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  HOME | Opinion (Click here for more)

Beatrice Rangel: Crying Wolf in Venezuela


By Beatrice E. Rangel

Peter was a shepherd in the Russian plains who took his job lightly. He decided to play deadly charades on his fellow villagers when entrusted with the duty of protecting sheep from wolves. Twice he made his sheep farmer neighbors run up the hillside on the outskirts of their village under the false cry of the arrival of the wolf.

In the aftermath of this horrific bogus calls a wolf decided to pay a courtesy call on Peter.

Peter tried to get the village to rescue him and the sheep but, of course, no one came to support him.

The village and Peter’s family lost their patrimony as a consequence of his irresponsible behavior.

Children were taught this story to learn the significance of being truthful. Indeed, should you tell lies, people will eventually stop believing you; and then when you’re telling the truth for a change -- when you really need them to believe you -- they won’t.

The story could perhaps be the best Christmas present to top government officers in Venezuela.

For over fifteen years they have been touting to the world their intent to loosen the ties between Venezuela and the US (described in their jargon as the empire).

And what their policies achieved besides bringing upon the country food and medicine scarcity and poverty perpetuation is to make those ties more important for survival than ever.

As the situation deteriorated, Venezuelan government officials played victims of an empire induced sabotage.

Today the US is the single most important supplier of foreign exchange to Venezuela.

And foreign exchange is what the country needs to feed its people after enduring a systematic destruction of its productive platform that has seen over 50,000 bankruptcies by productive firms in the last decade.

Of course, this disastrous outcome has been denounced by the Venezuelan government as the work of the empire’s coalescing elites.

In the meantime foreign exchange began its irreversible march towards depletion and the government response has been to use up its reserves, pawn the gold and deplete the SDR borrowings from the IMF.

China the most recent supplier of foreign exchange is seeing its debt repaid with oil but, as naphtha becomes as scarce as food and medicines, oil shipments turn into daydreaming.

Naphtha is the vital ingredient to reduce density of Venezuelan crude oil so that it can be transported abroad.

Naphtha producers are not lending to Venezuela and Venezuela has no foreign exchange to acquire Naphtha.

China is Venezuela's largest creditor and has loaned it more than $40 billion over the past five years, but under such circumstances, China is beginning to fear that Venezuela will miss several loan repayments. According to a study conducted by the Venezuelan newspaper El Nacional, the Chinese debt amounts to each Venezuelan owing $761.43.

Meanwhile, the US has decided to suspend the 30 year old ban to oil exports thereby producing two impacts in the energy world.

First, the price for US Texas Intermediate will better align itself with world oil prices.

Second, due to the lack of transportation infrastructure between the Midwest and the Atlantic ocean, it will be more cost effective to send the sweet light crude from shales to refineries in Mexico and Ecuador or even Europe to process.

Under more auspicious circumstances, sweet light oil should go to Venezuela to mix with the country’s heavy oil to create a formula that would produce benefits both for Venezuela as well as for shale oil producers.

Given the U.S. still has a glut of sweet, light oil in the Midwest and the Gulf Coast, shale oil producers -- for whom cents count a lot -- might take the road of shipping crude to Mexico, South America and Europe, which is cheaper than sending it by rail to the Atlantic Coast.

In the process, a redistribution of world oil trade is bound to take place, as U.S. refineries in the Atlantic Coast might resume imports from Nigeria and Algeria while Ecuador and Mexico will benefit from processing U.S. light sweet crudes.

This leaves Venezuela out of this economic bounty that could save the country from facing a scarcity tragedy. But the wolf is here and no one stays ready to support a country that has played one trick too many to the rest of the world.


Beatrice Rangel is President & CEO of the AMLA Consulting Group, which provides growth and partnership opportunities in US and Hispanic markets. AMLA identifies the best potential partner for businesses which are eager to exploit the growing buying power of the US Hispanic market and for US Corporations seeking to find investment partners in Latin America. Previously, she was Chief of Staff for Venezuela President Carlos Andres Perez as well as Chief Strategist for the Cisneros Group of Companies.

For her work throughout Latin America, Rangel has been honored with the Order of Merit of May from Argentina, the Condor of the Andes Order from Bolivia, the Bernardo O'Higgins Order by Chile, the Order of Boyaca from Colombia, and the National Order of Jose Matías Delgado from El Salvador.

You can follow her on twitter @BEPA2009 or contact her directly at BRangel@amlaconsulting.com.



Also by Beatrice Rangel in her Latin America from 35,000 Feet series

Beatrice Rangel: Of Burning Airplanes & Argentinean Tsunamis

Beatrice Rangel: The Good, the Bad, and the Ugly in the Americas!!

Beatrice Rangel: Buena Vista's Magic Covers the Americas

Beatrice Rangel: Pride and Perjury in the Americas

Beatrice Rangel: Trompe L’oeils Proliferate in the Americas

Beatrice Rangel: The Economic Consequences of Peace in Latin America

Beatrice Rangel: Colombia, the FARC & the Makings of Gangland in Latin America

Beatrice Rangel: When Extreme Weather Meets Extreme Politics Calamities are Bound to Happen

Beatrice Rangel: When Ladies Hit 70

Beatrice Rangel: About Uninformed Elites and Gullible Leaders

Beatrice Rangel: On US-Engineered Soft Landings in Cuba and Venezuela

Beatrice Rangel: On the Many Ways Cecil Matters

Beatrice Rangel: Blue Moons Lead to Extraordinary Happenings in the Americas

Beatrice Rangel: On Why Embassy Openings Do Not Necessarily Herald Different Policies

Beatrice Rangel: When Jupiter meets Venus

Beatrice Rangel: When Markets and Manners Crash

Beatrice Rangel: From Grexit to Exit, Contagion is in the Air

Beatrice Rangel: An Infuriated God & An Environmental Crusader Mark the Summer Solstice

Beatrice Rangel: Between Ionesco & the Falklands Syndrome

Beatrice Rangel: The Ugly Americas

Beatrice Rangel: How FIFA Corrupted the Beautiful Game in the Americas and World

Beatrice Rangel: Could the US RICO Act Be Applied to Latin America?

Beatrice Rangel: On the Discreet Charm of Commodities for Latin America

Beatrice Rangel: The End of the Chinese Free Lunch in the Americas!!

Beatrice Rangel: The Crooked Twig of Democracy in the Americas

Beatrice Rangel: Of a White Knight for Three Latin American Ladies in Distress

Beatrice Rangel: Withdrawal Symptoms?

Beatrice Rangel: The Un-Mannered Summit

Beatrice Rangel: Easter Miracles in Latin America and the World

Beatrice Rangel: Two Islands, Two Legacies & One Challenge - Modernity

Beatrice Rangel: Killing Me Softly -- the Obama Administration’s Legacy in Latin America

Beatrice Rangel: Of Upcoming Dynasties and Exhausted Ideas in Latin America

Beatrice Rangel: Of Thunderous Silences, Quiet Noises and Flash Backs in Latin America

Beatrice Rangel: Latin America's Dangerous Exports to Europe & the Demise of an Old Fox

Beatrice Rangel: Of Sweet Deals, Sugar Daddies, Direct Mail & Obama’s Care

Beatrice Rangel: Of Latin American Singing Birds, Femme Fatales & Empty Shelves

Beatrice Rangel: When Flying Dragons & Rage Infusions Turn Against Their Latin American Masters

Beatrice Rangel: Holy Haberdashery!!! Is Fire Building Under the Surface in the Americas??

Beatrice Rangel: 2015 -- A Year for Balance in the Americas???

Beatrice Rangel: Pope Francis Looks at the Americas In His Christmas Remarks

Beatrice Rangel: The Paint Brush Hanging from the Wall in Latin America

Beatrice Rangel: A Future for the Americas??

Beatrice Rangel: Going Forward, Going Backward -- It's the Americas!!

Beatrice Rangel: An Eerily Familiar Week in the Americas

Beatrice Rangel: Tale of Two Walls

Beatrice Rangel: Across the Americas, We the PEOPLE

Beatrice Rangel: Across Latin America, The Populist Beat Goes On!!

Beatrice Rangel: Oh My, The Patron of the Eternal Feminine Has Left Us!!!

Beatrice Rangel: Communism from China to Cuba Finds Corruption!!!

Beatrice Rangel: From Rio to Hong Kong Discontent Taps the East to Find a New Way

Beatrice Rangel: Will Latin America Miss the Broadband Development Target?

Beatrice Rangel: Kissinger’s World Order and Latin America

Beatrice Rangel: The Third Attempt -- Will Modernity Prevail in Latin America?

Rangel: While US is Away, Latin America Rethinks Development Paths

Rangel: In the Midst of Riots, a Star is Born in Brazil

Rangel: In Mexico Cinderella Gets to the Ball while Colombia Gets a Chance at Peace



 

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