The Rising Influence of Rising Affluence

[jbog]

Venezuela is in such a mess there's no possible way out. No company can deal in the world economy without committing suicide.

We do business with many International Companies that have or had presence there.

Not too long ago we shipped probably a 6 figure parts order to Mondelez in Venezuela. Because USD are in short supply there, the only one who can distribute Dollars is the government itself so our invoice has to be sent to MDLZ which promptly forwards it to the Government which the appropriate amount of bolívar to cover it.

Because the Government needs its available USD for Medical or Energy needs it may take 3 to 6 months for the Government to pay Monelez's bill in USD to us. Then the government turns around and charges Mondelez the Exchange rate when they payed it, which could be 5 to 40 Times the original bill because of the local currency collapse.

That's why the international's have just walked away from their assets there.