Article

2006-07-27 Caribbean-Latin America

Hugo to build Kalashnakov factory, buy Su-30s

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Posted by Nimble Spemble 2006-07-27 08:27|| || Front Page|| [11128 views since 2007-05-07] Top

#1 Anyone keeping track of Venezulean defense spending pre-Chavez and today? Can't be good for an economy already on the skids.

Posted by Spinemp Whaish3182 2006-07-27 09:27|| 2006-07-27 09:27|| Front Page Top

#2 Best of luck to ya, Chavez. Those Su-30s have a rep for being "Hanger Queens". Can you afford it Chavez? Can you?

Posted by DarthVader 2006-07-27 09:39|| 2006-07-27 09:39|| Front Page Top

#3 Buying lots of arms is a dictator's Viagra. It's a fair bet that he's seriously math-challenged - stupid, actually - and tolerates no one around him saying "No"... So I figure he's going to burn through his declining income until he can no longer buy off his peasant base. Then the fun will begin in earnest. And they'll be armed, LOL.

Posted by Angolutle Fleresh8883 2006-07-27 09:44|| 2006-07-27 09:44|| Front Page Top

#4 With oil at $75 per barrel he thinks he's rich, and doesn't need to reinvest in new oil fields or maintaining old ones.

Posted by Nimble Spemble 2006-07-27 09:53|| 2006-07-27 09:53|| Front Page Top

#5 Venezuela's oil model: Is production rising or falling?
The state oil company, PDVSA, reports production of 3.3 million barrels a day. There is no way to independently confirm this, and most outside analysts, including the International Energy Agency, say PDVSA's numbers are inflated and production is closer to 2.6 million barrels per day. The Financial Times reported this month that Venezuela's shortfall in production is such that it was actually forced to strike a $2 billion deal to buy about 100,000 barrels per day of crude oil from Russia to avoid defaulting on contracts - a claim the Chávez government says is false.

But whatever the real output, Venezuela - because of the high price of oil - is raking in more petrodollars than ever before. When Chávez came into office in 1999, the country reported production of 3.5 millionbarrels per day and, with oil selling at about $15 per barrel, was making just over $18 billion a year. This month, with oil at about $70 a barrel, PDVSA Finance Director Eudomario Carruyo told Reuters he expects revenue to top $85 billion this year. PDVSA officials have reportedly said that oil production will increase to 4 million barrels per day by 2012.

Chavez isn't hurting for money when he has 5 times as much to play with. That money can buy a lot of friends and destabilize surrounding governments.

Again, when the US and the west refuses to produce it's own energy, it only funds those who wish to weaken or destroy us. Of course if that ever happens, their oil will be worthless in a non-market economy.

Posted by ed 2006-07-27 13:26|| 2006-07-27 13:26|| Front Page Top

#6 Actually the more Hugo spends on an air force the better it is. An air force is very expensive and makes for lovely pictures when it hits the giant buzzsaw that is the USAF. The more millions he pours into an Air Force, the bigger a money sink it becomes for him. If he really does plan on fighting the US, having an Air Force is honestly just flushing money down the toilet. He simply can't spend enough on an Air Force to really make a threat to ours.

Posted by Silentbrick">Silentbrick 2006-07-27 13:54|| 2006-07-27 13:54|| Front Page Top

#7 Hugo, let us introduce your Air Force to a 50:1 kill ratio.

Posted by mcsegeek1 2006-07-27 15:37|| 2006-07-27 15:37|| Front Page Top

#8 You can always tell the caliber of the man by the company he keeps.

Posted by Captain America 2006-07-27 17:05|| 2006-07-27 17:05|| Front Page Top

#9 revenue to top $85 billion this year
Gawd amighty we're dooooooomed! That's more than Florida's $71 billion budget!

Posted by 6 2006-07-27 17:18|| 2006-07-27 17:18|| Front Page Top

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