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CVX, XOM, BP: It's time to send Hugo Chavez a message

Stop for a moment and give Exxon (NYSE: XOM), British Petroleum (NYSE: BP) and Chevron Corp. (NYSE: CVX) some considered thought. If you're into investing in oil, I want you to think about just exactly whose company you're showing favor to. More than ever it's time to pull the plug on Hugo Chavez by shifting your investment dollars away from Venezuelan interests and by putting Hugo Chavez's Citgo gas stations on notice. Most of America has no clue about what Hugo Chavez really is. Let me frame this for you.

You wouldn't buy groceries from a communist dictator, would you? Would you buy school textbooks from the likes of Joseph Stalin? Would you buy shop tools from the likes of Adolph Hitler? Would you go to a fresh fish market run by Fidel Castro? If you're a concerned American who's even marginally thoughtful about world history and current events, your answers to the preceding questions should be a resounding no.

If you answered no to the above questions, then why in the world would you buy gasoline from Hugo Chavez? Are you aware that Venezuela is negotiating to buy Russian submarines? I'll guarantee you that it doesn't want those subs for hunting tuna. Do you know Hugo Chavez is fully prepared to sink U.S. navel vessels if we need to attempt a blockade of Venezuelan oil transports? Hugo Chavez is actively building an offensive military and I shouldn't need to remind you that Venezuela is just a stone's throw away from your homeland. The EagleSpeak blog reports that, "Venezuela ordered weaponry from Russia worth $3.4 billion, including 24 Su-30MK2V Flanker fighters, Tor-M1 air defense missile systems, Mi-17B multi-role helicopters, Mi-35 Hind E attack helicopters and Mi-26 Halo heavy transport helicopters. ...Venezuela has become the world's second-largest importer of Russian weaponry after Algeria, which signed arms deals with Russia worth $7.5 billion."

You need to take heed of the fact that even the Venezuelan people are protesting their distrust for Hugo Chavez after he shut down Radio Caracas television for speaking in opposition against him. The Sea to Shining Sea blog comments that, "... In the wake of the RCTV protests, Chavez launched an offensive against the remaining opposition station, Globovision, and CNN, accusing them of destabilizing his government. ...The day will come when Venezuelans will not be able to stage opposition protests at all -- just like in the land of Chavez's mentor, Fidel Castro." Hugo Chavez doesn't like opposition, he hates America and he despises Israel.

The one saving grace that we may have in this situation is that Hugo Chavez is on a very "hand to mouth" budget. His cash reserves are relatively fast moving. He turns around his money very quickly and any interruption in his cash flow has immediate and significant consequences. It's time to put a serious knot in Hugo Chavez's plans for America and it should be very easy to do. Give serious consideration to where you will place your oil investment dollars and doublecheck the name on the gas station sign before you fill your fuel tank from now on. If the sign says Citgo, you may want to look down the road.

That is of course unless you want to make life easy for a communist dictator.

Comrade Wal-Mart associate!

I've noticed that there hasn't been a whole lot of ballyhoo about the communist party setting up its tent in the Chinese branch of Wal-Mart Stores, Inc. (NYSE:WMT). I'm thinking that possibly most of you are seeing this turn of events in the same way that I am. Personally I think this is more of a dilution of the classic "red" communism than the rise of collectivism into an American corporation. Even the communist party dialog in this scenario gives hints that capitalism is once again prevailing. Did you doubt that it would?

Jonathan Dong, a Wal-Mart China spokesperson is quoted as saying, "Quite a few of our associates (employees) are party members already, so they have a right to establish branch organizations."

Did you catch that? Here it is in American line item style: "associates ... have a right." Since when did a communist have a right to anything in their party line thinking? Communists have privileges and responsibilities to serve the party's declared objectives. Historically they have no rights... at least not until Wal-Mart and Best Buy (NYSE:BBY) got there.

My apologies to the socialists out there but I'm declaring this one a victory for our side. China is in the hands of supply side, trickle down economics now. The government is instructing the workers to be good, work hard and build their companies. Hmmm, that sounds kind of American to me. Can the time be far off when the Chinese government realizes that they can create greater wealth and power by opening their business structure to increased investment by their public? Does the Chinese government realize that they have finally and completely opened their doors to free enterprise?

This is a situation that we're going to be watching very closely. It was capitalism that finally crushed the USSR and freed the Soviet population. It was capitalism that brought down the Berlin Wall and reunited Germany. It is capitalism that has kept Cuba and the Korean communists at bay. It is capitalism that has kept the Chinese fed.

Let's face it folks, socialist collectivism is gasping for its last breath ... and it's about time.

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Last updated: May 28, 2012: 06:16 AM

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