Venezuela, Oil, Global Concerns etc

Over the course of last weeks, we’ve read some insightful articles about the chronic problems of Latin American countries. Many experts, especially including Professor Mahfi Eğilmez, shared their well-structured economic and political analyses with us.

As the US is accused of leading a coup to force Venezuelan President, before further ado, I’d like to make my own analysis of the crisis.

Sadly, every action taken by the dominant powers of the world has brought nothing but chaos and civil war into Latin America. In the beginning of the 19thcentury, when Simon Bolívar’s dream to unite all South America into one large, powerful nation was about to become a reality, dominant powers had once again took the stage and interfered with efforts achieve his ultimate goal. Unfortunately, since that day, the proud name of Latin America has been and is still associated with anarchy, terror, financial crisis, coups d’état and riots.

I don’t think this time the problem is directly related to oil or natural gas. Apparently, wealth holders that finance the Dominant Powers are having difficulty entering some of the world countries. Money obtained from natural resources stretching all along the line from the Middle East to Latin America doesn’t flow into the Dominant Powers’ intended locations. That is the real problem here.

In my previous reports, I’ve told you about the fact that, since 2005, the US has designed and develop a certain strategy against all oil producing countries, especially OPEC. Significantly decreasing its reliance on foreign oil by ensuring that US oil production to stay ahead even of Saudi Arabia, the US is the main driver for the 60% price decline of crude oil. Over the decades, we’ve witnessed that economies that are heavily reliant on oil had gone through severe financial bottlenecks, becoming highly aggressive in the process.

Thus, as of Wednesday evening, the World has now one more crisis to deal with, in addition the one recently arisen in Iran, therefore, resulting in the waning of Pax Americana, which is term used for a period of relative international peace and tranquillity from circa the 1940s to the present day in regions to which US power has extended.

From now on, the US will act as it pleases. So, the countries of the world, watch out because any of you can hit the ‘jackpot’ anytime!

I wish all the things I’m writing down here were nothing but conspiracy theories. However, there are hundreds of instances in where like Venezuela, enjoying a sudden great increase in oil their revenue, and consequently becoming more audacious, forget how to use their resources efficiently. And this lack of foresight makes them a puppet in the hands of dominant powers. It’s simply foolish to fall for an early spring especially when your country is struggling with the most unfavourable economic conditions. Apparently, no one in Venezuela said “Maybe we should think about future too” while oil prices were hitting record highs.

Therefore, short-sighted and imprudent leaders are as much to blame as the US and the other dominant powers.

“Concerns over global trade keep rising…”

In the meantime, European Central Bank decides to keep interest rates intact and, in a sense, gives a prior sign for “stagnation”. Indicating that Central Banks will keep financing markets, ECB underlined that low interest rates will become a “fact” rather than a projected goal.

All these developments, however, raise my concerns over global trade. According to a report issued by the Economist, having soared from 40% of the world’s GDP to a peak of 61% in 2008, trade has fallen back to 58% today. I think this decline should be considered quite normal, after all nerve-racking tensions, protectionism and concerns. We should be aware that this situation here might lead to some much unexpected, negative results.

As I always mention in my morning reports, it is essential to conduct an in-depth market-added value-technological development analysis of exporting companies.

It would be beneficial for Banks and Financial Institutions to be more selective when it comes to providing loans.