Lots of interesting stuff in this article.
As a side comment, a lot of people have been voicing the opinion that Venezuela’s woes are due to socialism. According to them, it’s fine if lots of people are suffering as long as their government is capitalist, but if it is socialist then that’s the wrong kind of suffering and their government deserves to be overthrown even if they all voted for it. For example, the site ZeroHedge, which often publishes useful information and analysis, has been pushing this line of thinking ad nauseam. It is unfortunate that some people imagine that they are being principled and right-thinking whereas they are just being dumb jerks at best and somebody’s useful idiots at worst. The politics of other nations are not for them to decide and they should stop wasting our time with their nonsense.
As a side comment, a lot of people have been voicing the opinion that Venezuela’s woes are due to socialism. According to them, it’s fine if lots of people are suffering as long as their government is capitalist, but if it is socialist then that’s the wrong kind of suffering and their government deserves to be overthrown even if they all voted for it. For example, the site ZeroHedge, which often publishes useful information and analysis, has been pushing this line of thinking ad nauseam. It is unfortunate that some people imagine that they are being principled and right-thinking whereas they are just being dumb jerks at best and somebody’s useful idiots at worst. The politics of other nations are not for them to decide and they should stop wasting our time with their nonsense.
Why the unseemly haste to blow up Venezuela? The explanation is a simple one: it has to do with oil. “It will make a big difference to the United States economically if we could have American oil companies invest in and produce the oil capabilities in Venezuela.” said John Bolton on Fox News. You see, Venezuelan oil cannot be produced profitably without high oil prices—so high that many oil consumers would go bankrupt—but it can certainly be produced in much higher quantities at a huge financial loss.
Huge financial losses certainly wouldn’t stop American oil companies who have so far generated a $300 billion loss through fracking—financed by looting retirement savings, saddling future generations with onerous debt and other nefarious schemes. Also keep in mind that the single largest oil consumer in the world is the US Dept. of Defense, and if it has to pay a little more for oil in order to go on blowing up countries—so it will. Or, rather, you will. It’s all the same to them. The US is already well beyond broke, but its leaders will do anything to keep the party going for just a while longer.
Here’s the real problem: the fracking bonanza is ending. Most of the sweet spots have already been tapped; newer wells are depleting faster and producing less while costing more; the next waves of fracking, were they to happen, would squander $500 billion, then $1 trillion, then $2 trillion… The drilling rate is already slowing, and started slowing even while oil prices were still high. Meanwhile, peak conventional (non-fracked) oil happened back in 2005-6, only a few countries haven’t peaked yet, Russia has announced that it will start reducing production in just a couple years and Saudi Arabia doesn’t have any spare capacity left.
A rather large oil shortage is coming, and it will rather specifically affect the US, which burns 20% of the world’s oil (with just 5% of the world’s population). Once fracking crashes, the US will go from having to import 2.5 million barrels per day to importing at least 10—and that oil won’t exist. Previously, the US was able to solve this problem by blowing up countries and stealing their oil: the destruction of Iraq and Libya made American oil companies whole for a while and kept the financial house of cards from collapsing. But the effort to blow up Syria has failed, and the attempt to blow up Venezuela is likely to fail too because, keep in mind, Venezuela has between 7 and 9 million Chavistas imbued with the Bolivarian revolutionary spirit, a large and well-armed military and is generally a very tough neighborhood.
Huge financial losses certainly wouldn’t stop American oil companies who have so far generated a $300 billion loss through fracking—financed by looting retirement savings, saddling future generations with onerous debt and other nefarious schemes. Also keep in mind that the single largest oil consumer in the world is the US Dept. of Defense, and if it has to pay a little more for oil in order to go on blowing up countries—so it will. Or, rather, you will. It’s all the same to them. The US is already well beyond broke, but its leaders will do anything to keep the party going for just a while longer.
Here’s the real problem: the fracking bonanza is ending. Most of the sweet spots have already been tapped; newer wells are depleting faster and producing less while costing more; the next waves of fracking, were they to happen, would squander $500 billion, then $1 trillion, then $2 trillion… The drilling rate is already slowing, and started slowing even while oil prices were still high. Meanwhile, peak conventional (non-fracked) oil happened back in 2005-6, only a few countries haven’t peaked yet, Russia has announced that it will start reducing production in just a couple years and Saudi Arabia doesn’t have any spare capacity left.
A rather large oil shortage is coming, and it will rather specifically affect the US, which burns 20% of the world’s oil (with just 5% of the world’s population). Once fracking crashes, the US will go from having to import 2.5 million barrels per day to importing at least 10—and that oil won’t exist. Previously, the US was able to solve this problem by blowing up countries and stealing their oil: the destruction of Iraq and Libya made American oil companies whole for a while and kept the financial house of cards from collapsing. But the effort to blow up Syria has failed, and the attempt to blow up Venezuela is likely to fail too because, keep in mind, Venezuela has between 7 and 9 million Chavistas imbued with the Bolivarian revolutionary spirit, a large and well-armed military and is generally a very tough neighborhood.
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2 comments:
There are three reasons for the assault on Venezuela.
[1] Oil
[2] Geopolitics. The US Empire wants all of Latin American under its control. Maduro is in the way
[3] A bad example. Venezuela is not socialist, but neither is it neoliberal. Maduro is anti-neoliberal. This cannot be allowed. The opposite of socialism (public ownership) is not capitalism, but neoliberalism (100% private ownership).
“The US is already well beyond broke, but its leaders will do anything to keep the party going for just a while longer.”
Define “broke.” The US government is not “broke.” Does anyone know how many dollars the US government has? No, because the question is meaningless. It’s like asking how many points a scoreboard contains.
“The fracking bonanza is ending. Most of the sweet spots have already been tapped; newer wells are depleting faster and producing less while costing more; the next waves of fracking, were they to happen, would squander $500 billion, then $1 trillion, then $2 trillion…”
Perhaps. The Bakken Formation in North Dakota is gigantic, and still has plenty of oil, but extracting it became unprofitable when oil prices fell. Therefore operations have been partially and temporarily shut down. Meanwhile the state of North Dakota has a billion-dollar budget surplus from when oil operations were at their peak.
“Once fracking crashes, the US will go from having to import 2.5 million barrels per day to importing at least 10—and that oil won’t exist.”
Perhaps. At present the fracking boom has made the USA a net exporter of oil, about 8.8 million barrels a week.
Previously the US was able to solve this problem by blowing up countries and stealing their oil: the destruction of Iraq and Libya made American oil companies whole for a while and kept the financial house of cards from collapsing. But the effort to blow up Syria has failed…”
The effort to overthrow Assad failed, but the USA remains dedicated to its main project, which is stealing the eastern third of Syria (where most of the oil is located) and making it into a new nation for Kurds and Israelis called “Rojava.”
“The attempt to blow up Venezuela is likely to fail too because Venezuela has between 7 and 9 million Chavistas.”
No one wants a US invasion. Not even Maduro’s enemies. It would be politically awkward. The US will have to eliminate Maduro with a “surgical strike,” or else keep tightening the economic screws until something gives.
Fortunately the US peasantry has been programmed to bless whatever the US does because…socialism. And because…dictator.
Q. How long can the US government get away with using slogans and buzzwords?
A. As long as the USA exists. Anglo-Judaic culture is nothing but slogans and buzzwords.
Venezuela had fair and near immediate success with socialism under Chavez. But nationalizing oil cannot be tolerated any more now than it was in Iran in 1953.
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