Thursday, January 05, 2006

The Latin America Gas Crisis

I was going to write a speculative post, comparing the current Russia-Ukraine gas crisis to what is to come in Latin America with Bolivia being the major source of gas for Chile (from whom they want a piece of land with sea) and Argentina (whom they've favored in the past). However La Nacion in Argentina beat me to it. Bolivia has already announced that it will raise prices and will end the "solidarity price" it offers the nation today which is a sixth of what Europe and the US pay for their markets. You think I'm kidding? I'm not read about it here. This is only the beginning of what is to come. More about Moe's trip to Spain here in which he asks Spain to not withdraw their investment. But wait aren't his plans to nationalize the gas industry? But he wants to do it with Spain's money? Last time I checked foreign investment in a government run industry was called "contractors", which gives the foreign entity some percentage of gain. Soon Evo will realize that things are not as easy as he thought, and that there is no way he will eradicate illiteracy in his country in 30-months.