Toilet paper shortage is because ‘Venezuelans are eating more’ argues the government

[Bacchus4.0]

http://en.mercopress.com/2013/05/24/toilet-paper-shortage-is-because-venezuelans-are-eating-more-argues-the-government

A few hours after the Venezuelan congress voted a 79 million dollars credit for the import of 39 million rolls of toilet paper and other personal hygiene items, the government of President Nicolas Maduro said this was because “Venezuelans are eating more”.

The head of Venezuela’s stats office, INE, Elias Eljuri came up with the argument on revealing that the latest households’ budget poll showed that Venezuelans now “were having three meals a day and even more”.

According to the survey released by Eljuri, “95% of the Venezuelan population, estimated in 29 million, now feed three to four times a day”

The poll triggered an immediate reaction of anger and fits of laughter in the country transformed by the Bolivarian revolution.

On the one side people were furious because INE released the information in the midst of one of the moments of greatest scarcity with supermarket shelves virtually empty. To overcome the situation President Maduro had to negotiate with food chains and distributors the import of food and toiletry.

[Buzz Clik]

1. To quote David Carridine as Woody Guthrie in "Bound for Glory":

"The more you eat, the more you shit."

If Woody said it, it must be true.

[naaman fletcher]

2. It's like the global warming deniers

They ignore basic science, and then just make shit up.

Price controls cause shortages.

[naaman fletcher]

3. Plus

And besides, there is population growth AND more income all over latin america, yet there are only shortages in VZLA.

Well, in about 9 months we will see the same in Argentina.

[Bacchus4.0]

8. correct, the rest of Latin America is growing too

and they don't seem to have the same problems.

[railsback]

4. So this is the oligarch/Capriles strategy to bring down Maduro

Problem with that is, most of the Venezuelans have never lived such a life of luxury of pampering your bottom with fine soft fuzzy paper after dumping your log.

Cuba makes good use of their newspapers, cutting them just the right size for dual purposes.

[naaman fletcher]

5. Price controls cause shortages

It's simple fact.

I think you are incorrect that VZLA's don't like or know toilet paper. Perhaps you should stop using it in solidarity.

[railsback]

6. Well, actually hoarding has more of an effect

and the refusal those bulk buyers to sell. Still, inflation has averaged around 25% after sending the oligarch Republicans packing in '98, far lower than Caldera's government for the wealthy.

[naaman fletcher]

7. That's abusurd

If someone can't produce profitably, they won't produce at all. It is first week of econ 101.

Now, explain this hoarding to me:

If I get this right you are saying:

The price controls have not in any way affected production, and the currency controls have not in any way affected imports:

Instead, the grocery stores pay good hard cash for products made in VZLA and imports. Being out all that money they then hold onto it in warehouses and let the perishables waste and not sell the non persishables.

Let me ask you, why is it that just VZLA supermarkets are that smart? Why don't they do it all over the world? Why doesn't walmart implement that genius money making scheme in the US?

[railsback]

9. Its only absurd if you love oligarchs

who hold a bastion of wealth, and will stop at no end, including hoarding products, to get their grubby little hands on the nation's oil fields. Talking economics 101 in Venezuela is pretty funny.

Its no secret that big business directly plays a part in shortages by hoarding, underpaying, importing and pricing it on a higher parallel rate, money speculation, encouraging more buying and more privatization. You seem to be equating Venezuelan oligarchs to rational, honest business types. HardyHarHar.

[naaman fletcher]

10. In other words

You couldn't answer my question, because you don't know the first week of Econ 101.

Its like arguing with climate change denialists, you know nothing about the science but just spout ideology.

[railsback]

11. You refuse to accept the answer

like FOX IF News… and a climate denier.

[naaman fletcher]

12. you didn't answer

at all.

[Socialistlemur]

13. I take it you believe there are huge warehouses hiding toilet paper?

Sounds a bit goofy. Toilet paper is a very bulky material and hard to hide. I suspect the shortage is transitory, caused by restrictions in the supply caused by lack of foreign currency. I understand the Maduro regime closed a secondary exchange market (SITME), and this has increased shortages. My advice to the regime would be to have a very honest discussion with the people and announce a scaled devaluation of the bolivar, which is really overpriced. A weaker currency will help make local production more competitive. But they will have to abandon Marxist ideas and let the private sector inject some badly needed dynamism into the economy. This is a radical shift from the Obsolete approach Mr Giordani and Mr Merentes have used. If the economy is not reformed to be more responsive to market conditions the Venezuelan bond market will react with a kick towards much higher interest rates for new issues. Venezuela is in debt, and will need to issue much more debt to pull itself out of the current crisis. This means it has to devalue and rationalize, otherwise nobody will buy their bonds.

[railsback]

14. The bolivar has been downgraded numerous times already,

by 32% last year (which basically empowered the commercial monopolies and private banks), and the SITME was replaced with CADVI. Again, people incorrectly assume that there aren't ANY private mega corps in Venezuela, that's its all just a pure, Cuban socialist state. There are plenty of oligarchs holding monopolies who easily can control supply. They do not want more competition, they do not want people making higher wages, and they certainly want the oil fields, and will take the whole country down to do so. They ARE our Republicans.

[Socialistlemur]

15. A slight correction to the statement above

The devaluation from 4.3 to 6.3 to the USD took place this year. This is the 32 % you mention. Due to inflation the currency has to be devalued - in a free market it would happen on a daily basis. But the 32 % wasn't enough. The SITME wasn't replaced by CADIVI, the later is the official market since 2003. SITME wasn't replaced at first. Then they created a new non transparent market called SICAD, which devalued the currency but was suspended. The Venezuelan central bank announced they would re activate SICAD but it's not known if it will be transparent. Without transparency it will not be a viable market for honest business. I agree there are many large corporations operating in Venezuela, but I don't buy the idea that they are hoarding toilet paper. They do need to reform or they will default their bonds. I'm sure we will see a more rational approach in the next 6 months.

[railsback]

16. Toilet paper is a red herring

to make the other industrialized countries let out a loud 'gasp'. I, too, believe that there will be more rationalized thought going into the coming decisions. Maduro has Cabello. Between the two of them, they should be able to merge nationalism with realistic progressive goals.