Virtual Profits In Venezuela

Good for Venezuelan consistency!

Virtual profits, virtual currency, virtual toilet tissue and virtual media access for the opposition. It’s a great place for virtual economists and for virtual consumers .

The Devil's Excrement

FunnyMoney

This week, Ford Motors said that it expects to lose US$ 350 million in Venezuela with the upcoming devaluation, which they believe will take the Bolivar from Bs. 6.3 per US$ to around Bs. 12. Basically Ford has investments in Venezuela valued at around US$ 802 million plus the Government owes them a few hundred million in Cadivi imports, which could eventually be paid at the higher rate of the new official devaluation, which people think will be around Bs. 12. Thus, Ford expects that in 2014 it will not make money in Latin America, only because of Venezuela.

Which shows how difficult it has become to do business in Venezuela, when you book  “virtual” profits one year, only to see them disappear the next, together with the loss in value of your assets. Last year, Ford took a US$ 186 million hit when the Government devalued to Bs. 6.3…

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About danmillerinpanama

I was graduated from Yale University in 1963 with a B.A. in economics and from the University of Virginia School of law, where I was the notes editor of the Virginia Law Review in 1966. Following four years of active duty with the Army JAG Corps, with two tours in Korea, I entered private practice in Washington, D.C. specializing in communications law. I retired in 1996 to sail with my wife, Jeanie, on our sailboat Namaste to and in the Caribbean. In 2002, we settled in the Republic of Panama and live in a very rural area up in the mountains. I have contributed to Pajamas Media and Pajamas Tatler. In addition to my own blog, Dan Miller in Panama, I an an editor of Warsclerotic and contribute to China Daily Mail when I have something to write about North Korea.
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One Response to Virtual Profits In Venezuela

  1. Brittius says:

    Reblogged this on Brittius.com and commented:
    Odd. Ford makes better cars for South America. Manual transmissions and no emissions controls. Ford should be exceptionally profitable. Substandard salaries also. $350Mil loss anticipated?

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