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Venezuela looks to cut spending as oil prices fall
Newsday ^ | November 28, 2014

Posted on 11/28/2014 9:48:05 PM PST by george76

President Nicolas Maduro is ordering a cut in government spending as Venezuela grapples with a plunge in world oil prices that threatens to bring more hardship for the petroleum-dependent economy.

...

More than 95 percent of Venezuela's export earnings come from crude oil exports, and economists say the recent decline in prices will reduce the amount of dollars available for imports when Venezuelans are already suffering from widespread shortages and the world's highest inflation.

(Excerpt) Read more at newsday.com ...


TOPICS: Business/Economy; Cuba; Extended News; Foreign Affairs; Government; News/Current Events; Russia; Syria
KEYWORDS: cuba; energy; lebanon; oil; oilprices; opec; russia; saudiarabia; syria; venezuela
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1 posted on 11/28/2014 9:48:06 PM PST by george76
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To: george76
Speaking on television Friday, Maduro said that under no circumstances will social programs be affected by the belt tightening... Maduro didn't say where he'll find fat to cut.

Oh, come now, surely there's something belonging to other people that the government can still steal. It will be tragic to the Venezuelans but a cautionary tale to the rest of us to see what happens when socialists really do run out of Other People's Money.

2 posted on 11/28/2014 9:53:14 PM PST by Billthedrill
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To: george76

They begged Saudi Arabia for a cut in production, but Saudi said no. So now they have to embrace the suck.


3 posted on 11/28/2014 9:55:16 PM PST by Vince Ferrer
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To: Vince Ferrer

Saudi’s Opec met recently or soon to be...they’re arguing among themselves because they’re all taking a hit with these low prices...but they are competing now with the threat of US production...it’s all about the market now and who has it and can retain it..


4 posted on 11/28/2014 9:59:15 PM PST by caww
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To: caww
Saudi’s Opec met recently or soon to be...they’re arguing among themselves because they’re all taking a hit with these low prices...but they are competing now with the threat of US production...it’s all about the market now and who has it and can retain it..

I am having a real hard time generating any sympathy for the dirt bags in OPEC.

5 posted on 11/28/2014 10:02:41 PM PST by Mark17 (So gracious and tender was He. I claimed Him that day as my saviour, this stranger of Galilee)
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To: george76

Piece o’ cake, just raise taxes, the sky’s the limit.


6 posted on 11/28/2014 10:03:17 PM PST by gorush (History repeats itself because human nature is static)
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To: caww
They have already met, and Venezuela begged for cuts, but the Saudis said no. So now their only option is to start cutting. These countries with nationalized oil companies run them like gigantic social programs, wasteful and currupt, spending money on allies to keep themselves in power.

While every oil field has a number of what price they can pump oil profitaby, in reality there is a different number, and it is much higher in these countries than the price we can tolerate. This is the price of oil where they have to cut social spending. This is a dangerous number, because they can't cut the social spending without generating anti-government unrest to some degree.

My guess for next in line will be Cuba, since they are dependant on Venezuela for oil.

7 posted on 11/28/2014 10:12:14 PM PST by Vince Ferrer
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To: george76
Venezuelans are already suffering from widespread shortages and the world's highest inflation.

I imagine that Obama will invite all of them to emigrate to the (former) US of A.

And sign them up for free stuff. And Democrat voter registration.

8 posted on 11/28/2014 10:13:58 PM PST by ChicagahAl (Don't blame me. I voted for Sarah.)
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To: Mark17
Saudi’s know they are on the last throws of their supply of oil......taking the hits they're taking now hoping to derail fracking etc. here.....also they know the next administration will drill.

Nobody’s going to feel any sympathy for them...I sure don't...

Not to mention their concerns the US is going to give their enemy Iran a free pass on sanctions. They have gobs of infighting now.

9 posted on 11/28/2014 10:15:06 PM PST by caww
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To: Vince Ferrer

Ole Pooty Poot in Russia and Iran’s ayatollahs aren’t going to be happy either.


10 posted on 11/28/2014 10:21:18 PM PST by RightGeek (FUBO and the donkey you rode in on)
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To: george76

Venezuela grapples with a plunge in world oil prices that threatens to bring more hardship for the petroleum-dependent economy.

...

I thought their economy was dependent on total socialism, which would explain the shortages and inflation.


11 posted on 11/28/2014 10:27:19 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Vince Ferrer
...”they can't cut the social spending without generating anti-government unrest to some degree”....

They'll shut any rise there real fast because it will be Iran that stirs the Shites up that are in Saudi....

12 posted on 11/28/2014 10:28:44 PM PST by caww
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To: ChicagahAl

I imagine that Obama will invite all of them to emigrate to the (former) US of A.

And sign them up for free stuff. And Democrat voter registration.

...

And the GOPe is perfectly fine with that.


13 posted on 11/28/2014 10:28:52 PM PST by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: Mark17

“I am having a real hard time generating any sympathy for the dirt bags in OPEC. “

I’m not! Sand, with a Crude Oil Chaser for all of the ragheads! Personally, I hope they even get sand in their Vaseline!


14 posted on 11/28/2014 10:29:26 PM PST by vette6387
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To: caww

Who would have thought that when the Saudis finally used the oil weapon again, it would be to lower prices?


15 posted on 11/28/2014 10:50:10 PM PST by Vince Ferrer
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To: Vince Ferrer

It’s a political “tool” along with other resources....all nations use them. Saudi’s just doing what they’ve always done to retain their market share in oil....and that’s being threatened far more than they care to admit...and this with Iran breathing down their necks via ISIS.


16 posted on 11/28/2014 10:57:34 PM PST by caww
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To: caww

The Islamic state was created by the Saudis, Qataris to kill shia and Christians


17 posted on 11/28/2014 11:07:28 PM PST by Cronos (ObamaÂ’s dislike of Assad is not based on AssadÂ’s brutality but that he isn't a jihadi Moslem)
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To: Vince Ferrer

Link you might also find interesting.

http://www.foxbusiness.com/markets/2014/10/24/why-opec-led-by-saudi-arabia-is-trying-to-crash-oil-market/


18 posted on 11/28/2014 11:08:31 PM PST by caww
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To: Cronos

Probably right Cronos....we know there’s a real war between Iran and Saudi...Saudi will do whatever it takes to protect the House Of Saud.


19 posted on 11/28/2014 11:11:41 PM PST by caww
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To: vette6387
I’m not! Sand, with a Crude Oil Chaser for all of the ragheads!

Roger that. The sand monkeys.

20 posted on 11/28/2014 11:18:37 PM PST by Mark17 (So gracious and tender was He. I claimed Him that day as my saviour, this stranger of Galilee)
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