Mexico's state-owned oil company Pemex has been ransacked by President Enrique Peña Nieto, other government officials, and the country's oligarchy, and now that it’s bankrupt they have turned it into a Ponzi scheme, prominent economist, researcher, analyst and author James Cypher told teleSUR.
“The Mexican State was levitated by rivers of gold received through the high levels of oil profits but this gold was used so that the oligarchy and their buddies could evade taxes ... almost,” Cypher said. “Public treasury was emptied out years ago — apart from the oil revenues, So, although Pemex has been a huge business, authorities were forced to seek loans everywhere to the oil company afloat.”
Currently, Pemex owes so much money and has been granted so many loans that it struggles to obtain credits, he said, adding that on Thursday the company sold bonds worth over US$250 million, increasing their debt in order to pay off loans.
“In other words, Pemex financing has become a Ponzi scheme,” said Cypher.
The Mexican State has always been in charge and barks out all the orders regarding all issues related to the country, but their achievements or profits always end up in the pockets of government officials.
“The State is an instrument used only for the benefit of the Mexican oligarchy first, and then for U.S. businesspeople and a few more — for example Canadians matter plenty in the mining sector,” Cypher explained.
The U.S. expert and analyst, who currently works for the Autonomous University of Zacatecas, said that contrary to what teleSUR's article on Pemex says regarding partial privatization of Pemex, Peña Nieto's intentions are to completely sell off the company to private enterprises.
The Mexican president’s plans for Pemex contemplate that the company continue operating but it will only carry out support activities that are not profitable.
“We have not had time to analyze how far Pemex will be stripped down but undoubtedly all profitable areas of the company will be taken over by the Mexican oligarchy first, and the rest to the giant oil companies from Houston, Texas,” he noted.
Cypher went on to say that it is almost certain that Hillary Clinton and her advisors participated in one way or another in creating the policies for privatization Peña Nieto has been pushing forward since he took office in 2013.
The renowned economist agreed with leftist Mexican party Morena saying, “Of course! The current Mexican government is going to take their usual share.”
WATCH: Fear Over Pemex Privatization