Thursday, August 25, 2005

Pardon me for giving voice to my pesky thoughts, but what business does the United States have in telling a foreign leader how much to charge for its oil...?

It seems President George Bush and his petroleum cronies have a problem with Venezuela selling oil to Cuba at a discount.

In looking at their relationship, it is evident Cuba and Venezuela are merely engaging in the classical economic principle of comparative advantage as touted by the late British economist, David Ricardo.

Venezuela delivers a portion of its overflowing oil coffers to Cuba at below market rates. Subsequently, the island nation, with its highly trained workforce, ships medical practitioners to Venezuela to help serve the medical needs of the country's poor.

After the major brouhaha over Pat Robertson's suggestion that American intelligent officers might want to "take out" the Venezuelan president, the oil nation is now suggesting prices are needlessly high because greedy middle brokers are gouging the public.

On Tuesday, while visiting Cuba, President Hugo Chavez said, "We want to sell gasoline and heating fuel directly to poor communities in the United States." He said he could offer oil to poor Americans at half the price they now pay at the pump.

Venezuela currently owns Citgo with 14,000 stations in America.

Imagine the rich irony if Chavez could figure out a way to "cut out...intermediaries" and help solve the U.S. energy price crunch. Instead of toadying up to Saudi Arabia, a major sponsor of Islamic fundamentalism and terrorism, why won't Bush make nice with Chavez...?

Venezuelans are not the people plotting to kill us; and just think of the savings, both in capital and lives, if both nations were to forge a meaningful dialogue.

Great post. thumbs up!

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