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Marketwatch: Dow Jones eliminates Venezuela from its indexes

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Chimichurri Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-28-07 10:33 AM
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Marketwatch: Dow Jones eliminates Venezuela from its indexes
Edited on Wed Mar-28-07 10:34 AM by Chimichurri
Venezuela, an oil-rich country which has launched a nationalization spree in several key industries, will be scrapped from the Dow Jones Wilshire Global Total Market Index family, a gauge of world equities.
The impending nationalization of companies with a significant amount of foreign ownership has seriously damaged the risk premium for Venezuela, Dow Jones Indexes said in a statement Wednesday.

Venezuelan President Hugo Chavez has pledged to nationalize assets in important industries such as electricity, oil, and mining.
"The country risk, as measured by the Index of Economic Freedom, fell below Dow Jones Wilshire Index's eligibility standards," the statement said.

Six Venezuelan companies will be removed from the Dow Jones Wilshire Global Total Market Index, Dow Jones Wilshire Americas Index, Dow Jones Wilshire Global exUS Index, Dow Jones Wilshire Emerging Markets Index and Dow Jones Wilshire Latin America Index. The changes will go into effect on June 18.

Venezuela, a founding member of the Organization of Petroleum Exporting Countries, was the world's eighth-largest oil exporter in 2005. Its economy has grown rapidly fuelled by huge oil revenues.

Chavez has consolidated his power over the country. He controls Congress, the judiciary and the army. His nationalization campaign and hostility toward the markets has made him very unpopular with foreign investors.


http://www.marketwatch.com/news/story/dow-jones-eliminates-venezuela-its/story.aspx?guid=%7B0C73D1E3%2DCE18%2D472E%2D95C4%2D57D4B1158CA7%7D

What happens to the companies running the assets Chavez is nationalizing? Do they have to just pack up and leave the country?
Also, are they compensated by Venezuela for investments made?
This is interesting.
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Peace Patriot Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-28-07 11:34 AM
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1. Yes, they are compensating businesses, and land owners in land reform
(to provide small farmers and peasants with land to feed their families, and aiming at national food self-sufficiency--a lot of farm land in Venezuela just sits idle, often with no rightful title to it; where there is title for needed land, they compensate). The Venezuelan Constitution provides strong protection for private property. The Bolvarian movement is strongly constitutional. Passionately. When Chavez was kidnapped in '02, the main thing on the minds of the million Venezuelans who surrounded Miraflores Palace (the seat of government) to demand his return was "OUR CONSTITUTION!" (See: "The Revolution Will Not Be Televised.)

Dow Jones doesn't like oil profits going to schools, medical clinics, adult literacy, small business loans and grants, worker coops, beneficial infrastructure, food for the poorest of the poor, support for indigenous arts (as opposed to imported corporate monoculture), land reform, and other far-thinking development, and above all, not to the Bank of the South, started by Venezuela, which is enabling countries like Argentina, Bolivia and Ecuador to get out from under onerous World Bank/IMF loans and thus out of the clutches of global corporate predators.

But Dow Jones is so yesterday. They think they can stop the Boliviarian revolution which has swept the Andes--with leftist (majorityist) electoral victories in Venezuela, Bolivia, Ecuador and Argentina, connected leftist electoral victories in Brazil, Uruguay, Chile and Nicaragua, and big leftist movements in progress in Peru, Paraguay, Mexico and Guatemala (likely to add to the leftist sweep in the next several years)--and they think they can stem the tide of Bolivarian ideas, such as Latin American self-determination and regional cooperation, that are transforming Latin American politics, and heading the region toward a South American "Common Market" and common currency (to get off the US dollar).

We are the pariahs of the world, in case Dow Jones hadn't noticed. The Bush Junta has inflicted us with a $10 TRILLION deficit--from tax cuts for the rich and heinous, unjust war, including massive military contractor looting. China is holding much of our debt paper. Even the Saudis seem to be bailing. All we have left are crudities of corporate financial looting, punishment and exclusionary tactics like this, and the brutality and bullying of our war machine. Our ideas of democracy have become completely hypocritical and laughable, and bankrupt like our treasury. Most of the countries in our own hemisphere are looking to themselves and sideways across the Pacific and Atlantic oceans for FAIR trade and other relations based on respect and mutual benefit. Mean, nasty little actions like these from Wall Street cannot stop this trend TOWARD democracy, FAIR trade, independence and social justice, in this hemisphere and elsewhere. Our global corporate predators have looted everybody--and have grossly violated world peace with their corporate resource war on Iraq--and we are about to learn the consequences of our failure to curtail them.

All I can say is, we had better get smart fast, and restore transparent vote counting in this country. Because that is the problem--the fast-track conversion of our election system to electronic voting run on 'TRADE SECRET,' PROPRIETARY programming code, owned and controlled by rightwing Bushite corporations. It's not just the Bush Junta that we are suffering. It's a Corporate Junta. Dow Jones is part of that problem. And it's a big one.

IF we had transparent vote counting in this country, Bush and Cheney would be already impeached, and their horrid war would be over--and we would be on the way back to economic, political and moral health, with positive goals of social justice and saving our imperiled planet. It's that simple. They installed for themselves an easy and undetectable method of stealing our elections, and they are using it. But the Corporate Rulers' shoving of this fascist regime down our throats is going to create a reaction that they won't like at all. We're going to start seeing some self-determination here, by We, the People, of the United States, to catch up with the movement in Latin America. And it is going to include drastic cuts to the aggressive war budget, and dismantling of bad actor corporations and seizing their assets for the common good. That's my prediction.

So, Dow Jones, you can go Cheney yourselves. You are irrelevant. You are the bad guys. Throw your mean little Bushite temper tantrum and see where it gets you. The Bolivarian revolution is the future, and you just cut yourselves out of it.
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