socialism".

If you're going to indict all socialism based on the poor example of Venezuela, then you're going to have to indict all democracy based on the poor example of Wisconsin (Scott Walker's awesome state).

[Igel]

24. That's always been true.

The only time you can centrally plan a country is when the economy is simple. When a staple of production is large-batch iron and steel, when you are gearing up from a low standard so that the one or two models of washing machines are adequate.

After that, when you're trying to centrally plan 30k different products and the materials needed for making each component of each product you either destroy the economy or are forced to accept a certain measure of humility and admit that the bureaucrats with the de-facto authority and power in such a society aren't omniscient. This leads to a conflict of interest: "Do I protect my power or do I step aside so that those who know more keep the economy from going over the cliff?"

All the east European countries faced it. A few South American countries. A couple in Africa. China's trying to manage the transition now and may or may not manage to decentralize and preserve the centralized authoritarian structure.

[Freddie Stubbs]

57. As bad as things are in Wisconsin, there isn't a shortage of food and basic consumer goods

[uhnope]

8. so, we can't vote for Sanders because Republicans lie?

yeah that makes sense

[Freddie Stubbs]

58. They wouldn't even have to lie. Sanders has proudly admitted that he is a socialist

[uhnope]

65. for your sake, I hope you're intentionally spreading a BS talking point

and that you don't actually believe it.

[Bodych]

9. You're worried about FLOUR, but not our own national security?

And not endless war?

And not having war criminals as your closest friends/advisors?

And not pay-to-play?

And not aligning with neo-cons?

And not taking tens of million$ from Wall Street crooks?

Some priorities you've got there. You and so many others.

[Freddie Stubbs]

59. Countries where the masses are starving can't defend themselves

[askeptic]

12. Hard to believe 30K posts and still doesn't know the difference

between socialism and democratic socialism. It's democratic socialism that makes capitalism palatable, IMHO.

[Freddie Stubbs]

60. Democratic Socialism is just socialism implemented by democratic means

Which is exactly what happened to Venezuela.

[bemildred]

14. Why is this in LBN? nt

[Freddie Stubbs]

61. How does it not conform to the rules of the forum?

[Android3.14]

16. Anyone who thinks Sanders is going to run the USA like Venezuela needs his or her head examined

You sound like Rush Limbaugh on the eve of the Obama inauguration.

This is a stupid specious argument.

[Freddie Stubbs]

62. We have never had an admitted socialist as President here before so the only guide we have is

other countries.

[Android3.14]

64. There's no need to be willfully ignorant

It's one of the reasons we have so many following a corporate puppet.

[DetlefK]

21. Sanders is a social-democrat. And if you want an example for social-democracy, look at Germany.

No lines in front of food-vendors, no shortages, and the economy is doing just fine...

Germany's economic model was designed to be a mix of capitalism and socialism. It's called "Soziale Marktwirtschaft" and it's basically capitalism plus regulations that keep that capitalism from destabilizing economy and society.
https://en.wikipedia.org/wiki/Social_market_economy



And the social-democrats are the second-largest political party in Germany, only outmatched by Merkel's conservatives (and even Germany's conservatives are still more like US-Democrats than US-Republicans).

The far-left gets about 5-15% in the polls in Germany, but even they are more like social-democrats than socialists. And actual communists, socialists, marxists, leninists get <1%.

[Freddie Stubbs]

63. If he is a 'social democrat,' why had he called himself a democratic socialist?

[DetlefK]

68. Politics is shades of grey.

The world of politics has many thousand times more to offer than the US-fauna of "conservatives" and "democrats".

I would go less by "social-democrat" or "democratic socialist" and more by the way he thinks, what he says, what he proposes...

[tabasco]

22. Bwwaaaahhahahahaha.

You proved your utter ignorance with this post.

[Yo_Mama]

23. When did Sanders ever advocate price controls and currency manipulation such as in VZ?

Sanders is more an advocate of democratic socialism as practiced in the Scandinavian countries, which is not really socialism (private companies or people own most assets, markets are free, corporate taxes now are low).

I have watched the Venezuelan tragedy unfold with sorrow, but trying to imply this says something about Sanders' goals or suggested policies is way, way off.

Venezuela got where it is now by following a policy which was doomed to fail. That included choking off the ability of producers to make money, and then rapidly inflating the currency, while artificially setting the exchange rate far, far too high. This inevitably produced a situation in which any producer who has to buy goods from outside the country (increasingly more, as domestic producers collapse or have to restrain production) but is trying to sell them inside the country for the domestic currency is unable to purchase the necessary means of production. This then produces very high inflation and a refusal to sell stocks until the moment the producer needs currency to buy something the producer will be able to afford.

So you get the 600% inflation rate and a shortage of goods. Totally predictable. Indeed, I explained what was going to happen on DU last year in a series of posts.

Show me where Sanders has advocated such a policy, and we'll have a real discussion. Until then, this is nonsense.

[jmowreader]

39. The two biggest planks in his campaign platform won't work without price controls

[apnu]

25. Oh boy Globalization!

The price of corn flower would be cheaper if Venezuelans could grow their own corn. But thanks to decades of corn bumper crops in the US (Thanks Monsanto and Roundup Ready!) and free trade agreements, it is cheaper for Central and South America to import US corn than it is to grow it. Now local farmers are out of business in corn and its time to yank the chain of a society dependent on imports.

All. According. To. Plan.

[hack89]

31. VZ currency problems are purely self inflicted.

there is plenty of corn to be purchased - VZ doesn't have the dollars to buy it.

[apnu]

34. That doesn't change my point much

Why can VZ grow their own corn like they used to before Big Agra?

This is all part of the trap. Either these countries buy in with cheap food imports, and maintain stable economies so they keep buying cheap food imports, or they crash like VZ and are screwed because they are incapable of feeding themselves. Thus they have to go deeper into debt just to live. Either way, the "man" gets paid.

Its a vicious cycle they're trapped in, and crashed economy or no, they're on the hook and not getting off it.

[hack89]

35. Because they made some really bad choices?

VZ is (was) a very rich nation. They had the resources to diversify their economy. They choose not to but decided to ride the OPEC express as long as they could. On top of that, the government confiscated and expropriated much of the agricultural industry. State intervention has seriously damaged the agricultural sector, and Venezuela now imports most of its food.

[Bacchus4.0]

36. You mean before the oil boom economy. Venezuela has failed to diversify for decades

The chavistas said they were going to be "food sovereign" but imports of food have increased while domestic production has dwindled due to government seizures of industry and terrible economic policies.

Venezuela is experiencing food shortages not because they couldn't import more food to meet their needs, but because they can't pay for food anymore. That's why. Cheap imports are not the problem.

[NickB79]

43. Because you need more than dirt and seed to grow millions of tons of corn?

You generally need hybrid seed, which VZ lacks local production of and has little foreign currency to import.

You need fertilizers, which VZ doesn't have the industrial base to generate on a large scale and needs to import.

You need tractors, cultivators, combines, and the parts to maintain them, which VZ doesn't have the factories locally to build them.

Before "Big Agra", VZ wasn't self-sufficient; they haven't been for decades because of the trap of oil resources.

Given enough time, VZ COULD create a domestic seed business to generate sufficient seed and build fertilizer and tractor factories for domestic use, but Chavez and Maduro crashed the economy so fast, the window to invest in these facilities closed far more rapidly than expected.

[Bacchus4.0]

33. The US does not have an FTA with Venezuela however we are their largest trading partner

Venezuela doesn't have money to pay for the food, cheap or not.

[leftofcool]

26. We don't need a socialist country like this

[Laser102]

28. The problem with Bernie's ideas in a Democracy are those pesky elections.

If they didn't occur every two and four years, Bernie may have a chance of implementing some of them. Unfortunately, any new idea has to have the consensus of the majority. Look at the ACA and the years spent fighting it in court. Republicans will continue to fight anything that benefits the masses. Small steps forward. Not revolutions.

[Bernardo de La Paz]

30. Not socialism. Not progressive. Not "liberal". It's left-wing authoritarianism. . . nt

[PersonNumber503602]

32. I'm not sure I agree with the Sanders = Maduro thing.

That's the sort of talk I'd expect to hear over at discussionist from the right-wingers, but someone who considers themselves to be a progressive. I fully understand not thinking Sanders has the right ideas or is the best guy for the job, but that comparison just seems off.

[PufPuf23]

38. Do you know the difference between socialism and social democracy

in political and economic philosophy and method?

Are you pretending to not know the difference between socialism and a social democracy and trying to confuse folks because you are so partisan??

Or maybe you truly do not know but you strike me as an intelligent and informed individual?

Bernie Sanders is a social democrat in political philosophy not a socialist.

Just what if Sanders has a better projection against Trump in the general election and more chance to win POTUS than Clinton?

Social democracy was the core economic and political philosophy of the Democratic party until the infiltration by neo-liberals.

What if the members of the Democratic party, former members, independents, members of third parties, and cross over GOP would provide more votes for the Democratic party with Sanders in the general election and that the Democratic party have better down ticket success because Sanders brings out more voters?

I think Clinton will be the nominee and, if not, the DNC and Democratic establishment will attempt and probably succeed in replacing Hillary Clinton with a candidate, say Biden or Kerry, other than Sanders.

Looks to me that the Democratic establishment and Clinton supporters would rather risk losing the POTUS to Trump and having less down ticket success because they do not want Sanders.

===============================

Socialism defined

a political and economic theory of social organization that advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.

Social democrat defined

Social democracy is a political ideology that supports economic and social interventions to promote social justice within the framework of a capitalist economy, and a policy regime involving welfare state provisions, collective bargaining arrangements, regulation of the economy in the general interest, measures for income redistribution, and a commitment to representative democracy.

[Angel Martin]

41. why does Sanders call himself a "socialist"

and not a "social democrat" ?

[PufPuf23]

42. Why does Bernie Sanders call himself a democratic socialist when he is a social democrat?

An easy to understand online explanation:

https://www.quora.com/Why-does-Bernie-Sanders-call-himself-a-democratic-socialist-when-he-is-a-social-democrat

Of all the policies he has proposed neither is democratic socialist, all of them are social democratic. The Nordic countries aren't democratic socialists neither, they're social democracies.


To be honest, I'm not sure why he does either. "Social democrat" is closer to his platform: none of his platform supports government ownership of the means of production, which is the defining principle of socialist political economy. Sure, he supports government provision of healthcare, but that's not the same thing as government production of healthcare. He supports strict regulation of some industries (like carbon taxes), but again, not the same thing as government ownership.

What's more, those countries that he cites as models that we can learn from--Norway, Sweden, Denmark, Finland? Their governments call themselves social democrats! On top of that, "democratic socialist" sounds a lot scarier to Americans than the correct term. He's got every reason to call himself a social democrat and not a democratic socialist, and yet he doesn't do it.

I suspect it's because back when he was running as the Liberty Union candidate for governor, he really was an avowed all-around socialist, not just in policy terms but in worldview. He did all the things a good American socialist activist did in the Cold War: he protested against the Vietnam War, he organized civil rights demonstrations, he hung out with Noam Chomsky (who, incidentally, also says that Bernie's not actually a socialist), and as one of the harshest critics of CIA regime change policy, he was a supporter of the Sandinistas in Nicaragua and Salvador Allende in Chile. He's moderated considerably since his Liberty Union days, and it may be that he's just too consistent to change his label.

That, or he's worried that people will mistake him as a "Democrat on social issues", which is not at all the same as a social democrat.

[Javaman]

40. what a truly inane comment at the end. nt

[Odin2005]

44. Another thing for that incompetent, paranoid idiot Maduro to blame on the CIA.

[christx30]

45. This actually could be a good thing.

No one wants to produce there because they can't get enough for the crop. Now the price is closer to realistic, people might think it's worth it to bring corn into the country.
I guess we'll see.

[hack89]

47. That's not the issue

there are no US dollars available to purchase goods on the global market. VZ has a currency crisis more than anything else.

[Earth_First]

50. This is an editorialized (in comments) GD:P disguised as LBN...

Sure.

[Rex]

67. You should not insult the people that post here.