RE: The Dutch Curse and VENEZUELA's Oil
You are viewing a single comment's thread:
I thought that understanding economy is important for business, and both were connected. Knowing about the Dutch Curse and what happened to venezuela's oil helps to understand about the importance of diversification.
"From this situation, you can take two insights into your life. The first is that no matter how good and perfect everything seems, there's always a chance that something unexpected will happen. After all, there's no way to know when something unexpected will happen, which is why it's unexpected. And the second is that one way to prepare is by diversifying your sources of income and investments!"
But I understood less economy and more focus on business. I'll check the Finance and Economy later, thanks for the recommendation!
Yea it is still a really good post. I was just thinking of some things that could be added to make it more TradFi.
Thanks. I'll pay attention for more business related posts next :D
Like I would include information like this which is much more relevant to Venzuela's oil issues.
Being dependent primarily on one resource can be risky but there are plenty of countries that do it well and sustainably when it comes to oil and gas exploration.
https://www.conocophillips.com/news-media/story/international-arbitration-tribunal-orders-venezuela-to-pay-conocophillips-8-7-billion-for-unlawful-expropriation-of-company-s-oil-investments/
The check could come through any minute now... If they keep playing like this, they won't get paid for the next 100 years.
lol I think it's mostly intended for investors. I'm guessing Econ has their own version but I didn't get too deep into it.
When a country explodes, all the problems come at once. Venezuela's debt will have to be negotiated as a hard default. And the rulings in international courts will be put on hold, ultimately leading to negotiations for less money in the future.
Trump plans to help Venezuela by selling some of its oil. Surely American companies will invest in Venezuela. But I don't see Trump reaching for his checkbook to pay defaulted bonds or international court rulings.