Over the weekend there was a referendum in Venezuela that would have scrapped constitutional the term limits for president Hugo Chavez. He has been president of Venezuela since 1998 and constitutional term limits will not allow him to run again in for reelection in 2012. The left- leaning Chavez has been following in the steps of Fidel Castro and turning Venezuela into a communist state. He has enacted emergency powers, nationalized oil infrastructure, expelled foreign missionaries and allowed crime to run rampant. In order for him to constitutionally stay in office though he needed to get rid of the presidential term limits. That referendum this weekend failed, which is good news for democracy.
Venezuela is the forth largest oil exporter to America after Canada, Saudi Arabia, and Mexico. About one half of its 2.3 million exported barrels a day come to the US representing about 9% of all US oil imports. Like Iranian President Mahmoud Ahmadinejad, Chavez likes to talk and can move oil prices higher with off handed remarks and his railing against US foreign policies.
The Venezuelan people led by Chavez have headed down the road to socialism and almost a Cuban style dictatorship. While by no means the end of the story, this referendum is a win for democracy and should help the long term stability in the region which is important for US oil prices. Exxon Mobil (NYSE: XOM) and ConocoPhillips (NYSE: COP) have both been had investments in the country in past years.
Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.
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Reader Comments (Page 1 of 1)
12-03-2007 @ 1:43PM
John said...
Saying Chavez has turned Venezuela into a communist country is beyond preposterous. The things the American media says about Chavaz are stupid. On friday some woman on CNBC said Chavez would fix the election. He's never fixed an election. He didn't fix this one. Some communist.
A communist would have killed his rivals, and the communist dictators seldom, if ever, lost an election at the height of their power.
It just sounds ignorant to call a man who has been freely elected by a free people a dictator. People in South America read this stuff and they think we're out of our minds.
I'll never forget the day on CNBC when they had some oil analyst blasting Chavez for spending money on baseball fields for poor kids, and he even had the nerve to stock them with baseball equipment. I sat there is disbelief. Holly cow, Chavez was just as evil as the American Legion.
Get it? Sounds stupid.
12-03-2007 @ 3:01PM
Gerry said...
Chavez seems to be popular with the majority of his constituants. He admittedly is a populist in a nation where the majority of the people are desperatley poor. He has distibuted the nations natural wealth in a more even fashion than did his predecessor. So the poor who are the majority received more attention. Good for him!
The only argument that I or many other people have with him is irrational dislike of the United States. Like Hitler before him he has used hatred to obtain and maintain his power base.
12-03-2007 @ 2:44PM
Chilla said...
Liberty is only safe when democracy is in action. Chavez is a communist and is attempting to turn Venezuela into a communist state. Fortunately, the people of Venezuela recognized his power grab for what it is.
12-17-2007 @ 9:39AM
smdahl said...
Chilla says: "Liberty is only safe when democracy is in action. Chavez is a communist..." And you are a democrat?
Chavez obeys the rules of democratic referendum. So far, he's done much more to make sure "liberty is safe" than his critics. Wake Up!
12-03-2007 @ 2:45PM
John said...
Communists take over. They kill a bunch of people and they take over.
He runs for office. Point out one single fact that substantiates him being a people killin' commie dictator. LMAO. They're free. They were free to elect; they were free not to elect him.
He put in the fix and still lost the referendum? What are you people smoking?
Check the United States constitution. For most of its existence there were no presidential term limits. There are many theorists who consider term limits to be profoundly undemocratic. They deny to the people the right to vote for whom they please.
12-03-2007 @ 2:46PM
Henry AYer said...
danny glover and Sean penn? why did you not campaign a little harder.... deadbeats!
12-03-2007 @ 2:46PM
Mary said...
Mr. Kersten, good informative article, but on the line where you say, "Venezuela is the fourth largest oil exporter to America after Canada, Saudi Arabia and Mexico", I think you meant to say, "Venezuela is the fourth largest oil exported to the U.S.A. after Canada . . . " Remember Canada and Mexico are also located in America.
12-03-2007 @ 2:54PM
Mary said...
Mr. Kersten, good informative article, but on the line where you say, "Venezuela is the fourth largest oil exporter to America after Canada, Saudi Arabia and Mexico", I think you meant to say, "Venezuela is the fourth largest oil exporter to the U.S.A. after Canada . . ." Remember Canada and Mexico are also located in America.
12-03-2007 @ 5:46PM
PeruTradeDeal said...
What is happening to Chavez in the American media is shameful, the words "president for life" were spoken by so many that it shocked me. He would have had to run for president, and win.
And to say "Good news for Oil" are you kidding, does oil need any more good news? Oil prices are through the roof, the oil industry is making more money than God.
The Monroe Doctrine is in full swing, this even smells racist. And by the way, how many Venezuelans are coming across our borders, Mexico the "Economic miracle" has proven to be a wonderful place i guess.
12-21-2007 @ 4:18PM
Megan said...
Check out the documentary, "The War on Democracy", with an open mind. It might inform your opinion that what is good for U.S. business is somehow equal with freedom and democracy. It's one hell of a strange and illogical jump you're making in this article. I very much enjoy the subtitle, "Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about"
Biased information for economic gains is not valid. Think