Archive for the ‘Hugo Chavez’ Category

Venezuela: Get ready for $10 oil?

Thursday, February 19th, 2015

Gary Shilling at Bloomberg is saying, Get ready for $10 oil It has to do with the marginal cost of production,

or the additional costs after the wells are drilled and the pipes are laid. Another way to think of it: It’s the price at which cash flow for an additional barrel falls to zero.

Last month, Wood Mackenzie, an energy research organization, found that of 2,222 oil fields surveyed worldwide, only 1.6 percent would have negative cash flow at $40 a barrel. That suggests there won’t be a lot of chickening out at $40. Keep in mind that the marginal cost for efficient U.S. shale-oil producers is about $10 to $20 a barrel in the Permian Basin in Texas and about the same for oil produced in the Persian Gulf.

Also consider the conundrum financially troubled countries such as Russia and Venezuela find themselves in: They desperately need the revenue from oil exports to service foreign debts and fund imports. Yet, the lower the price, the more oil they need to produce and export to earn the same number of dollars, the currency used to price and trade oil.

With the drop in prices,

Among the hardest hit are those nations that rely on oil for much of their government revenue and were in financial trouble before prices plunged. Venezuela along with its state-run oil company issued more debt than any developing country between 2007 and 2011. Venezuela has been downgraded to the bottom of the junk pile — CCC by Fitch — and credit-default swaps on Venezuelan debt recently indicated a 61 percent chance of default in the next year and 90 percent in the next five years. The nosedive in oil prices also is devastating African exporters Ghana, Angola and Nigeria, where oil finances 70 percent of the government’s budget.

How Bad Is Venezuela’s Economic Chaos? Bad enough that

Maduro has yet to fully account for how his government will meet its $10.3 billion debt obligations in 2015. A March 16 payment totally $1.1 billion is fast approaching and Venezuela’s economy is languishing.

I am not optimistic at all; even if Maduro goes, the country can remain under a dictatorship, just as Cuba has, for decades to follow.

And, by the way, even when the minimum monthly wage of 5,600 bolivars ($32 on a new exchange market created last week) is close to useless, the late dictator Hugo Chavez managed to sock away US$12 billion in his HSBC account.

So, all of you who preach that “Chavez immensely decreased inequality” in Venezuela can take that, spread it, and eat it on a cracker.

Today’s Capt. Louis Renault moment: Hugo Chavez died before he was of officially “dead”

Saturday, January 31st, 2015

I’m shocked, shocked!

According to Leamsy Salazar

Hugo Chavez died in December 2012, not March 2013 as was claimed by his successor, Nicolás Maduro. Salazar says that Maduro and his cronies covered up Chavez’s death for three months so they could sign decrees under his name.

Ahmadinejad kissed the coffin all the same:

Too bad Chevy Chase is not doing this anymore,

John Hinderaker points out that

It is noteworthy that “eight other members of President Maduro’s personal security force have deserted Venezuela and defected to the United States, according to reports in Venezuelan newspaper El Nacional.” These particular rats are well-positioned to know when the ship is about to sink. It can’t happen too soon.

True, but also true is the fact that Putin met Maduro after first having refused him – and now the Venezuelan regime’s on full crackdown mode, so I don’t expect the Communist regime to collapse right away.

The woes of the Venezuelan people may just be starting.

———————-

In a lighter mode,

UPDATE:
Linked to by Designs on the Truth. Thank you!

Venezuela: The talking bodyguard

Wednesday, January 28th, 2015

Leamsy Salazar, former bodyguard of Hugo Chávez and Diosdado Cabello, is in New York and talking:
Bodyguard Outs Diosdado Cabello as Drug Cartel Chief
Chavismo’s Number Two Security Official in New York to Testify with DEA

Salazar has already testified that Cabello heads up the Soles cartel, a criminal organization that monopolized drug trafficking within the country, according to sources involved in the case.

An post shared on Twitter by Ramón Pérez-Maura, an ABC journalist covering the case, stated that Salazar’s testimony had also linked Cuba with the country’s narcotrafficking trade, “offering protection to certain routes along which drugs were brought to Venezuela from the United States.”

Pérez-Maura‘s colleague in New York Emili J. Blasco added further details that Cabello gave direct orders for the distribution of illicit substances, and that Salazar knew of locations where the accused “keeps mountains of dollar bills.”

Interamerican Security Watch translated a report from Spain’s ABC (emphasis added),

The Cartel of the Suns, primarily composed of members of the military (its name comes from the insignia worn on the uniform of Venezuelan generals), has a drug trafficking monopoly in Venezuela. The drugs are produced by the Colombian FARC [Fuerzas Revolucionarias de Colombia guerrillas] and taken to their destinations in the U.S. and Europe by Mexican cartels. Recent international figures indicate that Venezuela ships five tons of narcotics on a weekly basis. Ninety percent of the drugs produced by Colombia transits Venezuela.
. . .
In his revelations, Salazar also implicates the governor of Aragua state, Tarek el Aissami, who also has links with Islamic networks, and José David Cabello, brother of the National Assembly president, who for several years served as director of SENIAT [tax agency] and minister of industry. José David Cabello is allegedly responsible for the finances of the Cartel of the Suns. Salazar mentions that [the state-run oil company Petróleos de Venezuela] PDVSA is a money-laundering machine (sic). PDVSA’s former president from 2004 to 2014, Rafael Ramirez, was appointed in December as Venezuela’s ambassador before the U.N. Security Council.
. . .
Regarding the links with Havana, Salazar mentioned the regular use of PDVSA aircraft to transport drugs. A son of Chávez’s and a son of former Cuban ambassador in Caracas, Germán Sánchez Otero, organized these shipments. Other Cuban officials are mentioned as part of the scheme. The final destination of these shipments was the United States.

Caracas Chronicles has more on The Bodyguard.

In Latin America, drugs, terrorism and crime are threads of one fabric.

And paying for the Bolivarian Revolution is not cheap.

UPDATE:
Linked to by Stones Cry Out. Thank you!
Linked to by Pseudo-Polymath. Thank you!

Why Venezuela should not have a seat at the UN Security Council

Monday, October 13th, 2014

Mary O’Grady explains,
THE AMERICAS
A Test for Obama on Venezuela at the U.N.
Cuba’s pawn wants a seat on the Security Council. We should work against it, as we did in 2008.

De facto control of Venezuela by Cuba ought to trouble all peaceable nations. Cuba violated a U.N. embargo on arms shipments to North Korea in 2013 when it put a load of weaponry on a North Korean vessel headed for Asia. The Venezuelan National Guard is a partner of Colombia’s drug-trafficking terrorists. Numerous terrorism experts warn that Venezuela is working closely with both Iran and Hezbollah to make trouble in the West and that the country has become a transit point for Iranian agents seeking to gain a foothold in the Americas.

Permanent members Russia and China would gain a reliable ally on the Security Council by adding Venezuela. It is true that the U.S. has veto power to block dangerous moves by a member. But Venezuela could influence the discussion agenda and would undoubtedly employ Cuba’s legendary propaganda tactics to do so.

Symbolically the elevation of Venezuela to the council would be a win for U.S. foes, and Venezuela knows it.

I don’t see the Obama administration doing anything about it. Instead, I say it’s very likely Chavez’s daughter Maria Gabriela Chavez will soon be sitting next to an American diplomat at the United Nations Security Council.

Venezuela: Exxon wins $1.6 billion settlement

Friday, October 10th, 2014

Back in 2005, then-dictator Hugo Chavez started to expropriate assets in Venezuela’s energy, mining and telecommunications industries under the pretext of development and sovereignty.

Energy companies were given until late-2007 to accept proposed contract and compensation terms from Chavez’s government or risk having their assets seized.•

Exxon and ConocoPhillips rejected the terms, and Exxon took Venezuela to the World Bank’s International Center for Settlement of Investment Disputes, or ICSID. The ICSID ruled for Exxon, which Chavez promptly, and predictably, rejected. At the time there were 20 other cases against Venezuela at the World Bank’s tribunal, all triggered by the wave of state takeovers.

Now Exxon Wins $1.6 Billion Settlement for Venezuela Seizure

The ICSID award includes $1.4 billion for expropriation of the Cerro Negro project, $179.3 million for expropriation of the smaller La Ceiba project and $9 million in compensation for production and export curtailments, ICSID said. It will incur compound interest of 3.25 percent dating back to June 2007.

In a similar complaint, the ICSID ruled Sept. 23 that Venezuela must pay $740 million to Spokane, Washington-based Gold Reserve Inc. (GRZ) for taking its Brisas gold and copper project in 2008. Gold Reserve said on July 23 that it was seeking $2.1 billion for the nationalization.

About 28 cases filed by mining and oil companies remain unresolved at the ICSID, including those filed by Phillips 66 and Highbury International AVV.

Venezuela calls it “a favorable end for the republic,” (h/t Caracas Chronicles)

Which tells you Venezuela has no intention to pay Exxon. The thing is, the country must honor ICSID rulings to avoid default of sovereign bonds. The only certain outcome in the short term is that a lot of lawyers are going to make a lot of money.

Just don’t expect any payments any time soon.

Just what the world needs: Eau de Hugo! UPDATED

Friday, September 26th, 2014

UPDATE

I guess Raul’s not getting a cut,
Insólito escándalo en Cuba: Raúl Castro prohibió los perfumes “Ernesto” y “Hugo” [Incredible scandal in Cuba: Raúl Castro forbids “Ernesto” and “Hugo” perfume]

Earlier post:

No, not the German designer, the Venezuelan dictator:
“Eau de Revolution”: Cuba scents honor Che, Chavez

Cuba’s biggest producer of natural products has come up with a pair of colognes for the discerning supporter of international socialism who wants something more than just the iconic “Che” T-shirt.

A woodsy and refreshing citric scent with notes of talcum powder called “Ernesto” honors guerrilla leader Ernesto “Che” Guevara. For those seeking something softer and fruitier, there’s a blend with hints of mango and papaya called “Hugo,” for the late Venezuelan President Hugo Chavez.

“Cuba’s biggest producer of natural products” ought to produce some soap and shampoo that the locals could afford, but I digress.

I can’t imagine why death would smell like “a woodsy and refreshing citric scent with notes of talcum powder” in the bottles of Che stink, but the fruitier Chavez ought to have some notes of sulfur, in honor of Hugo Chavez’s 2006 appearance at the UN and his 2009 Copenhagen speech, where he went heavy on the sulfur. In 2006 he said George W. Bush smelled of it, and by 2009 it was Barack Obama’s turn.

The sulfur scent can be easily replicated – back when I was a kid, you could buy this, and what could be more suitable for the “discerning supporter of international socialism”?

Tip of the hat to the esteemed Carlos Eire, who finds the news completely nauseating,

Creating a line of perfumes that honors dead tyrants and sociopaths is the last thing that would have ever crossed my mind, but I’m no genius and am only 1/16th French.

Clearly neither Carlos nor I are “discerning supporters of international socialism.”

And,
My late uncle Ernesto, were he still alive, would surely have made several off-color jokes about Che stinking of a “woodsy and refreshing citric scent with notes of talcum powder.” I’ll leave that to the reader’s imagination.

NOTE: If anyone has a clip of the Pinky and the Brain Calvin Brain Subjugation ad, I’d love to post it!


Venezuela: Beyond-the-grave nepotism

Saturday, September 20th, 2014

Your country seeks a seat in the UN’s Security Council. Who better than the late dictator’s daughter, who has never held a job?

Security Council-ready!

Chávez Heir Lands First Job: U.N. Envoy
Some say María Gabriela Chávez, a daughter of Venezuela’s late Socialist leader Hugo Chávez, is unprepared to be deputy ambassador to the United Nations, as Venezuela seeks a Security Council seat on the world body.

Ms. Chávez, 34 years old, has never held a formal job and is known as a socialite—the Kardashian of Sabaneta, her father’s hometown—who posts “selfies” on social media, said former diplomats and political analysts. Unlike her older sister, Rosa Virginia Chávez, who studied international relations, the younger Ms. Chávez has demonstrated little inclination for geopolitics.

Rosa Virgina is not to be confused with her other sister, Rosinés Chávez who has demonstrated some, shall we say, unsocialistic tendencies,

while María Gabriela knows all the right people,

She’ll fit right in at the UN.

[Post corrected to add omitted text]


Venezuela: Chavista Lord’s Prayer UPDATED

Tuesday, September 2nd, 2014

Just like cults, totalitarian states are all about the consolidation of power: material and spiritual. Take a look at the latest, complete with the Sign of the Cross,

TEACH YOUR CHILDREN THE CHAVISTA SIGN OF THE CROSS
In the name of Chávez, of Maduro, and of the sovereign people, we shall live and win
NOW TEACH YOUR LITTLE FRIENDS

Allow me to pause and say hello to my little friend,

But wait! There’s more!

“Chávez nuestro que estas en el cielo, en la tierra, en el mar y en nosotros, los y las delegadas, santificado sea tu nombre, venga a nosotros tu legado para llevarlo a los pueblos de aquí y de allá. Danos hoy tu luz para que nos guíe cada día, no nos dejes caer en la tentación del capitalismo, mas líbranos de la maldad de la oligarquía, del delito del contrabando porque de nosotros y nosotras es la patria, la paz y la vida. Por los siglos de los siglos amén. Viva Chávez”.
Our Chavez, which art in heaven, on land, on sea and in ourselves the [male] and [female] delegates, hallowed by thy name, thy legacy come to us to carry it over to people here and there. Give us this day our daily light so that it may guide us every day, do not let us fall into capitalism temptations, and protect us from the meanness of the oligarchy, from the sin of smuggling, for us is [male] and [female] the fatherland, peace and live. For ever and ever, amen. Viva Chavez.

Daniel Duquenal:

I do not know if this is a provocation, an excessively elaborated prank (I wish it so, make it be so My Lord) or if these people have finally reached the deep end.

Here’s a video of the “prayer”:

The “prayer” closed a five-day workshop on “designing the socialist formation [i.e., indoctrination] system” and Maduro, most of his Cabinet and several governors were in attendance, so I assume it’s not a prank.

Lord almighty.

UPDATE:

Look at the mural: Simón Bolívar, Jesus and Hugo Chávez under a sign that reads, “Against imperialism, g*ddammit!” The tweet reads, “Have you seen more shameless and immoral crap than this?

Linked to by Babalu. Thank you!

Twitter hashtag #ChavezNuestro

Behold, the Hugo Chavez font

Wednesday, July 30th, 2014

Carlos Eire says it’s conclusive proof that humans need to evolve further.

To celebrate what would have been the 60th birthday of Venezuela’s ‘eternal leader’, a group of young ‘anti-imperialists’ have digitalised his handwriting as a new font, ChavezPro

I can’t wait for Unsavory Agents to design some toilet paper in ChavezPro.

UPDATE:
Linked to by Dustbury. Thank you!


New book: Chavistas en el Imperio

Tuesday, April 8th, 2014

Miguel Octavio reviews Casto Ocando’s new book, Chavistas en el Imperio: Secretos, Tácticas y Escándalos de la Revolución Bolivariana en Estados Unidos (Chavistas in the Empire: Secrets, Tactics, and Scandals of the Bolivarian Revolution in the United States):

Perhaps nothing summarizes better the book, as Ocando’s revelation in the introduction, that Chavez spent US$ 300 million in propaganda in the US during his first ten years in power. Thus, while Chávez was accusing Washington of trying to destabilize Venezuela, he was outspending Bush and Obama in promoting his revolution. And his buddies in Government, were always (or are?) trying to make friends in the US, to defend their money, their properties and even guarantee protection sometime in the future.

In fact, the promotion was not only of the revolution, but even paying companies in the US to regularly show that Venezuela’s economic numbers were doing well. ironically, while Chávez formed the Venezuelan Information Office and Eva Golinger was hired to show the US was conspiring in Venezuela, there was proof of all the money being spent very directly by the Venezuelan Government to promote itself in teh US and very little proof was ever shown that the US was ding the same thing in Venezuela or elsewhere.

In the end, the book just tells us how Chavismo went from corruption to drugs, joining forces with the FARC, the Iranians and drug cartels, showing that Chávez was willing to allow anything to his buddies in order for the revolution to survive.

This alone would make a valuable contribution to the literature of Latin America’s history.

Ocando, as his Twitter feed notes, is an

Investigative Reporter & Writer with Univision Network. Interests: Public Corruption, Narco-Terrorism, US-LatAm Relations, Venezuela. http://www.univision.com.

I bought the Kindle edition, and will post on it.