2008 June 11 Wednesday
Venezuela Caught Supporting Colombian Rebels
The Amerind leader of Venezuela engages in acts of war against the Spaniards who control Colombia.
On the same day Colombia said it had captured a Venezuelan national guard officer carrying 40,000 AK-47 assault rifle cartridges believed to be intended for leftist guerrillas, President Hugo Chávez of Venezuela said Saturday he would withdraw a decree overhauling intelligence policies that he had made earlier that week.
The rare reversal by Mr. Chávez came amid intensifying criticism in Venezuela from human rights groups.
The capture of the Venezuelan officer in eastern Colombia could reignite tensions between the neighboring countries over Venezuela’s support for the rebel group FARC.
The party will end for Mr. Chávez when Venezuelan oil production declines so far that even $250 per barrel of oil isn't enough to fund the Venezuelan government. In 10 years time living standards will plummet in Venezuela. Venezuelan oil exports are in decline. But the effect is being masked for now by the huge rise in oil prices.
Recently, there has been increasing attention paid to the declining net oil exports worldwide, and last week the Wall Street Journal published a very important article, “Net Oil Exporters Unable to Keep Up With Demand.” Neil King, the lead writer for this article, recently obtained updated 2007 net oil export numbers from the EIA. I was particularly struck by the net oil export decline rates for Venezuela (-7.6%/year) and for Mexico (-16%/year).
I want to defend Norway right here:
Norway still has a budget surplus even if we disregard its oil profits so Norway isn't dependent on its oil for its "socialism." However, living standards in Norway will drop after peak oil.
"And because Norway's government have decided that its government budget should be balanced excluding oil and that all oil revenues should automatically go to a special oil fund which only invest in foreign securities, this have created gigantic "twin surpluses" in Norway's budget and current account balance."
That is from Stefan Karlsson an Austrian economist who is averse to a welfare state.
Norway has been really smart, its government has planned for the long term welfare of Norwegian citizens - damned socialists how dare they govern so effectively.
You'd almost start to think that maybe there's somethIng Qualitatively different between Venezuelans and Norwegians. Hmm, maybe an ethnically homogeneous northern European population is going to be better governed than a diverse population. Nah, that can't be: diversity is strength.
Actually they are not doing a very good job of planning for the future, they have one of the lowest birth-rates in Europe and one of the highest levels of immigration compared to their population size. Those damned socialists are not governing effectively if you want to see Norway continue to be Norwegian.
The socialists in a small country wouldn't be able to effectively invest that oil money in foreign securities if all those foreign countries had nationalized industries.
I wonder how well they invest that money.