Chavez Eats the Bear

Sleeping with the fish

President Hugo Chavez blames capitalism for Venezuela’s deepening economic crisis. But the Bolivarian Revolution will set things right.

One of the “solutions” that Chavez has in mind is expropriating the Polar Group’s assets nationally.

“Look at yourself in the mirror of RCTV,” Chavez warned Polar’s CEO Lorenzo Mendoza on 2 June.

Chavez isn’t bluffing. The regime has been eyeing Polar’s assets for a long time, and launched its offensive to seize the group three months ago.

The recent illegal expropriation of Polar’s warehouses in Barquisimeto’s Industrial Zone I, and the theft by National Guard troops of 120 tons of food from a Polar warehouse in Lara are part of this official offensive against Polar. So are the theatrics this week of PSUV National Deputy Iris Varela (aka Fosforito) demanding a meeting with Polar CEO Mendoza to negotiate on behalf of retired Polar employees with grievances.

The Polar Group employs over 31,000 persons at its four beer breweries, three beverage plants, 13 food plants and 46 distribution subsidiaries nationally. Polar ships 6,000 tons of food per day in 250 primary trucks and 700 secondary trucks, servicing a daily average of 9,000 clients. Every week, Polar companies services over 50,000 points of sale nationally. All of this is previously approved by regime “fiscales,” since the government now demands a priori “guias de movilizacion,” which Polar churns out at a rate of 1,600 per day.

Chavez is framing his planned expropriation of Polar’s assets as part of a class war between workers and the “bourgeoisie.” He urged “Venezuela’s true labor class” on 2 June to launch an “economic war against the bourgeoisie.”

“I was born for battle, I was born for battle…They have declared economic war against me,” Chavez said, in reference to Fedecamaras and Consecomercio. “I declare myself at economic war, and I call now on the people and the workers to this economic war.”

But Chavez reserved his harshest threats for Polar’s CEO.

Caracas Gringo has said it before: The Chavez regime is seeking total control over the country’s food supply. Whether it can do so remains to be seen, but asserting total state control over the food supply is an effective policy tool for containing dissent. This strategy comes from Cuba, without a doubt.

Of course, nothing that the Chavez regime seizes works even slightly well after the revolution takes over. Productive enterprises that were seized by the regime and quickly run into the ground include Pdvsa, Electricidad de Caracas, Sidor, the basic industries, the cement companies, millions of hectares of agricultural lands, food warehousing and processing companies, the commercial ports, Banco de Venezuela, Cantv, etc.

This means that when Chavez steals Polar, the revolution (by some estimates) will control over 80% of the national corn flour market, among other staples. But Venezuela’s largest private food group will collapse quickly too, and the shortages that Venezuelans are suffering today will quickly spiral.

Chavez continues to insist that nothing bad is happening in Venezuela today, but if anything bad is happening in Venezuela then it most definitely is not the fault of Chavez or the Bolivarian revolution.

National power crisis? The fault lies with El Nino, global warming, capitalism and internal sabotage by agents of the empire and bourgeoisie.

Food shortages? The “squalid bourgeoisie” is hoarding food supplies to create artificial shortages and drive up food prices.

GDP shrank 5.8% in first quarter 2010? It’s the fault of capitalism, and contraction is a necessary stage in dismantling the pillars of capitalism.

The regime ran out of hard currency? The guilty parties are bourgeois speculators conspiring internationally to weaken the currency and destabilize Chavez. But the president already has moved decisively to shut down the parallel market and is also threatening to seize the country’s private banks.

However, nothing is ever Chavez’s fault, and meanwhile the only possible solution – strictly from a Bolivarian perspective – is more expropriations. Vice President Elias Jaua said it clearly: “21st century Socialism and capitalism cannot coexist.”

That’s why Chavez will eat the bear, and the “pueblo” will know more hunger.


About Caracas Gringo

Representing less than 0.00000000001515152% of the world population as of 31 December 2011.
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3 Responses to Chavez Eats the Bear

  1. renevers says:

    The events in Venezuela are in historic perspective a repeat of the period after the Cuban Revolution. Che Guevarra as the director of the Bank Of Cuba and responsible for the economy of Cuba at that time, mastered to wipe out the light industry of Cuba, tourism and diverse agriculture and turned a country with the second highest average pro-capita income of south America to a beggar state. The high rate of intimidation and political slave labour could for a short period economically compensate , some of the loss, especially in building construction and medical and educational services but until to today the Cuban economy as a whole is faltering. Chavez thinks that the oil revenues will compensate for the loss of economic capacity lost in his revolution, but as we have seen in Communistic Russia that the availability of large oil, gas and coal richesses could only guarantee mediocre standard of life even with very high use of pro capita energy amount.
    The only working rich socialistic countries I know are The Netherlands and Norway, who have large oil and gas deposits under territories.They didn’t go that far as Chavez in turning the society around or didn’t nationalise companies. But even Dutch and Norsk economic outlook for the future would be bleak without oil and gas . Political blunders and the waste of oversocialisation continue to be wiped under the carpet with all that energy export money. These so called “social, guide and example nations” get a lot of wrongfooted followers, but don’t try their system without a big supply of money. In fact the wealth of Chavez in Venezuela is generated by North and South American working -and middle class people outside his country and comes in containers from over sea as long as the oil-money flows. The socialistic system only works fine with a lot of extra money you don’t have to work and organise for.


  2. CuervoBlanco says:

    This monkey needs someone to put him two in the chest and one in the head. And check.


  3. David says:

    WSJ.COM JUNE 2, 2010
    Rotten Food Complicates Chávez’s Reign

    The discovery of the 30,000 tons of out-of-date milk, rice and wheat flour at the warehouse in the port city of Puerto Cabello is seen as an embarrassment for President Hugo Chávez, who has been blaming opposition forces and private industry for a recent rise in food shortages.


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