Sunday, September 28, 2008

Is it the Economy or Foreign Policy, Stupid?

American voters and commentators focus a lot on the economy these days. The old slogan, “it’s the economy, stupid,” has been used many times in the past days and weeks, explaining that not foreign policy but the economy should be the number one issue.
Although many American voters may indeed consider the economy the most important issue - especially considering the current crisis - there is something to say for the view that not the economy but foreign policy will be the most important issue facing the next president.

Lest we forget, ‘the world’ is not without problems either. The U.S. has problems with Pakistan, one of the main Muslim allies in the war on terrorism. Clashes between Pakistani and American forces have taken place near the Afghan-Pakistan border. Pakistan’s army and president have made clear that they oppose extremists, and want to destroy them, but the U.S. believes they have not done enough against the Taliban and Al Qaeda and has taken matters into its own hands.

And then there is Russia. Russia has embarked on a course that will put it on collision course in the coming years. A new Cold War seems to be imminent. Russia has decided to confront the U.S. in its own hemisphere (Venezuela), meaning that the U.S. will once again have to defend its interests in South America. At the same time, Russia has tried and will continue to try to bully former Soviet Republics and countries that were theoretically independent during the Soviet era but factually under Russia’s control, into submission. This while the U.S. is trying to get these countries into NATO and to focus on the West.

Then there is Iran, Iraq and Afghanistan. And, lets not forget about Turkey and the Kurdish problem - the Kurds in northern Iraq are increasingly successful in creating a state of their own. Turkey is very nervous about this development because it could lead to Turkish Kurds declaring that certain parts of Turkey are part of ‘Kurdistan’ as well. As a result, Turkey is likely to act aggressively against the PKK in northern Iraq, and increasingly aggressive the more independent and strong Iraqi ‘Kurdistan’ becomes.

The economy is, of course, a major issue. But the next president’s hands will be tied. Congress agreed on a bailout plan today that would cost the American taxpayer $700 billion. That’s about the same amount as the war in Iraq has cost… from the start to today.

In short, the bailout plan will be a tremendous burden on the next president, as will the general state of the economy. All the grand plans both candidates, albeit especially Barack Obama, had for the U.S. economy, for society, for health care, for education, infrastructure, and so on will have to be put on halt. Whomever becomes president, he will sorely disappoint many voters who hoped that he would be able to pursue particular ideological policies.

But foreign policy is where it will all happen in the coming years. This is where the vote for the next president is important, where it will or last can make a difference. Both candidates have different visions for the world. Obama’s worldview is more similar to Bill Clinton’s, McCain’s is more in line with George W. Bush Sr. The differences between those two worldviews aren’t incredibly big - not comparable to the difference between George W. Bush and John Kerry for instance - but they’re relevant.

Venezuela: Was A UFO Destroyed By Lightning?

On September 17 of this year, Jairo Esparragoza managed to capture the flight of an alleged unidentified object that appeared to vanish after being struck by a bolt of lightning.
The event was recorded between 6 and 7 p.m. using the camera of a Motorola Motoraz V3 cellphone as the witness drove along the Guarenas-Guatire Expressway in the vicinity of the Buenaventura Shopping Mall in the state of Miranda in north-central Venezuela.

"The human capacity for astonishment is unending," was the initial statement that opened Jairo Esparragoza's story. He explained that he began recorded the lightning bolts in the sky out of sheer curiosity, following a torrential downpour that drenched the Venezuelan capital and its environs for several hours. He became aware of the strange presence only a few minutes later. "It rained heavily and there was considerable lightning. This drew my attention, and as I was stuck in traffic, I began recording what was going on. But after a while, I was able to see one or two orbs suspended in the sky through the telephone camera."

Startled by what he was seeing through the screen of his cell phone, Jairo Esparragoza stopped focusing the device skyward to concentrate it directly on the strange phenomenon, but was unable to see anything. However, upon resuming focus, the object became visible once again on the mobile phone's screen. "I wasn't able to see it with the naked eye, but when I trained the camera on it once more, there it was, suspended and motionless. I checked to see if it was a light post and it wasn't. It wasn't the camera either," he explained.

The situation remained thus for several seconds, and Jairo Esparragoza, seemingly the only witness to this unusual scene as it played out in the rush-hour tumult common to that time schedule between Caracas and Miranda, still couldn't believe what his cell phone camera was picking up.

Chavez lands in Cuba, meets with Castro brothers 

Venezuelan President Hugo Chavez made a surprise visit to Cuba late Saturday and wasted little time heading into a closed-door meeting with President Raul Castro and his ailing brother Fidel.


A report on the Web site of the Communist Youth newspaper Juventud Rebelde said Chavez arrived around 8:30 p.m. and was greeted at the airport by the 77-year-old Raul Castro, who succeeded Fidel as president in February, becoming the communist-run island's first new head-of- state in 49 years.

Chavez then met with both Castro brothers, according to the Internet item, which was posted about a half-hour after his arrival. The meeting was still under way at the time of the posting. The story provided no further details and there was no additional comment from Cuba's government. It was the second Cuba visit in less than a week for Chavez, who came to Havana for a few hours on Monday as part of a previously announced stopover at the start of his tour to China, Russia and Europe.

Saturday's visit had not been previously scheduled. Earlier in the day, however, Cuban state television showed images of Chavez being interviewed in Portugal, where he could be heard saying he didn't have much time to talk because "Fidel was waiting'' for him in Havana. The pair are close friends and socialist allies, and generous Venezuelan oil shipments at favorable prices have helped keep the island's economy afloat.

The 82-year-old Fidel Castro has not been seen in public since undergoing emergency intestinal surgery in July 2006. Holed up in an undisclosed location, he is suffering from an unknown illness, but has continued to sign essays that appear several times a week in state-controlled newspapers.

John Pilger: The new world war

Britain’s political conference season of 2008 will be remembered as The Great Silence. Politicians have come and gone and their mouths have moved in front of large images of themselves, and they often wave at someone. There has been lots of news about each other.


Adam Boulton, the political editor of Sky News, and billed as “the husband of Blair aide Anji Hunter”, has published a book of gossip derived from his “unrivalled access to No 10”. His revelation is that Tony Blair’s mouthpiece told lies. The war criminal himself has been absent, but the former mouthpiece has been signing his own book of gossip, and waving. The club is celebrating itself, including all those, Labour and Tory, who gave the war criminal a standing ovation on his last day in parliament and who have yet to vote on, let alone condemn, Britain’s part in the wanton human, social and physical destruction of an entire nation. Instead, there are happy debates such as, “Can hope win?” and, my favourite, “Can foreign policy be a Labour strength?” As Harold Pinter said of unmentionable crimes: “Nothing ever happened. Even while it was happening, it wasn’t happening. It didn’t matter. It was of no interest.”

The Guardian’s economics editor, Larry Elliott, has written that the Prime Minister “resembles a tragic hero in a Hardy novel: an essentially good man brought down by one error of judgement”. What is this one error of judgement? The bank- rolling of two murderous colonial adventures? No. The unprecedented growth of the British arms industry and the sale of weapons to the poorest countries? No. The replacement of manufacturing and public service by an arcane cult serving the ultra-rich? No. The Prime Minister’s “folly” is “postponing the election last year”. This is the March Hare Factor.

Reality can be detected, however, by applying the Orwell Rule and inverting public pronouncements and headlines, such as “Aggressor Russia facing pariah status, US warns”, thereby identifying the correct pariah; or by crossing the invisible boundaries that fix the boundaries of political and media discussion. “When truth is replaced by silence,” said the Soviet dissident Yevgeny Yevtushenko, “the silence is a lie.”

Understanding this silence is critical in a society in which news has become noise. Silence covers the truth that Britain’s political parties have converged and now follow the single-ideology model of the United States. This is different from the political consensus of half a century ago that produced what was known as social democracy. Today’s political union has no principled social democratic premises. Debate has become just another weasel word and principle, like the language of Chaucer, is bygone. That the poor and the state fund the rich is a given, along with the theft of public services, known as privatisation. This was spelt out by Margaret Thatcher but, more importantly, by new Labour’s engineers. In The Blair Revolution: Can New Labour Deliver? Peter Mandelson and Roger Liddle declared Britain’s new “economic strengths” to be its transnational corporations, the “aerospace” industry (weapons) and “the pre-eminence of the City of London”. The rest was to be asset-stripped, including the peculiar British pursuit of selfless public service. Overlaying this was a new social authoritarianism guided by a hypocrisy based on “values”. Mandelson and Liddle demanded “a tough discipline” and a “hardworking majority” and the “proper bringing-up [sic] of children”. And in formally launching his Murdochracy, Blair used “moral” and “morality” 18 times in a speech he gave in Australia as a guest of Rupert Murdoch, who had recently found God.

A “think tank” called Demos exemplified this new order. A founder of Demos, Geoff Mulgan, himself rewarded with a job in one of Blair’s “policy units”, wrote a book called Connexity. “In much of the world today,” he offered, “the most pressing problems on the public agenda are not poverty or material shortage . . . but rather the disorders of freedom: the troubles that result from having too many freedoms that are abused rather than constructively used.” As if celebrating life in another solar system, he wrote: “For the first time ever, most of the world’s most powerful nations do not want to conquer territory.”

That reads, now as it ought to have read then, as dark parody in a world where more than 24,000 children die every day from the effects of poverty and at least a million people lie dead in just one territory conquered by the most powerful nations. However, it serves to remind us of the political “culture” that has so successfully fused traditional liberalism with the lunar branch of western political life and allowed our “too many freedoms” to be taken away as ruthlessly and anonymously as wedding parties in Afghanistan have been obliterated by our bombs.

The product of these organised delusions is rarely acknowledged. The current economic crisis, with its threat to jobs and savings and public services, is the direct consequence of a rampant militarism comparable, in large part, with that of the first half of the last century, when Europe’s most advanced and cultured nation committed genocide. Since the 1990s, America’s military budget has doubled. Like the national debt, it is currently the largest ever. The true figure is not known, because up to 40 per cent is classified “black” – it is hidden. Britain, with a weapons industry second only to the US, has also been militarised. The Iraq invasion has cost $5trn, at least. The 4,500 British troops in Basra almost never leave their base. They are there because the Americans demand it. On 19 September, Robert Gates, the American defence secretary, was in London demanding $20bn from allies like Britain so that the US invasion force in Afghanistan could be increased to 44,000. He said the British force would be increased. It was an order.

In the meantime, an American invasion of Pakistan is under way, secretly authorised by President Bush. The “change” candidate for president, Barack Obama, had already called for an invasion and more aircraft and bombs. The ironies are searing. A Pakistani religious school attacked by American drone missiles, killing 23 people, was set up in the 1980s with CIA backing. It was part of Operation Cyclone, in which the US armed and funded mujahedin groups that became al-Qaeda and the Taliban. The aim was to bring down the Soviet Union. This was achieved; it also brought down the Twin Towers.

On 20 September the inevitable response to the latest invasion came with the bombing of the Marriott Hotel in Islamabad. For me, it is reminiscent of President Nixon’s invasion of Cambodia in 1970, which was planned as a diversion from the coming defeat in Vietnam. The result was the rise to power of Pol Pot’s Khmer Rouge. Today, with Taliban guerrillas closing on Kabul and Nato refusing to conduct serious negotiations, defeat in Afghanistan is also coming.

It is a war of the world. In Latin America, the Bush administration is fomenting incipient military coups in Venezuela, Bolivia, and possibly Paraguay, democracies whose governments have opposed Washington’s historic rapacious intervention in its “backyard”. Washington’s “Plan Colombia” is the model for a mostly unreported assault on Mexico. This is the Merida Initiative, which will allow the United States to fund “the war on drugs and organised crime” in Mexico – a cover, as in Colombia, for militarising its closest neighbour and ensuring its “business stability”. Britain is tied to all these adventures – a British “School of the Americas” is to be built in Wales, where British soldiers will train killers from all corners of the American empire in the name of “global security”.

None of this is as potentially dangerous, or more distorted in permitted public discussion, than the war on Russia. Two years ago, Stephen Cohen, professor of Russian Studies at New York University, wrote a landmark essay in the Nation which has now been reprinted in Britain.* He warns of “the gravest threats [posed] by the undeclared Cold War Washington has waged, under both parties, against post-communist Russia during the past 15 years”. He describes a catastrophic “relentless winner-take-all of Russia’s post-1991 weakness”, with two-thirds of the population forced into poverty and life expectancy barely at 59. With most of us in the West unaware, Russia is being encircled by US and Nato bases and missiles in violation of a pledge by the United States not to expand Nato “one inch to the east”. The result, writes Cohen, “is a US-built reverse iron curtain [and] a US denial that Russia has any legitimate national interests outside its own territory, even in ethnically akin former republics such as Ukraine, Belarus and Georgia. [There is even] a presumption that Russia does not have fully sovereignty within its own borders, as expressed by constant US interventions in Moscow’s internal affairs since 1992 . . . the United States is attempting to acquire the nuclear responsibility it could not achieve during the Soviet era.”

This danger has grown rapidly as the American media again presents US-Russian relations as “a duel to the death – perhaps literally”. The liberal Washington Post, says Cohen, “reads like a bygone Pravda on the Potomac”. The same is true in Britain, with the regurgitation of propaganda that Russia was wholly responsible for the war in the Caucasus and must therefore be a “pariah”. Sarah Palin, who may end up US president, says she is ready to attack Russia. The steady beat of this drum has seen Moscow return to its old nuclear alerts. Remember the 1980s, writes Cohen, “when the world faced exceedingly grave Cold War perils, and Mikhail Gorbachev unexpectedly emerged to offer a heretical way out. Is there an American leader today ready to retrieve that missed opportunity?” It is an urgent question that must be asked all over the world by those of us still unafraid to break the lethal silence.

Russia pledges ties with Venezuela

Russian President Dmitry Medvedev and Venezuela’s Hugo Chavez agreed to draft an energy pact on Friday, drawing Moscow closer to Washington’s most ardent Latin American foe. Chavez, known for his anti-U.S. rhetoric, hosted a visit by Russian bomber planes to Venezuela this month and Russian warships will hold exercises there in November, the first such manoeuvres in the Americas since the Cold War.

The establishment of closer ties between the two countries — including two visits by Chavez to Moscow since July — followed a rift between Moscow and Washington over Russia’s brief war with its neighbour Georgia in August. Russia announced this week it was making available to Venezuela a $1 billion loan to cover purchases of arms and military equipment from Russian manufacturers. At the talks in the town of Orenburg in the southern Urals, Dmitry Medvedev announced plan to hold joint naval exercises with Venezuela in the near future.

“Soon, at the end of November, we will have quite large-scale joint naval exercises. All this show what strategic level our relations have reached and I am sure the current visit will result in new successes.”, said Medvedev.

Chavez expressed his ” full approval of Russia’s modest reaction 1/8to Georgia’s action in South Ossetia 3/8 and our full support for Russian actions in the Caucasus”, although Venezuela did not match Russia’s recognition of Georgia’s separatist South Ossetia and Abkhazia regions as independent states.

Western governments accused Russia of acting disproportionately when it launched a massive counter-attack to crush an attempt by Georgian forces to retake South Ossetia. With Medvedev and Chavez watching, Russia’s Gazprom gas giant signed a memorandum of understanding with Venezuela’s PDVSA state oil firm and the two countries’ energy ministers agreed to draw up an energy cooperation pact. Chavez met Russian Prime Minister Vladimir Putin in Moscow late on Thursday (September 25), and was given an undertaking that Russia would consider helping Venezuela develop nuclear power plants.

Chavez, who met Medvedev on the sidelines of a joint military exercise by Russia and Kazakhstan, addressed his Russian counterpart as “president and friend”. He welcomed the upcoming joint Russian-Venezuelan naval exercise in the Caribbean and said that the Russian naval presence in the Venezuelan waters served the cause of peace. Several ships from Russia’s Northern Fleet, set off for Venezuela on Monday (September 22), one of them is battle cruiser Pyotr Velikiy. He thanked Medvedev for sending two TU-160 bombers to Venezuela this month, and took a swipe at Washington.

Russia denied the despatch of ships and aircraft to Venezuela was directed at Washington, but the deployments were announced soon after Medvedev complained about U.S. warships in the Black Sea, traditionally part of Russia’s sphere of influence.

Saturday, September 27, 2008

Chavez Says Crisis-Hit U.S. Needs New Constitution

Venezuela's leftist President Hugo Chavez said on Saturday it was the capitalist system that had caused the financial crisis in the United States and the country should come up with a new constitution. Speaking to reporters in Lisbon on the last leg of a tour that included visits to China and Russia, he said: "I think the United States should start a constituent process to create a constituent assembly, a new truly democratic model."


A constituent assembly is a body elected to draft and sometimes adopt a new constitution.

"It was capitalism that caused the ruin" in the United States, said Chavez, who is one of Washington's fiercest critics, calling the financial crunch "the worst financial crisis in history. Let the U.S. empire end and let a great nation and great republic rise from the ruin ... It's time to shout 'Liberty!' again in the United States," Chavez said, calling for a new government to be free of the "dictatorship of the elite" such as big banks and corporations.

Critics accuse Chavez of running an authoritarian, Cuban-style regime in oil-rich Venezuela. Chavez, who has signed various deals from weapons to energy this week in China and Russia also signed an agreement with Portugal's Socialist government on Saturday to buy 1 million ultra-cheap laptops for schools and 50,000 pre-fabricated houses in deals worth $3 billion. They also signed a draft deal between Energias do Portugal and Venezuelan state oil company PDVSA for the development of a liquefied natural gas project from the Blanquilla Este reserve in northern Venezuela.

The computers, which the government started distributing in Portuguese primary schools this week at a subsidised price of 50 euros ($73.15), will be delivered to Venezuela from December. They cost 285 euros in stores in Portugal. The laptop is based on Intel Corp's Classmate PC, a cheap computer that has been adopted in various formats in countries such as Brazil and Indonesia.

Venezuela close to confirming deal for Chinese K-8 trainers

Venezuela hopes to confirm a deal for 24 Hongdu K-8 trainers from China during president Hugo Chavez's official visit to Beijing this week.
"We're going to buy Chinese K-8 aircraft," Chavez revealed during a weekly television broadcast to Venezuelans. Delivery will begin in 2009, he said, adding that they were "excellent aircraft for the boys".

The K-8 basic jet trainer was jointly developed with Pakistan and was inducted into both services in the early 1990s. It can also be used as a light attack aircraft, and has been exported to countries including Egypt, Myanmar, Sudan and Zimbabwe.

In the broadcast, Chavez reiterated that the country would continue with its military procurements despite criticism from the USA. "We continue working on the issue of military equipment, even though they accuse me of launching an arms race," he said. "I'm not launching an arms race. Military expenditures are necessary for the country's defence."

Venezuela used to buy almost all of its military equipment from the USA. However, strained bilateral relations after Chavez's election meant that Washington refused to sell spare parts for the Lockheed Martin F-16s that Caracas bought in the 1980s. With its stare coffers boosted over the last few years due to a rise in oil prices, the country has been looking elsewhere for its weapons.

Russia has been the main beneficiary. Deliveries of 24 Sukhoi Su-30MK2 fighters, which the Chavez administration ordered in 2006, ended this year. Venezuela's army is also receiving 53 Mil Mi-17V5 transport, Mi-26T heavylift and Mi-35M2 combat helicopters. In December 2007, the country signed a contract for an initial four Kazan Ansat light utility helicopters. It also plans to buy a mix of Ilyushin Il-76 transports and Il-78 tankers to replace the ageing Lockheed Martin C-130s.

Beijing, however, has been keen to boost its domestic arms industry and is actively promoting its indigenous aircraft in South America, Africa and South-East Asia. Apart from the K-8, China has also offered to sell the Harbin Aircraft Z-9, a licensed copy of Eurocopter's AS365N Dauphin. In addition, its Chengdu J-10 and Chengdu/PAC JF-17 fighters could also be touted as alternatives to Russian and US aircraft.

Odeen Ishmael: UNASUR facilitates dialogue in Bolivian crisis

Guyana's Ambassador to Venezuela, Dr. Odeen Ishmael writes: On September 15, leaders of the 12-member Union of South American Nations (UNASUR), meeting in an emergency session at La Moneda Palace in Santiago de Chile to discuss the Bolivian political crisis, declared their unilateral support for the government of leftist President Evo Morales.

Eight other presidents (from Argentina, Bolivia, Brazil, Colombia, Ecuador, Paraguay, Uruguay, and Venezuela) attended the meeting convened by Chilean president Michelle Bachelet, the pro tempore president of UNASUR. In the absence of their presidents, Peru's delegation was led by its Foreign Minister and Guyana and Suriname were represented at ambassadorial level. Also invited to attend was the Secretary General of the OAS, Jose Miguel Insulza, who departed after the meeting for La Paz, Bolivia, to urge dialogue between the government and opposition groups.

But UNASUR did NOT allow the participation of opposition governors of the eastern Bolivian provinces, all of whom had appealed to Bachelet for permission to attend.

The six-hour session in Santiago produced some promising initial results. Soon after it concluded, Evo Morales' government and the rebel leaders of the country's hydrocarbon-rich eastern "Media Luna" [or "Half Moon"] provinces of Tarija, Pando, Beni and Santa Cruz agreed to participate in mediation led by Bachelet and Brazil's President Luiz Ignacio Lula da Silva. According to Morales, it was "the first time in history that we South Americans are deciding to solve the problems of South America."

Venezuela's President Hugo Chavez, emphatically echoed this feeling: "For the first time in our history, we, the South Americans, are demonstrating that we are capable of understanding each other and searching for common solutions."

And even before the meeting convened, Ecuadorian President Rafael Correa summed up the position of UNASUR: "We all know very well what is happening in Bolivia. These ghosts that we believed had been banished from the region have returned in other forms, with other clothing. We will never accept dictators or the breaking of the democratic order. We came here to give our unconditional support to democracy in Bolivia."

  • Bachelet told her colleagues that UNASUR members could assist in bringing the sides together while supporting the efforts of the Bolivian people and of the Bolivian government to "head towards a guarantee of their democratic process and stability and peace in Bolivia."

In their final declaration, the leaders stated firmly that they would not recognise any situation "that implies an intent of civil coup d'etat" aimed at breaking the constitutional order and compromising the territorial integrity of Bolivia. This was a clear message against any secessionist aims of the rightwing opposition forces in the eastern provinces who vehemently oppose Morales. They also firmly denounced attacks on and unlawful occupation of government installations by groups seeking to destabilise Bolivia's democracy and demanded their immediate evacuation as a condition for the start of the dialogue process.

Their declaration also condemned the massacre of 17 persons in the Pando province for which the government blamed the local anti-Morales governor. In addition, they called on all political and social groups involved in acts of violence, intimidation, attacks on democratic institutions and established judicial order to immediately cease those actions

Further, they urged a dialogue in Bolivia to overcome the current situation and search for a sustainable solution. In this respect, the leaders of UNASUR formed three commissions to deal with the conflict. One commission will investigate the Pando massacre, another will coordinate "logistical" support for the Bolivian government, and the third will help mediate dialogue between President Morales and the opposition groups who are demanding full autonomy for the eastern provinces.

Last August, Morales and Bolivia's four "separatist" provincial governors faced "recall" referendums on their terms in office. Morales's presidency was ratified by an overwhelming two-thirds majority of voters in that process. At the same time, the mandates of the governors of the eastern provinces, where violence broke out recently, were also ratified. Since then, the opposition forces have used the referendum to strengthen their demand for regional autonomy and have launched sabotage attacks against Morales' government.

For several days, clashes between government supporters and opponents raised tensions, with opposition backers seizing government buildings and staging roadblocks and demonstrations to demand greater regional autonomy. These clashes led to the killing of the 17 pro-Morales indigenous farmers in Pando. This situation led to the declaration of a state of siege in the province and, ultimately, to the expulsion of American ambassador Philip Goldberg who was accused by Morales of supporting the opposition separatists.

The eastern opposition governors and their supporters have also expressed opposition to Morales' decision to have sales taxes from oil and gas controlled directly by the central government, instead of being managed by the respective provincial administrations. They have also opposed Morales' plan to revise the constitution to give greater rights to the indigenous majority – a proposal which they label as "communist". For his part, the president does not recognize as legal and valid the earlier referendums held in the eastern provinces where the population voted for autonomy from the central government.

The political tension has also highlighted the sharp ethnic divisions in the country where the highland indigenous Amerindians, forming the great majority of the population, provide the strength of Morales' political support. The eastern provinces are populated mainly by people of European descent who form the bulk of the opposition supporters, even though Morales, an Amerindian, in the recall referendum received majority support in Pando province and more than 40 percent in the others. Understandably, neighboring countries such as Brazil, Peru, Chile, Paraguay and Argentina are greatly concerned about the crisis since it is hampering their gas imports from Bolivia.

Infrastructure authorities, such as port terminal operators, are also worried about the effects the crisis will have on Bolivian exports, while countries such as Brazil and Paraguay are already having problems with their routes to port terminals on the Pacific Ocean. Regional authorities are also apprehensive about foreign intervention and the effect this might have on investment and integration initiatives such as railway and highway networks, and on the region's economic scenario in general.

For Brazil, particularly, the Bolivian situation can have serious effects. A continuation of the crisis would hit Brazil very hard if there is a stoppage of natural gas supplies from eastern Bolivia. And Brazil certainly does not want civil unrest in these areas near its western border. Brazil, Argentina and Paraguay are the chief clients of Bolivian natural gas and up to mid-September supplies were reduced due to attacks on gas pipelines and by the occupation of petroleum plants by supporters of the opposition. But not only economic interests are at stake. The integration process in South America can be seriously compromised if secessionist movements in Bolivia and elsewhere in South America manage to gain ground.

Also at issue in Bolivia is the threat of internal violence. The Inter-American Commission on Human Rights, recently issued a report condemning the violent actions of the opposition groups, warning that the rightists governors in the eastern provinces were endangering democracy and human rights throughout the country.

The Santiago meeting is already producing some positive results. Dialogue between the Morales and the opposition umbrella group, the National Democratic Council, re-convened in the eastern city of Cochabamba on September 16. Facilitators for the talks include UNASUR, the OAS, the UN, the European Union and the Roman Catholic Church.

Shortly after this first meeting, the opposition grouping said 80 percent of the preconditions necessary to initiate a dialogue with the government had been settled, but so far the opposition governors have refused to sign a preliminary agreement aimed at ending violence There was a further shift towards understanding on September 19 when Morales offered to include eastern provinces' autonomy demands in his proposed new constitution. This proposal immediately raised hopes for a solution to the country's political crisis.

The South American Presidents attending the UN General Assembly in New York met on September 24 to review the situation, and President Bachelet later declared that UNASUR had received strong backing from the European Union for its efforts to safeguard Bolivia's democracy. Undoubtedly, the South American leaders anticipate a resolution to the crisis, and if a positive result emanates from the current dialogue in Bolivia, it will certainly prove that UNASUR can have an influential role in conflict resolution within the continental community.

Dr. Odeen Ishmael
embguy@cantv.net

(The writer is Guyana's ambassador to Venezuela. The views expressed are solely those of the writer).

____________________________________

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Chavez backs Sarkozy's call for financial summit - Daily News & Analysis

Venezuelan President Hugo Chavez has backed the proposal by French President Nicolas Sarkozy to hold a "heads of state summit" in December to deal with the global financial crisis, EFE news agency reported on Saturday. Chavez made that statement after meeting Sarkozy afternoon at the Elysee Palace on Friday.

The Venezuelan president expressed his wish that the summit proposed by Sarkozy "not be confined to the Group of Eight (G8)", which includes the seven richest countries in the world and Russia. In a speech Thursday in the French city of Toulon, Sarkozy said that the leaders of the countries hardest hit by the financial crisis should take part in the summit. Chavez's meeting with Sarkozy, which lasted about 45 minutes, took place during a brief stopover of the Venezuelan leader in Paris after arriving from Russia on a world tour that also took him to China. Chavez said the tour "had a strong energy content", as part of his government's efforts to transform Venezuela's economic model and achieve industrial and technological development. He said for that transformation he sought aid from "friendly" countries like France, in exchange for "Venezuelan energy", a reference to the South American nation's massive oil reserves.

Sarkozy's response was "very positive", said the Venezuelan president, who has discussed future cooperation in the field of peaceful nuclear power with Russian Prime Minister Vladimir Putin during his trip to Russia. "We count on European wisdom," Chavez said, expressing his interest in strengthening ties with Europe. In South America there is a "peaceful revolution" going on, he said and quoted the motto of the French revolution: "Liberty, Fraternity, Equality" and added, "That's where we're going, we want that world."

Friday, September 26, 2008

Chavez Says U.S. Can`t Fix Financial Crisis

Venezuelan President Hugo Chavez took a fresh swipe at his arch foe the United States on Friday, saying Washington was unable to handle the financial crisis and wanted to use a worthless dollar to own the world. The leader of South America's biggest oil exporting country had just met French President Nicolas Sarkozy on a visit that had already taken him to Cuba, China, and Russia. "The Americans harass us and attack us... (they) want to buy the world with paper that does not have any value," Chavez told reporters in the courtyard of the presidential palace. Washington expected to remedy the current crisis "by running the money printer, and I strongly doubt we'll be able to resolve the crisis that way," he said. An official from Sarkozy's office who spoke on condition of anonymity said the French president had urged Chavez to think ahead to the next U.S. administration and not give his adversaries a pretext to "caricaturise" him. The official added that France was eager to help Venezuela diversify its economy and was ready to transfer technology in the transport and energy sectors, as well as in defence to help fight illegal trafficking in the Caribbean. Chavez said the activities of French oil companies Total and Perenco came up in his talks with Sarkozy, as well as projects involving the auto industry and underground trains in Caracas. Further talks would be held at a meeting on October 2-3, he added. U.S. oil companies Exxon and ConocoPhillips quit Venezuela after Chavez launched nationalisation programmes last year, while Total and Norway's StatoilHydro reduced their holdings and received around $1 billion in compensation.

Patrick J. O'Donoghue's round up of news from Venezuela -- September 26, 2008

A bust of Pedro Antonio Marin, better known as Manuel Marulanda Velez will be unveiled today in the 23 de Enero district of Caracas. Several left-wing organizations will also launch a book dedicated to the Revolutionary Armed Forces of Colombia (FARC) founder and leader, who died six months ago. Among the groups taking part in the event will be: Coordinadora Simon Bolivar, The Communist Party of Venezuela (PCV), Gustavo Machado Communist Tendency and Movimiento 28 de Marzo. The organizers says the e vent has nothing to do with either the Venezuelan government or the FARC.

The Colombian Senate foreign affairs committee has already reacted rejecting the homage to Marulanda, calling it an "international apology for crime," while Colombian government officials have challenged President Chavez to make a stand on the issue.

President Chavez has once again refuted accusations that he is linked with international terrorism and narco-trafficking. Speaking about the $800K briefcase affaire, the President says that it was a setup by the FBI and the CIA from the start aimed at damaging relations between the governments of Argentina and Venezuela. Speaking during a state visit to China, President Chavez has confirmed the alliance between Venezuela and Cuba, defending the achievements of Fidel Castro.

Reacting to George W. Bush's dramatic speech to the American nation showing the dire state of the US economy, President Chavez says the new government of the United States in November will receive a sinking ship. However, Chavez chides, it cannot be a motive of joy for the Venezuelan government, which has been warning the world in speeches and documents about the speculative model of the international financial architecture. "Since when have we been asking for a deep reform of the so-called international financial architecture, and nobody listened ... here are the results." Speaking in China, Chavez adds that fortunately China and Venezuela have their own model and are not dependent on the US financial and economic model. Chavez does not rule out that given the magnitude of the economic earthquake Venezuela will receive impacts, because the world is interrelated in the so-called globalization. The Venezuelan government has been taking measures over the last months to avoid economic impact on its economy.

Supreme Tribunal of Justice (TSJ) president, Luisa Estela Morales has been splitting hairs in explaining the case of fugitive former Yaracuy State Governor, Eduardo Lapi, who wants to be opposition candidate to retake the governorship in November. Morales says the disqualifications ordered by the Comptrollership General are administrative penalties, not criminal. It gives Lapi, who escaped from prison while awaiting trial, a loophole that many people are finding difficult to understand. At the moment, Lapi, Morales relates, is being charged by Venezuelan courts for criminal activities but there has been no sentence. Those disqualified are public officials under investigation for irregularities and malfeasance while in office.

Patrick J. O'Donoghue
patrick.vheadline@gmail.com

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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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Venezuelan bishops encourage active but non-violent participation in public life

The Bishops’ Conference of Venezuela issued a statement this week inviting "all Venezuelans to actively and decisively participate in the life of the country, without violence, and with respect for the constitution, law, the rights of all persons." They continued, "we reject the continual creation of a climate of political agitation before the upcoming elections."


In their statement dated September 24, the bishops rejected "all violence and intolerance, whatever its origin, against persons, institutions, and the media. Likewise we reject both the supposed assassination of the President as well as the supposed conspiracy for a coup d’état, and we demand that in a constitutional state the pertinent investigations be carried out."

After requesting the avoidance of any action that puts in danger "the carrying out of elections set for November 23," the bishops demanded that "rights be respected and the security of all who are involved in the electoral campaign be guaranteed, and that the National Electoral Council likewise guarantee absolute transparency of the upcoming elections, as well as equality of opportunity for all the candidates."

On the other hand, they also expressed their concern for the "apparent unconstitutionality of some articles of some of the laws promulgated on July 31" by President Hugo Chavez.

The bishops encouraged all Venezuelans, Catholic and non-Catholic, to "pray insistently to God for Venezuela, so that the future of our country will be developed through paths of freedom, justice, equality, tolerance, peace and what is good."

Vladimir Putin offers nuclear cooperation to Venezuela President Hugo Chavez

Russian PM Vladimir Putin has offered Venezuela President Hugo Chavez to strengthen nuclear cooperation between the two countries which are already intensifying their military ties, Romanian news agency NewsIn reports, quoting AFP.
Putin was quoted as saying the two countries were ready to examine the possibility to cooperate in the field of nuclear energy. He made the statement as his meeting with Chavez was about to begin at his residency in a Moscow suburb. He also said that all accords of cooperation between naval forces of the two countries will be applied. The Venezuela president's visit to Moscow comes at Russian military ships prepare to operate unprecedented naval maneuvers in Venezuelan waters.

Gazprom may get down to work in Gulf of Venezuela in October

Russia’s gas giant Gazprom may get down to work in the Gulf of Venezuela in October, Russian Energy Minister Sergei Shmatko said after talks between Russian President Dmitry Medvedev and his US counterpart Hugo Chavez.
“I believe that Gazprom may start sinking the first well in the Gulf of Venezuela as early as October,” Shmatko said. “One should bear in mind that before Venezuela had no experience of developing offshore deposits on its own. I believe that such cooperation will benefit both Gazprom and Venezuela.” He added that the agreements concluded between Gazprom and Venezuela’s PDVSA “put on record the achievements of bilateral cooperation, the basis from which to build up.”

Mibam Minister Rodolfo Sanz (and maybe Chavez himself) to fly to Bolivar this weekend!

VHeadline Venezuela News reports: Venezuelan Guayana Corporation (CVG) subsidiary, CVG-Bauxilum workers are continuing their industrial action blocking access to the factory site, protesting what they describe as the irresponsibility of political management at the state-owned heavy industry conglomerate and at the Basic Industries & Mining (Mibam) Ministry despite news that Minister Rodolfo Sanz has promised to visit the plant this Sunday to take personal charge of the situation.

CVG-Bauxilum unions are complaining that no less than three different company presidents have been appointed over the last month and that management confusion and other difficulties are negatively affecting alumina production, much-needed investments and labor relations.

Deputy Mibam Minister Jesus Paredes has met with union leaders and the temporary president of CVG-Bauxilum Alfredo Arcila as well as CVG-Venalum president Carlos Acosta Perez but the only resolution issuing from that meeting was a repetion of a previous statement that "everything is in the hands of President Hugo Chavez himself to resolve!"

Sutralumina Bolivar secretary general Jose Sanchez has been informed that there is NOT enough cash available for CVG-Bauxilum to honor its already overdue labor liabilities ... never mind the critical investments in new technology that have been long overdue. The long-distance firing earlier in the week of CVG-Bauxilum's two-week president, Hector Herrera Jimenez hasn;t helped the situation any ... Sanchez says that, if anything, the situation has gotten worse instead of better.

Meanwhile it has transpired that CVG-Bauxilum had overpaid the amount of Bs.F 42 million (around $20 million) to th IRS/Seniat and that Bs.F 120 million ($60 million) promised to the company by central government more than a month ago is "still in the mail"!

Mibam's Vice Minister Jesus Paredes has, meanwhile, travelled from southeastern Guayana to Caracas preparatory to a top-level meeting with President Hugo Chavez AND Mibam Minister and CVG corporate president Rodolfo Sanz as soon as they arrive back from a visit to China and Russia on Saturday morning.

Sanz has already said that he (and Paredes, and probably Chavez too!) will travel to Bolivar State on Sunday "to address the situation personally," while in late breaking news it is understood that Paredes will return briefly to Puerto Ordaz (Bolivar) for an extra specially convened board meeting of the CVG holding corporation.

Nevetheless, interim CVG-Bauxilum president Alfredo Arcila says that production at Bauxilum has not been stopped for any significant time because of the labor conflict at the factory gate and that the company is already operating a contingency plan. "The plant has not been paralyzed and we are counting on the collaboration all those who work here to keep it going ... no one is interested in seeing the plant paralyzed, it does not serve the interests of the country or the management or workers at the company. My task as interim president is to temporarily assist in the process of improving operational conditions and to accelerate the processes for the achievement of financial resources."


VHeadline Venezuela News
vheadline@gmail.com


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Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

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North American investor says he will NEVER, ever, think of investing in Venezuela again!

VHeadline editor & publisher Roy S. Carson writes: As a boy, I sat transfixed as, with tears welling in his eyes, an old-timer -- who had himself only recently been out of short pants -- told me of the abject horrors he had personally experienced when the Titanic went down in April 1912. He had been one of the "lucky" few who had found themselves working on the White Star liner on its maiden voyage after being built at the Harland & Wolfe shipyard in Belfast where he had found employment as a carpenter's apprentice.

Of course, he had survived! He had been hauled aboard the HMS Carpathia after hours spent floating on debris in the North Atlantic after the giant "unsinkable" sank beneath the surface, dragging with it so many innocent lives.

A few years later, the old-timer was facing another dramatic event in his young life as he battled for personal survival in the trenches of World War 1's Battle of the Somme. He survived again! But it was with searing memories of the filth, the excrement, the rotting flesh, the imminent finality of life in the mud-filled trenches as the rats and other vermin swam through the mud, screeching in their futile own attempts to survive just a day longer.

"It was the rats, the rats..." the old-timer told me through trembling lips.
"They were everywhere! As the Titanic went down they were swimming for their
lives, in the trenches of the Somme they were swimming through the mud ... rats
and human beings dying in their thousands!"

I could not then, I can not now, even begin to imagine the infinite mental damage done to the old-timer's young mind by the experiences. The horrors had lived with him then for almost half a century and one more World War, and they presumably remained with him until he reached the final comfort of his family grave, resting in final peace.

Ninety years on from the FIRST Armistice, the rats are still running ... the Somme may now only cater for curious tourists and battle field coach tours ... but. not a million miles away on Wall Street, New York, the rats are still running, screeching for their OWN survival and swimming in the mud and excrement of their own making as financial Armagheddon approaches with the speed of an express train and the full force of several freighters.

Are the circumstances so very different?

The quest for dominance and unbridled greed have dictated the circumstances of each conflict over the last century and more ... yet the economists and their political masters never learn!

The latest series of financial crashes have sent the rats out in force fleeing the sinking ships, unconcerned by the mud they themselves churn up in their desperation to get away from the carnage they themselves have caused.

Just the other day, I had an angry email from a North American investor who told me that he would NEVER, ever, think of investing in Venezuela again! His particular bone of contention was the elusive timing of the "final solution" to his woes in an investment in Venezuelan gold mining. He had lived the dream of Sir Walter Raleigh's unsubstantiated existence of "El Dorado, City of Gold" in the Venezuelan jungles ... but had only lately discovered that it was rather the home to one of Venezuela's most fearsome prisons in which the dregs of Venezuelan criminality (No! NOT the government!) are warehoused long-term with no hope of escape or return to society!

"All I want is for the (Venezuelan) government to get its act together and give final clearance for gold mining to begin," the unrequited investor moans. "All I want to do is to cash in my shares, hopefully without a loss and then forget Venezuela ever existed!"

The sentiment is probably echoed in many homes across North America and around the world, witnessing how the Venezuelan government, patently, has been unable, so far, to set its house in order.

Incredulous foreigners see how President Hugo Chavez Frias travels the world making lofty and "arrogant" (from their perspective) statements about the deplorable state of political and financial affairs into which Washington and New York has sunk itself, and, all the while, they blind their eyes to what's happening on their own doorstep as Bush caused the destruction of more skyscrapers in the New York financial district than Al Qaeda was ever alleged to have done to the Twin Towers.

YES! The Venezuelan government DOES urgently need to set its house in order, but while the rats are scurring, screeching from the asphalted jungles of Manhattan, it serves as a convenient distraction for the US massmedia to asfixiate themselves on the fact that the Russians are forging closer alliances with Latin America ... as if their own neo-colonialist rejection of the same were not cause enough for look for friends elsewhere than in those who will readily stab them in the back, claiming imperfection in those who have traditionally been a sorry reflection of their own imperfections, which are many.

Venezuela is proving to the world that, with the demise of the US$, and the break-up of "capitalism" as the greedy North of the USA's introverted focus, there is a big world outside the "sandwich" between Canada and Mexico that really matters ... the rest of the world!

While George W. Bush may fondly claim to be master of the universe, the lie is becoming all the more apparent and, with the US Senate currently indisposed to getting him off the hook he has created for himself, there's really no need for the millions of hard-working individuals in the REAL WORLD of the United States, to pony up the bail this particular criminal (Bush) needs to avoid the condemnation of history as the greatest presidential failure of all time!

The old-timer told me, as a boy, that his most lasting experience of both the sinking of the Titanic and the trenches of the awful Somme was the mell-pell scurring, the screeching, of the rats in their efforts to get away, to survive!

Yes! What a difference two world wars, Vietnam, Iraq etc., etc., etc., make! DUH!


Roy S. Carson
vheadline@gmail.com

____________________________________

Venezuela is facing the most difficult period of its history with honest reporters crippled by sectarianism on top of rampant corruption within the administration and beyond, aided and abetted by criminal forces in the US and Spanish governments which cannot accept the sovereignty of the Venezuelan people to decide over their own future.

HELP US TO KEEP BRINGING YOU THE TRUTH
http://tinyurl.com/n4fg



Thursday, September 25, 2008

Expert: Russia-Venezuela military exercises reaction to U.S. moves

Russia is displaying its military power in America's back yard, sending a convoy of warships to Venezuela for joint naval exercises, the first such deployment since the Cold War.
The nuclear-powered Peter the Great cruiser is among the ships Russia is sending to Venezuela.

The Kremlin is becoming increasingly cozy with Venezuela, Cuba and other Latin American countries unhappy with the United States, in apparent response to thorny issues such as U.S. missile defense plans in Eastern Europe, NATO's eastern expansion, and U.S. warships dispatched to Georgia. "Some of this is the Russians wanting to get even. They see American warships close to their shore; they're going to put Russian warships close to us," said Russian military expert John Pike of globalsecurity.org.

The fleet of ships headed toward the Caribbean includes some of Russia's finest, like the nuclear-powered Peter the Great cruiser and the anti-submarine warship Admiral Chebanenko. Pike said that while these vessels are impressive, they are no match for the American Navy and pose little threat to the United States. "They have obsolete technology. They would simply be no match for American warships in a one-to-one combat," he said.

Nonetheless, this deployment adds to the tension created earlier this month when two Russian Tu-160 nuclear long-range bombers arrived in Venezuela, also for military exercises. Venezuelan President Hugo Chavez, a vocal critic of the United States, greeted the Russian pilots with a blunt message for Washington. "Venezuela is not alone! Russia is with us," he said. "They are our strategic partners. The Russian Tu-160 bombers on our land are a warning to the empire of the U.S.A.!"

Chavez is increasing Venezuela's ties with Russia. He arrived in Moscow on Thursday for his second trip there in the past two months. Russia, meanwhile, has sold Venezuela more than $4 billion in arms. U.S. Defense Department spokesman Geoff Morrell says the Pentagon is not fazed. "Russia is certainly within its rights to conduct exercises with its allies. What's the old saying? You're sort of known by the company you keep. If they wish to hang out with the Venezuelan navy, that's their business," he said.

But Russia knows the United States is watching, and that seems to be the idea, Pike said. "The Russians, sort of from here on out, every couple months are going to come up with some sort of new event, some sort of new exercise, some sort of new provocation to keep us focused on them," he said.


Putin says ties with Latin America a top priority

Prime Minister Vladimir Putin vowed Thursday to make relations with Latin America a top foreign policy priority, a pledge backed by the first Russian naval deployment to the Caribbean since the Cold War.
Putin greeted Venezuelan President Hugo Chavez, on his second trip to Russia in just over two months, with offers to discuss further arms sales to Venezuela and possibly helping it to develop nuclear energy.

Chavez's visit takes place as a Russian naval squadron sails to Venezuela, across the Caribbean Sea from the United States, in a pointed response to what the Kremlin has cast as threatening U.S. encroachment near its own borders. Both men suggested their countries are working to decrease U.S. global influence.

"Latin America is becoming a noticeable link in the chain of the multi-polar world that is forming," Putin said at his suburban residence at the start of his talks with Chavez. "We will pay more and more attention to this vector of our economic and foreign policy."

Putin did not mention any specifics of potential Russian-Venezuelan military cooperation in his opening remarks, but Russian news reports said that Venezuela could buy Russian air defense missiles and more Sukhoi fighter jets. Earlier Thursday, a Kremlin official who spoke on customary condition of anonymity said that Russia would grant Venezuela a $1 billion credit for the purchase of Russian weaponry in an effort to help Venezuela revamp its military forces.

Russia has signed contracts worth more than $4.4 billion with Venezuela since 2005 to supply arms including fighter jets, helicopters, and 100,000 Kalashnikov assault rifles. Putin did not specify what kind of cooperation Russia could offer Venezuela in the nuclear field, but Russia is aggressively promoting itself as a builder of nuclear power plants and supplier of fuel to nations seeking nuclear energy.

Chavez, who addressed Putin as "my dear friend Vladimir," said that stronger ties with Russia would help build a multi-polar world _ a term Russia and Venezuela use to describe their shared opposition to the perceived U.S. global domination. "I think that today more than ever before what you have said about a multi-polar world is becoming reality," Chavez told Putin. He said he brought greetings from Cuban leader Fidel Castro, another staunch U.S. enemy. Both leaders have used criticism of the U.S. to boost their popularity at home and advance foreign policy objectives.

Russia is the latest leg in a tour taking Chavez to a number of nations whose governments are eager to counter U.S. global clout. He stopped briefly in Cuba on his way to China, where he touted agreements to increase oil exports and purchase military jets. Signaling similar interests in Russia, Chavez said he and President Dmitry Medvedev will observe military exercises when they meet Friday in the southern Orenburg region. The region near Kazakhstan's border is home to oil industry facilities.

In an interview broadcast on Russian television before the visit, Chavez said that Venezuela and Latin America as a whole need "friends like Russia" to help them shed U.S. "domination" and ensure peace.

Russia has ramped up its cooperation with Caracas further since last month's war with Georgia, which has badly damaged Moscow's already strained ties with the West and particularly the United States. Russia's deployment of warships to Venezuela for naval maneuvers came after the United States used naval ships to ferry aid to Georgia after the war _ a mission Russian officials harshly criticized.

The Russian naval deployment follows a weeklong visit to Venezuela by a pair of Russian strategic bombers. On his Sunday TV and radio program, Chavez joked that he would be making his international tour aboard the "super-bombers that Medvedev loaned me."

Chavez has also talked about creating "a new strategic energy alliance" with between the oil-rich nations. After visiting Venezuela this month, Russian Deputy Prime Minister Igor Sechin said five major Russian oil companies are looking to form a consortium to increase Latin American operations and to build a $6.5 billion refinery to process Venezuelan crude.

Putin said that Russia's Gazprom state natural gas giant will launch its first drilling rig next month to tap Venezuela's offshore gas reserves.


Venezuela's Chavez sees America as a ‘sinking ship'

President Hugo Chavez of Venezuela Thursday described the U.S. economy as "a sinking ship" in the final throes of capitalism but pledged that he would not cut off oil exports to the U.S. unless his nation were attacked.

Chavez, speaking moments before flying on to Russia as part of a five-nation tour, said Venezuela's sharply rising oil exports to China wouldn't cut into sales to U.S. or other markets.

Venezuela has among the largest proven oil reserves of any country, and Chavez said his country could handle a rise in exports to China from a current level of 360,000 barrels a day to a target of 1 million barrels a day by 2012 while it still meets commitments to other clients. "This will not affect in any way our plans to provide petroleum to other countries in the world," Chavez said.

The Venezuelan leader, a former paratrooper now in his ninth year in power, picked up a sketchpad at a news conference and began to draw a graph of Venezuela's proven oil reserves - at about 80 billion barrels, the country has nearly as much as Russia and the U.S. combined. "I said to President Hu Jintao in our meeting yesterday . . . that Venezuela's oil reserves just keep going up and up, and I showed him the math," Chavez said.

Venezuela is the fourth largest source of foreign crude oil for U.S. markets after Canada, Saudi Arabia and Mexico. Venezuela owns seven U.S. refineries, Chavez noted, and supplies gasoline to more than 10,000 gas stations in the country as well as offering discounted heating oil to lower-income U.S. consumers. The only way Venezuela would cut oil exports to the U.S. is if it were directly attacked, he said. "Then we would have to take drastic measures," he added.

The Bush administration has described Chavez as a destabilizing element in the Western hemisphere, accusing his government of financial and organizational links with Colombia's leftist rebels. It also says Caracas has bolstered leftist governments in Bolivia, Cuba, Ecuador and Nicaragua that are opposed to U.S. influence in the region.

Earlier in the day, Chavez met with Chinese entrepreneurs and told them, "The next president of the United States is going to receive a sinking ship," according to a statement from the Caracas government.

At the news conference, Chavez, sounding pleased, read sections from President Bush's address to the nation Wednesday night in which he warned that the U.S. economy could face "a long and painful recession" if Congress doesn't act quickly on a $700 billion bailout of Wall Street. "The U.S. model of capitalism is collapsing," Chavez said.

Chavez interrupted a U.S. reporter asking a question to say, "Where do you have your savings? In dollars? Get them out of there." He later approached the reporter to say he hopes the economic crisis in the U.S. "doesn't affect the American people, a people we love a lot." He said he has a nephew in the Los Angeles area.

Putin:  Russia May Launch Nuclear Cooperation With Venezuela

Russian Prime Minister Vladimir Putin says he is ready to consider helping Venezuela develop a nuclear energy program.
Mr. Putin made the comment Thursday as he met with visiting Venezuelan President Hugo Chavez outside Moscow. Earlier, the Kremlin said it would lend Venezuela $1 billion so the South American country can buy Russian military hardware.Mr. Chavez is making his second trip to Russia in two months. The visit comes as a Russian naval squadron sails to Venezuela for joint military exercises. Earlier this month, two Venezuelan bombers conducted air patrol flights over neutral waters in the Caribbean.Venezuela's efforts to forge closer ties with Russia come as both countries criticize U.S. foreign policy. Hugo Chavez (file photo)Separately, Mr. Chavez is seeking to boost ties with China through increased oil sales to reduce his country's dependence on the United States.The Venezuelan leader Thursday said his country aims to increase oil exports to China to one million barrels a day within four years. Venezuela currently sends China more than 300,000 barrels of crude oil a day to China.Mr. Chavez, however, said his plan to increase oil shipments to China does not mean a cut in supplies to the United States. Before flying to Russia, President Chavez visited China to meet with President Hu Jintao and sign deals on energy cooperation.