Tag Archives: Hugo Chavez
Oil exploration companies agreeing to do business with Chavez is as stupid as Wall Street bankers donating to Obama
Yet both groups keep doing it. Death wish? Today Chavez expropriated the equipment of oil services companies hired by that benighted country to explore for oil.
U.S. freezes accounts of Miami money-launderer, cuts off Venezuela’s source of black market dollars. Trouble is, it seems nobody in Venezuela, including its nationalized oil industry, likes the “Strong Bolivar” Chavez has introduced. No dollars means the country’s economic system will have to run on a currency worth less than a plate of refried beans. Too bad.
By the way, assuming that this Justice Department move started before January 21st, this salutary move comes courtesy of that befuddled cowboy, now retired to Texas. Thank you, Mr. President.
Hugo Chavez’s nationalization drive is slowed, socialism failing as oil revenues plummet. Couldn’t happen to a nicer guy. Chris Dodd mourns.
Last week it was rice factories, today it’s Cargill and other food producers. Chavez is nationalizing everything the Venezuelans need to produce (oil) or eat. If you believe the polls, I suspect a larger percentage of leftists in the United States support this kind of expropriation and would welcome it here than Venezuelans do. But then, so far, only the Venezuelans have to live with the consequences.
The price of oil has dropped way below what Venezuela needs to support its promise to pay all friends of Hugo a zillion quadrillion pesos each, so what can Hugo do? Well, how about pumping more oil? Yeah, that’s the ticket! There are a couple of problems with this, even overlooking his previous promise to punish us by pumping less. First, he’s fired everyone who knew anything about producing oil and replaced them with party hacks so oil production is plummeting, not increasing. Second, he’s nationalized and confiscated the property of oil companies foolish enough to have remained after his ascension to power, so there’s no one around to increase production. Third, his latest plan calls for new oil companies to come in where others were expropriated and supply $20 billion because Hugo doesn’t have it. Assuming there is someone stupid enough to join Chavez in his delusions (what’s China doing with its cash these days?) they’ll deserve everything they lose when Chavez pulls the football away once again.
Personally, I doubt anyone is that stupid and I think Chavez is going down hard. Too bad he’ll bring Venezuela down with him but they voted him in, so that’s tough. We all get the government we deserve, which is what has me so worried these days.
Hugo needs $85 a barrel oil to stay in power and it’s trading at less than $40. What to do? Invite western oil companies to come back, pretty please? Are they that dumb? Hell yes!