Government applies the “Andrade doctrine”

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“Nope, specifically calling for Asian-owned businesses to be inspected is not racist at all.”

Remember that Chavista deputy from Merida that was a little too honest while talking about how Asian inmigrants must toe the line and stop speculating? Well…

Vice-President (and Chávez’s son-in-law, lest we forget why he got this job) Jorge Arreaza has upped the ante, by calling “Asian business owners to adjust their prices this week, because their stores will be inspected by the State”.

29 thoughts on “Government applies the “Andrade doctrine”

  1. When the Indonesian economy crashed in 1998, the Chinese-owned stores were looted. As was said in another country in another era about a different event, “Ya viene Jakarta.”

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  2. Goodbye further China loans??? Up to now, the Ven. Govt. has (I believe purposely) ignored the Chinese merchants, who are big in wholesaling/retailing scarce items like Harina Pan, cooking oil, toilet paper, etc.

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  3. The government saying that is targeting a racial minority for prosecution without basis but their race? It’s funny how much leverage being a lefty gives you with getting away with a textbook definition of racism.

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  4. And BTW, thanks to the chinos a lot of people can have access to regulated products because you can but for them, even if at a higher price, without queuing for hours.Always open. Always well stocked.

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  5. The main result of Idi’s anti-Asian racism was that he gave them a week to clear out of Uganda, “or face the consequences”. It doesn’t need to be bloody to mimic Idi.

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  6. While informing that a large batch of chinese appliances is arriving at Puerto Cabello, UN quotes in passing that “not content with importing cereals, coffe, flour, milk and livestock; now they want to take over the business of electronics and even cell phones” (“no les basta con la importación de cereales, café, harina, leche y ganado en pie, ahora vienen por el negocio de los electrométricos e incluso hasta por los teléfonos celulares”).

    And that became the saddest and most believable explanation of “el CaDakazo” (thanks for naming it Omar!) for me. It’s a hostile take over of an entire sector of the economy, probably not for the business in itself, but the opportunity to grab those dollars. Let’s remember that right now an extremely profitable business is importing food and letting it rot or buying it rotten to begin with. The VEF to be gained actually putting that food in people’s homes is a nuisance compared to the overcharges, comissions and kickbacks earned from importing.

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  7. I think we should review the basics of pricing from the perspective of finance 101. First of all, the mark-up in pricing depends on the inventory turnover. Turnover has to do with how many times per month you sell a given item over and over. Furthermore, if we are talking about produce, which has a rapid spoil rate, it has to be sold FAST, and some of the stock has to be thrown away, which is an off-set to profit. Other items have a longer shelf-life, and don’t spoil. Some items have a rapid obsolescence rate, i.e. mobile phones and tablet computers. The turn-over is how often an inventory item is sold and then replaced and then sold again over and over. For example, a box of harina pan, might sell with a 1% profit margin, but then it get’s replaced with another box that gets sold again, over and over, maybe 30 times per month. If the profit for each sell is 1%, you multiply by how many times the items is turned over, which is equal to 30% which is $360% per year. A manufacturer has to account for his costs over the time it takes to manufacture the product, that would include financing (interest), labor, materials, and the shelf time, marketing, and product support. For example, building a freighter ship takes up to two years, and a 1% mark-up would create a huge loss. Freighters marked up 200% over 2 years, is 100% per year, minus the finance costs. Then there is the matter of inflation, where the supplier keeps raising the price each time product is reordered to replace sold product. In this case, a question arises as to whether the price is based on the replacement cost (LIFO, which means “Last In, First Out), or should the price be based on actual cost (FIFO, which means “First in, First Out”. In FIFO accounting, the profits get sucked into the inventory, and depending on the inflation rate, may not be enough to cover inventory costs, labor costs, rent, etc. In LIFO accounting, the inventory keep getting more valuable which is a form of incidental profit, but the merchant can only realize those profits if he liquidates his inventory and closes the business.

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  8. They, the Asians “speculate”. So does EVERYONE ELSE. In Distortionland, erm Venezuela. Independently of whether they are enchufados or not.

    Which Asians by the way? Iranians? Kazakhs?, Asia is freaking big, suppose they mean East Asians who look a bit like the Chinese and Japanese.

    What’s not incredible but saddening, seeing the government stoop down this low.

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  9. First the Chavistas hated anyone with light skin-color (mestizos, gringos, europeos, etc. Now it is extending this to all foreigners it appears as the mad paranoia that the foreigners are there to steal everything continues to grow. China will not be nice about this attack on their citizens. Yet the Chavistas continue to babble about sovereignty as the Russians and Chinese take over the oil industry, the Cubans take over the military, police, and medical professions, and the Venezuelan government plunges into debt with unfavorable Chinese loans they can scarcely repay. The Chinese are into dog-eat-dog capitalism like the US was in the late 19th and early 20th centuries and they will retaliate. When Vietnam forcibly evicted about 50,000 Chinese who had businesses in Vietnam in 1979, they got a massive artillery barrage as a repayment for their insult. The Chavistas seem to think that the Cold War is still going on and that Russia is still the Soviet Union and that China is still Red. Bad miscalculation.
    Venezuela’s dependency on the hated yanquis’ oil appetite grows day by day as Maduro completes the destruction of what is left of the country’s productive sector and as the list of oil parasites like Cuba and Nicaragua continues to grow.

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