Venezuela Being Pain In Ass

First, a financing alternative to the US. AP (07.28.05):

"Venezuela bought US$200 million (euro165 million) in Argentine bonds this week, part of a larger planned purchase, a Venezuelan newspaper reported Thursday. The purchase completes a planned investment of US$500 million (euro413 million) in debt from Argentina, but the government is looking into buying debt from other South American nations, Edgar Hernandez Behrens, head of the state-run Bandes development bank, told the newspaper El Universal." Venezuelan Government Buys US$200 Million (Euro165 Million) in Argentine Debt, Official Says

President Hugo Chavez has said his government "has called for the creation of a market for regional debt as a way to reduce dependence on U.S. banks and investors." Then there's good old cash. Financial Times (07.27.05):

"Venezuela will divert as much as $17bn this year and next from its oil export income bonanza into an opaque parallel budget for 'development' projects, mostly elsewhere in Latin America, economists said on Wednesday." Venezuela plans for oil income

The Venezuelan legislature recently passed a law capping the Central Bank's international reserves. "'Excess' foreign earnings in the world's fifth-largest oil exporter must now be deposited into a special fund called Fonden." "The fund is expected to receive its first deposit of $6bn in the next few weeks, and because oil prices are forecast to remain high during the next two years, it is likely to be topped up with about $1bn a month." Sounds like the US doesn't quite have this kind of change to throw around down there. Finally, oil. And lots of it. AP (07.28.05):

"Venezuela's state oil company Petroleos de Venezuela S.A. (PDVSA) is looking to upgrade Uruguay's La Teja refinery to process Venezuelan oil in the most recent step to increase oil sales to Latin America, a company official said. The Uruguay refinery talks come as Venezuela's government seeks to strengthen its political influence in Latin America through preferential oil deals." Venezuela Looks to Revamp Uruguay's La Teja Refinery

It also sounds like all the US can do (at least for the time being) is to call Chavez names: "Critics say Chavez is using oil to win political support in the region amid growing tensions with the United States. U.S. officials have sought to portray Chavez as authoritarian and a risk to political stability in Latin America." Then, there's China, who recently "offered Venezuela a $700 million credit line for new housing construction to help reduce Venezuelan poverty", who already "operates two Venezuelan oil fields and after signing a January agreement in Caracas" will begin developing other fields, and who has "agreed to buy 120,000 barrels of oil a month and build an additional fuel producing facility." "Venezuelan officials announced that they expect trade with China to reach $3 billion in 2005...."