Cargill violates Venezuelan Law and price regulations. Chavez takes action.

Venezuela - BNB
EAMR
03/05/2009

President Chavez ordered the expropriation of an important rice mill in Acaricua, Portuguesa State. The mill produces the Santa Ana Parboil rice brand owned by American food giant Cargill [CARG.UL]. The decision came after several warnings. Food prices have nearly doubled in Venezuela ever since Chavez announced a Constitutional amendment last year, which was approved by a popular referendum February 15th. The change to the Constitution allows any holder of public office to have no limits in runs for election, Chavez and opposition Governors included.

The private sector (Contra-Revolution) in Venezuela is known for retaliating by punishing the populations with food shortages and price increases. Venezuelan law regulates prices on foods part of the Venezuelan daily diet. Production companies must assign 80% of their total capacity to those regulated items (rice, oil, coffee, flour, sugar,beans,bread, meats, milk) and 20% to special flavor products. To assure food security and price stability.

Cargill was producing 0% of the regulated rice, and 100% of their 2,400 thousand tons per month was produced as flavored rice sold at twice the regulated price of 2.3 Bs.F per Kilo. Rise would be mixed with a kind of bullion powder. Flavor powder worth $15 would be sufficient to flavored die their monthly capacity. Clearly violating regulations and intentionally alarming the populations with the increase of price. Venezuelan food giant Polar had a rice plant under military and worker controlled this week to the same violations. Workers in the plants resume operations and increased production of the regulated Rice after the announcements.

Meanwhile, reuters reported today "The Chicago Board of Trade rough rice futures for March delivery RRH9 ended 18-1/2 cents weaker at $11.94-1/2 per hundredweight, hovering near a two-year low." Of course, Pro-Capitalism analysts blame the financial world crisis on Chavez.

Wall Street Continues to free fall, The Dow brakes the 6k barrier

New York - Agencies

03/02/2009

Wall Street open today with a strong negative tendency and the Dow Jones Industries had loss almost 2% shortly after the opening bell, after learning The US Government has to rescue the insurance giant AIG once again, which registered record losses last year.

The Dow Jones index shrank 132 points, closing with 6.930 units, level not registered since October 1997, dropping from a high of 14.000 units last year. The Nasdaq reversed 1,3% and the S&P also loss 1,9%. Ouch!

International Event on Globalization Begins in Havana

HAVANA - ACN
03/02/2009

The 11th International Encounter of Economists on Globalization and Development Problems that begins on Monday in Havana will be the most important of its kind held so far.

"The current global economic crisis makes it the most important so far,"said the president of the organizing committee, Roberto Verrier.

According to Verrier, some 1,500 delegates from 60 countries as well as representatives from 27 international institutions, including the United Nations and a special envoy from the President of the UN General Assembly, will participate in the meeting.

Other important personalities that will take part in the event include Dominican President Leonel Fernandez and his Honduran counterpart Jose Manuel Zelaya as well as US Nobel laureates for Economy Robert Mundell, Robert Engle and Edmund Phelps.

Verrier added that 10 presidents of Central Banks, almost 20 Ministers of Economy, the UNESCO Deputy Director and the President of the ALBA (Bolivarian Alternative for the Americas) Bank are also in Havana for the meeting.

"We will analyze the topic of the global economic crisis in two working sessions, on Monday and Tuesday. Then, on Wednesday, we will discuss ways in which social movements and economists from developing countries can contribute to facing this crisis," Verrier explained.

According to the president of the organizing committee, other topics to be discussed include trade, the Doha Round, ALBA and regional integration.

The 11th International Encounter of Economists on Globalization and Development Problems will conclude next Friday.