Tuesday, July 22, 2014

Venezuela/China: President Xi Saves Caracas from Extinction, If He Had Only Let Things Be

According to The Latin American Tribune, Venezuela confirmed on Monday (July 21) that its relations with China have become a "fundamental pillar for making progress in almost all sectors of its economy."

With a new portfolio of accords and almost $5.7 billion in loans, China will become a lynch-pin providing support in many key areas of the cash-strapped Socialist economy.

At the closing ceremony of the 13th bilateral Mixed Commission, President Nicolás Maduro told his Chinese counterpart that his visit of little more than 24 hours had “surpassed all expectations.”

Maduro and Xi closed the meeting having added a number of new pacts to the more than 500 already accumulated in their bilateral relationship.

From agriculture and finance to telecommunications, infrastructure and trade, the two leaders agreed that the door opened by the late Hugo Chávez 15 years ago continues to be “a breath of fresh air.”

“The financing... doesn’t burden our country with unmanageable debt, it is financing backed by a formula of production and supply of barrels of oil that now amounts to some 524,000 barrels a year to China,” Maduro said.

COMMENT: As US President Barack Obama continues on a path of eliminating "US exceptionalism"; rendering our once-respected nation to "has-been" status; leaving our monstrous debt that our grand-kids will never be able to pay off; Obamacare which even now is bankrupting so many families; and finally,  an immigration crisis on the US border that may never end until all US citizens depend on Washington for their livelihood. 

I should also mention that the only reason that President Obama has proposed that Puerto Rico become the 51st US state by 2016 is because 75% of those in the Commonwealth voted for President Obama in 2012. 

The enormous downside of China's coming to the aid of so many leftist governments in Latin America who were formed on the basis of populist doctrine that has never effectively worked.

Even Russia slowly discovered that capitalism is a philosophy that has always been effective: The number of billionaires and millionaires it created demonstrate that hard work is effective, yet even Russian President Vladimir Putin would never acknowledge the act.

Unfortunately, the world will never know just how Putin has benefited from capitalism unless, of course, a polygraph was used to elicit the truth. 

The “honorable formula” Maduro has resulted in $45 billion from China into a joint fund to finance projects in Venezuela, a sum that with Venezuela’s contribution total $56 billion in available money.

“Venezuela has become one of the places most committed to investments from China, the biggest market for construction works, the seventh supplier of oil and China’s fourth largest trade partner in Latin America,” President Xi said.

This sector is followed by infrastructure and agriculture--about which Maduro noted that only 10% of Venezuela’s arable land is under cultivation--largely due to an entitlement society. 

Maduro also hailed the signing of an accord for the construction of a third satellite, a new contribution to “the aerospace race in which, with the aid of China, Venezuela modestly continues to make progress,” he said.