Kellogg shuts down Venezuela operations. Maduro howls: "Imperialists! Oligarchs!" [View all]

[GatoGordo]

Kellogg latest US brand to ditch crisis-wracked Venezuela
Originally published May 15, 2018 at 8:19 am Updated May 15, 2018 at 1:47 pm

By JUAN CARLOS HERNANDEZ
The Associated Press

MARACAY, Venezuela (AP) — Kellogg Co. closed operations in Venezuela and laid off 300 workers Tuesday at a time of widespread hunger in the crisis-wracked South American nation.

The Battle Creek, Michigan-based company said in a statement that it ceased operations as a result of the “current economic and social deterioration” in Venezuela.



The move drew an angry rebuke from socialist President Nicolas Maduro, who accused the company of trying to sabotage his chances of getting re-elected in Sunday’s presidential vote. He said he had ordered the company’s plant in the central city of Maracay to be turned over to Kellogg’s workers so they can continue to produce cereals.

“Why are they doing it today? Because we are four days away from elections and they think it will spook the people,” Maduro said at a campaign rally, adding that he would seek the international arrest of the owners of Kellogg’s Venezuelan subsidiary. “Imperialists! Oligarchs! Nobody can scare our people.”

-snip-

https://www.seattletimes.com/business/kelloggs-latest-us-brand-to-close-door-on-venezuela/

99.96% devaluation of the currency in the last year.
122,000,000% devaluation since Chavismo (1999)
Second "revaluation" of the currency in 10 years. (another 3 digits lopped off)
18,000% inflation

Maduro will (of course) nationalize the factory. He will "give it to the workers", as he did with Bridgestone, General Motors, Kimberly Clark, etc. And the new worker/owners will produce... nothing. Because nothing gets produced in Venezuela. Maduro won't let businesses have access to currency that has actual value. All of the raw materials are imported. All imported goods are paid in cash, as Venezuela has no credit. And the cash needs to be something of value... not the Bolivar.