While the Bush administration baffles the world by insulting and aggravating the leaders of China and Russia, it wants those very same leaders to get tough with Iran and support the imposition of UN economic sanctions.
Basically the neo-con strategy of surrounding Iran with US military bases while supporting and encouraging a new democratic freedom movement appears to be
backfiring.The notion that Iran is entitled to develop the very same nuclear power for Iran that Bush is advocating for the US resonates among those that believe in fair play. And in reality, it is not Iran that is surrounded but us commuters in the U.S. and it starts south of our border.
In an earlier
commentary, I pointed out that even though we do not directly buy oil from Iran, it is a major OPEC player with the world’s third largest proven oil
reserves producing 4.2 million barrels per day and exporting 2.7 million barrels per day.
Any disruption to this supply will have major repercussions and could result in much higher prices and rationing. The mere threat of an embargo could have the same effect. Iran is playing Europe against us by shifting oil transactions from US dollars to Euros in July, a move expected to further weaken the value of the US dollar.
Under the radar and missing from the headlines is Iraq’s growing relationship with Venezuela which could be as significant as their new friendships with China and Russia. because Venezuela is the fifth largest
supplierof oil to the US at 1.4 million barrels per day. Venezuela also owns and operates 14,000 Citgo gas stations in the US. One would think that the administration would be careful to cultivate a strong relationship with our neighbor in the south, but if they are, it surely not apparent or reported.
In fact, Hugo Chavez is extremely outspoken against US policy, routinely calling President Bush “Senor Peligroso” (Mr. Danger). Name calling aside, Chavez and newly elected Evo Morales of Bolivia are the figure heads of a new and growing populist movement in South America. Chavez is considered a hero to most Venezuelans because he has reorganized the nationally owned oil industry and is directing some of the profits to poor people. This anti-capitalist heresy is anathema to the Bush administratioo which allegedly supported a
coup d’etat that temporarily removed Chavez from office in 2002.
Likewise Morales is not winning
any points with the administration because he recently
nationalized Bolivia’s natural gas industry, a major campaign promised filled.
Listening to the outrage of Congressional leaders about the “excessive” profits of oil companies makes one wonder if their constituents might consider the philosophical perspectives offered by Chavez and Morales in a more favorable light than the administration.
Treaties and AgreementsThe administration lobbied hard for a free trade agreement with South America. Remember Bush’s trip in 2005 was met by anti-US
demonstrations.That initiative failed, but on April 29, 2006 Bolivia, Cuba and Venezuela entered into a similar arrangement between their countries, sans the US.
Havana, Cuba - Bolivia's new left-leaning president signed a pact with Cuba and Venezuela on Saturday that rejects U.S.-backed free trade and promises a socialist version of regional commerce and cooperation.
The Cuba-Venezuela deal - known by its Spanish acronym ALBA, also the word for dawn - provided a framework for the leaders to blast Washington's efforts to expand its free trade with Latin American countries.
But the agreements that I think are of great interest to US commuters are those between Iran and Venezuela.
Food
Caracas and Tehran have signed several agreements in the food sector ... some of the Iran Food Research & Production company's output is exported. Several agreements worth a total of over US$1 billion were signed between Iran and Venezuela in March by visiting Iranian President Mohammad Khatami and his Venezuelan counterpart Hugo Chavez.
Also, Iran and Venezuela have invested US$34 million in setting up a tractor manufacturing plant. Iran holds a 51% stake in the venture. Iranian and Venezuelan officials had signed the contract for establishing the plant in Tehran in December 2003 concurrent with an official visit to the Iranian capital city by Chavez.
Free Trade and Oil
LONDON, March 12 (IranMania) - Several agreements worth a total of over $1 bln were signed between Iran and Venezuela on Friday. The documents were signed by visiting Iranian President Mohammad Khatami and his Venezuelan counterpart Hugo Chavez, according to IRNA.
The agreements and memoranda of understanding (MoUs) inked by the two presidents cover various fields. Agreements on encouragement and support of investment, avoidance of double taxation, shipping and marine trade as well as MoUs on oil, gas and petrochemistry are among the signed documents. The agreements also cover cooperation between the two countries on geological and mines projects. In a separate ceremony on Friday, Venezuelan President Hugo Chavez handed the highest official sign of his government to President Mohammad Khatami.
And in the future, Chavez might consider selling uranium to Iran.
The point is that Chavez is (perhaps justifiably) afraid that the US will overthrow him. He is building one of the largest militias in the world to oppose this threat.
Chavez frequently brings up the US threat during his weekly television show and at press conferences. Chavez often touts Venezuela’s riches and new global power. Last winter he offered major discounts on heating oil for the needy in US. Northeast. Recently he has extended the same offer to the impoverished living in the UK at the delight of the mayor of London and the consternation of Downing Street.
And for the first time. Chavez has specifically mentioned that he has had contact with other nations interested in receiving the exports the US depends upon while picking up the rhetoric specifically against George Bush.
Chavez said in Vienna yesterday that the 'final hours of the North American empire have arrived ... Now we have to say to the empire: "We're not afraid of you. You're a paper tiger."'
And
today received a hero's welcome of sorts in London.
The question is what will Chavez do if economic sanctions are imposed upon Iran or if the administration chooses the military option? Cut us off? Make the supply sporadic and undependable? Raise the prices?. Commuters should be concerned that their ability to get to work and back may be irreversibly altered in the near future.
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