Hi.  While he's hot, I thought Chavez' ideas without histrionics, at
home and one-on-one would interest many.  Q/A follows Palast's 
intro.  It's a friendly chat, but the information is now out and can be
argued. Thanks again to Portside for sending valuable documents.

And, I just got the info posted at the bottom about Chomsky's
book being reviewed today on Book TV. noon, CSPAN 2
I don't know the time zone of the sender, so look it up to be sure.
Ed

http://www.progressive.org/mag_intv0706
(The Progressive
July 2006 Edition)

Hugo Chavez

By Greg Palast

You'd think George Bush would get down on his knees and
kiss Hugo Chavez's behind. Not only has Chavez
delivered cheap oil to the Bronx and other poor
communities in the United States. And not only did he
offer to bring aid to the victims of Katrina. In my
interview with the president of Venezuela on March 28,
he made Bush the following astonishing offer: Chavez
would drop the price of oil to $50 a barrel, "not too
high, a fair price," he said -- a third less than the
$75 a barrel for oil recently posted on the spot
market. That would bring down the price at the pump by
about a buck, from $3 to $2 a gallon.

But our President has basically told Chavez to take his
cheaper oil and stick it up his pipeline. Before I explain 
why Bush has done so, let me explain why Chavez
has the power to pull it off -- and the method in the
seeming madness of his "take-my-oil-please!" deal.

Venezuela, Chavez told me, has more oil than Saudi
Arabia. A nutty boast? Not by a long shot. In fact, his
surprising claim comes from a most surprising source:
the U.S. Department of Energy. In an internal report,
the DOE estimates that Venezuela has five times the
Saudis' reserves. However, most of Venezuela's mega-
horde of crude is in the More...form of "extra-heavy"
oil -- liquid asphalt -- which is ghastly expensive to
pull up and refine. Oil has to sell above $30 a barrel
to make the investment in extra-heavy oil worthwhile. A
big dip in oil's price -- and, after all, oil cost only
$18 a barrel six years ago -- would bankrupt heavy-oil
investors. Hence Chavez's offer: Drop the price to $50
-- and keep it there. That would guarantee Venezuela's
investment in heavy oil.

But the ascendance of Venezuela within OPEC necessarily
means the decline of the power of the House of Saud.
And the Bush family wouldn't like that one bit. It
comes down to "petro-dollars." When George W. ferried
then-Crown Prince (now King) Abdullah of Saudi Arabia
around the Crawford ranch in a golf cart it wasn't
because America needs Arabian oil. The Saudis will
always sell us their petroleum. What Bush needs is
Saudi petro-dollars. Saudi Arabia has, over the past
three decades, kindly recycled the cash sucked from the
wallets of American SUV owners and sent much of the
loot right back to New York to buy U.S. Treasury bills
and other U.S. assets.

The Gulf potentates understand that in return for
lending the U.S. Treasury the cash to fund George
Bush's $2 trillion rise in the nation's debt, they
receive protection in return. They lend us petro-
dollars, we lend them the 82nd Airborne.

Chavez would put an end to all that. He'll sell us oil
relatively cheaply -- but intends to keep the petro-
dollars in Latin America. Recently, Chavez withdrew $20
billion from the U.S. Federal Reserve and, at the same
time, lent or committed a like sum to Argentina,
Ecuador, and other Latin American nations.

Chavez, notes The Wall Street Journal, has become a
"tropical IMF." And indeed, as the Venezuelan president
told me, he wants to abolish the Washington-based
International Monetary Fund, with its brutal free-
market diktats, and replace it with an "International
Humanitarian Fund," an IHF, or more accurately, an
International Hugo Fund. In addition, Chavez wants OPEC
to officially recognize Venezuela as the cartel's
reserve leader, which neither the Saudis nor Bush will
take kindly to.

Politically, Venezuela is torn in two. Chavez's
"Bolivarian Revolution," a close replica of Franklin
Roosevelt's New Deal-a progressive income tax, public
works, social security, cheap electricity -- makes him
wildly popular with the poor. And most Venezuelans are
poor. His critics, a four-centuries' old white elite,
unused to sharing oil wealth, portray him as a Castro-
hugging anti-Christ.

Chavez's government, which used to brush off these
critics, has turned aggressive on them. I challenged
Chavez several times over charges brought against
Sumate, his main opposition group. The two founders of
the nongovernmental organization, which led the recall
campaign against Chavez, face eight years in prison for
taking money from the Bush Administration and the
International Republican [Party] Institute. No nation
permits foreign funding of political campaigns, but the
charges (no one is in jail) seem like a heavy hammer to
use on the minor infractions of these pathetic
gadflies.

Bush's reaction to Chavez has been a mix of hostility
and provocation. Washington supported the coup attempt
against Chavez in 2002, and Condoleezza Rice and Donald
Rumsfeld have repeatedly denounced him. The revised
National Security Strategy of the United States of
America, released in March, says, "In Venezuela, a
demagogue awash in oil money is undermining democracy
and seeking to destabilize the region."

So when the Reverend Pat Robertson, a Bush ally, told
his faithful in August 2005 that Chavez has to go, it
was not unreasonable to assume that he was articulating
an Administration wish. "If he thinks we're trying to
assassinate him," Robertson said, "I think that we
really ought to go ahead and do it. It's a whole lot
cheaper than starting a war . . . and I don't think any
oil shipments will stop."

There are only two ways to defeat the rise of Chavez as
the New Abdullah of the Americas. First, the
unattractive option: Cut the price of oil below $30 a
barrel. That would make Chavez's crude worthless. Or,
option two: Kill him.

Q: Your opponents are saying that you are beginning a
slow-motion dictatorship. Is that what we are seeing?

Hugo Chavez: They have been saying that for a long
time. When they're short of ideas, any excuse will do
as a vehicle for lies. That is totally false. I would
like to invite the citizens of Great Britain and the
citizens of the U.S. and the citizens of the world to
come here and walk freely through the streets of
Venezuela, to talk to anyone they want, to watch
television, to read the papers. We are building a true
democracy, with human rights for everyone, social
rights, education, health care, pensions, social
security, and jobs.

Q: Some of your opponents are being charged with the
crime of taking money from George Bush. Will you send
them to jail?

Chavez: It's not up to me to decide that. We have the
institutions that do that. These people have admitted
they have received money from the government of the
United States. It's up to the prosecutors to decide
what to do, but the truth is that we can't allow the
U.S. to finance the destabilization of our country.
What would happen if we financed somebody in the U.S.
to destabilize the government of George Bush? They
would go to prison, certainly.

Q: How do you respond to Bush's charge that you are
destabilizing the region and interfering in the
elections of other Latin American countries?

Chavez: Mr. Bush is an illegitimate President. In
Florida, his brother Jeb deleted many black voters from
the electoral registers. So this President is the
result of a fraud. Not only that, he is also currently
applying a dictatorship in the U.S. People can be put
in jail without being charged. They tap phones without
court orders. They check what books people take out of
public libraries. They arrested Cindy Sheehan because
of a T-shirt she was wearing demanding the return of
the troops from Iraq. They abuse blacks and Latinos.
And if we are going to talk about meddling in other
countries, then the U.S. is the champion of meddling in
other people's affairs. They invaded Guatemala, they
overthrew Salvador Allende, invaded Panama and the
Dominican Republic. They were involved in the coup
d'etat in Argentina thirty years ago.

Q: Is the U.S. interfering in your elections here?

Chavez: They have interfered for 200 years. They have
tried to prevent us from winning the elections, they
supported the coup d'etat, they gave millions of
dollars to the coup plotters, they supported the media,
newspapers, outlaw movements, military intervention,
and espionage. But here the empire is finished, and I
believe that before the end of this century, it will be
finished in the rest of the world. We will see the
burial of the empire of the eagle.

Q: You don't interfere in the elections of other
nations in Latin America?

Chavez: Absolutely not. I concern myself with
Venezuela. However, what's going on now is that some
rightwing movements are transforming me into a pawn in
the domestic politics of their countries, by making
statements that are groundless. About candidates like
Morales [of Bolivia], for example. They said I financed
the candidacy of President Lula [of Brazil], which is
totally false. They said I financed the candidacy of
Kirchner [of Argentina], which is totally false. In
Mexico, recently, the rightwing party has used my image
for its own profit. What's happened is that in Latin
America there is a turn to the left. Latin Americans
have gotten tired of the Washington consensus -- a
neoliberalism that has aggravated misery and poverty.

Q: You have spent millions of dollars of your nation's
oil wealth throughout Latin America. Are you really
helping these other nations or are you simply buying
political support for your regime?

Chavez: We are brothers and sisters. That's one of the
reasons for the wrath of the empire. You know that
Venezuela has the biggest oil reserves in the world.
And the biggest gas reserves in this hemisphere, the
eighth in the world. Up until seven years ago,
Venezuela was a U.S. oil colony. All of our oil was
going up to the north, and the gas was being used by
the U.S. and not by us. Now we are diversifying. Our
oil is helping the poor. We are selling to the
Dominican Republic, Haiti, Cuba, some Central American
countries, Uruguay, Argentina.

Q: And the Bronx?

Chavez: In the Bronx it is a donation. In all the cases
I just mentioned before, it is trade. However, it's not
free trade, just fair commerce. We also have an
international humanitarian fund as a result of oil
revenues.

Q: Why did George Bush turn down your help for New
Orleans after the hurricane?

Chavez: You should ask him, but from the very beginning
of the terrible disaster of Katrina, our people in the
U.S., like the president of CITGO, went to New Orleans
to rescue people. We were in close contact by phone
with Jesse Jackson. We hired buses. We got food and
water. We tried to protect them; they are our brothers
and sisters. Doesn't matter if they are African, Asian,
Cuban, whatever.

Q: Are you replacing the World Bank and the
International Monetary Fund as "Daddy Big Bucks"?

Chavez: I do wish that the IMF and the World Bank would
disappear soon.

Q: And it would be the Bank of Hugo?

Chavez: No. The International Humanitarian Bank. We are
just creating an alternative way to conduct financial
exchange. It is based on cooperation. For example, we
send oil to Uruguay for their refinery and they are
paying us with cows.

Q: Milk for oil.

Chavez: That's right. Milk for oil. The Argentineans
also pay us with cows. And they give us medical
equipment to combat cancer. It's a transfer of
technology. We also exchange oil for software
technology. Uruguay is one of the biggest producers of
software. We are breaking with the neoliberal model. We
do not believe in free trade. We believe in fair trade
and exchange, not competition but cooperation. I'm not
giving away oil for free. Just using oil, first to
benefit our people, to relieve poverty. For a hundred
years we have been one of the largest oil-producing
countries in the world but with a 60 percent poverty
rate and now we are canceling the historical debt.

Q: Speaking of the free market, you've demanded back
taxes from U.S. oil companies. You have eliminated
contracts for North American, British, and European oil
companies. Are you trying to slice out the British and
American oil companies from Venezuela?

Chavez: No, we don't want them to go, and I don't think
they want to leave the country, either. We need each
other. It's simply that we have recovered our oil
sovereignty. They didn't pay taxes. They didn't pay
royalties. They didn't give an account of their actions
to the government. They had more land than had
previously been established in the contracts. They
didn't comply with the agreed technology exchange. They
polluted the environment and didn't pay anything
towards the cleanup. They now have to comply with the
law.

Q: You've said that you imagine the price of oil rising
to $100 dollars per barrel. Are you going to use your
new oil wealth to squeeze the planet?

Chavez: No, no. We have no intention of squeezing
anyone. Now, we have been squeezed and very hard. Five
hundred years of squeezing us and stifling us, the
people of the South. I do believe that demand is
increasing and supply is dropping and the large
reservoirs are running out. But it's not our fault. In
the future, there must be an agreement between the
large consumers and the large producers.

Q: What happens when the oil money runs out, what
happens when the price of oil falls as it always does?
Will the Bolivarian revolution of Hugo Chavez simply
collapse because there's no money to pay for the big
free ride?

Chavez: I don't think it will collapse, in the unlikely
case of oil running out today. The revolution will
survive. It does not rely solely on oil for its
survival. There is a national will, there is a national
idea, a national project. However, we are today
implementing a strategic program called the Oil Sowing
Plan: using oil wealth so Venezuela can become an
agricultural country, a tourist destination, an
industrialized country with a diversified economy. We
are investing billions of dollars in the
infrastructure: power generators using thermal energy,
a large railway, roads, highways, new towns, new
universities, new schools, recuperating land, building
tractors, and giving loans to farmers. One day we won't
have any more oil, but that will be in the twenty-
second century. Venezuela has oil for another 200
years.

Q: But the revolution can come to an end if there's
another coup and it succeeds. Do you believe Bush is
still trying to overthrow your government?

Chavez: He would like to, but what you want is one
thing, and what you cannot really obtain is another.

_____

Greg Palast is the author of the just-released New York
Times bestseller, "ARMED MADHOUSE: Who's Afraid of
Osama Wolf?, China Floats Bush Sinks, the Scheme to
Steal '08, No Child's Behind Left and other Dispatches
from the Front Lines of the Class War" from which this
is adapted. Go to www.GregPalast.com. 

____________________________________________

portside (the left side in nautical parlance) is a news,
discussion and debate service of the Committees of
Correspondence for Democracy and Socialism. It aims to
provide varied material of interest to people on the
left.

To subscribe to the list:
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---
      Sunday, September 24 at 12:00 pm on Book TV. CSPAN 2
            ___________________________________________________

   Hegemony or Survival: America's Quest for Global Dominance
   Noam Chomsky

   Description: From the United Nations Correspondents Association in
   New York City, Noam Chomsky discusses the "Bush doctrine" and its
   implications. In particular, Professor Chomsky addresses the Bush
   administration's space policy and its overall efforts to expand U.S.
   influence and power. He also talks about the case of British
   whistleblower Katherine Gun, who leaked a memo stating that the NSA
   had been spying on UN Security Council members, and discusses the
   charges against the Cuban 5, who were convicted in the U.S. of
   espionage in 2001. On September 20, 2006, Venezuelan President Hugo
   Chavez, speaking in front of the U.N. General Assembly, praised
   Professor Chomsky's book, "Hegemony or Survival," and recommended
   that Americans read it.

   Author Bio: Noam Chomsky, a professor of linguistics and philosophy
   at MIT, is the author of numerous books on U.S. foreign policy,
   including "American Power and the New Mandarins," "Political Economy
   of Human Rights" (two volumes, written with Edward Herman), "Fateful
   Triangle: The United States, Israel, and the Palestinians," and
   "Pirates and Emperors, Old and New: International Terrorism in the
   Real World." His most recent books are "Failed States" and "Perilous
   Power."






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