Venezuela to Nationalize All Food Distribution, Increase Public Wages 30%

To combat food shortages caused by socialist policies including nationalization of half the nation's food supply, Venezuela to Nationalize All Food Distribution.

Venezuelan President Nicolas Maduro has promised to nationalise food distribution in the South American nation beset with record shortages of basic goods, runaway inflation and an escalating economic crisis.

During a rally on Friday, on International Workers' Day, the socialist leader allowed a union activist to ask for the nationalisation of food and essential-item distribution.

Various estimates suggest the government already controls about half of the country's food distribution, but that hasn't stopped record shortages in shops and markets.

Venezuela is struggling with a recession, 68.5% annual inflation and severe shortages of the basic goods that it relies on oil money to import.

On any given day, people in Venezuela can wait hours to get some subsidised milk, cooking oil, milk or flour, if they can be found at all.

Maduro's government is strapped for cash in the face of a global supply glut that caused oil prices to collapse by more than 50 percent between June and January.

Nonetheless, Maduro also announced a 30% increase in public wages on Friday.

Way to a New Venezuela Home

In other news, Woman Who Threw mango at Maduro Rewarded With New Home.

A woman who bashed President Nicolas Maduro on the head with a mango has been promised a new house for her troubles in a surreal tropical tale that has gone viral in Venezuela.

The 52-year-old president was driving a bus through a crowd last weekend in the central state of Aragua when someone in the crowd tossed the fruit at him.

"It says: 'If you can, call me'," the former bus driver said later during the week, as he displayed the fruit with a name and phone number scrawled on it on television.

"Marleny Olivo had a problem with her house. [Officials] called her. She was scared. She couldn't believe it was true. ... I've approved an apartment for you, Marleny, as part of the 'Grand Venezuelan Housing Mission'," he added, vowing to eat the mango.

"If for for a mango they give you apartments, then you know what to do: throw him a pineapple!" quipped Dolar Today, a website that quotes the black market for dollars and is hated by Maduro.

Apparently the way to combat inflation is to grant a 30% increase in wages. The way to a new house is to throw fruit with your name on it at the president.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com