Soon To Be A Historical Keepsake of the Pre-Civil War Era, cont.

People calmly lining up to go loot a Daka appliance store on the president's orders.
People calmly lining up to go loot a Daka appliance store on the president’s orders.

And in Valencia things got just plain old MadMax today…

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  1. I dont know whats worse. Daka selling stuff with a lot of ovepricing or people lining up to buy not-so-cheap but cheaper. Bunch of vultures. I wont feel sorry for anyone when they get screwed over by the government. We are doomed.

  2. An Argentine friend tells me this was a common tactic in the era of Peron. Evita and Juan would arrive in town, and throw open the doors for some bargains, “the gift of the Leader”.

    Everybody would feast on the corpse, but commerce in the town, Cordoba, was set on a downward spiral. Investment dried up.

  3. “Jose Solano sides with Maduro and blames an economic war waged by enemies of the Socialist Revolution, but he plans to spend the night sleeping in line so he can purchase a 46-inch, Sony plasma TV”.
    Oh, well, thank goodness. For a second there, I thought they were going to stay true to their anti-capitalist values.

  4. The most messed up thing is this might work. Chávez was able to spin inflation and scarcity so that he could blame it on businesses. I wouldn’t be surprised this helps them win the 8d election

    • PM – this is justice like it or not. Recently my daughter went to buy a refirgerator at Daka and the cost was Bs. 24000. When she went back three days later the price was Bs. 75.000.

      This is robbery of the worst kind. The message to all businesses is now clear – speculate at your own risk. You could be in the Helicoide if Indepabis passes by.

      • I hope she buy a fridge soon. It won’t take long until a used fridges cost over Bs. 75.000 and new ones are very difficult to find… That is unless they repeal the supply and demand law.

        • Tomate – from next weel if you go to JVG in Los Dos Caminos or Mundo Samira in Boleíta you will surely find a good fridge at a much lower price tan Bs. F. 25,000. Maduro just lowered all the prices to “precios justos” in line with the law that is finally being applied.

          • Oh Arturo, always the sharpest knife in the drawer. You can force the owner of JVG to sell his current stock at the price you want because there are no independent courts that can enforced the law against the plain robbery that represents. But call me when JVG’s stock runs out and you need to repurchase more, to see if you can force the owner (who is in prison) to buy more stock to sell it at lost. If that happen I will buy your daughter a brand new fridge. (Although there wont probably be fridges left in stores in Venezuela by then.)

          • Prepare to experience brutal shortages in the coming weeks. What this does is reduce supply and generate unemployment. Good luck finding articles at “precios justos”…

        • Daka has been denounced several times by people feeling overcharged. They were inspected on Friday 8th November and multiple irregularities were discovered in terms of ones against the law of usury and remarking prices. Not much more to report except for one thing – half an hour ago Maduro announced that people who has bought at these establishments and had been “fleeced” shoud go back and get the money back that they had been overcharged. Justice for the epople……..and in that I include the Middle Class.

          • Arturo: If people who bought at these establishments can get their money back, that they were overcharged, does this mean that Venezuelans can get their national treasury levels back to what they were before these government tyrants syphoned off the bulk of funds?

          • Daka has been denounced several times by people feeling overcharged.

            If “feeling” overcharged is the criterion required…well that is wholly objective. Every time I buy anything, I feel overcharged. I’m a pat-the-elbow-kinda-guy. What, exactly, qualifies as overcharging? Cost+10? +20? +30? Cost+100?

            Question: If I bought refrigerators 6 months ago for 14,000 BS, and to replace them from my supplier, it now costs me 40,000 BS, should I charge my customers the 14,000 price? 40,000? Something in between?

            The problem with the government is they have no idea how a business is run. This is evidenced pretty much by every single SOE, including the great golden goose that is PDVSA.

            Next question: If I have 10 fridges, and 20 buyers and my per unit cost of goods sold is 20,000 BS and my fixed costs for that month are 50,000 BS, how much should I charge for my fridges? What is a “just” price?

        • Maybe Arturo’s daughter, like her Dad, only slums on the keyboard (“I bleed for you, my people”), not in real life — wouldn’t be caught dead with a Haier in her kitchen.

          • Next week will be too late. By next week, they’ll be out of stock. The just price will be zero for an imaginary refrigerator. When things are arbitrarily sold below cost, two things happen: demand increases significantly (see elasticity of demand) and suppliers leave the market place. This is basic microeconomics. Its a pity there’s apparently not a single person within the government that seems to understand this.

          • Arturo, go send your daughter to loot a fridge. All you chavistas are the same stuff, be they bilingual or illiterate.

      • But when the robbers are Chavistas you don’t care.

        Watch for shortages Arturo, particularly Lithium. You were the one that said the balk market rate was irrelevant. Your daughter has an option, not buy. Period. 75,000 with the black market rate sounds about right, these companies do not get dollars from Maduro.

        • Don’t talk crap. If you read the news you would know that more tan half of the 268 people held in custody at the behest of the Minsterio Publico are corrupt chavistas.

        • Kepler – we could afford Bs. 25,000 but not Bs. 75,000. But next week we will be able to buy for less than that – maybe Bs. 6500 I calculate. Thanks to the Revolution!! Hahahahahaha.

          Kepler words cannot express how pleased I am that these crooks are being held in custody facing at least 5 years in jail.

          I also guarantee you that Maduro’s approval rating will skyrocket to around 70% in the coming weeks. Mano dura attracts votes.

          • Do let us know, Arturo, as soon as your daughter (or you) purchases that refrigerator, at what price, for what brand, and what store. No escondas los detalles.

  5. Looting – please bes erious for a change. This is the first step in really to tackle the speculcation taking place in ALL businesses in Venezuela. This Daka scenario and that of Pablo Electrónica and the fact that many stores did not open today in Libertador as the managers and owners are afraid of being jailed means thatDaka has sent a strong message to the thiefs robbing the public.

    People are buying not looting and buying at goverbnnment recommended prices as all these products were bought at 6.3 oficial rate but priced using the parallel rate.

    Examples of the robbery that will now be stopped in Venezuela. TV’s at recommended price of Bs. 4100 being sold at almost Bs. 16.000. Washing machines with dryer priced at Bs. 29.000 on November 1st offered on November 8th at Bs. 59.900.

    Daka’s managers are detained and in custody for the time being for usury. The DIM and SEBIN are looking for the owners as they will have to face the music as well. Maduro will ask for all the dollars used to buy at oficial rates to be returned to the state and if this cannot be dome the properties of Daka and its owners will be seized – as were the properties of Banco Federal four years ago. Sincé Daka opened about 4 years ago it has received around US$400 million from caduivi.

    No one on their right minds can possibly support such speculation and thievery whatever their political color. Herer are the lines of people outside Daka in Colinas de Bello Monte this morning. Enjoy justice in action:

    Abd finally Quico – the insanity to which you refer is what was happening with the speculation not people buying at fair prices. We all know you support savage capitalism and have been defeated once again by Maduro’s actions.

    • Great, keep it up, empty out all the stores. Soon it will only be the state distributing televisions and consumer goods, just like North Korea. The sooner the better.

      And by the way, the actions of consumers clearly shows those are not the market prices for those goods. The “consumers” that were shopping there will obviously be reselling much of that merchandise privately, and given the drought of official dollars at least some of those goods were surely purchased at the black market rate – so this was theft.

      Again though, I find it hilarious, another step in the ongoing tragi-comedy that is the Bolivarian robolution. The trouble is right now the Venezuelan government is just doing it here and there, they should do it nationwide at every store and every street peddler, shut down the whole private distrubtion network. In a few days all the Mercals will be empty, people will go on the streets and hang Maduro. Sadly that won’t happen and we just get the occasional circus like this.

      • If you read the web page of Cadivi you will see that all the dollars for Daka’s imports from 2004 to 2012 were at the oficial rate. (More than US$407 million). So WTF are you talking about? You are simply ignorant of the facts when they are readily available. It proves how mentally lazy and brainwashed you are. But if you are happy being an ignoramus and even worse a barfaced LIAR, feel free to be one.

        • You are a fool, obviously if Daka was buying goods from resellers at above the official rate or GASP buying black market dollars it wouldnt be listed on the Cadivi webpage! You cant possibly be so thick as to not realize that!

          You do a good job of showing just how much the government is criminalizing everything however, protesting these liquidations on the basis that the company got some of the dollars on the black market would be self incriminating. To run a business in Venezuela one must now be a criminal.

    • “Examples of the robbery that will now be stopped in Venezuela. TV’s at recommended price of Bs. 4100 being sold at almost Bs. 16.000.”

      Such an idiotic view of the world. Why are prices so high? Because retailers speculate. Of course, it’s so simple. Except it is not. Why don’t you ask yourself why is demand so high? Why so many people want to buy TV sets? Could it have anything to do with the fact that the government has more than doubled liquidity and spent money like crazy? And why doesn’t supply grow to attend that larger demand? Could it perhaps be that the country just doesn’t have enough dollars to serve all the demand that exists at “fair prices”? So, what gives? It’s either higher prices or rationing. If you choose to enforce “fair prices” (aka, rationing), how do you assign the insufficient quantity available among buyers? By standing in line 14 hours? By lottery? By having knowing government officials or business owners? Is not that more arbitrary and conducive to injustice? Maybe with consumer electronics you don’t care, but what if we are talking medicines? Is it still Ok to you in that case?

      • The fact is that there is no shortage of dollars. Who says so? Last year Cadivi granted US$33.3 billion for travellers and imports. Total imports were US$59.2 billion (this includes state imports of food and gasolina) and oil revenues were over US$93 billion so how is there a shortage of dollars when there is a trade surplus of US$34 billion? Man, you are talking out of where the sun don’t shine.

        Think about it you blockhead. Do you want private importers fleecing the population ? I don’t so I would prefer the government to import everything if necessary.

        Even better I woyld free up the parallel dollar market BUT not offer any government dollars to the private sector. They want a free market to do what they want so give it to them and they can find dollars from other sources and not the Central Bank of Venezuela.

        In this case the government can import at 6.3 and the private sector at 60+. In order to avoid reselling at a profit the second hand market would be totally regulated and people wopuld ahve to keep ítems they had bought for at least three years and register them as they do autos.

        Interestingly enough medicines have hardly risen in price in the last year since I think that sector realized that it could not play with that sector.

        • “The fact is that there is no shortage of dollars. Who says so?”

          Brilliant! So why did the government devalue the currency earlier this year? Why did they reduce dollar allocations to travelers and made it much more difficult to get approved for traveler’s dollars? Why have they been scrambling to come up with a new system to sell dollars? Why can’t you find basic staples in supermarkets? Don’t say it’s because of speculators. If that were true, and since you believe the government has enough fx, the government could easily solve shortages by importing what private merchants hoard. In your scenario the gov could very easily bankrupt speculators or force them to lower prices. Why doesn’t the gov do that? Simple, because it cannot.

          “Total imports were US$59.2 billion (this includes state imports of food and gasolina) and oil revenues were over US$93 billion so how is there a shortage of dollars when there is a trade surplus of US$34 billion?”

          And in what book did you learn that a trade surplus equals sustainable equilibrium? Especially under an exchange control, where the country basically imports what the gov wants. That proves nothing. Your argument is like saying: because my food expenditure is less than my income, then I am well nourished… No, you cannot conclude that.

        • Arturo, Venezuela exchanges its biggest export for dollars, so of course there are dollars. The reason there is so much demand for dollars at a higher rate is that not everyone has access to the dollars, so these people are willing to pay more for any dollars that they can get a hold of. You can’t control people’s Demand for dollars. Controlling the Supply as the government seems to want to do will only increase the price people will pay to meet their Demand. That is, the rate goes up with increased controls.

          Think of a pressure pot. The more heat, the more pressure, unless you let the air escape.

      • Not to mention that technically usury is the practice of charging interest on loans, a practice condemned by the Church in the Middle Ages. These people can’t even use language correctly, and you expect them to run the country?

  6. This is just disgusting…one step closer to the government controlling every day life cuban style, …I remember the expression “no chico como Cuba no creo”…

  7. And any idiot who knows anything about basic economics knows, it would be better for these companies to simply shut down. These items will be like 50’s cars in Cuba because new items won’t be available at any price.

    • Large electronics stores will simply shut down if this keeps going on. From now on most of the sale of expensive consumer goods will probably be by street peddlers selling goods stolen or purchased by private buyers from the state distribution network. The government has already made it clear they won’t prosecute small scale sellers, so the market will naturally move in that direction so as to reach the normal clearing price.

  8. I wonder if Maduro knows that cheap TVs are not a human right.

    “We’re going to comb the whole nation in the next few days”.. There goes the rest of the private investors (If there were any left)

    • But he had to be quick to make sure people could have their big screens installed before Miss Universe was announced. It’s for the supreme happiness of the people! /s

  9. The saddest thing is that inflation is a huge tax on the poor and those on pension. I’m worried that I do not see any signs of the government trying to tame it. On the contrary, these initiates add gas to the fire.

  10. What I don’t understand is why people would buy at Daka if it’s selling stuff at four times its expected price? I’d simply not shop there. If everybody behaved that way, Daka owners would find soon enough that they’d have to lower their prices or else eat their fancy TV sets for lunch while they see their lower-priced competitors laughing all the way to the bank. I just don’t undestand why the government has to take over their stores. It’s not like they’re screwing people over basic food or medicine. It’s freaking TV sets and laptops, for crying out loud. Let them wallow in their own unsold merchandise. I just don’t understand why people have to be “protected” by the government for buying their overpriced stuff. For example, everybody knows that movie theaters overcharge their candy and other munchables. I simply chose not to buy their overpriced Kit-Kat bars. Other people don’t mind, so they buy, and that’s why movie theaters continue to sell their overpriced candy. So what? Nobody forces me to buy it, the same way nobody is forcing Venezuelans to buy overpriced microwave ovens from Daka. I simply don’t undestand all this crazyness going on.

  11. Mundo Samira and JVG also were intervenidas by the nazional guard, saman anounces that the new targets are IMGEVE, General Import and Dorsay; Maduro says on cadena that “not only electric appliances businessess are on the same wave, food also…”, Jaua asking for a building to be allanado (apparently people threw garbage at his march) and that “the people do whatever they have to do (there)”.

    It seems to me that this is a freaking nationwide and targeted caracazo. period. The government now recognizes a blowout was inevitable and they rather prender el peo y arrear el ganado than be trumpled by la bajada del cerro. Now this is open, all-out, free-for-all, tonight-we-dine-in-hell, war.

  12. Partly electoral, but mainly ideological–an attempt to control inflation by decree. Actually dangerous to The Cause, because, it just shows, once again, if the Pueblo wants something, they can just steal it, or get it at a price that’s a “steal” –= just setting the stage for an eventual Caracazo II to the nth power. Finally, as in Pro Davinci, it will bring more scarcity and higher prices, and not just of the currently affected goods, but of all goods, since Maduro threatened to price control all. Finally, any retailer knows that he must price his goods at re-postion estmated cost, if he wants to stay in business, and that cost in Venezuela today, starved of dollars (as usual, Arturo is blowing smoke, from which end is debateable) is the price of the dollar in the parallel market, plus estimated future increases.

  13. This is why Venezuela will always be crap. Ppl want stuff without working for it and find ways to justify getting it for free. Hugo recognized this and used it masterfully, even weaving it into some supposed sacred cause.

    The rich and poor are alike, thyr just go about it differently. Oil is a curse.

    • Oil is only a curse in a system where it is controlled by few. If it were equally and unconditionally distributed to all, it would no longer be a curse, but an economic bonus to all.


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