[Marxism] Repercussions

[nada <dwaltersMIA@xxxxxxxxx>]

This sounds very troubling.

First, if the payoff is in bolivars, who the hell would want to buy 
them? It makes no sense, *especially* as they (meaning PDVSA/Gov't) is 
intent on devaluing the currency (and, BTW, what the hell will that due 
to the rate of inflation, already the WORSE in Latin America?!?)
.

But this raises a more troubling question. Why PDVSA wants to do this 
anyway? I know you sort of answer this but how did they get there in the 
first place? I ask this because one of the right-wing criticisms inside 
the petroleum industry - I'm talking here about the capitalist industry, 
the likes of which include the Energy Tribune at www.energytribune.com - 
is that the gov't has, in order to pay of social programs, underfunded 
PDVSA which has forced contortions in investment in Venezuela, actually 
forcing the gov't to seek international investment in Orinico (the big 
oil region there) including the Chinese and Japanese, which has further 
pissed off the right-wing at Chevron, Shell, etc.

But the criticism is still valid if true and it's always a problem with 
oil based economies. One of the problems in Mexico and a big ass major 
issue, is how the government has historically "robbed" PEMEX by under 
investing and using it to pay 80% of Mexico's budget. So I don't dismiss 
this as a valid concern only heightened by this bond float you mention.

David

________________________________________________
YOU MUST clip all extraneous text when replying to a message.
Send list submissions to: Marxism@xxxxxxxxxxxxxxxxxxx
Set your options at: 
http://lists.econ.utah.edu/mailman/options/marxism/archive%40archives.econ.utah.edu