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Is Invading Venezuela a Good Way Out of an Oil Crisis?

It had to happen, didn’t it? With the combination of the sharp rise in oil prices combined with the ratcheting up of anti-Chavez rhetoric seen in the past few weeks (for example the FARC laptop baloney that is now unravelling), it was only a matter of time before the business world got in on the act.

It has fallen to Martin Hutchinson to float the idea. In this article at Prudent Bear dot com, he goes through the current problems with oil and after a few numerical twists and turns get to the point:

…..The obvious place to invade is Venezuela. Since the 1.8 trillion barrels of Venezuelan oil deposits consist largely of the Orinoco tar sands, a Venezuelan oil-related invasion would impose an additional requirement: to keep the environmentalists away, in order that reserves could be exploited with maximum efficiency………

And just to make sure the message is nicely implanted in the memory Hutchinson finishes off with this:

…in summary, a sharp rise in US and world interest rates is the best way to solve the problem of spiraling energy and commodity prices, which will probably not solve itself. If that doesn’t work or is “politically impossible” it’s time to prepare the 82nd Airborne for jungle warfare in the Orinoco Basin…

Hutchison, former international merchant banker, advisor to the US Treasury Department and now regular columnist, is also the author of the book Great Conservatives. As Michael Shedlock points out on his excellent website “Mish’s Global Economic Trend Analysis“: 

….The ideas espoused by Hutchinson are as dangerous as ideas can get. And when the world sees such proposals it’s no wonder many countries despise us. True conservatives do not go starting wars because they do not like the price of a commodity. True conservatives do not believe in theft. But the most absurd thing is that Hutchinson believes “The principal influence behind the huge rise in oil prices has been speculation” yet his solution is to invade Venezuela. Since Venezuela is not the driving force behind said speculation, such a proposal is clearly deranged thinking. There is no other way of looking at it….

Damn right, Mish, Damn right. Dangerous stuff like this needs to be confronted immediately, else it might fester in the minds of those looking for an easy target to blame for the price of gasoline. 
Remember your Economics 101: 

INFLATION IS A MONETARY PHENOMENON.

And while you’re at it, remember what two time congressional medal of honor winner General Smedley Butler wrote in 1935, cos it’s as true today as it was back then:

 

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