Monday, February 08, 2010

Brazil cuts Bolivia Gas Purchases, Invests in Peru

While Evo Morales is praised by his usual international apologists for his dominant re-election and inaguration, the consequences of his disastrous econommic policies and ideological stupidity continue to ruin Bolivia's long term prospects.

Brazil - Bolivia's largest gas customer - has announced it will cut back on purchases of Bolivian natural gas.

Meanwhile Brazilian president Lula was conspicuously absent from buddy Evo's inagural ceremony. Lula happened to be in Peru with his ministers and top Petrobras officials, negotiating an energy pact which includes Brazilian investment for exploration of Peruvian oil and gas fields, and to help develop its petro-chemical sector.

As Bolivian writer and analyst, Humberto Vacaflor, wryly observed also absent was Christina Kirchner who was negotiating with Toyota. Over what? Over Argentine lithium, and the Japanese automaker cut a deal with the Argentinians. Bolivia, has the largest lithium reserves in the world, but in large part thanks to Evo and his silly ideology it looks Bolivia is again seen as an erratic and unreliable source.

While Bolivias government continues its self-defeatist anti-capitalist policies, its neighbors, with less reserves of things like gas and lithium, are able to get the investments and markets needed to help its people. Morales talks about industrializing natural gas and lithium. Meanwhile, it is Peru that is getting the know-how and foreign investment for its petro-chemical sector, and Argentina that is getting Toyota's investment. Socialism rocks!!

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