Sunday, December 4, 2016
Things in Venezuela are so bad companies are giving away their operations
Multinational companies are selling their Venezuelan operations at hefty discounts - or even giving them away - as they to seek to escape the OPEC nation's soaring inflation and chronic supply shortages.
Six firms, including General Mills and oil producer Harvest Natural Resources, have sold operations for as little as half their assessed value on the companies' books, according to securities filings and interviews with a dozen people knowledgeable about the deals.
One company, U.S. autoparts-maker Dana, last year sold its debt-laden Venezuela operations to a local buyer for no cash compensation. Two multinational corporations - Clorox and Kimberly-Clark - chose instead to abandon their operations here.
It seems we are close to all th wheels falling completely off the Venezuela economy. Things are so bad that multinational companies are in many cases just abandoning their operations and writing off the loss.
This is a great lesson for those in the west that still romanticize socialism and communism. It never works and will never work because it is against human nature. Unfortunately millions upon millions have been murdered and lived in abject poverty to prove the point. Eventually the people in Venezuela will have enough and there will be a change in the political climate and then speculators like myself will come in and bring much needed capital. And yes we will become wealthy.