Chavez expected to use US$11 billion of oil profits for next year’s campaign

posted at 6:20 pm on April 28, 2011 by Fausta Wertz

While raising the minimum salary by 25% and expecting $16 bln annual windfall income from oil, the Miami Herald reports that Chávez is also expected to raise $11billion in a fund he can dispose of without having to answer to anyone on how it’s spent, for next year’s presidential campaign.

El Herald’s article, not yet translated to the Miami Herald website, explains (my translation, please credit me and link to this post if you use it),

Approved without public debate during Holy Week through the controversial Enabling Law, the reform forces Petróleos de Venezuela, S.A. (PDVSA, the Venezuelan oil company) to give the National Development Fund (FONDEN) a greater portion of the excess income generated by high oil prices.

The fund, which was scheduled to receive some $7 billion this year, will receive an additional $4 billion if the average price of Venezuelan crude remains at $94, according to Venezuelan consulting firm Ecoanalítica.

And those funds will be completely at Chávez’s disposal.

Venezuela News and Views explains the effect of the amendment; The Devil’s Excrement plots the graph.

What this means to the US is that America’s current oil policy is funding foreign governments who will keep themselves in power at all costs.

Cross-posted at Fausta’s blog.

This post was promoted from GreenRoom to HotAir.com.
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Good thing we discourage domestic drilling.

John the Libertarian on April 28, 2011 at 6:22 PM

What did Obama think of Chavez’s book?

catmman on April 28, 2011 at 6:22 PM

Boy is Obama going to be jealous.

Knucklehead on April 28, 2011 at 6:23 PM

I read the story. Crazy!!! Basically, he says he is going to use the money to “invest” in new industries to make the country more than simply an oil producer. (Sound familiar). Also, he wants to help the poor and whatnot. All nonsense. He is using PDVSA as a campaign fund to cement his permanent control. Dictator for life.

andy85719 on April 28, 2011 at 6:29 PM

So 11 billion that could be spent feeding his people, giving them water, and electricity, and a somewhat decent living is being spent frivolously on an election that’s already pre destined to keep Chavez in power.

Sure sounds like Obama to me!

capejasmine on April 28, 2011 at 6:30 PM

“En campaña electoral, un gobierno que no ha cumplido tiene que buscar maneras de darle algo a la gente para sumarse votos”, comentó.

“In an electoral campaign, a government that hasn’t done anything has to look for ways to give the people something to secure their votes,” he said.

This sentence is Obama^2.

andy85719 on April 28, 2011 at 6:34 PM

11 BILLION can buy a lot of votes!

GarandFan on April 28, 2011 at 6:34 PM

Obama’s saying, “Can we get somebody to figure out how we can do that here?”

Pablo Snooze on April 28, 2011 at 6:36 PM

Why does a dictator need to run a campaign? Methinks he uses the money to buy off the military.

John the Libertarian on April 28, 2011 at 6:47 PM

How many ballots that read:

“Should Hugo Chavez be re-elected to the Presidency?

- Yes
- Kill me and my family.”

can $11 billion buy?

Left Coast Right Mind on April 28, 2011 at 6:51 PM

Pablo; the question is, how much of that WILL end up in Obama’s campaign (I am NOT kidding).

michaelo on April 28, 2011 at 6:56 PM

Is there any way for us to find out WHO – in the UNITED STATES – is contributing to his campaign?

I’m sure someone is.

HondaV65 on April 28, 2011 at 7:01 PM

Wow. Obama’s $1 billion isn’t anything compared to this. Forget the Palestinian Territory, for his re-election, it seems Obama needs to solicit donations from Venezuela.

JadeNYU on April 28, 2011 at 7:01 PM

Is there any way for us to find out WHO – in the UNITED STATES – is contributing to his campaign?

I’m sure someone is. – HondaV65 on April 28, 2011 at 7:01 PM

Danny Glover? How many palaces can $11 billion build? The man is a dictator. If you vote against him you are dead.

SC.Charlie on April 28, 2011 at 7:05 PM

$11B.

Now we know where Obama’s getting his war chest.

Ninety-nine bucks at a time via Paypal.

JEM on April 28, 2011 at 7:17 PM

It can’t cost so much to print signs saying if you oppose me I will kill you or put you in jail.

Africanus on April 28, 2011 at 7:25 PM

Doesn’t he get Saddam’s re-elect numbers anyway?

Lanceman on April 28, 2011 at 7:37 PM

A reminder that Citgo is owned by the govt. of Venezuela. I’ve boycotting Citgo for years and urge you all to do likewise.

WannabeAnglican on April 28, 2011 at 8:07 PM

“boycotted” I meant.

WannabeAnglican on April 28, 2011 at 8:08 PM

Don’t get your panties in a wad about Chaves cutting himself an oil check from US dollars for his re-election. I’m sure he’s already got a programmer or two working on how to donate a bazillion quatlu’s of bucko’s to Obama’s re-election in $5 increments.

That is of course, unless Trump promises Chaves a palace suite of his own in a couple of his buildings… :)

Gotta go out for some more popcorn…

drfredc on April 28, 2011 at 9:38 PM

Boy is Obama going to be jealous.

Knucklehead on April 28, 2011 at 6:23 PM

Nahhh, he’ll end up with half of it eventually.

Tim Zank on April 28, 2011 at 10:14 PM

Only 11 Billion? Chavez is an amature. Obama has already spent 1,100 Billion to do exactly the same thing.

percysunshine on April 28, 2011 at 10:34 PM

If Chavez loses the election anyway, I have no doubt that HISTORY’S GREATEST MONSTER(tm), James Earl Carter, will immediately declare that the elections were rigged.

Carter has lost touch with reality, if he ever had a grasp of it in the first place. His latest pronouncement that America is violating the human rights of North Korea’s civilians because we won’t give away our food to them is proof that he is from our solar system’s 8th planet, because he’s talking from Uranus.

If Chavez loses, I’m sure that Sean Penn and Danny Glover and Harry Belafonte, losers all, will chime in with accusations of election-rigging too.

CatchAll on April 29, 2011 at 1:31 PM