Saturday, September 27, 2008

Chavez the financial expert

On Friday, Financial Expert Chavez (representing the financial powerhouse 'Dewey, Cheatam, and Howe') declared that the US would not be able to fix the financial crisis it is currently mired in.

Furthermore, he declared that the US was attempting to buy the world with it's worthless money:

"The Americans harass us and attack us... (they) want to buy the world with paper that does not have any value."
Meanwhile, PDVSA continues to cash those checks that are sent to it by the US petroleum companies for the oil that is imported into the US. And that money continues to flow to Latin American nations in forms of subsidies, 'aid', and down right bribes. Who is trying to buy the world Mr. Chavez?

Why a reporter didn't ask Mr. Chavez about the ever increasingly bad situation in his own country of Venezuela, including rising inflation, crime, etc. I have no idea. Maybe it's because France is a great socialist country that dare not challenge one of their own? Or maybe it's because France wants to fill the void left by the expulsion of American oil and defense contracts, and soon to be automakers? (GM is reportedly looking to get out of Venezuela.)

Mr. Chavez is right in one regard when he said that the crisis won't be fixed "by running the money printer...." Nope, it won't. Yet at the same time, something needs to happen, or Mr. Chavez will start feeling the pinch at home. If the US recession continues to strengthen, the economy will shrink, and there will be less demand for his oil in the short term, meaning less capital in his pocket.

A large US recession will damage the global economy, further depressing the oil market, causing oil producing nations to pump more oil, causing more supply with less demand, thus dropping the price of oil further.

So like it or not Mr. Chavez, this US financial crisis affects you too....

1 comment:

Jungle Mom said...

I did not realize you were posting again! Keep it up! Tell your folks hello next time you talk to them. It was great to meet you this summer!