March 11, 2005

THE INTERNATIONAL FORECASTER editor Bob Chapman writes: Venezuela’s President Hugo Chavez has again spoken out against the Bush administration saying the US is planning to portray his country as a security threat in order to capture its vast oil reserves ... "We are just waiting for the US to announce that Venezuela has WMD."

Mr. Chavez has repeatedly accused George Bush of plotting to assassinate him.

US officials have called him a threat and a destabilizing force because they want an excuse to take over Venezuela’s oil reserves.

"They want to control our oil and use it for themselves. They went to Iraq thinking they will control Iraq’s oil reserves but I doubt very much they will ever control that country."

Speaking to members of the Communist Party of India, President of Venezuela Hugo Chavez Frias proclaimed he was not a Communist, although he said some of his friends such as Fidel Castro are.

Mr. Chavez describes himself as a "patriot nationalist."

Mr. Chavez, while in India, signed several agreements and will appoint an honorary consul in Kolkata. India will import oil output from a Venezuelan oilfield, which will be jointly explored by both countries.

Iran and Venezuela have signed an agreement this week to build a cement factory and a car assembly plant. They have also made broad agreements in oil, gas and petrochemicals.

There is no question Mr. Bush is now under pressure being the US gets a good part of its oil from Venezuela. Mr. Chavez has also made deals with China, Russia, Brazil and India, all of whom are not pro-US.

For the next two years the economy of Venezuela should grow 6% annually and unemployment should be 10% by year-end, down from 14.2% last August.

Inflation could fall to 11% by year-end.

Hydro electrical is being updated. The country services 70% of its energy from hydro. Agriculture is also a priority.

We have noted a number of times the disparity in oil prices and prices of other products ... in order to receive the income they received in 1974, oil would have to be US$73.00 a barrel.

Since 1999, one barrel of oil was worth $9.00, which is 303% less than a barrel of Coca Cola.
We ask who is ripping off whom?