Sunday, April 18, 2010

SOCIALIST PRESIDENT OF ECUADOR THREATENS TO NATIONALIZE THE OIL INDUSTRY

From Reliapundit the Astutest Blogger:
BBC:
The Ecuadorian government has threatened to take over foreign oil concessions if the companies resist growing state control of the industry.

President Rafael Correa said every day millions of dollars were going to oil companies that should go to the state.

The government has been pressing the companies to give up concessions that give them a share of oil field profits and accept service contracts instead.

Oil firms operating in Ecuador come from Spain, Brazil, China and Italy.

'Serious action'

President Correa said during a televised address on Saturday: "Every day that passes there are millions of dollars going to these companies that should be going to the Ecuadorean state.

"I'm out of patience. We are sending a bill to Congress that would allow for the expropriation of oil fields should the companies not want to sign the new contracts.

THIS IS WHAT SOCIALISTS LIKE CORREA DO.

AND IT NEVER FAILS TO IMPOVERISH THE PEOPLE.

THE USSR, RED CHINA, CUBA, ZIMBABWE. VENEZUELA. NORTH KOREA. AND SO ON.

ADD ECUADOR TO THE LIST.

IT'S INSANE: THE ONLY THING THAT TURNED INDIA AND CHINA INTO PROSPEROUS ECONOMIES WHICH CAN FEED THEIR OWN PEOPLE AND EXPORT IS FREE ENTERPRISE.

SIGH.

IT WILL FAIL IN WITH CORREA ECUADOR - AND IT WILL FAIL WITH OBAMA IN THE USA TOO.

THE ONLY THING IT WILL SUCCEED IN DOING IS MAKING PEOPLE POORER, LESS FREE AND MORE DEPENDENT ON THE STATE.

WHYEN WILL THEY EVER LEARN? WHEN WILL THEY EVER LEARN?

8 comments:

cjk said...

Yeah but this way they're able to sate their envy and stick it good to the rich and foreigners! Who gives a shit if the kids go hungry? As long as we can screw the evil colonialists.

Wrath is cruel,and anger is outrageous; but who is able to stand before envy? Prov.27:4

Pastorius said...

That's a very good verse for this story. Thanks, cjk.

Epaminondas said...

I like their attitude .. if you object to us slowly absorbing your industry and assets, we will absorb them immediately.

Oil companies should be ready to abandon such assets around the world and write them off at a moment's notice.

And destroy them as they leave. THEY OWN THEM. Even if that ownership means the desire to end their existence, which will be lost in any case

Your Pal,
H Roark

Anonymous said...

do some homework on india and china. they actually highly restrictive policies in terms of foreign investment and "free" enterprise. and many economists understand that is why they are growing so rapidly.

Pastorius said...

China ran a trade deficit this year, Anonymous.

Why do you think that is?

China's economy will collapse in twenty years.

Anonymous said...

china's economy will collapse in twenty years, but yet their economy is prosperous because of free enterprise, pastorius? seems that you are taking a contradictory stance.
but, the fact that they ran a trade deficit is not really surprising because their government regulated economy was able to handle to global economic crisis much better than many other relatively unfettered economies. so, while other nations were scaling back their imports, china didn't need to. seems logical to me.

Pastorius said...

Their economy will collapse because of their one child policy, which will not assure them the ever-expanding tax base they need to prop up their Socialist system.

They ran a trade deficit (last month, not last year, my mistake) because their economy is dependent on America. America is not doing well, America is not importing as much, therefore, China is having trouble.

We owe China so much money (which is not a good thing) that we have them by the balls.

Anonymous said...

a trade deficit in one month does not really mean anything, particularly for a country that has had some of the highest growth rates for the past 20 years.
as far as their one child policy goes, interesting point. but if you look at the figures, china's employable class is gigantic and really shows little sign of slowing down.
finally, we have china by the balls? what do you think would happen to our economy if china called in all of their t-bills? our economy would crash immediately. granted, so would theirs, but they are holding most of the cards in this equation.
i will also take your failure to answer my last question as an admission of your contradictory stance.