After K-C had to stop production because they could not get raw materials:
“Kimberly Clark will continue producing for all Venezuelans and is now in the hands of the workers,” Labor Minister Oswaldo Vera said Monday in a televised address from the company’s plant in central Aragua state, before signing an order to take it over. The labor ministry claims Kimberly Clark had violated Venezuelan law by firing over 900 workers without consulting the government.
And why was that? (emphasis added)
Strict currency controls prevent companies in Venezuela from buying dollars with local earnings.
“It doesn’t matter who’s running the factory,” said Henkel Garcia, director of the Caracas business consultancy Econometrica. “The bottom line is that there are no raw materials that anyone can afford to import.“
The lender has decided to stop correspondent banking and servicing some accounts in the South American nation, New York-based Citigroup said in an e-mailed statement. The firm said the decision “is not a reflection of our commitment” to the country, and that it will continue discussions with the administration of Venezuelan President Nicolas Maduro.
As I had posted last month, Venezuela doesn’t have enough money to pay its oil drillers.
Miguel Octavio posts on Myths And Realities Of The Distorted Venezuelan Economy Part II; bottom line,
The economy is simply trapped in the hands of an incompetent, inefficient and corrupt Government that has tried to control everything.
Daniel posts the Diary of Venezuelan [sic] businesses demise
On Sunday, 30,000 Venezuelans crossed into Colombia to buy food
after Venezuela opened their common border to allow its people to buy food and medicine, officials say.
The frontier, closed by Venezuela last August as part of a crime crackdown, was to open for 12 hours.
Last week, about 500 Venezuelan women broke through the border controls in search of food.
The surprising thing is that they returned to Venezuela at the end of the day – as Jaime Bayly said last night, it shows they still believe in the regime.
I just remembered that chavismo introduced Bolivarian “kotex” three years ago.
Linked to by Hot Air. Thank you!