Tag Archives: Venezuela

Does foreign policy matter? Obama’s appeasement policy comes with a cost

Obama shakes hands with communist dictator Castro
Obama shakes hands with communist dictator Castro

Just a quick rundown of the foreign policy news that just ruined my day.

Investors Business Daily:

Just as its patron Venezuela hit the rocks, Cuba got a last-minute rescue from none other than President Obama, who announced a Santa Claus-like package of wish-list goodies for the Castro brothers. Why?

In many ways, President Obama’s announced plan to normalize relations with Cuba, lift the embargo, extend trade credits and remove Cuba from the state sponsors of terror list is about on par with the rest of his foreign policy.

It was done by executive order without consulting Congress, just like last month’s decision to temporarily legalize 5 million illegal immigrants.

It was justified by a claim the U.S. embargo was “not working,” comparable to Obama’s claim the U.S. immigration system is “broken.” In reality, the problem in both cases is that of a halfhearted willingness to enforce the law, rendering it full of holes.

As for the hostage swap in the bargain, that of U.S. Agency for International Development subcontractor Alan Gross and another U.S. agent for three professional Cuban intelligence officers linked to the murder of U.S. citizens in the 1996 Brothers to the Rescue shootdown, it was a deal that gave far more than it got, just like the hostage swap with the Taliban of U.S. army deserter Bowe Bergdahl for five terrorists.

[…]One is the strange timing of the announcement, coming just as Venezuela and other nations ruled by petrotyrants are on the verge of collapse.

Venezuela has played sugar daddy to Cuba for years, shipping 100,000 barrels of free oil to the communist state. It can no longer afford to. Rather than use that as leverage, Obama rescued Cuba despite its repressive human rights record. That’s one odd bailout.

And the bailout won’t be free for U.S. taxpayers.

Obama administration officials have said they are moving swiftly to extend trade credits to Cuba so the $483 million in American goods Cuba now pays for in cash can expand further, thanks to taxpayer-supported U.S. ExImBank trade credits.

In effect, we’ve handed the odious Castro brothers Uncle Sam’s credit card. Given that the Castroites have defaulted on all of their trading partners since 1961, to the tune of at least $70 billion, it’s assumed the Castros, having no sustainable economic model, will eventually default on us too.

Washington Post:

IN RECENT months, the outlook for the Castro regime in Cuba was growing steadily darker. The modest reforms it adopted in recent years to improve abysmal economic conditions had stalled, due to the regime’s refusal to allow Cubans greater freedoms. Worse, the acceleratingeconomic collapse of Venezuela meant that the huge subsidies that have kept the Castros afloat for the past decade were in peril. A growing number of Cubans were demanding basic human rights, such as freedom of speech and assembly.

On Wednesday, the Castros suddenly obtained a comprehensive bailout — from the Obama administration. President Obama granted the regimeeverything on its wish list that was within his power to grant; a full lifting of the trade embargo requires congressional action. Full diplomatic relations will be established, Cuba’s place on the list of terrorism sponsors reviewed and restrictions lifted on U.S. investment and most travel to Cuba. That liberalization will provide Havana with a fresh source of desperately needed hard currency and eliminate U.S. leverage for political reforms.

[…]No wonder Yoani Sánchez, Cuba’s leading dissident blogger, concluded Wednesday that “Castroism has won” and predicted that for weeks Cubans will have to endure proclamations by the government that it is the “winner of its ultimate battle.”

[…]Mr. Obama says normalizing relations will allow the United States to be more effective in promoting political change in Cuba. That is contrary to U.S. experience with Communist regimes such as Vietnam, where normalization has led to no improvements on human rights in two decades. Moreover, nothing in Mr. Obama’s record of lukewarm and inconstant support for democratic change across the globe can give Ms. Sánchez and her fellow freedom fighters confidence in this promise.

The Vietnam outcome is what the Castros are counting on: a flood of U.S. tourists and business investment that will allow the regime to maintain its totalitarian system indefinitely. Mr. Obama may claim that he has dismantled a 50-year-old failed policy; what he has really done is give a 50-year-old failed regime a new lease on life.

We lost our diplomatic leverage by propping up a communist regime.

But maybe communism is working well for the middle class and the poor in Cuba? Is it?

City Journal:

Marxists have ruled Cuba for more than a half-century now. Fidel Castro, Argentine guerrilla Che Guevara, and their 26th of July Movement forced Fulgencio Batista from power in 1959 and replaced his standard-issue authoritarian regime with a Communist one. The revolutionaries promised liberal democracy, but Castro secured absolute power and flattened the country with a Marxist-Leninist battering ram. The objectives were total equality and the abolition of money; the methods were total surveillance and political prisons. The state slogan, then and now, is “socialism or death.”

[…]Cuba has a maximum wage—$20 a month for almost every job in the country. (Professionals such as doctors and lawyers can make a whopping $10 extra a month.) Sure, Cubans get “free” health care and education, but as Cuban exile and Yale historian Carlos Eire says, “All slave owners need to keep their slaves healthy and ensure that they have the skills to perform their tasks.”

[…]The police expend extraordinary manpower ensuring that everyone required to live miserably at the bottom actually does live miserably at the bottom. Dissident blogger and author Yoani Sánchez describes the harassment sarcastically in her book Havana Real: “Buses are stopped in the middle of the street and bags inspected to see if we are carrying some cheese, a lobster, or some dangerous shrimp hidden among our personal belongings.” Perhaps the saddest symptom of Cuba’s state-enforced poverty is the prostitution epidemic—a problem the government officially denies and even forbids foreign journalists based in Havana to mention. Some Cuban prostitutes are professionals, but many are average women—wives, girlfriends, sisters, mothers—who solicit johns once or twice a year for a little extra money to make ends meet.

[…]Citizens who take public transportation to work—which includes almost everyone, since Cuba hardly has any cars—must wait in lines for up to two hours each way to get on a bus. And commuters must pay for their ride out of their $20 a month. At least commuter buses are cheap. By contrast, a one-way ticket to the other side of the island costs several months’ pay; a round-trip costs almost an annual salary.

[…]As for the free health care, patients have to bring their own medicine, their own bedsheets, and even their own iodine to the hospital. Most of these items are available only on the illegal black market, moreover, and must be paid for in hard currency—and sometimes they’re not available at all. Cuba has sent so many doctors abroad—especially to Venezuela, in exchange for oil—that the island is now facing a personnel shortage.

[…][A]lmost everyone in Havana lives in a Detroit-style wreck, with caved-in roofs, peeling paint, and doors hanging on their hinges at odd angles.

[…]Even things as simple as cooking oil and soap are black-market goods. Individuals who, by some illegal means or another, manage to acquire such desirables will stand on street corners and whisper “cooking oil” or “sugar” to passersby, and then sell the product on the sly out of their living room. If they’re caught, both sellers and buyers will be arrested, of course, but the authorities can’t put the entire country in jail. “Everyone cheats,” says Eire. “One must in order to survive.

When Barack Obama uses American taxpayer money to prop up communism, he keeps this system going. The only solution is for the people to revolt against communism, but when he hands money to the government, they buy more guns and keep the people down in poverty and squalor while the rich communist elites rule over them. It’s evil.

Meanwhile, North Korea is able to attack our private industry without even a peep from cowardly Obama and his retreat from Iraq now allows Islamic State terrorists to execute 150 captured women, many of them pregnant, who refused to become “wives” to the terrorists. Any husbands they had would have been shot right in front of them. There is only one way to do something about these problems in the world and that’s with a strong U.S. military, strong sanctions and tough negotiations. Obama has failed these victims in every way because of his approval of the evildoers and his rejection of our democratic allies. We need to have more confidence in the goodness of American power and the American way of life.

Good news: Venezuelan President complains that fracking is “flooding” oil markets

Gas prices vs domestic oil production
Gas prices vs domestic oil production

(Click for larger image. Source)

Why are gas prices so low all of a sudden?

Well, let’s ask the communist President of Venezuela:

The broadcast networks may not want to give credit to hydraulic fracturing for increasing U.S. oil production and lowering global oil prices, but at least one angry world leader did just that.

Venezuelan President Nicolas Maduro complained that fracking in the U.S. has “flooded” the world market and contributed to lower oil prices, a connection that broadcast networks’ evening news reports barely made recently.

“The oil they’re taking from (shale deposits) and the gas. They’ve flooded the international market to batter the Russian economy …, Iran and to hurt us, Venezuela,” Maduro said in a broadcast on VTV, a state-run TV channel in Venezuela, according to Fox News Latino.

Fracking has been one cause of increased oil production in the U.S. That increased production helped lower oil prices by more than 30 percent since September 29. The decline in oil prices since June has severely impacted Venezuela, since oil exports were a major source of government income. “Some estimates put the break-even price for Venezuela to balance its budget at around $121 a barrel,” CNBC reported on December 7. That’s more than double current oil prices. Oil closed at $59.15-per-barrel on December 11.

As of January 2014, Venezuela’s state-run oil company brought in 96 percent of foreign earnings, according to The Economist. Maduro announced on December 2 that the government would cut spending by 20 percent.

[…]Venezuela was experiencing particular difficulties. That economy was on the verge of collapsing, CNBC said on Dec. 1. If low oil prices continued, Venezuela may face a “game over” situation and “barbarity and people looting.”

Do you know who else is hurt by this? Russia. I sure hope they don’t do anything aggressive to their neighbors while their economy feels the pinch of lower gas prices.

It’s a good thing when villains shake their fists at us, but it’s a better thing when consumers pay less for gas:

Thanks in part to the widespread use of technologies like hydraulic fracturing and horizontal drilling, global oil prices plummeted in 2014. Energy experts even predicted the U.S. could be the top oil producer in the next several years.

[…]Fracking and other advanced technologies helped the U.S. nearly double its average daily output of oil, from 5 million barrels in 2008 to an expected 9.42 million barrels in 2015. The huge supply increase was one factor sending crude oil prices down. Crude fell by more than 32 percent, from $93 to $63 just since Sept. 29. This already drove gas prices down to a national average of $2.66 for regular on Dec. 9, according to AAA.

This is great news for consumers and businesses which could save as much as $1.3 trillion worldwide because of lower oil prices, according to Julian Jessop, chief global economist at Capital Economics in London. Here in the U.S., Americans could save $230 billion if prices remain low for the next year, The Washington Post said on Dec. 1.

The only bad side to this story is that fracking is an expensive way of drilling, so as the price of oil drops, energy companies will be scaling back fracking until it becomes profitable again.

I think this story is important, because it helps to explain what the people who oppose the Keystone XL pipeline are concerned about. They know that there are two results to allowing that pipeline to be built. First, a hell of a lot of jobs will be created, reducing dependency on government. Second, the price of gas at the pump will go down further. That’s what the environmentalists (and their Democrat allies in Washington) are seeking to avoid. They want more government dependency, and higher gas prices.

Marco Rubio’s speech exposing the horrors of socialism in Cuba and Venezuela

Here’s an article from the Miami Herald about a recent 15-minute speech by Republican Senator Marco Rubio.

Excerpt:

The U.S. senator from Florida had listened patiently to Sen. Tom Harkin of Iowa speak favorably about his recent trip to Cuba, all the while omitting any real references to the oppression of the totalitarian government there.

To Rubio, like many Cuban exiles and their descendants, it was too much to bear.

“Let me tell you what the Cubans are really good at,” Rubio said Monday when he took to the Senate floor. “What they are really good at is repression … They have exported repression in real time, in our hemisphere, right now.”

[…]For 14 minutes and 16 seconds, Rubio gave the best oration of his political career, speaking largely off the top of his head and with only the barest of notes. Rubio sometimes dripped with sarcasm or simmered with indignation as he made the case to Congress that the United States needs to continue Cuba sanctions and punish Venezuela.

That’s what the speech was about.

Here are some of the details from the speech:

As an aide flipped through over-sized photos of Venezuelan protests, Rubio ticked off the struggles of living in the country, the horrors of its citizens dying and being jailed at the hands of its government.

“This gentleman here is the former mayor of a municipality in Caracas. His name is Leopoldo Lopez,” Rubio said. “And this is the National Guard of Venezuela pulling him into an armored truck last week. You know why? Because he’s protesting against the government.”

Then came the next photograph, a picture of a young woman being driven off on a motorcycle.

“This is Genesis Carmona,” Rubio said. “They shot her in the head. She died last week.”

Rubio continued: “Let me show you the next slide. Here’s a demonstrator detained by police. Look how they drag him through the streets. This is in Caracas, Venezuela.”

Rubio also took issue with a recent survey, cited by Harkin, that indicated a thaw in American and Floridian perceptions of relations with Cuba.

“He cited a poll, ‘More Americans want normal relations with Cuba.’ So do I — a democratic and free Cuba,” Rubio said.

“But you want us to reach out and develop friendly relationships with a serial violator of human rights, who supports what’s going on in Venezuela and every other atrocity on the planet? On issue after issue, they are always on the side of the tyrants. Look it up,” Rubio said. “And this is who we should be opening up to? Why don’t they change? Why doesn’t the Cuban government change? Why doesn’t the Venezuelan government change?”

Rubio said that, just as the United States has sanctions against North Korea and Syria — allies of Cuba — it should keep pressuring the governments in Havana and Caracas.

And he disagreed with the notion that the embargo hurts the Cuban people. Instead, he said, it’s the totalitarian-socialist government that’s to blame for problems in Cuba — As well as in “oil-rich” Venezuela.

“We don’t have an embargo against Venezuela,” he said. “They have a shortage of toilet paper and tooth paste. Why? Because they are incompetent. Because communism doesn’t work. They look more and more like Cuba economically and politically every single day.”

Rubio repeated that last line elsewhere in his speech:

“They look more and more like Cuba economically and politically every single day. What’s the first thing the Venezuelan government did when these broke out? They shut off access to Twitter and Facebook and the Internet. They ran CNN out of there. They closed down the only Colombian station. Years before, they had closed down all the independent media outlets that criticized the government.

“Where did they learn that from? From Cuba. And yet we have to listen to what a paradise Cuba is.”

I am not a fan of Marco Rubio anymore as a candidate for VP or President, nor am I a fan of Paul Ryan. Both have made mistakes that rule them out as conservatives. However, this speech should be seen by all, especially by Americans who do not appreciate how different like is in countries that are further along the socialist road to serfdom. But we’re getting there.