Thursday, March 05, 2009

Then send in Ragnar Dannneskold, or the other guy, John, what's his name

"If they get funny with us ... we will go for expropriation and pay them with debt bonds"

It's a natural progression.
The difficulty is to know, and have the discipline to stop it at the responsible point for the society as a whole

First they cut costs to the poor to make it easier for them to feed their families.
Then they increase taxes proportionately on the rich who can afford to pay the social justice tax
Then the state of the poor is redefined to an LCD screen smaller than 32", basic cable only, subsidized heat and electricity, and food.
Then, criteria for owning land and property with buildings are changed to eliminate what the definers consider social INjustice (and it may be in cases), since banks can 'afford' this economic justice.
Then they redefine rich.

Then productivity falls and with it availability of cash, and tax revenue.
Then taxes must be more confiscatory causing cash and business flight to begin
Then the edges of social unrest show as the purveyors of social justice simply don't have the means to go on
Then they think up the brilliant idea of simply producing themselves directly and eliminating the entire burdensome structure, leaving one problem....solved by the opening line.
Somewhere along the line the group losses the desire to strive and fight for the nation, or the group. Why bother, after all, someone else is doing everything around you no matter what.

Venezuela's Chavez seizes U.S. food giant unit

Chavez said he ordered the takeover because Cargill -- one of the largest privately owned U.S. companies -- avoids producing basic rice that is subject to government price controls.

"Prepare the decree, we are going to expropriate Cargill. We are not going to tolerate this," Chavez said.

It was not clear if Cargill's other Venezuelan food units would be affected. Cargill has approximately 2,000 employees at 22 locations across Venezuela and operates 13 manufacturing plants including oilseed and animal feed processing.

Polar, one of Venezuela's best-known companies that produces many its most popular food and drink brands -- including its top-selling beer -- has vowed to take legal action over the rice mill takeovers.


Chavez has often followed through on his nationalization threats, taking over oil, electricity, steel, cement and telecommunications companies. Sometimes, however, threatened companies have averted seizures by bowing to Chavez's demands.

On Wednesday, he warned Polar to back down.

"If they get funny with us ... we will go for expropriation and pay them with debt bonds," Chavez said during a televised Cabinet meeting.

Chavez has typically paid companies adequately after ordering their takeover. But several nationalizations last year have not been implemented and this year Chavez has said he would only pay for seizures with government debt paper.

While Chavez's nationalizations tend to be widely supported, periodic shortages of basic goods have hurt his popularity in recent years.

Venezuelan shoppers have faced shortages of white rice sold at a low government-set price in recent weeks, while stores have ample supplies of parboiled rice which is not subject to price controls.

Venezuela's rice millers association blames the shortages on insufficient supplies of the grain, while the government says the mills are deliberately producing small quantities of white rice to skirt price controls.

On Wednesday, Chavez also ordered his ministers to inspect companies producing goods ranging from toilet paper to cars,which have been hard to buy at times in Venezuela.

Venezuela is the third-largest buyer of U.S. rice.
For those who scoff that, oh, this is Chavez, all should remember that the laws of nature do not exempt ANYONE. This nation has succeeded beyond all dreams because it has depended on the nature of humans to survive. Part of that nature is the desire to do better and have more money, luxury, pleasure and security. While none of this should be at the EXPENSE of others, the belief by some that this ALWAYS must be at the expense of others is the zero sum game mindset which fulfills the cycle above and guarantees its outcome.

Anyone who blithely believes, 'oh this is the USA we'll get out of this' is a fool.

We are not exempt from the laws of nature

1 comment:

midnight rider said...

John What's His Name for President!

(John Barleycorn?)