Chavez steals millions from foreign companies.

[Kidlicious]

Originally posted by Oerdin
OK, how about commodity prices are highly volitile and since Venezuela relies heavily on one commodity it's economic growth tends to swing wildly in boom and bust cycles? Is that better?

One factor in that is that capital flight occurs during the period of falling commodity prices. Don't you think the next period of falling oil prices will be easier on Velenzuela since they are less dependent on foreign investment now? I mean hell, they don't really need the foreign investment when the price of oil is high. They need it when the price falls, but then the investors sell out.

[Patroklos]

Your right, now their cycle is bust bust.

Far more stable.

[Kidlicious]

Originally posted by Patroklos
Your right, now their cycle is bust bust.

Far more stable.

I don't think you're keeping up

[Patroklos]

That is an entirely accurate paraphrase of your last post.

Their economy sucks now when oil prices are high, where does it go from there?

[Kidlicious]

Seriously, you need to keep up.

[Patroklos]

Seriously, you need to make sense.

[Velociryx]

Really, Patroklos....I'm amazed you didn't see the divine wisdom in the post you responded to.

Obviously the solution for when the oil price falls is this:

a) Steal more $hit. Anything that's not nailed down, especially if it belongs to foriegners, or anybody who makes above the median income....just take it, man! Who cares what the economy is doing as long as the money's flowing in.

b) Spin the facts. If oil production drops, report that it's increasing. If it continues to drop, blame outside interference. Whatever you do, DO NOT fess up to the fact that it's got anything to do with Red Ideology, or total ineptitude. Failing that, go find (and hire) the Iraqui spin-doctor who gave us such colorful reports during GW II.

c) When you've taken everything that's not nailed down, reset the trap. Privatize stuff, invite foriegn investors back in....give them tons of incentives and make it really attractive. Soon as you find some suckers to bet on a losing horse again, rinse and repeat.

Got it?

-=Vel=-
{/sarcasm} (for the benefit of anybody who may have thought I was being serious)

[Kidlicious]

Vel,

I think you've gotten to the point where you're so absurd that no one can discuss anything with you.

[Velociryx]

Yep. That would be me. Mister Absurd.

It is fortunate then, that I do not go 'round holding on to the threadbare shreds of a failed ideology and clinging to the nonsensical musings of a crackpot--musings that not only fly in the face of the historic evidence, but of logic itself--and treating them like they were gold dust and precious gems.

I might really be off my rocker then.



-=Vel=-

[Kidlicious]

I take it that you don't have any relevant counter point, as usual.

[Velociryx]

You're absolutely right, Kid....boatloads of historic evidence don't amount to any sort of point at all.

I love these little "talks" we have.

-=Vel=-

[Kidlicious]

I know you aren't retarded, but talking to you is like talking to a retarded person.

[Velociryx]

Do you have...a clue? A point? Surely you read the sarcasm tag at the bottom of my post, oh clueless one....or are you just spoiling for a fight in general?

-=Vel=-
(going to lunch)

[Flubber]

Originally posted by Kidicious


One factor in that is that capital flight occurs during the period of falling commodity prices.

You are kidding right?

The relatively long cycle time from the early investment in exploration and infrastructure to when you actually start producing for MANY projects means that you are investing based on your long term projection for the price on a 20 year outlook and that the price today (when you are not yet producing) is largely irrelevant, except to the extent it impacts the long-term projected price.

Many of the areas where the oil companies are now accused of reaping "windall" profits are on large scale projects where the companies continued to invest, even when the price was at $12-15 per barrell.

In this high price environment, people tend to forget that there was always in the past a price risk to starting major oil projects. people think because prices are high they are always high and seem to assume they have always been high. Its very interesting to me that OPEC and the majors were unable to keep prices perpetually high in the past considering how some here seem to assume that they have total controlof world pricing

[Kidlicious]

Originally posted by Flubber
You are kidding right?

I realize that there are long term investments, but there's also a lot of currency speculation. That's what causes the capital flight.