Venezuela Stealing More Foreign and Domestic Corporate Assets - What Are We Thinking?
Many folks do not understand how much damage a nation-state can do to world trade and emerging market finances when it nationalizes an industry or commandeers corporate assets in their nation.
You see, when they do this, no matter what their reasoning, excuses, or justifications it has a severe chilling effect in the region and around the world when it comes to foreign investments in such nations.
Lately, in South and Central America we've seen some of the most blatant abuses of governments when it has come to nationalizing companies within their nations.
Both Bolivia and Venezuela have nationalized many industries, and literally reneged on contracts, and actually stolen assets of companies without paying them for their improvements, facilities, or equipment.
Bolivia has nationalized oil and gas, mines, water treatment and anything else that they thought was making money.
Why? So, they could use the money to pay for the promises to their people they had made to gain and to retain power.
After all, it's not easy to keep the mindless masses happy in a socialist society.
Unfortunately, as they steal more assets, and nationalize more industries, all the nation's they are associated with in the ALBA Block of nations, also lose out on foreign investment, as it is not worth the risk to invest in their nations.
This means countries like Cuba, Argentina, Nicaragua, and Ecuador are also not likely to receive monies for aid or for economic development, investment or much needed loans for infrastructure.
This hurts the people of these nations who will also ultimately take the burden as socialism fails in these nations.
Recently, Venezuela's Hugo Chavez took another bold move to nationalize oil services in his nation, taking over 34 oil contracting companies, both foreign and domestic, and stealing their equipment too.
Chavez is doing this because his policies have failed and he has failed to turn a profit on the companies and industries he has already nationalized, but has been unable to run efficiently, such as the oil industry, especially as oil has been trading well under $70 per barrel until now.
At this point no one should be duped into ever investing another dime in Venezuela until complete regime change occurs.
Please consider this.
You see, when they do this, no matter what their reasoning, excuses, or justifications it has a severe chilling effect in the region and around the world when it comes to foreign investments in such nations.
Lately, in South and Central America we've seen some of the most blatant abuses of governments when it has come to nationalizing companies within their nations.
Both Bolivia and Venezuela have nationalized many industries, and literally reneged on contracts, and actually stolen assets of companies without paying them for their improvements, facilities, or equipment.
Bolivia has nationalized oil and gas, mines, water treatment and anything else that they thought was making money.
Why? So, they could use the money to pay for the promises to their people they had made to gain and to retain power.
After all, it's not easy to keep the mindless masses happy in a socialist society.
Unfortunately, as they steal more assets, and nationalize more industries, all the nation's they are associated with in the ALBA Block of nations, also lose out on foreign investment, as it is not worth the risk to invest in their nations.
This means countries like Cuba, Argentina, Nicaragua, and Ecuador are also not likely to receive monies for aid or for economic development, investment or much needed loans for infrastructure.
This hurts the people of these nations who will also ultimately take the burden as socialism fails in these nations.
Recently, Venezuela's Hugo Chavez took another bold move to nationalize oil services in his nation, taking over 34 oil contracting companies, both foreign and domestic, and stealing their equipment too.
Chavez is doing this because his policies have failed and he has failed to turn a profit on the companies and industries he has already nationalized, but has been unable to run efficiently, such as the oil industry, especially as oil has been trading well under $70 per barrel until now.
At this point no one should be duped into ever investing another dime in Venezuela until complete regime change occurs.
Please consider this.
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