Petrocaribe: Paying beans for Venezuelan oil

[Catherina]

Petrocaribe: Paying beans for Venezuelan oil
Some 17 countries receive shipments of crude or refined oil products with preferential repayment terms under the Petrocaribe energy pact. But some nations fear oil shipments could stop post-Chávez.

By Ezra Fieser, Correspondent / March 27, 2013

SANTO DOMINGO, DOMINICAN REPUBLIC

...

Last year, the Chávez government sent some 240,000 barrels a day to countries in the region – regardless of whether their politics fell in line with Mr. Chávez's socialistic ideals.

Some 18 mostly small countries, including Venezuela, are members of Petrocaribe. It is an energy pact under which members receive shipments of crude or refined oil products from Venezuela that they pay for over the course of 25 years at minimal interest rates.

...

"Any cut to Petrocaribe would be disastrous for countries" that receive Venezuelan oil under such deals, says Jorge Piñon, an energy analyst and Caribbean specialist at The University of Texas at Austin. "It's become an integral part of their economies."

...

Last year, the Dominicans sent beans, literally: 10,000 tons of black beans headed to Venezuela to repay the petroleum debt. What's more, to plant those beans the Dominican government had to import seeds from the United States – which has frigid diplomatic relations with Venezuela.

...

http://www.csmonitor.com/World/Americas/2013/0327/Petrocaribe-Paying-beans-for-Venezuelan-oil

Lol oh lol, beans from the Dominican Republic, cattle from Bolivia, all that lovely cash not getting into the bank accounts of vultures who prey on the people. How the thought of all that "lost" money must keep them up at night, seething, plotting, lusting for what is not theirs.

[dipsydoodle]

1. Straight forward barter.

Can't beat it. Its how India trades with Iran.

[naaman fletcher]

2. It all depends on the reference prices

That is, how much oil did the DR get for 10,000 tons of black beans?

Without that info there is no way to analyze the economics of the transaction.

[COLGATE4]

3. You know the answer to that.

If the economics of the transaction were made available it would show that Vz. essentially have the oil away. Par for the course.

[joshcryer]

10. Not necessarily, it's just super high risk.

If DR decides to default in 20 years then, yeah, the oil would've been given away, but as it stands now it's basically a gift with a long term IOU hanging out there. It's bad policy, of course, but it's helpful at buying allies.

[Catherina]

4. I don't know, I don't even care

I think there's something very wrong with the whole money system and love this straight up bartering.

What's there to analyze really? They could give it away for nothing and it still wouldn't be anyone's business. As long as goods and services are rolling in, without strings, to feed and care for the people, it's all good imo.

[naaman fletcher]

5. Theoretically

In a world with honest banking you would use currency because it is much more efficient. Of course, we know that banks aren't honest and also that the US government wields significant influence over international banking, so if I was a country that wasn't a friend of the US I would want to minimize cross border dollar transactions as much as possible.

Also, I agree with you that if they gave it away for nothing I wouldn't care.

But, don't you think the Venezuelan voters have a right to know if their oil is being given away for nothing?

[idwiyo]

6. Your concern for Venezuelan voters is touching. Really, it is. Brings a tear to my eye.

Were you similarly concerned for the poor people in US who benefited from cheap oil that Chavez made available for them? Or do you think they should have been paying same as everyone else?

I sure was very appreciative when he did the same for UK poor. Though I can see how it will cut really deep and hurt badly when one just think how much money THEY could have made if only THEY could have gotten hold of it and sold that oil instead of giving it to the poor.

Solidarity, poor are poor, who gives a shit, right?

[naaman fletcher]

7. I'm not sure of your point, so I will adress it sentence by sentence.

Your concern for Venezuelan voters is touching. Really, it is. Brings a tear to my eye.

Thanks.

Were you similarly concerned for the poor people in US who benefited from cheap oil that Chavez made available for them?

I'm very happy that the poor in the US got cheap oil from Chavez.

Or do you think they should have been paying same as everyone else?

No, I don't. Chavez helped them. I'm glad for them.

I sure was very appreciative when he did the same for UK poor

Yes, that was great.


Though I can see how it will cut really deep and hurt badly when one just think how much money THEY could have made if only THEY could have gotten hold of it and sold that oil instead of giving it to the poor.

Who is they? What are you talking about?

Solidarity, poor are poor, who gives a shit, right?

I care. I don't know what you are talking about though.

[idwiyo]

8. I am really glad we both agree that Chavez was doing a really great thing by helping poor people

not only in his country but elsewhere too!
Nice to know you are on Chavez's side in this fight!

[naaman fletcher]

9. I am on Chavez's side

with a huge portion of what he has done, especially in the early years. But I am not always on his side, and I think his early years were a lot better than his last years.

[Catherina]

11. They'd have a right to know

Personally, I don't think they'd care much. The majority of Venezuelans seem very proud to help Cuba and Haiti in repayment of what they see as historic *debts*.

Look how our money is given away for worse than nothing (bankers bailouts, war, corporate tax breaks) and the American people generally don't seem to care.

[naaman fletcher]

13. Agreed nt.

[sabrina 1]

12. Beans for oil! How wonderful. Imagine how livid the old oil barons must

be to see this. Oil being used primarily to help people, in Venezuela and elsewhere. I love what is happening in Latin America. It gives me hope for the rest of the world.