Chavez's New Weapon: Low Priced Oil for US

Newsweek/MSNBC.com ^ | dec 12, 2005 | Joseph Contreras and John Barry

[proud_yank]

Dec. 19, 2005 issue - Applause and cheers welcomed the Citgo truck as it pulled up at a South Bronx curbside one icy morning last week. The 9,500-gallon tanker was on a mission for one of the Bush administration's most stubborn adversaries in the Western Hemisphere, but the crowd didn't seem to mind. The big thing was that Venezuela's leftist president, Hugo Chavez, was making good on his promise to help some of New York's poorest residents get through a winter of record-setting oil prices. The Venezuelan firm Citgo has agreed to supply 8 million gallons of heating oil to 75 low-income apartment buildings at a 40 percent discount—and the nonprofit landlords have agreed to pass on the savings to their tenants. "Some have tried to read politics into this outreach program," said Bernardo Alvarez, Caracas's ambassador to Washington. "But they should not do so. This is a humanitarian gesture on the part of the Venezuelan people to our neighbors in need."

Right. Chavez, a close personal friend of Fidel Castro's, has spent the past five years trading insults with the Bush administration. Senior U.S. aides view him as a dictator in the making and warn that he could destabilize the region. In return, the Venezuelan leader takes Bush to task for the invasion of Iraq, for collateral damage in Afghanistan and—closer to home—for tacitly endorsing the failed coup that briefly removed Chavez from power in 2002. Pat Robertson hardly improved relations last August by declaring that "our Special Forces should take him out." (The "700 Club" televangelist later apologized.) Lately Chavez has discovered a resonant new theme: the growing gulf between rich and poor in the United States.

[proud_yank]

The big thing was that Venezuela's leftist communist president, Hugo Chavez, was making good on his promise to help some of New York's poorest residents get through a winter of record-setting oil prices.

Thanks Hugo! Afterall, it is Bush's fault that oil is peaking at record high prices and that NYC has poor neighborhoods.

"Solidarity with the poor is a perfectly valid concept," says Humberto Calderon Berti, a former Energy minister, "but one has a prior obligation to the poor in one's own country."

Hopefully, we can keep cutting taxes, simplify tax codes, and lose years worth of liberal red tape that slows economic growth so that 'the poor' have more opportunity. Also, I really hope that NYC starts to cut some of their stupid rent control laws, if they haven't already, that result in a shortage of housing for 'the poor'.

[Cicero]

If Chavez wants to give cheap oil to the poor, good luck to him. It can't help improving our balance of payments to at least a token extent.

[Sterm26]

Not to sound like a "heartless conservative", but are these side-deals that Chavez has with US states and cities legal?

We all know the real reason Chavez is doing this, and it's not compassion for America's poor.

[paudio]

So, his strategy is to sell low-priced oil? At the end, I wonder if people really care who own a gas-station. They may only remember 'gas is cheap', and it may benefit Bush.

[Brad from Tennessee]

I agree. If Chavez really wants to be a hero he should set up gas stations for poor people in economically depressed areas.

[saveliberty]

Even Chavez has to be smart enough to know that he can claim credit for prices that are already falling without making too much of a real contribution.

[Brilliant]

If the price of oil continues to slide, Chavez is going to wish he'd cashed in while he could.

[gusopol3]

Kennedys taking food out of the mouths of Venezuela's poor? Why not?

[Sacajaweau]

Hillary will just have to give Chavez's wife a big kiss!! (To go with the one of Arafat's wife).

[Sacajaweau]

Notice that this oil is going to Low-income housing and non profit landlords....in other words....subsidized housing.

40% reduction? Maybe....maybe add in shipping, third party conveyance....Probably amounts to nothing!!

[FastCoyote]

I heard it was $8 million, literally nothing in the grand scheme of things. Bush should suggest Hugo donate a billion to our poor, pointing out that the money comes from Venezuela's poor. Tin Horn dictator.

[JohnLongIsland]

this guy is such a righteous and caring socialist that hillary should strongly consider him as her vice presidential candidate.

[One Proud Dad]

I miss the days of Head of State assasinations.

[mrmargaritaville]

The less money the "poor" have to spend on oil the more they have to spend at WalMart (or with their local crack dealer).

Thanks Hugo

[proud_yank]

NYC has some of the worst rent control laws anywhere, that has resulted in huge housing shortages and poverty. Liberal/socialist/pinko economic policies designed to 'help' do nothing more than get people hooked on big brotha guvvy and crush opportunity for them to better their lives, if they don't put them onto the streets.

Thomas Sowell goes over some of NYC's rent laws in the first chapter of Basic Economics quite well. There is more housing in existance (that the poor could occupy), than there are poor people, yet there is a shortage.

People like Hugo can rot in hell. How long before Venezuela's economy collapses? Unfortunate that they have oil to keep them somewhat afloat.

[proud_yank]

I miss the days of Head of State assasinations.

LOL! I was born in '81 so I think I missed many of the good old days, or don't remember. Be nice if they'd bring them back!

[VOYAGER]

When a country's economy and well being is left to a dictator he can do all these grandiose gestures which at best are fleeting as for as any lasting good is concerned and in the end it is worthless and off he slumps into oblivion with nothing for the recipients to show for their being used as dupes to get at this dictator's enemies!