Posts Tagged ‘oil’

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Although Venezuela is not technically at war, it is suffering from foreign currency strains triggered by aggressive attacks by a foreign power. US economic sanctions have been going on for years, causing at least $20 billion in losses to the country. About $7 billion of its assets are now being held hostage by the US, which has waged an undeclared war against Venezuela ever since George W. Bush’s failed military coup against President Hugo Chavez in 2002.

Modern Monetary Theory (MMT) is getting significant media attention these days, after Alexandria Ocasio-Cortez said in an interview that it should “be a larger part of our conversation” when it comes to funding the Green New Deal. According to MMT, the government can spend what it needs without worrying about deficits. MMT expert and Bernie Sanders advisor Prof. Stephanie Kelton says the government actually creates money when it spends. The real limit on spending is not an artificially imposed debt ceiling but a lack of labor and materials to do the work, leading to generalized price inflation. Only when that real ceiling is hit does the money need to be taxed back, and then not to fund government spending but to shrink the money supply in an economy that has run out of resources to put the extra money to work.

Predictably, critics have been quick to rebut, calling the trend to endorse MMT “disturbing” and “a joke that’s not funny.” In a February 1st post on The Daily Reckoning,Brian Maher darkly envisioned Bernie Sanders getting elected in 2020 and implementing “Quantitative Easing for the People” based on MMT theories. To debunk the notion that governments can just “print the money” to solve their economic problems, he raise the specter of Venezuela, where “money” is everywhere but bare essentials are out of reach for many, the storefronts are empty, unemployment is at 33%, and inflation is predicted to hit 1,000,000% by the end of the year.

Blogger Arnold Kling also pointed to the Venezuelan hyperinflation. He described MMTas “the doctrine that because the government prints money, it can spend whatever it wants . . . until it can’t.” He said:

To me, the hyperinflation in Venezuela exemplifies what happens when a country reaches the “it can’t” point. The country is not at full employment. But the government can’t seem to spend its way out of difficulty. Somebody should ask these MMT rock stars about the Venezuela example.

I’m not an MMT rock star and won’t try to expound on its subtleties. (I would submit that under existing regulations, the government cannot actually create money when it spends, but that it should be able to. In fact MMTers have acknowledged that problem; but it’s a subject for another article.) What I want to address here is the hyperinflation issue, and why Venezuelan hyperinflation and “QE for the People” are completely different animals.

What Is Different About Venezuela

Venezuela’s problems are not the result of the government issuing money and using it to hire people to build infrastructure, provide essential services and expand economic development. If it were, unemployment would not be at 33 percent and climbing. Venezuela has a problem that the US does not have and will never have: it owes massive debts in a currency it cannot print itself, namely US dollars. When oil (its principal resource) was booming, Venezuela was able to meet its repayment schedule. But when oil plummeted, the government was reduced to printing Venezuelan Bolivars and selling them for US dollars on international currency exchanges. As speculators drove up the price of dollars, more and more printing was required by the government, massively deflating the national currency.

 
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See this from 2016. The Saudis dropped the price of oil, which was the greatest factor to sabotage the Venezuelan economy. Venezuela’s oil is expensive to extract, being off-shore.
US-Led Economic War, Not Socialism, Is Tearing Venezuela Apart

The US has been funding opposition groups to the tune of millions of dollars per year disguised as “democracy” initiatives. The end-result of all this democracy education was to have the less popular right-wing boycott the 2018 elections to avoid losing, and then simply declare themselves in charge! This is the direct OPPOSITE of democracy, and yet deluded Americans eat it up like pigs and slop.

Here is an analysis of financial restrictions on Venezuela, behind the scenes, making it difficult to purchase things from abroad like food. It is a multi-pronged attack, and it is now ramping up. More Executive Orders and Sanctions on Venezuela. These are acts of war.

America is set to destroy Venezuela and launch a Civil War “regime change” project, completely immoral and murderous. This is their criminal formula, and now it’s Venezuela’s turn.

 

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Venezuela gold holdings in Bank of England

Losing the gold would be a significant blow to the country’s finances by undermining Venezuela’s ability to obtain hard currency crucial to importing items ranging from food and medicine to auto parts and consumer electronics.

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The media lies that attempted to delegitimize the Venezuelan election on behalf of the minority party that boycotted it:

Media Delegitimize Venezuelan Elections Amid Complete Unanimity of Outlook

 

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How Beto O’Rourke, a potential Democratic candidate for president, has undermined his own party’s efforts to halt the GOP agenda.

Beto vs. Democrats: Texas Lawmaker Frequently Voted to Help Trump and GOP

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George H.W. Bush: War Criminal, CIA Spy, Oil Tycoon, Embodiment of US Elite

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The Tangled Web Of U.S.-Saudi Ties (2004)

The relationship peaked under the presidency of George H.W. Bush. This is both due to personal and financial ties, but moreover because the Saudi royal family supported (was even grateful) for the first Iraqi war, when the United States ousted Iraqi troops from Kuwait.

Both then-president Bush and the current president have had personal and deep financial ties with the Saudi royal family. Author and journalist Craig Unger documents $1.4 billion that has “made its way” from the Saudi royal family to “entities tied” to the Bush family, according to Unger’s controversial book “House of Bush, House of Saud.”

 

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Here’s what the Iraq War Crime was really all about…

 US and UK oil corporations start to flaunt the spoils of imperial conquest

 Rumaila is simply huge; by some measures it is the third largest reserve of crude oil on the planet, and is currently extracting 100 million dollars worth of oil every day

To recap:

There were no “Weapons of Mass Destrucion.”
There were no “Saddam ties to Al Qaeda.”

Those were lies.

There was plenty of valuable oil.

That’s the truth.