Tuesday, April 04, 2006

Immigration - We must be careful with our power

Interesting article by Dick Morris on the subject:

Most observers see feel the race will be between Lopez Obrador and Calderon. While the PAN candidate would be no puppet of the United States, he is fully committed to free market economics and wants a close relationship with our country. Lopez Obrador [ALMO] would be part of the Latin America's new, anti-U.S. left in [Mexico].

That Latin Left includes Venezuela's President Evo Morales, who won as an overtly pro-cocoa-cultivation candidate. And in Peru, Ollanta Humala, a Chavez ally, is likely to finish first in this month's election and probably will win the runoff.

But Mexico, with its vast oil resources and its long border and free-trade agreement with the United States, would be the crown jewel for America's enemies. We have only to hope that Congress won't pass legislation that alienates the Mexican electorate and delivers the country into AMLO's hands.
So let us suppose Mexico won't sell us any oil. What happens? We buy it elsewhere or through a middleman. The price goes up 50 cents or a dollar a barrel. At $60 per it is not going to have much impact. Still it would be an annoyance to have a lefty in charge of Mexico who plans to send all his problems north.

via Instapundit

update: 0902z 04 Apr 2006

More here: Publius Pundit.

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3 comments:

JasonSpalding said...

The Venezuelan President Hugo Chávez seems to be considering pegging the price of oil at $50 a barrel according to the UK’s Guardian newspaper. Why?

A.M. Mora y Leon said...

If it is pegged at $50, Venezuela's recoverable reserves rise. If they rise, Venezuela has more power in OPEC. More power than even Saudi Arabia. What Chavez really wants is to take over OPEC. The Arabs at OPEC are real pros and consider Chavez a clown. I really doubt they will let him.

Andrew of Arabia said...

"That Latin Left includes Venezuela's President Evo Morales, who won as an overtly pro-cocoa-cultivation candidate."

What is wrong with that? Who doesn't like hot chocolate?

Despite the discomfort of a Chavez ally bordering the US, that is about all that would result. The economies of the three North American countries have been inextricably linked for too long to suffer heavily from an AMLO victory. There are too many vested interests in all three governments to allow radical reforms to threaten the increased cooperation and productivity that is now common place.

As for OPEC and Venezuela, there will always be incentive for producers to cheat on their quota. Venezuela's relative power may increase, especially in relation to its proximity to the United States, but overall, OPEC would not allow Venezuela to act up and hurt profits for the rest of the bunch.