Venezuela Sets New "Fair" Prices For Chicken, Sugar, Rice & Coffee

Tyler Durden's picture

It should hardly come as a surprise for a nation such as the US that is used to being told what a "fair" price for interest rates is... and a "fair" price for housing is... and a "fair" price for stocks is... that Venezuela (perhaps a few years ahead of America in the socialism stakes) has seen its 'price regulator' declare today its new "fair" prices for various foods. Coming to a Safeway near you any day now... (as US food price inflation soars - especially ahead of the barbecue season).

 

As Bloomberg reports:

Venezuela price regulator publishes list of food prices on its website.

  • A kilogram of sugar to be sold for 9.72 bolivars ($1.54 at official exchange rate of 6.3 bolivars per dollar)
  • A kilogram of chicken to cost 43 bolivars ($6.82)
  • A kilogram of coffee to cost 46.6 bolivars ($7.40), and
  • A kilogram of rice to cost 9.5 bolivars ($1.50)

This follows Venezuela President Nicolas Maduro signing law to adjust prices to “fair” levels and limit profit margins to 30% back in January.

Think it won't / can't happen here...

Bloomberg notes, consumers in the U.S. will probably pay the most ever for meat this grilling season as costs for pork and beef surge, according to the American Farm Bureau Federation.

 

Seems "Unfair"? on a minimum wage?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
TeamDepends's picture

If you like your chicken, you can keep your chicken.

knukles's picture

When I first read that I thought it said "sets fair price for children, sugar, rice & coffee"

max2205's picture

Johnny Walker still $10.00.for 750 L ?

fonestar's picture

fonestar will buy all of your daughters for a couple satoshi.

economics9698's picture

"Johnny Walker still $10.00.for 750 L ?"

lol $30 to $50. 

Clint Liquor's picture

Like we needed any more examples. Central planners can always be relied upon to be arrogant and stupid.

Zirpedge's picture

This follows Venezuela President Nicolas Maduro signing law to adjust prices to “fair” levels and limit profit margins to 30% back in January.

Why don't the politicians here mandate 30% profit margins? OK $15 minimum wage but mandate 30% profit margins on top of that, boo yah!  More money More Money

wakablahh's picture

1 Kilogram of chicken = 2.2 lbs of chicken = pretty much same as rottisserie chicken you buy in a grocery store

The price is set at $6.42 in Venezuela .. I've seen the price at Alberstsons to be about that same price.  What am i missing here..?

NOTaREALmerican's picture

Re:  What am i missing here..?

Chicken tastes pretty good on a rottisserie?  

economics9698's picture

What am i missing here..?

 

 

That is the official exchange rate of 6.3.  The unofficial rate is 50 to 80.  This means shortages and USSR style stores.  No chicken for you.

fxrxexexdxoxmx's picture

The shortages will be blamed on greedy business owners. These guys have a plan and they never get tired of doing it. Next they will start arresting chicken sellers. Then everyone will be afraid that selling chicken can get you thrown in jail and even less will be available. But at no point will the governments messing with process be held accountable. Because the leaders will have all the chicken they want.

JackT's picture

Wait - are you saying sellers won't want to make 6 instead?

El Vaquero's picture

That's at the "official" exchange rate, which is evidently quite bogus.

Indeed, the reason why today's move is largely meaningless and purely optical, is because there is still an 85% differential between the official rate, and what one can get for a dollar on the black market. Which as the chart below shows is substantially higher, and at last check was 78.38 Bolivars per dollar. Said otherwise, the brand new official exchange rate, which will soon be implemented for everyone, is still 590% higher than the real clearing price of the currency on the black market.

http://www.zerohedge.com/news/2014-01-22/venezuela-devalues-bolivar-anot...

In other words, anything that chicken farmers need that is priced in dollars is going to be very, very pricy for them, and they are being forced to sell at a low price.  This kind of shit leads to supply chain breakages. 

epobirs's picture

The Albertsons in my area had boneless chicken breasts for $1.68 a pound. That works out a bit more than half the Venezuelan price. Though the VZ price is probably for the whole bird, bones and all. That regularly gets below $1 pound in my region, LA County.

When you buy a rotisserie chicken it's ready to eat, which is a different thing from buying raw chicken. The rotisserie chicken usually cost a fair bit more than the equivalent weight in raw chicken, which is likely what the article was referencing.

Omegaman2211's picture

lol, fucking government.

Seize Mars's picture

Paper Money--> Bubble--> Recession--> Stimulus--> Inflation--> Price Controls--> Shortages--> Riots--> Troops on Your Streets

Slave's picture

Once again, not rocket science. But apparently it is for the average American.

El Vaquero's picture

It isn't just Americans that are not getting it.

Spungo's picture

We should have price controls on top of EBT. That will boost our GDP by at least 3.9%

WTF_247's picture

Surely you jest,

It would immediately boost GDP by at least 10%.

If they mandate $35 per hour minimum + 5% profit margin max, it would be like a leprechaun hits the US. The growth would be so extreme that it is raining gold.

Spungo's picture

I think it's racist how the CPI assumes black people (and everyone else) will choose chicken because it's cheaper.

knukles's picture

It is racist because it excludes separate categories for hominy grits and watermelon.
I'm just the messenger, folks...

American Dreams's picture

Careful Knucks, in a civilized, sell reliant society the messinger from the other side tends to see the business end of the blade.  Wait, oh nevermind....

these are all american dreams

AD

SoDamnMad's picture

That's racist.  You are banned from the chicken farm and have to sell it.  That's Ok because Oprah is interested in it.

Your chicken farm might sell for almost a billion dollars given the good coverage of stores you sell to.

nosoeawe's picture

and for all you that say you can't eat gold - go fuck your mother and die. this is why i hold gold you rotten limp dicks. 

 

CrashisOptimistic's picture

Hold it all you want.

That leaves more food for everyone else.

NOTaREALmerican's picture

I don't see very many peasants here in Merica complaining that much about food inflation.   Don't understand why.   Maybe the Federal Reserve is creating it's own reality.

"That's not the way the world really works anymore." He continued "We're an empire now, and when we act, we create our own reality. And while you're studying that reality—judiciously, as you will—we'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors ... and you, all of you, will be left to just study what we do."

 

 

American Dreams's picture

Please reference your quote.

Know your enemy

AD

NOTaREALmerican's picture

An unnamed aide from a long time ago in a galaxy far far away  :  Creating a Bizarro Reality for Intelligence Professionals ...

 

 

I am Jobe's picture

Coming soon to Amerika. Forward Bitchezz. Amerikans can afford to lose sound serious weight. Also Gas should be around 5.00 per gallon. See what the bitchezz do 

El Vaquero's picture

I suspect that outright price controls may not be used.  Our scumbags think they're more sophisticated, and may very well try to meddle in other ways.  Or, rather, they are meddling in other ways.  Think subsidies for starters.  The kind of bullshit that they pull makes it more difficult to locate the source of the problems, at least to your average person who doesn't pay attention.  If they do resort to price controls, it's because they're desperate.

WTF_247's picture

They do A, media reports B.  They do C, media reports B.  They then further do D, media reports B.

People get angry at B.

This is all part of the plan.

ThisIsBob's picture

We had OPS in the 50's.  Same deal.  When they start accepting rubles, it will get my attenion.

WTF_247's picture

The US govt, in its hubris, thinks that there is NOTHING that will ever replace the dollar.  Borrow unlimited $$, print unlimited $$ and go on your merry way.  At some point those who produce actual goods, who use people and machines to produce such goods get worried about getting paid in $$.  They also tire of being told what NOT to do, how to conform to rules put in place by others but not them.  Meanwhile the US does exactly the same whenever they want and makes the rules as they go along.

That is called wearing out your welcome.

The US politicians do not care about these actors in the background and meaningless actions such as this (most of them).

Until the SHTF and we are at a tipping point.  Only then (when they face the wrath of the population and loss of their jobs and possibly more [aka heads will roll, literally] ...) will they act.  By then its way, way too late.

fxrxexexdxoxmx's picture

I thought in Socialist Paradise the only" fair " price is free.

Make_Mine_A_Double's picture

Just means the Ven gov will be paying the diff between world price and their set price.

These are the same fucking retards that export crude to the US where refiners turn it into gasoline and J5 and ship it back to Cabello and charge up the ass for it in dollars and than Mr. Merde gives it away to the locals at 10 or 13 cents a gallon in local bum wad. The locals than promptly turn it around and sell in Colombia for a good sized mark up and a hard currency in Colombian pesos.

fxrxexexdxoxmx's picture

I wonder how many  Ven government employees are doing exactly that? Why in the heck would they want things to change?

Make_Mine_A_Double's picture

I think gas arbitrage and the cocaine 'export tax' are about the only things keeping that turd floating right now.

benqbiggis's picture

Venezuela the socialist paradise on earth, argentina and brazil to be the next

nmewn's picture

I see hunting & gathering in everyones future.

Note to city folks, fish is not really square but I do know a good spot to get fresh meat that wraps itself in plastic as it falls to the ground ;-)

Hulk's picture

LOL, next you are going to be telling us that cows are nonspherical, silly cracka !!!

homiegot's picture

Tube-shaped meat animals. just lop off the appendeges. Wala!

Unknown Poster's picture

Selling coffee, sugar, chicken and rice at a loss should go over big, shortages are sure to follow.

Cycle's picture

Funny how that also works when a central bank sets the price of capital - shortages are sure to follow.

atthelake's picture

I've just purchased 2 books from Amazon about gathering, cooking and eating wild, edible plants. Fiddleheads and dock are examples.

El Vaquero's picture

Common mallow (Malva neglecta) is edible, though if that shit gets into your garden and goes to seed, you'll have to nuke it from orbit as that will be the only way to be sure that you have gotten rid of it. 

ThisIsBob's picture

"Few people realize that the Volkswagen Bug contains 167 edible parts."  (Euell Gibbons)