Hugo Chavez Threatens U.S. Oil Embargo

by Glenn Swanson

Published: February 11th, 2008

The AP reports [via the Dallas Morning News] that Hugo Chavez has threatened to launch an “economic war” and cut off oil sales to the United States. “Take note, Mr. Bush, Mr. Danger,” the Venezuelan President intoned. Chavez is responding to Exxon Mobil’s attempts to seize billions of dollars in Venezuelan assets, to compensate for the South American country’s nationalization of the multi-billion dollar Orinoco oil project. "The outlaws of Exxon Mobil will never again rob us," Chavez promised. Meanwhile a British court has issued an injunction "freezing" as much as $12b of the assets of Petroleos de Venezuela SA, Venezuela’s state-run oil company. The U.S. imports some 12 percent (1.23m barrels per day) of its oil from the Bolivarian Republic of Venezuela. Oil prices are expected to spike on the news.

Glenn Swanson

Glenn is a baby-boomer, born in 1954. Along with his wife, he makes his home in Connecticut. Employed in the public sector as an Information Tedchnology Specialist, Glenn has long been a car fan. Past rides have included heavy iron such as a 1967 GTO, to a V8 T-Bird. In between those high-horsepower cars, he's owned a pair of BMW 320i's. Now, with a daily commute of 40 miles, his concession to MPG dictates the ownership of a 2006 Honda Civic coupe which, while fun to drive, is a modest car for a pistonhead. As an avid reader, Glenn enjoys TTAC, along with many other auto-realated sites, and the occasional good book. As an avid electronic junkie, Glenn holds an Advanced Class amateur ("ham") radio license, and is into many things electronic. From a satellite radio and portable GPS unit in the cars, to a modest home theater system and radio-intercom in his home, if it's run by the movement of electrons, he's interested. :-)

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Jurisb on Feb 14, 2008

Geeber-Ok. Which ford would exactly beat Skoda or Seat in reliability? probably the one with most non-american contents. Like mazda built fusion with ford tin. Do you understand that there is no such deal as american-japanese joint venture. there is omly japanese cars with US copmanies byuing stakes in them. i did some practical research, and ripped apart some claddings off 2 cars-Ford Probe 97` and Dodge stealth 95. guess what ,even those parts that were different from their original mazda and mitsubishi versions, were completely designed and stamped by- mazda and mitsu. Stealth`s only Chrysler product was the gearbox which had so evident problems with 2nd gear that was replaced by german getrag 6speed and Mitsu`s 5sp. one. yes VW has some quality issues but at least they don`t have pathetic fit and finish,. their interiors are rock-solid. Us economy has bested japanese in every single component/ Ok geeber- here it goes. Sectors where Us looses- External debt, national debt, GDp per capita, Gold reserves, Currency reserves, Export value, trade balance, industrial output, manufacturing value, Bank assets, manufacturing percentage within GDP. Actually all I care is manufacturing percentage as part of GDP. If US GDp represents credits and services more than 85% of GDP, I can`t consider your economy a serious one. And yes Japanese hav had a recession or slowdown, but they have preserved their manufacturing companies. US couldn`t do it even having a boom. how come? And don`t make a fool of yourself naming cadillac and buick sales in China as significant numbers, if we count off those cars that are rebadged chinese or german opels, you have a sales number that of Dacia, not more. Probably the same way you could claim that Cadillac is very popular in Japan. hahahhaha. And whenever I talk how bad is US economy ,you start something about Europe, France or Africa. I don`t care of them. Even if they are coughing blood, I am talking just about USA. Period. Just go on voting for obamas and hillaries and mccaines, probably you don`t deserve the good doctor.

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Geeber on Feb 15, 2008
jurisb: Geeber-Ok. Which ford would exactly beat Skoda or Seat in reliability? Virtually all of them. Give me your address, and I'll send you a copy of Consumer Reports annual auto issue (which will be distributed within the next month), which rates the reliability of all vehicles sold in America, including VWs. Ford products have regulary bested VW products in that survey. You'll be so much better informed, and won't make the mistake of comparing the reliability of European cars (especially those based on VWs - LOL!) to the reliability of American cars. I think we can safely extrapolate the performance of Skoda and Seat from VW's (abysmal) showing. I'll happily compare any American Ford to the Skoda or Seat. jurisb: probably the one with most non-american contents. Like mazda built fusion with ford tin. Mazda and Ford worked together on that platform...it was a joint effort between the two companies. They collaborated on the project. Ford did not simply put new sheetmetal on the Mazda6 to create the Fusion/Milan/MKZ. Ford did what a smart company does - use an available resource to produce a very good product that appeals to customer. jurisb: Do you understand that there is no such deal as american-japanese joint venture. there is omly japanese cars with US copmanies byuing stakes in them. Wrong. Ford is COLLABORATING with Mazda to produce vehicles. It owns a 30+ percent stake in the company (enough to own a controlling interest under Japanese law). Ford has worked closely with Mazda and Volvo on new vehicles, including the Fusion/Milan and the one used by the European Focus, Mazda3 and small Volvos. All THREE companies provided vital input for those projects. The fact that these joint efforts have produced excellent vehicles for all three companies shows that Ford knows how to properly leverage its resources to produce good products. jurisb: i did some practical research, and ripped apart some claddings off 2 cars-Ford Probe 97` and Dodge stealth 95. guess what ,even those parts that were different from their original mazda and mitsubishi versions, were completely designed and stamped by- mazda and mitsu. You do realize that today is February 15, 2008, and that the vehicles you examined are over a decade old, and thus completely irrelevant to what Ford is doing TODAY. (And those cars were DEVELOPED more than 10 years ago if they were in the market in 1995 and 1997.) When you research what is happening TODAY in the automobile industry, let me know. That will be "practical" research...not to mention relevant research. jurisb: yes VW has some quality issues but at least they don`t have pathetic fit and finish,. their interiors are rock-solid. I'm sure VW owners appreciate the interior craftsmanship and fit-and-finish while they are waiting for the tow truck to take their beautifully built driving machine to the dealer... jurisb: Us economy has bested japanese in every single component/ Ok geeber- here it goes. Sectors where Us looses- External debt, national debt, GDp per capita, Gold reserves, Currency reserves, Export value, trade balance, industrial output, manufacturing value, Bank assets, manufacturing percentage within GDP. Take an economics course, then you will learn how to actually tell when an economy is performing better. The U.S. economy beats Japan's on employment growth, productivity growth, and overall economic growth...sorry to burst your bubble. Some Japanese companies such as Honda depend on the American market to keep them in business - the home market is too weak. I'm sure that those unemployed Japanese appreciate the fact that their country has more gold reserves than the U.S. As for the Japanese economy having a higher percentage of its GDP consist of manufacturing output - so what, this is irrelevant. The U.S. economy has made the transition faster to a mixed economy, where services are a larger percentage of the total GDP. Sorry, but manufacturing output is not the sole sign of a country's economic vitality (and, as I pointed out, U.S. manufacturing output has been INCREASING) anymore. It's not 1948 anymore. jurisb:Actually all I care is manufacturing percentage as part of GDP. If US GDp represents credits and services more than 85% of GDP, I can`t consider your economy a serious one. Which is the root of your problem regarding your "critique" of the American economy, and why anyone who has passed Econ 101 would consider your views to be outdated at best, and hardly "serious." jurisb: And yes Japanese hav had a recession or slowdown, but they have preserved their manufacturing companies. US couldn`t do it even having a boom. "Preserving companies" is a waste of time and resources. It does not matter what companies produce the output. What matters is whether TOTAL manufacturing output increase or decreases, and, as I've said in the U.S. it is INCREASING. jurisb: And don`t make a fool of yourself naming cadillac and buick sales in China as significant numbers, if we count off those cars that are rebadged chinese or german opels, you have a sales number that of Dacia, not more. You are the last person who should label anyone else with the "fool" epithet. Cadillac and Buick have been selling vehicles based on revised American platforms (Buick LaCrosse and Cadillac STS) and the ZETA platform (Buick Park Avenue). They aren't just "rebadged" Opels. jurisb: And whenever I talk how bad is US economy ,you start something about Europe, France or Africa. I don`t care of them. We can't talk about the U.S. economy in a vacuum, especially if we are talking about how it is (allegedly) underperforming, so we compare it to other economies. Besides, this thread was originally about Venezuela, so the discussion has never been limited to the U.S. Incidentally, you brought up China, Europe and Japan, so YOU are the one who "started" talking about other countries. jurisb: Even if they are coughing blood, I am talking just about USA. Period. The real problem is that you have no clue as to what you are talking about, period. For whatever reason, you apparently don't like America, which is fine, that is your choice and your right, but the ignorance displayed on your posts shows the limitations of this worldview. America has problems, I certainly won't deny that, but I want informed criticism, not silly rants or mindless America bashing. At the very least, I hope that you've learned why Daimler is responsible for the vehicle's Chrysler produced, and why it bears responsibility for running Chrysler into the ground. You need to take off the ideological blinders that are limiting your understanding of many issues...including the state of European automobile companies. In the meantime, do yourself a favor and take an ECON 101 course so that you stop coming across as completely clueless on economics, and do some serious research into the automobile industry, and I don't mean looking at 1990s Fords...

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Jurisb on Feb 15, 2008

Ford did what a smart company does? How come all japanese and german companies are sooooo stupid and create their own platforms. And by the way japanese set new `stupid`profit records every year. How come retarded germans din`t get the smart idea of borrowing somebody`s engines, trannies, or electronics. When i mentioned Stealth and Probe, I wanted to show that a cheetah never changes his spots. If ford avoided engineering when it was quite prosperous, what should make me believe that they did so while bleeding cash. See, geeber if I hated America, i wouldn`t give a shit about her economy, and wouldn`t read all economy reports. i wouldn`t listen to Ron Paul, Peter Shiff, or Steve Forbes. your comment is a bit ridiculous about well performing us economy.

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Geeber on Feb 21, 2008
jurisb: How come retarded germans din`t get the smart idea of borrowing somebody`s engines, trannies, or electronics. You do realize that BMW uses transmissions made by General Motors? Generally, however, German manufacturers do not share components because they are as arrogant as Detroit used to be, and they can get away with it, because European customers place much less priority on reliability than American customers do. Note, however, that VW loses money in North America, and "successful" Damiler-Benz ran Chrysler into the ground, and still has had to ask its German unions for concessions. Which is why VW is planning to sell...a rebadged Chrysler minivan. Looks as though at least one German automaker isn't above rebadging an American vehicle. jurisb: When i mentioned Stealth and Probe, I wanted to show that a cheetah never changes his spots. And what you really showed was that you don't know what you are talking about, because the Fusion/Milan/MKZ is not merely a rebodied Mazda, as the Probe was. Generally, it's best to compare apples to apples. jurisb: If ford avoided engineering when it was quite prosperous, what should make me believe that they did so while bleeding cash. What you or anyone else "believes" Ford did is irrelevant. The FACTS are that Ford is NOT using rebodied Mazdas for its cars. Do you also realize that the V-6 used in the Mazda6 was designed and built by Ford? Which punches another big hole in your example... jurisb: See, geeber if I hated America, i wouldn`t give a shit about her economy, and wouldn`t read all economy reports. Judging by your posts, you need new reading material. jurisb: your comment is a bit ridiculous about well performing us economy. When you have something to back up your opinion, let me know. Methinks you will have to get new reading material before the well-informed can take your opinions seriously.

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