Friday, June 19, 2009

Spot On End Of Nose Won't Go

Why Chavez is seizing business?

In recent months, there has been very severe attacks against private property in Venezuela. These attacks have different forms:

The more passes unnoticed, as it is apparently legal, is the price control, which requires employers to sell their products below production cost. While large companies can paddle far, compensating for losses from the sale of non-controlled goods, small businesses are forced to close. In fact, during the ten years since Chavez in office, have closed 45 percent of the industries.

The second attack against the property from organized crime, among which stands the Colombian guerrillas, who operate with impunity in the border areas of Apure, Barinas, Tachira and Zulia. As you know, Chavez maintains ideological proximity with the FARC, and even publicly kept a minute of silence after the death of Raul Reyes, as many Venezuelans say that there is complicity between government and guerrillas.

The third method is the invasion of productive land, and even apartment buildings, sponsored and protected by official sectors. The owners go to the law, but even the judges ruled in their favor, the state security forces dare not dislodge the invaders. Chavez has stated publicly, especially during recent weeks, against private property.

Fourth pattern of aggression is not to pay to government contractors, leading to bankruptcy. There is a payment crisis in the oil sector, power, infrastructure, food, and generally require all companies to operate foreign currency. It is common knowledge that, with lower oil prices and international policy commitments, the Venezuelan government has no dollars to meet its obligations.

The fifth form of violating the property consists of the expropriations and confiscations. The difference between them is that the former are paid and the second not. But Venezuela is not clear on the difference because many of the expropriations, the payment is late doubtful and even if so, is canceled devalued state papers.

Chavez's government has seized cement companies, food, metallurgy, communications, to name a few, but in recent weeks the government has shown no mercy against oil contractors, particularly 76 are located in the Eastern Zone Lake Maracaibo (Cabimas, Ciudad Ojeda, Bachaquero and Mene Grande).

Although the government says are expropriation, both militarily and aggressively took over the installations as well as promises to pay very clear, indicating that, in fact, it is confiscation. All this, as I write these lines, is generating a social crisis in the area, because the measure has produced about 20 thousand new unemployed.

The Venezuelan oil industry suffered an incalculable loss to seizures in Zulia, because these are companies that for 60 years developed strong technological capabilities, becoming reality in advanced engineering companies capable of designing and building oil refineries stations . The main value of these companies are billionaires tangible assets seized, but the knowledge and experience, who have now lost irretrievably.

The attack on private property has a political motive. The government Chavez knows that the collapse in oil prices will rise in the short-term budget crisis and, therefore, a crisis of governance. The ruling party believes, wrongly, that controlling the means of production may move forward, not realizing that it is to add fuel to fire, because companies do not increase their production confiscated, but on the contrary, they come down. This is a clear example of how Marxist socialism acts as a blindfold on, which obscures the simple aspects of reality.

Attacks against Venezuelan employers match the fierce persecution of political opponents of the government. Chavez wants to end all forms of dissent in order to suppress with an iron hand, and no political opposition, the protests of social and economic order ahead.

By Alejandro Peña Flood. Atrabilioso columnist.

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