When your President tells you that ‘Playstation is poison‘, you know you’ve got a problem with the way things are being run. When hunger and power deficits are perpetual issues in your country yet those in the executive branch are more focussed on controlling industry for their own agenda, you know you have qualms with governance.

Indeed the statements and actions of Venezuelan President Hugo Chavez are erratic to put it modestly, yet all flowing on the same perturbed course – socialist authoritarianism.

Chavez said yesterday that a nationalized retail chain previously controlled by France’s Casino Guichard-Perrachon S.A. will become part of a new group of ‘socialist supermarkets‘.

In giving the official order to nationalize Casino’s hypermarket grocery chains, which went by the retail name Exito, Chavez said the stores would now become part of the new, state-run Comerso, or Corporation of Socialist Markets.

Chavez also indicated that PDVAL, a chain of grocery stores created for the nearly 100,000 employees of state-run energy giant PDVSA, would be involved.

The president on Sunday announced plans to nationalize the Exito stores after accusing it of raising its prices following the government’s devaluation of its currency.

This is just one of the steps Chavez has taken in nationalizing broad parts of the economy, from the cement and coffee sectors to parts of the banking and oil sectors as part of his effort to create a “21st Century Socialism” economic structure in Venezuela.

His government typically offers compensation for the firms it nationalizes. Some expropriated firms have said the offers were fair and accepted the payout, while many others say they were offered far less than what the company is worth, and have sought international arbitration.

The state capture of Venezuela has been gaining speed over the past few months. In fact, Chavez closed down two small banks and a savings and loan on Monday.

The three firms taken over by authorities and shut down Monday were InverUnion Banco (IVU.CA), Banco Del Sol and Mi Casa, a savings and loan, government banking regulator Sudeban said in a statement.

The banks taken over Monday bring to 11 the number of financial institutions shuttered by the government since late November. Nearly a dozen bank executives have been arrested for charges that include ‘misusing depositors’ money for personal gain‘.

Of the banks previously closed, some have been liquidated while others were brought back to health and re-opened as a state-owned bank, which dovetails with President Hugo Chavez’ continuing efforts to create a socialist state.

We are not going so far as to state that corruption doesn’t exist in the supermarket or at the bank or even at the hotel that Chavez wished socialized but a few months ago. But the volatility in which the regime operates, ultimately stifling any notion for private enterprise or foreign investment draws more than just skepticism. It should draw international concern.