The Venezuelan government is in a bind. They realize that 'the people' will stand-by idly as the nation's currency is devalued, as inflation soars, and blackouts continue as food shortages grow...(and the stock market soars) [11] but take away a critical personal care item and the riots will begin. As Yahoo Maktoob reports [12], Venezuela's leftist government said Saturday it temporarily seized a major toilet paper factory hoping that it can end troublesome shortages of the staple personal care item. "The temporary occupation of [the toilet-paper manufacturing plant] is aimed at verifying that toilet paper industry production, marketing and distribution" are all in line with state policies, Vice President Jorge Arreaza said on Twitter, without indicating how long the takeover would last. This action follows 'nationalization' of large farms amid President Maduro's claims that the White House is plotting the "collapse" of his government next month by sabotaging food, electricity and fuel supplies.
But, of course as we noted previously, none of that matters [13]- as the Venezuelan stock market is surging (which, if American talking heads are to be believed judging from thei reaction to US equity markets) must mean the country is doing great... The Caracas Stock Index is +270% YTD...
[14]
Via Yahoo Maktoob, [12]
Venezuela's leftist government said Saturday it temporarily seized a major toilet paper factory hoping that it can end troublesome shortages of the staple personal care item.
"The temporary occupation of Manpa (Manufactora de Papel) is aimed at verifying that toilet paper industry production, marketing and distribution" are all in line with state policies, Vice President Jorge Arreaza said on Twitter, without indicating how long the takeover would last.
He said the decision had been taken by an economic panel sworn in last week by President Nicolas Maduro, a close ally of Communist-ruled Cuba.
OPEC member Venezuela has vast crude oil resources, sitting atop the world's largest proven reserves.
But efforts to centralize its economy like Havana have seen the country reach an inflation rate of 32.9 percent, and a toilet paper shortage rate of 20 percent, according to government data.
Even hospitals have reported food shortages, while citizens routinely deal with shortages of coffee, flour, sugar or personal care basics like toilet paper.
Venezuela imports half the food it consumes, and the government also has been taking over large farms hoping it can boost domestic production and supply.
Maduro last week claimed the White House is plotting the "collapse" of his government next month by sabotaging food, electricity and fuel supplies.
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