The Bush neocons have been accused by Venezuelan President Hugo Chavez Frias of funding, via millions of dollars, anonymous groups to undermine the government. The money is funneled, as it has always been, via AID, the US Agency for International Development. The Office of Transition Initiatives, which also works in “priority countries” such as Iraq, Afghanistan, Bolivia and Haiti, has overseen more than $26 million in grants to groups in Venezuela since 2002. A great deal of money is being spent to undermine the present government, which essentially is an act of war. The US is trying to implement regime change. In the past when that hasn’t worked they have the government overthrown or assassinate the duly elected leader. There is nothing noble in the US mission in Venezuela, whether you agree with Mr. Chavez or not. Needless to say, the US government denies such intentions, but we have seen them do this time after time in other countries. There is no democracy to be strengthened in Venezuela. Mr. Chavez was reelected by 57% of the vote. The US says the money was for education – we know better. The information was released under the Freedom of Information Act.
The exposure comes just as China has agreed to invest $5 billion in energy projects in Venezuela, including the building of 13 oilrigs and 18 oil takers. China will also endorse Venezuela’s bid for the rotating Latin America seat on the 15-member UN Security Council, a candidacy strongly opposed by the elitist neocons. The US wants Guatemala, which is laughable.
We hear much about boomer inheritance being a factor in a booming economy. AARP, using Federal Reserve Survey of Consumer Finances for 2004 and previous years, slashed the total for inheritances of all Americans alive today to $12 trillion; $9.2 trillion would go to pre-boomers born prior to 1946, and only $2.1 trillion to babies born between 1946 and 1964, and $0.7 trillion to the past boomers. Furthermore, the value of all previous inheritances reported in the 2004 survey was $49,902 on average, with $70,317 for pre-boomers, $48,768 for boomers and $24,348 for past-boomers. Clearly, these are not numbers that provide for comfortable retirements and allow Americans to spend wildly because granny is going to kick the bucket and leave a boodle.
Another interesting fact is that deposits total $6.3 trillion, but the majority, $4.9 trillion worth, is in time and savings deposits, largely held for retirement by financially conservative people. Household and non-profits hold $3.2 trillion in bonds and other credit market instruments, but most of these are in conservative hands as well. Life insurance reserves can be borrowed, but their total seize $1.1 trillion, pales in comparison to the $1.8 trillion that homeowners extracted from their houses in the 2003-2005 years. Equity in small business of $6.7 trillion is not available unless you want to shut the business down. There is $11.1 trillion in retirement funds, but most is not available until retirement or if you leave your job. Besides, what happens if the Dow goes to 4,000 or 6,000 like we believe it will? Pension owners will lose half or more of their assets.
The bottom line is pulling equity from stocks and houses are pulling funds from diminishing assets. Consumer psychology is changing. They are spending less and those who can will start saving more.
We believe the elitists have a plan to take oil prices down to $60 a barrel, which could take gasoline down to $2.40 a gallon by the November elections. If that is correct then there will be no Bush action on Iran until after the election. OPEC is working in conjunction with the elitists to keep prices under control. Gasoline at this writing in the futures market is $1.80 down from $2.12 recently. Stockpiles are large and growing. These energy cost reductions for the short-term could moderate real inflation. This is politics as usual and it shows you the tremendous control the elitists have over oil prices.