Wednesday, May 02, 2007
Dorothy? Kansas? Bye bye?
Guardian: Venezuela seizes foreign oil fields
This should only come as a shock to those who believe in the "it's all priced in" fairytale.
Most people are utter sheep and would not have contigencies for this. This could be a harbinger of much more drastic nationalism across not just South America but Africa also.
The MEND insurgency in Nigeria, strong resistance to Western backed coup attempts in the Gulf of Guinea are leading the prcie of oil to well over $100/barrel. This will also strenghten other currencies, since Venezuela moved its payment terms away from the USD.
The USD (and thus the GBP) are about to come under serious pressure. A 50 basis point rise might not be far away now.
Posted by lvmreader @ 04:12 AM (324 views) Add Comment
4 Comments
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1. Inbreda said...
Fortunately for us, increased oil prices doesn't cause inflation, whereas falling prices do seem to have an effect in easing inflation.
Therefore the more volatile the oil market, the lower inflation.
That is what they are trying to make us beleive. How ridiculous.
2. indiablue19 said...
It should come as no shock to anyone in the US, or anywhere else, unless they have very sort memories indeed. I reiterate what I had said in an earlier blog today:
There is some extraordinary naivete on show in the media and subsequent discussions and a tendancy to cast all discussion in terms of "black hats" and "white hats." Not that I expect it to do any good in rounding out the discussion, but much of my youth was spent watching my own father, the chief international engineer of his Company, and his colleagues from the American corporation, FMC, who spent their entire prime of life developing interior resources and fuel for Venezuela and Brazil. The Company was there AT THE REQUEST OF THE VENEZUELAN AND BRASILIAN GOVERNMENTS to develop raw jungle. The people manning the project, who weren't only Americans mind you, but from places like India, Egypt and Pakistan, felt they were pioneers. They felt they were on the forefront of helping other people, and many of them paid a steep price, suffering for the rest of their lives with yellow fever and malaria, or even dying of dengue fever, despite being immunised.
A major part of their project consisted of training local tribes' people in technical skills. The Company also built homes for entire communities and installed decent water outlets, provided modern plumbing and medical facilities. They brought in vehicles of all descriptions and taught the natives how to drive. There were many deep and lasting friendships that evolved from all of this. FMC constructed all sorts of modern facilities, not only in Caracas, but all throught the outlying areas. For Venezuela, it was a revolution, and not of the destructive type.
When all of this had been underway for a number of years, when there were sufficient conveyors to bring iron ore from the jungles to the docks, boats paddling the Orinoco in regular supply trips to towns and cities, and sufficient pumping stations to keep the oil production steady, when there were many new schools, hospitals, homes and trained workers on hand --- the Venezuelan army took my Father and all his co-workers and threw them in prison. They were left there for months with no word to their families what had happened and with only bread, wine and water to live on. Fortunately for our family, my Father survived, even with a heart condition. Not so for some others. FMC and all its efforts were nationalised -- in the 1970s. This ploy of Venezuela is nothing new. It's a very old trick -- just cast in modern nationalistic clothes. It's meant to keep the current government of any shakey South American country popular with it's people.
Don't cheer too loudly. It is all a ruse. Beware and check your facts. And notice in a few years time, when there are new political issues on hand, whatever was developed for the Venezuelan people will simply recede back into the jungle. The only real benefactors -- once again -- will be the Venezuelan government who live in penthouses in Caracas, while the people wander the streets in rags and destitution, cared for only by the Church.
3. indiablue19 said...
It should come as no shock to anyone in the US, or anywhere else, unless they have very short memories indeed. I reiterate what I had said in an earlier blog today:
There is some extraordinary naivete on show in the media and subsequent discussions and a tendancy to cast all discussion in terms of "black hats" and "white hats." Not that I expect it to do any good in rounding out the discussion, but much of my youth was spent watching my own father, the chief international engineer of his Company, and his colleagues from the American corporation, FMC, who spent their entire prime of life developing interior resources and fuel for Venezuela and Brazil. The Company was there AT THE REQUEST OF THE VENEZUELAN AND BRASILIAN GOVERNMENTS to develop raw jungle. The people manning the project, who weren't only Americans mind you, but from places like India, Egypt and Pakistan, felt they were pioneers. They felt they were on the forefront of helping other people, and many of them paid a steep price, suffering for the rest of their lives with yellow fever and malaria, or even dying of dengue fever, despite being immunised.
A major part of their project consisted of training local tribes' people in technical skills. The Company also built homes for entire communities and installed decent water outlets, provided modern plumbing and medical facilities. They brought in vehicles of all descriptions and taught the natives how to drive. There were many deep and lasting friendships that evolved from all of this. FMC constructed all sorts of modern facilities, not only in Caracas, but all throught the outlying areas. For Venezuela, it was a revolution, and not of the destructive type.
When all of this had been underway for a number of years, when there were sufficient conveyors to bring iron ore from the jungles to the docks, boats paddling the Orinoco in regular supply trips to towns and cities, and sufficient pumping stations to keep the oil production steady, when there were many new schools, hospitals, homes and trained workers on hand --- the Venezuelan army took my Father and all his co-workers and threw them in prison. They were left there for months with no word to their families what had happened and with only bread, wine and water to live on. Fortunately for our family, my Father survived, even with a heart condition. Not so for some others. FMC and all its efforts were nationalised -- in the 1970s. This ploy of Venezuela is nothing new. It's a very old trick -- just cast in modern nationalistic clothes. It's meant to keep the current government of any shakey South American country popular with it's people.
Don't cheer too loudly. It is all a ruse. Beware and check your facts. And notice in a few years time, when there are new political issues on hand, whatever was developed for the Venezuelan people will simply recede back into the jungle. The only real benefactors -- once again -- will be the Venezuelan government who live in penthouses in Caracas, while the people wander the streets in rags and destitution, cared for only by the Church.
4. Ticktock said...
Ref -Beware and check your facts
Having checked many of the 'facts' regarding the Bolivarian Revolution, I can confidently say that you are (almost) entirely wrong India.
Ref - The only real benefactors -- once again -- will be the Venezuelan government who live in penthouses in Caracas
And of course the Venezuelan people whose lives are being transformed by the revolution, lets not forget that. Healthcare, Education and hope, is being distributed to the poorest neighbourhoods (the ones that those nice Oil people just couldn't afford to help, even though I'm sure they would have loved to, after paying their shareholders their 'fair' dividends)
This is an entirely American critique, one that cannot understand how a Government might actualy represent the best interests of its people over and above that of the persuit of personal gain. This is why Americans hate 'Governments' in general. They are a restriction upon the activities of those who really run things.