Dividends and Rogue Nation

On September 2011, one of the people I was working with was on the phone to Cantor in the World Trade Center, shortly after the phone went silent and the image of America changed. Before it was possible to examine whether America was a source of good in the world or had plenty of shady sides. Now that time was passed, it is evident that in many countries around the world America has its shady side, when it comes to protecting America’s interests. In our economy as a company grows it becomes vertically integrated and buys assets in other countries to diversify its holdings and sell its products around the world. If it sufficient size, there is the ability to influence the governments of the day to ensure its holdings are essentially left alone or not touched by government regulations. If a country wishes to nationalize without compensation then the company’s executives turn to government agencies such as the CIA to see what can be done. The CIA has a history of overturning “bad” governments to “good” governments which protect and allow assets to produce wealth to be sent to the US. In the book, Rogue Nation by Peter Scowen published by McClelland and Steward, Montreal, 2003 some of the worst cases are documented. The cases include countries in Central and South America, countries in the Middle East and Asia. Some were done to protect the corporate assets from communism; some were done to show others what America was willing and could do; and some were done because they could. Very few action were done to protect the average person in the country.

Linking to dividend paying stocks, one hopes the ethics and vitality in the home market is brought forth to the external markets. The world can use many of the products and services available to North Americans, but how far should the government go to protect those assets? It is an age old question, but one that never has a great answer. Be proud of the company diversifying its markets at high margins; but do not be surprised the world does not always look favourably at your home country.

There are more questions than answers, till the next time – to raising questions.

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