On the radio show last weekend (still playing in re-runs on TIB Radio -- click the graphic and give us a listen), Tom Blumer and I got into a discussion of gas prices, oil, Venezuela and Hugo Chavez. On BizzyBlog, Tom says this:Elsewhere, if you’re looking for a reason why oil prices have skyrocketed, look no further than Venezuela, where production continues to fall — about 25% in the past 10 years, and, based on eyeballing the graph at the link, at least 10% in the past two. Some think it’s due to incompetent management (that’s my vote), others think it’s by design to maximize revenues.On the show, I took the role that this drop is by design. I've been giving this some thought and I think it is probably a little closer to Deion Sanders...BOTH!
It is no secret that Hugo Chavez is in bed with Mad Mullahs of Iran and he clearly has a thing for anti-American politics and rhetoric. He is skilled enough to make the most of useful idiots like Jesse Jackson and Cindy Sheehan, not to mention the plethora of New England Democrats who fawn over this dictator because he has "given" their consitituents "free" heating oil.
I think that there is a real possibility that Chavez is taking orders from Imadegenerate and his OPEC pals. I don't think it is a stretch to suggest that if the price of oil goes up, OPEC benefits from it. Do I think Hugo is smart enough to come up with this plan on his own? Nope...but that doesn't mean it isn't happening.
But I also think there is a strong case for mismanagement being the cause of the shortage from Venezuela. And Tom makes that case pretty well on the radio show...hopefully, he'll drop by and leave a note or two on that subject as well.
