Happy Socialist Christmas: Venezuala Seizes 4 Million Toys From "Price-Gouging" Importer, Gives To Nation's Poor

Tyler Durden's picture

'Toys for Socialist Tots' appears to be the latest scheme dreamed up by Venezuela's President Maduro to keep the people from the verge of outright revolution. As Bloomberg reports, Venezuela price regulators on Friday seized almost 4 million toys from warehouses around greater Caracas and said they’d distribute them to low income children ahead of the Christmas holiday.

William Contreras, the country’s price czar, accused toy importer Distribuidora Kreisel of hoarding and price gouging and asked that the company’s directors be detained and prohibited from leaving the country.

 

Flanked by national guardsmen, he said the company had received preferential exchange rates for goods it imported as early as 2009 and then raised prices by as much as 50,000 percent.

 

“These products will be put to use by the Clap,” he said, referring to the government’s community-based network that distributes food to low income residents. “Venezuela’s boys and girls will have their baby Jesus guaranteed, and these companies will learn that they can’t play with the rights of the Venezuelans.”

 

Triple-digit inflation and a collapsing currency have made many non-essential items out of reach for most Venezuelans, where a monthly minimum wage buys only around $20 on the black market. Government authorities have in the past several years ordered price cuts ahead of the Christmas holiday, and price regulators ordered clothing stores in downtown Caracas to cut prices by 30 percent earlier this week.

In 2013, President Nicolas Maduro accused retailers across the South American nation of price gouging and deployed the military to slash prices at electronics and home appliance stores. The event became coined the “Dakazo,” after the socialist leader ordered an electronics chain called Daka to slash its merchandise prices to “fair” levels and liquidate their inventory on live television.

Since then, Venezuela’s government has cracked down on prices across the entire economy -- everything from eggs to children shoes -- levying sanctions or confiscating the merchandise of business owners who don’t comply.

With the nation's currency hyperinflating faster than a CNN Russian hacking story, this confiscation of 'unfairly-priced' toys is likely the only way to keep the Grinch from the door of this socialist nirvana.

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jmack's picture

which means that next christmas, no one will get jack shit, because who would be crazy enough to import something, just to get it seized.  But then they can solidify their base by claiming the dirty capitalists are trying to punish them by not shipping in toys to be seized... 

 

 

JLee2027's picture

Expect no imports starting in Jan.

maskone909's picture

I hope those toys are edible

silverer's picture

That, too. And teaching the kids to accept stolen goods at the same time. This guy's a winner.

JungleCat's picture

Socialismo o muerto! (Socialism or death)

Seems they will get both.

38BWD22's picture

 

 

ANY importer bringing in ANYTHING the least bit sensitive (in all meanings of the word) is either stupid (this case) or in bed with Maduro & Chavistas.

Venezuela is doomed.

If/when there are pieces to pick-up afterwards, there MIGHT be high reward / high risk investment scenarios worth considering (a la Rothschild).  But not until poor Venezuela has been ground into the dirt.

Reference: Peru.  Although Peru was never THAT stupid.

 

Never One Roach's picture

Look at the soldier in the background...he's stealing a little barbie doll, the blonde one, not the black PC one.

KittyKittyBangBang's picture

truth be told @nevironraoch ..............white gurls heaps prettyer than black gurls

Never One Roach's picture

That's part of the wookies' hatred for da crackas I suspeck.

Manthong's picture

Stolen merchandise makes great stocking stuffers.

Breaking the 8th Commandment in the true tradition of Christmas.

 

jmack's picture

Death is free, which is all you can afford under socialism.

KittyKittyBangBang's picture

plobly blown next years chance for pressies.........

DaNuts's picture

I had always suspected that Santa was a socialist, the red coat kinda gave it away.

The Wizard's picture

Goes to show you, it's not who has the gold rules, but who has the biggest guns.

Rather than the government throwing in the towel, it will do whatever necessary to stop a revolution in order to survive. 

Vardaman's picture

Apparatchik of a marxist (marxists are atheists, arent they?) state talking about Baby Jesus.  Dems now say Russians are bad.  Fake news.  Interesting times...

StagStopa's picture

I love baby Jesus..

Roxi

Gyges's picture

distribute them to low income children

 

 

There are high-income children in this "worker's paradise"?

Joebloinvestor's picture

That is how you make yourself a hero to the poor in a Latin American country.

dogsandhoney2's picture

while western capitalist countries bail out the banks,
or else the banks will blow us up.
toys vs. threats of harm.
your 'choice'.

debtor of last resort's picture

Paying for oil in frn's is exactly the same.

Sudden Debt's picture

What would Obama and Hillarious do...

 

silverer's picture

Hillary would ask to drone the customs agents. Obama would never send Christmas gifts.

nmewn's picture

Send 2,500 regulators after the toy company(s) to check if they are in compliance regarding their import-export license and then have the IRS audit them.

Never One Roach's picture

<< What would Obama and Hillarious do...>>

 

Steal them and resell them on the black market. These are not kwanza candles or cups so Barry has no interest in them.

silverer's picture

I hope he explained to the kids that Christmas as administered in Venezuela only comes once in a lifetime.

HRH Feant's picture
HRH Feant (not verified) Dec 10, 2016 7:33 PM

"These products will be put to use by the Clap,” he said, referring to the government’s community-based network that distributes food to low income residents. “Venezuela’s boys and girls will have their baby Jesus guaranteed . . ." You can't make this shit up. That line reminds me of a similar line from Mad Max (or the second movie Mad Max beyond Thunderdome) where the kids are pretending that old junk they have works and are telling stories to themselves. Same fucking thing except these people are adults with guns that can lock you in a cage. The socialist dream is exactly this end result: they get to choose everything. How you live your life, if you can leave the country (or not), and the cost of goods sold (or not). I hate fucking communists.

38BWD22's picture

 

 

Me too re commies.

My grandmother had to deal with them in Poland right after WWII.  It was very bad.

HRH Feant's picture
HRH Feant (not verified) 38BWD22 Dec 10, 2016 9:21 PM

My favorite composer is Henryk Gorecki. He wrote "Miserere." Gorecki was Polish and that song was written about how the communists beat them for holding sit ins. This was during the Solidaritat movement in Poland prior to the fall of the Berlin Wall. What kind of asshole beats someone for sitting? It was illegal for the Polish people to even protest. The lyrics to that song are in Latin, and short. The words are, in English, "lord have pity on us" sung in Latin and Gregorian chant. Stunning music. Heartbreaking.

I was able to travel in Eastern Europe in the mid 1990s, including Poland. I remember asking a fellow train traveler, an engineering student, why all of the houses were gray. Why no gardens like in Germany? He told me this, "why would you pay for paint when the state owns everything? Why plant a garden?" I have never forgotten that train trip or that conversation.

Oh, and the asshole Berlin Polezei that searched my luggage before I got on the train? They acted exactly like the fucking TSA thugs do now. Like complete fucking morons. The thing was, the other train passengers (mostly Polish) observed how I was treated and were embarrassed at how I was treated and helped me with my luggage. That is true compassion. They understood there was nothing else to do but to assist me (away from the luggage searchers) and behave at a higher moral level. They did not disappoint.

Private property is the engine that drives capitalism. Without private property there is no hope there is only government and despair. Visit any government housing project in the US. Fucking armpits of despair and ugliness, as bad, or worse, than Poland in the late 1990s.

Which is, again, why I cannot stand fucking communists or their soft-porn spawn, socialists. They are all delusional.

scoutshonor's picture

I read that as: the military is administering the clap to low income boys and girls. 

This pizza shit done gone global. (And they even got baby jesus up in it.)

NoPension's picture

But in CommieLand......the Clap is good.

" Government's Community based organizer"...... sounds like something Zero would be involved with.

Edit.....I wrote and posted that...then looked at the top of the page...
O Zero....Hedge!

To be clear....O'Bumbler, our outgoing ....eh....whatever.

nationstates's picture

Because nothing says Christmas like government stolen toys.

Teach the children that stealing is GOOD.

Never One Roach's picture

This gives Jerry Brown more ideas!

John_Coltrane's picture

When will these socialists learn, that the problem with socialism is that pretty soon you run out of other people's toys? (food, toilet paper etc.)

bugs_'s picture

"put to use by the CLAP"

knock knock who is there? THE CLAP

FreedomGuy's picture

I am going to stretch and say the first elections for Hugo Chavez were reasonably honest. This is what you get when snowflakes and peasants believe the leftist nonstop bullshit. They did this to themselves and now the choice is revolution and death or slow death and a country that resembles the usual leftist prison. Maybe after the next thousand times this fails people will get the message.

It shows the power of appealing to wishful thinking over reality.

SchlitzTallboy's picture

Why would a company named Kreisel do that at Christmas time?

 

Anopheles's picture

Forcing stores to lower prices?

Tomorrow, all stores will have nothing for sale... 

 

bornlastnight's picture

"...distribute them to low income children..."

 

Well, that should cover all the kids in Venezuela since they're all poor now.

slightlyskeptical's picture

When you are paying your employees the equivelant of $20 per week, everything that is imported will be prohibitely expensive. However, it appears in this case, the government offered terms that made the goods very inexpensive to import, then the importer did not pass any of that savings on to the end consumer. It pretty much comes down to breach of contract and as a result confiscation.

The message: If you don't take society into consideration when setting your prices then don't expect society to let you keep selling your goods. We simply have to start returning more of the laborer's worth back to the laborer. Anything more than a fair profit is going to be going away on a global basis. Without this, capitalism cannot really exist, and instead you get what we have now. 

 

BTW: Trump knows this very well. 

John_Coltrane's picture

Everytime I see the phrase "fair profit" I wonder how one could ever determine this? What is the fair price of anything, labor or goods? If you can tell me the fair price of say, a gallon of milk, a pound of cheese etc. and how you determined it, you'll be the first one to do so in the history of humans. Otherwise abstain from the use of irrational vacuous phrases like "fair price" in future comments.

Well, the answer is that no one knows what it "fair". Only the market can determine this. If I charge too much I'll have lots of inventory and no cash flow, if I charge too little I'll have no inventory and owe someone a lot of money. In either case, if I don't adjust I'll be out of business. So, a nice negative feedback loop is created by supply and demand which results in a stable economic system. Which explains why centrally planned economies always fail and market based ones work. Its as simple as supply and demand. "Fair" is what the market will bear.

dchang0's picture

To a command-economy supporter, "fair" is whatever their side says it is.

$15/hr. for labor that is worth only $6/hr. if no side is under duress/coercion = "fair."

And the right is no stranger to this either:

Keeping 1000 Carrier jobs in the USA via tax incentives forcibly taken from Indiana taxpayers = "fair."

 

The ONLY true definition of fair is what the buyer and seller willingly agree is the transaction price with absolutely no coercion from any human actors.

 

Someone tried to argue that a corporation going into a poor country to offer them jobs at ultra-low wages is exploitation. That's only true if the corporation or some other human actor (maybe the dicator of that country) uses force to make the workers agree to those wages. Some progressives argue that the (non-human) situation of their poverty "forces" them to take the job, but that denies them any self-agency (everybody is at the mercy of forces outside of their control).

This is a continual battle of worldviews--are persons in control of their own lives? Can they make their own decisions?

Leftists (and social conservatives on the right) say no--that they get to tell everyone lesser than them what to do.

goldsaver's picture

 

Keeping 1000 Carrier jobs in the USA via tax incentives forcibly taken from Indiana taxpayers = fair

 

Did Indiana pass a law adding those taxes to Indiana taxpayers? Is there a new line item that says "Carrier Jobs Tax"?

Or do you mean that Indiana's government will not receive that additional tax revenue from Carrier in order to keep those jobs in Indiana? That they agreed NOT to STEAL as much from Carrier if Carrier agreed not to leave Indiana and fire thousands of taxpayers?

Because, you do understand that if Carrier leaves Indiana the state government gets zero taxes from Carrier, right? And that by agreeing not to steal so much, they still get to steal some?

Just confused by your statement.

LifeLibertyProperty's picture

Cost-benefit analysis. How much in unemployment and welfare benefits will 1,400 workers and their families draw for 26 weeks? About $8,460 on average (unemployment alone), based upon their average income of $36,000. If 50% of 1,400 workers remain unemployed after 26 weeks, that's 700 workers and families drawing other benefits. Then there's loss of tax revenue and revenue to other people who sell products and services to those now-unemployed workers. Moreover, if Carrier shut down that plant, there goes the revenue that the state and local goverment was collecting anyways.

It isn't an ideal situation, but it isn't a horrible deal. Keep in mind that Carrier wouldn't be moving operations to Mexico if it wasn't going to be profitable to them. Solving what makes us uncompetitive is important for the long term.

NoPension's picture

My favorite is " Anti Gouging " laws, always enacted by dumbass politicians during natural disasters.

Pretty much insures nobody in the affected area has anything.

When blue tarps, bottles of water or gallon of gas can be sold for premium prices ( supply/demand), enterprising folks flood into the area to make a buck. Yes, off your lack of preparation, usually. Ends up flooding the area with the essentials, which then are discounted to offload the surplus.

Anti gouging.....why bother? Shut the shop. Close the gas station.

Singelguy's picture

The free market is based upon the law of supply and demand. Any business man worth his salt is not going to price his products hiigher than the market is willing to pay. On the other hand if the government is going to force a business to sell its products for less than cost, how long will the business survive? Let's see how many toys he can steal next Christmas. There will be nothing left in the country. Businesses will have either closed their doors or left the country.

tarabel's picture

 

 

Toys for the Clap?

Sounds like Pizzagate is going hemispherical.