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Venezuela Nationalizes French-Colombian Retailer Exito
The Wall Street Journal ^ | January 17, 2010 | Darcy Crowe

Posted on 01/17/2010 1:36:09 PM PST by Cheap_Hessian

CARACAS (Dow Jones)--President Hugo Chavez ordered Sunday the seizure of a French-owned retail chain on accusations that it raised prices after Venezuela devalued the currency by half.

"Until when are we going to allow this to happen?" Chavez asked during his Sunday television program in reference to the alleged price hike by Almacenes Exito, headquartered in Colombia and controlled by French retailer Casino Guichard-Perrachon S.A. (CO.FR).

The Venezuelan leader said that new law may need to be approved to carry out the nationalization. "I'm waiting for the new law to begin the expropriation process," he said. "There's no going back," he added.

Almacenes Exito saw some of its stores closed this week by government authorities on accusations that it was increasing prices regardless of Chavez's orders that retailers were not to adjust prices after he devalued the currency to 4.3 bolivars per dollar from the previous rate of VEF2.15.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: chavez; france; nationalization; socialism; venezuela

1 posted on 01/17/2010 1:36:10 PM PST by Cheap_Hessian
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To: Cheap_Hessian

I am sure ‘Zero’ is watching and taking detailed notes.


2 posted on 01/17/2010 1:37:57 PM PST by Kartographer (".. we mutually pledge to each other our lives, our fortunes, and our sacred honor.")
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To: Cheap_Hessian

This move hasn’t made Citgo gas any cheaper has it?


3 posted on 01/17/2010 1:39:11 PM PST by HiTech RedNeck (I am in America but not of America (per bible: am in the world but not of it))
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To: Cheap_Hessian
How do you expropriate a retailer? You can close their doors and piss off their customers, but there is no way to keep the thing going because you can't fill the shelves.

This whole thing should end badly for Chavez and my prediction at the beginning of the year stands, by the end of the year he's either dead or gone from the country.

4 posted on 01/17/2010 1:42:56 PM PST by Recon Dad ( USMC SSgt Patrick O - 3rd Afghanistan Deployment - Day 89)
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To: HiTech RedNeck; Cheap_Hessian

I wonder about the American companies. Procter and Gamble for instance. Do they still make Pampers on Hugoland


5 posted on 01/17/2010 1:44:06 PM PST by bert (K.E. N.P. +12 . Tax the poor. They have no stake in society)
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To: Cheap_Hessian

I always think ‘nationalizes’ should be in quotes. You can call your theft what you like, but you’re still nothing but a common thief.


6 posted on 01/17/2010 1:44:15 PM PST by chuck_the_tv_out ( <<< click my name: now featuring Freeper classifieds)
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To: Recon Dad

Hmmm Chavez will take the retailers bank accounts, Real Estate Property, fixtures, and stock of goods. But how does Chavez restock the store shelves?


7 posted on 01/17/2010 1:46:28 PM PST by ricks_place
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To: ricks_place

Next year the headline will be as follows:

President Obama and DemocRATS ordered Sunday the seizure of all privately-owned retail chains on accusations that they raised prices after Federal Reserve devalued the dollar by half.


8 posted on 01/17/2010 1:48:57 PM PST by reader25
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To: reader25

Obama seems to want to nationalize the auto industry, banking, and investment bank sector. Nice place for Democrat Politicians to land like Freddie Mac and Fannie Mae. All political contribution will be directed to Democrats.


9 posted on 01/17/2010 1:53:17 PM PST by ricks_place
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To: Cheap_Hessian

Considering the actions of our current President, Americans need to STFU when it comes to Chavez Nazi actions.


10 posted on 01/17/2010 1:56:37 PM PST by vetvetdoug (FUBO, a fashion statement for conservatives.)
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To: Cheap_Hessian
The best excerpt from the article:

Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices

11 posted on 01/17/2010 1:56:57 PM PST by Cheap_Hessian (I am the Grim FReeper.)
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To: ricks_place
I can understand oil and other commodities, but retail is pocket change. You’re just pissing off shoppers.
12 posted on 01/17/2010 1:59:50 PM PST by Recon Dad ( USMC SSgt Patrick O - 3rd Afghanistan Deployment - Day 89)
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To: bert
Who's going to sell product to you?
13 posted on 01/17/2010 2:03:10 PM PST by Recon Dad ( USMC SSgt Patrick O - 3rd Afghanistan Deployment - Day 89)
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To: Recon Dad

Chavez is forcing retailers to keep prices below cost despite devaluation, at least until the coming Venezuelan election is over. He doesn’t want shoppers to see the real devastation to their savings and income. So he makes an example of one foreign retail firm to bully the others. No doubt store shelves are emptying fast because imported goods are not arriving at the ports. Chavez was bullying Toyota to assemble more vehicles, fat chance they will send many parts. lol


14 posted on 01/17/2010 2:12:40 PM PST by ricks_place
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To: Recon Dad

Vendors who export to Venezuela can sell as long as they have a letter of credit confirmed by an American bank.

My experience is that American manufacturers in Venezuela use raw materials such as the elastic in Pampers that is made in America

My experience with the French is that they buy from offices in France and source where stuff is cheap. Hugo lost the purchasers by closing the stores


15 posted on 01/17/2010 2:14:17 PM PST by bert (K.E. N.P. +12 . Tax the p is that hchoor. They have no stake in society)
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To: Cheap_Hessian

My favorite recent Hugo stunt was when he announced that the wildly popular Venezuelan soap operas, known as culebrones, are now going to have to be based on “socialist themes.” Sounds exciting!

They used to be Venezuelan versions of “Dallas,” all sex and bling. So maybe now they’ll show socialist sex offered by citizens to the commissars to increase their coffee ration, and socialist bling where Hugo steals all the private property? Those are socialist themes allright...


16 posted on 01/17/2010 2:24:51 PM PST by livius
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To: Cheap_Hessian

Chavez knows he is an idiot. He just cut the value of their money in half, of course prices have to adjust. They are going to end up with nothing but Hugo-Marts and what they sell will be unpredictable, like everything else Hugo touches.

I hope France slaps sanctions on Venezuela.


17 posted on 01/17/2010 2:48:01 PM PST by GeronL (http://tyrannysentinel.blogspot.com)
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To: GeronL

They are going to end up with nothing but Hugo-Marts

But every kitchen will have a rice cooker...
Maybe not now but within five years if socialist
progress continues.


18 posted on 01/17/2010 3:10:56 PM PST by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
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To: Kartographer

If I were the French I’d set fire to the stores and say screw Chavez. Bunch of socialist thugs they ought to be hunted like dogs and strung up for crimes against liberty and humanity.


19 posted on 01/17/2010 3:14:05 PM PST by Maelstorm (We are umbilicaled to a parasitic beast that feeds off one man so to enslave another to dependency.)
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To: Recon Dad
The Venezuelan upper class obviously doesn't have the balls to do something about that fat communist son of a bitch or he would be gone already.

Only the military can take him out now.

20 posted on 01/17/2010 3:19:41 PM PST by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: Cheap_Hessian

Chavez’s end will come quickly during the night. The country will celebrate. Hollywood will cry.


21 posted on 01/17/2010 3:29:18 PM PST by kempo
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To: Cheap_Hessian

Exito should have went Francisco d’Anconia a long time ago. Too late now.


22 posted on 01/17/2010 3:54:59 PM PST by CriticalJ
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To: Cheap_Hessian

“Comerso, a new government-run retail chain which seeks to sell its products at “socialist” prices”

And they’ll become just like the Soviet GUM store, where the prices are so high that only High Party Officials and the Well-connected Rich can afford to shop there.

The Peons will be forced on to the Black market for every day goods.

Welcome to Socialism!


23 posted on 01/17/2010 4:03:44 PM PST by tcrlaf (Obama White House=Tammany Hall on the National Mall)
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To: Cheap_Hessian

French socialism meet Venezuela socialism.


24 posted on 01/17/2010 4:43:39 PM PST by steveab (When was the last time someone tried to sell you a CO2 induced climate control system for your home?)
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To: Cheap_Hessian

Venezuela is a big importer. Either prices go up or the shelves are empty. Which does he prefer?


25 posted on 01/17/2010 5:06:18 PM PST by expatpat
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To: Rome2000

He owns the military....


26 posted on 01/17/2010 5:10:09 PM PST by expatpat
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To: Rome2000

He owns the military....


27 posted on 01/17/2010 5:10:59 PM PST by expatpat
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To: Recon Dad

DEAD is the preference of freedom-loving Venezuelans and sane Americans.

I’ll even send him some flowers - poison sumac.


28 posted on 01/17/2010 9:40:07 PM PST by ToTheMax
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To: ToTheMax
When he's gone I can then use one of my favorite quotes,

I didn't attend the funeral, but I sent a nice letter saying I approved of it. — Mark Twain

29 posted on 01/18/2010 3:54:37 AM PST by Recon Dad ( USMC SSgt Patrick O - 3rd Afghanistan Deployment - Day 89)
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To: Cheap_Hessian
Over on DUmmie Underground almost every post on this topic is “Viva Chavez” and “Way to go Hugo” It just boggles the mind how people can go through life so economically illiterate as to actually believe the government can provide something “For Free” and that the only thing standing in the way of an endless supply of free stuff is those evil corporations and their profit motive.
30 posted on 01/18/2010 4:21:09 AM PST by NavVet ("You Lie!")
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To: ricks_place
Hmmm Chavez will take the retailers bank accounts, Real Estate Property, fixtures, and stock of goods. But how does Chavez restock the store shelves?

Nationalize the wholesalers and so on up the supply chain. They can't raise prices either. Yes, at some point you run out of businesses to nationalize, but think of all the private property you've stolen. You may be able to run the nationalized distribution network for a while on all those stolen good.

Eventually of course it falls apart. Then you blame the United States.

31 posted on 01/18/2010 4:43:30 AM PST by Cheburashka (It's a _happy_ Russian novel. Everybody still dies, but everybody dies happy.)
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To: Cheap_Hessian
Comerso, a new government-run retail chain which seeks to sell its products at "socialist" prices

The Soviet Union had Gosudarstvennyi Universalnyi Magazin, a/k/a The State Department Store. Government owned and operated stores, which of course started out as stores seized from their evil capitalist owners.

Chavez hasn't come up with anything new.

32 posted on 01/18/2010 5:01:24 AM PST by Cheburashka (It's a _happy_ Russian novel. Everybody still dies, but everybody dies happy.)
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To: Cheburashka

What Chavez does today, Obama does tomorrow.


33 posted on 01/18/2010 5:04:05 AM PST by MarkAccord
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To: Cheburashka
Nationalize the wholesalers and so on up the supply chain.

Problem for Chavez: the goods are imported!!! lol

34 posted on 01/18/2010 6:40:51 AM PST by ricks_place
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To: ricks_place
Problem for Chavez: the goods are imported!!! lol

When he reaches the point where no one will export to him then he blames the United States.
35 posted on 01/18/2010 7:03:27 AM PST by Cheburashka (It's a _happy_ Russian novel. Everybody still dies, but everybody dies happy.)
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To: Cheburashka
When he reaches the point where no one will export to him then he blames the United States.

Chavez will blame the US of course. International Businesses will export to Venezuela or Venezuela retailers but will demand cash terms. The retailers will then face the dilemma of selling goods at a loss or face nationalization. The government businesses can sell at a loss as economics is immaterial when the welfare of the people is at stake. Viva la Revolución ! lol

36 posted on 01/18/2010 7:27:05 AM PST by ricks_place
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To: Cheap_Hessian

All the corporations who suffer from nationalization of their investments in Venezuela should come to invest in Honduras. Their investments are safe here.


37 posted on 01/19/2010 7:11:05 AM PST by ProudHonduran
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