Posted on 03/05/2009 9:43:17 AM PST by MindBender26
CARACAS, March 4 (Reuters) - President Hugo Chavez seized a unit of American food giant Cargill on Wednesday and threatened to take over Venezuela's largest private company, renewing a nationalization drive as the OPEC nation's oil income plunges.
Chavez's clash with the food companies, demanding they produce cheaper rice, came less than three weeks after he won a referendum on allowing him to run for reelection and marked his first nationalization in seven months.
"I warn you this revolution means business," said Chavez, whose government has struggled with lower oil income and minor food shortages this year.
The anti-U.S. president, who has nationalized swaths of the economy, is popular among the poor for pressuring companies to produce cheap goods and for government programs that provide subsidized food in city slums. Chavez, an ally of communist Cuba, recently seized some rice mills belonging to Polar, Venezuela's largest private business, after accusing the food industry of skirting his price controls and failing to produce enough cheap rice.
"Prepare the decree, we are going to expropriate Cargill. We are not going to tolerate this," Chavez said. It was not clear if Cargill's other Venezuelan food units would be affected. Cargill has approximately 2,000 employees at 22 locations across Venezuela and operates 13 manufacturing plants including oilseed and animal feed processing.
On Wednesday, Chavez also ordered his ministers to inspect companies producing goods ranging from toilet paper to cars, which have been hard to buy at times in Venezuela.
(Excerpt) Read more at reuters.com ...
True. He’s doing it already.
One of many benefits from increased drilling and recovery of oil & gas in the United States would be to further drain income from despots like this. Obama and the Dhimmirats blocking drilling in the US not only puts us at the mercy of rogue states, it also increases the price of oil to help fund “revolutions” around the world.
Just a little bonus from the Community Organizer-in-Chief
Attention American firms:
Get out of Venezuela. For your own good.
If a bushel of rice requires "X" amout of capital to produce and distribute...how can it possibly cost the consumer "X-Y"?
Of course, there are plenty of Dems in America that can't grasp that same basic economic theory.
There’s enough true bad stuff about the Obama Administration that we need to be sure to check out stuff we read real good before we pass it on. Quoting rumors and untruths only serve to discredit the authentic stuff the socialists are doing. Of course, on the other hand, I think some of the left wing debunking sites are knee-jerk debunkers and call everything a lie if it’s told about their icons.
That was my first thought also. Odummy would probably make them pay to re-build.
Another Zimbabwe in the making. Soon they’ll be giving the farms and ranches to the “poor” and everyone will starve.
Hadn’t heard that little tidbit, where can that be referenced please? I’m trying to put some pieces together...
A.A.C.
Cargill has the best politicians money can buy. Their lobbists foisted both ethanol and ethanol tarrifs. They receive millions in farm subsidies. They could probably get the US to declare war with Venuzuela if they wanted.
I have to stop going to FR because every time I do my blood pressure goes through the roof! Just kidding. Although I do get sick when I find out some of this crap.
“Get out of Venezuela. For your own good.”
Exactly, if Cargill didn’t learn anything from the oil
company seizure, they deserve to lose their assets in V.
I feel for the shareholders.
Yeah, just look at how well Mugabe’s food programs are doing....give Chavez a few years and Venezuelans will be starving.
Cagill better shut down and destroy all it’s other possessions in Venezuala. Otherwise, they *WILL* be seized by Chavez.
“Instead of waiting for the other shoe to fall, we’ve moved all our operations to Brazil.”
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Odd you didn’t decide to operate in America.
Do you sell here?
“China will also do this with US companies over there.”
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Ding ding ding.
We have a winner.
We are involved in a sustainable wood program for furniture we manufacture for the hospitality, timeshare & assisted living facilities in the US, Canada & Mexico.
The furniture is manufactured in Tijuana Mexico in a maqiladora plant which we set up because, since we are located in California, it isn't cost effective to manufcature here. Any idea what the regulation on furniture manufacturers is like in California? Any idea what its like to try and run a business of this type in California?
Our furniture is distributed out of San Diego, our sales force is based in San Diego, as is our corporate headquarters and we pay our taxes in Calidfornia.
There, now you ahv e a little more information at your disposal with which to conjure up snide little comments.
There's always one.
How long before Obama is seizing companies??... Oops!
How is that not considered a security risk??
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