www.greenbaynewschron.com By Joe Knaapen For The News-Chronicle

The American Dream - a way of life based on individual freedom, religious faith and free enterprise - is alive and well ... in Venezuela.

The sounds of freedom resound throughout the South American country every night when average people protest against an ungodly government by banging pots and pans for hours into the night.

Sounds of freedom exploded more often as 2002 ticked into 2003 when a general strike shut down the economic system in Venezuela.

"Imagine a country that totally stopped working for a month," said Peter Blanco, an independent business owner from Venezuela. "I live in a country where you can't dream about owning a Jaguar or Mercedes. You need to put food on the table."

Speaking on leadership at a recent convention in Atlanta, Blanco described how last year's protest against the government of President Hugo Chavez led to the current protests to force the president out of office. A general strike in December cut oil production in the world's fourth-largest oil-producing country by 90 percent.

"Eighty-two percent of the people don't want the government" of Chavez because of its corruption and ties to Fidel Castro in Cuba and Saddam Hussein in Iraq, Blanco said. There are indications aspects of the political turmoil stem from international terrorists - possibly a tie to al-Qaida - and drug-running guerrillas on the border with Columbia, Blanco said.

"We have learned from history that Cuba does not have the solution," he said. More important for the audience of business leaders - including several from Door County - was Blanco's message for people in other parts of the world, especially the United States, to guard their freedom.

"Don't be complacent; don't give up your freedom. Your country needs to get stronger," Blanco said.

The alternative, he said, was for complacency to erode into tyranny with the loss of individual freedoms taken for granted in the United States.

"We had our freedom, but we got complacent. We lost it," Blanco said. "Now the whole country has regained its political interest. Imagine a peaceful march held by 2.5 million people."

A series of coups and coup attempts in the last decade upset the stability of the South American country that is home to about 25 million people.

Blanco said the United States should relearn from the situation in Venezuela about how precious are its freedoms and how delicate is the balance that prevents complacency from dismantling free institutions.

The United States remains unique in the world with its political and economic system based on the motto of "In God We Trust" and pledge to a flag that unites the nation "under God," Blanco said.

By contrast, he continued, political leaders in Venezuela have "never been godly," and until godly leaders step forward, the country will struggle with corruption. But, Blanco said, "don't feel bad for us; that is our battle."

When the conference ended, Blanco said he was "going home" to Venezuela and would be "in every march - pray for us."

Most of the details described by Blanco can be verified easily on Internet sites as diverse as the United State Central Intelligence Agency and the World Travel Guide.

But the personal message delivered by Blanco and his wife brought the threat of the political retaliation to a personal, immediate level. From television sets in the conference center, news broadcasts displayed protests in Venezuela even as Blanco was speaking.

Blanco learned the basic principles of being an American as a student at Charleston (S.C.) Southern University in the 1990s. His dream at the time was to play major league baseball. Blanco could bat well enough to earn letters all four years of college, but his arm strength wasn't what the pros wanted in a third baseman, so he ventured into the world of business.

Returning to Venezuela, Blanco began establishing his business and recruited the woman who became his wife. Marjorie Blanco knows the political situation from a different point of view: Her father was one of the few military officers who refused to go along with Chavez during an attempted coup in 1992 and his successful takeover in 1997. As a result, her father had to be secreted out of the country, and she is reluctant to discuss details about her family.

Despite the risks, Mrs. Blanco stood by her husband as he spoke out against the tyranny of the Venezuelan government.

"We'd be lying to our group if we just ran away," she said. "We went out in a peaceful protest a year ago, April 11, 2002, and got shot at by government troops."

Blanco said he wouldn't have known how much he and his countrymen had lost if he hadn't been exposed to principles of freedom while studying in the United States.

The key to those freedoms, Blanco reminded his audience, was leaders who linked their lives and decisions to God.

"We have to stop putting our trust in human beings and look to God," Blanco said.

www.ananova.com Ananova: 

Surging oil prices pushed manufacturers' raw material costs up last month, by the highest amount for more than two years.

Official figures show input prices rose by 2.8% in December, the sharpest jump since May 2000, as the cost of crude oil rocketed by 17.1%.

Fears over military action in Iraq, and the general strike in Venezuela, pushed crude oil above the key 30 US dollars a barrel mark over Christmas.

OPEC has agreed to push up oil production to cover the shortfall from Venezuela and bring prices back under control.

Stripping out the impact of oil, manufacturers' input prices fell by 0.1% in December, leaving a 1.4% decline for 2002 as a whole.

The Office for National Statistics added output prices, the price of goods leaving the factory gate, climbed by 0.1% last month, but annual growth was just 1.2%.

Simon Rubinsohn, chief economist at Gerrard, said the figures suggested manufacturers could be enjoying a little more pricing power.

But he conceded: "The best that can be said at the present time is that margins are not being eroded any further.

"This is hardly reassuring at a time when the slight improvement in the output trend already appears to be running out of steam."

Story filed: 12:42 Monday 13th January 2003

Brazzil Politics February 2003 www.brazzil.com

All is not as rosy as financial markets would have us believe. Congress practically will be in recess until after Carnaval (March 1st to 4) and facing the reality of governing may be postponed for a while.

Richard Hayes

Since Lula's colorful inauguration January 1st, statements by the incoming Finance Minister, Antônio Palocci and the new central bank president, Henrique Meirelles, have helped to strengthen the real and quotations for Brazilian assets. They repeated intentions to continue fiscal and monetary austerity and control inflation. Brazilian banks and blue chip companies are expected to raise nearly US 1 Billion in international credit markets this month, which has contributed to a semi euphoric reaction on the part of market players.

So far the government has not indicated that a bond issue is in the mill. But it would not surprise me if Meirelles, who must be sifting through offers of eager investment bankers seeking arrangement fees, takes advantage of this window of opportunity, which can slam shut again at the first sign of disillusion on the part of observers, most of whom still maintain an attitude of silent skepticism.

With congress in recess until mid February when they will meet to elect the presidents of the two houses before taking another break until after Carnaval, facing the reality of governing may be postponed for a while. Before Christmas, federal legislators voted themselves a 54 percent increase in salaries and other benefits. This has caused state and municipal representatives of the people to think about increases for themselves.

Now measures are proposed to allot more funds to the congressmen and senators to maintain their offices in their home states. Perhaps measures to give a raise to Lula and other members of the executive branch of government will be introduced. Lula now earns about 75 percent of what a congressman takes home. This foolishness will make it difficult for the government to resist the clamor for salary increases on the part of employees at all levels.

Not much notice was taken of the fact that the only two heads of state attending the swearing in ceremonies that actually met in private for meals with Lula were Hugo Chavez and Fidel Castro. Chavez seeks help from Petrobras to break the strike of Venezuela's government owned oil company that is crippling the country. Fidel has promised cooperation in Brazil's "social revolution" in the areas of public health and education where Cuba has done well by Latin American standards. I doubt if Lula, a union man, will allow Petrobras to act as a scab in Venezuela. There is a big difference between sending technical people to help out at PDVSA, something that Chavez would like, and selling them a tanker load of gasoline, which was done in December.

Lula has installed his ministers and heads of important secretariats and big government entities such as Petrobras, Caixa Econômica Federal, Banco do Brasil, BNDES etc. He created three new ministries and a few special commissions in order to accommodate people of his own PT (Partido dos Trabalhadores—Workers Party) and allies seeking employment. He also plans to resurrect SUDENE and SUDAM, two inefficient regional development agencies that were always riddled with corruption and favoritism in the past. FHC managed to scuttle these organs. Lula's perhaps well meaning efforts to help develop the backward northeast and Amazon regions may only result in more money thrown away in salaries of cohorts.

All for Hunger Fight

The festivities in Brasília on New Year's Day displayed a lack of decorum but the PT and Lula had their way. Lula, who likes rubbing shoulders with the people, has developed bursitis in his right shoulder. That plus concern on the part of his security forces may minimize these occurrences in the future. Lula's speech, only one of a series of long-winded orations, concentrated on his battle to eliminate hunger. No details as to how this worthy goal might be attained are yet available.

Lula made it public that the purchase of 12 new jet fighters to replace the aging Mirage fleet, will be postponed in order to use these funds to combat hunger. The foreign press picked this up saying that Lula is wisely trading guns for butter. Local commentaries have pointed out that the US$ 760,000,000 earmarked for the purchase of new planes is not in the budget and in fact does not exist.

The planes were to be financed by the yet to be chosen suppliers who would have to purchase an equal amount of Brazilian products to compensate. The Air Force was taken completely by surprise, but the new commander of the FAB (Força Aérea Brasileira), brigadeiro Luiz Carlos Bueno, stoically accepted the measure saying that it is up to the government to determine priorities. I think we have not heard the end of this first act of demagogy on Lula's part. He probably was not informed on the details of the planned purchase to replace the fleet based in Anápolis, state of Goiás, that must be retired in 2005.

During his campaign for election, Lula and the PT actively courted the military. This seems ironic since Lula and many of his "comrades," as he has instructed people in the government to call one another, were locked up for subversion and other charges during the 21 year period of military rule. His more moderate stance, staged by Duda Mendonça Lula's campaign manager, plus promises to pay more attention to the needs of the three arms, managed to gain tacit support from this important part of Brazilian society.

Army for All

Since the election and Lula's taking office, the minister of defense, José Viegas Filho, who was not a man that the military wanted in the post, along with other ministers has volunteered the use of the army and its bases for non military purposes. The minister of sports wants to use bases for sports activities. The man in charge of the Zero Hunger program has enlisted the help of the armed forces to distribute food. The minister of education wants their help to eradicate illiteracy. The justice minister wants them to assume the role of policing Brazil's borders currently performed as stipulated in the constitution by the federal police that falls under the jurisdiction of the ministry of justice.

Then there is the matter of road construction and maintenance of federal highways that the transport minister is requesting help from the military. It remains to be seen how all this will set with the military. Those on active duty cannot speak out, but through the retired and reserve officials, their discontent can be eventually felt. In my opinion, Lula would be wise to not neglect the armed forces whose budgets were drastically curtailed during the FHC years.

Lula has yet to confirm or negate the recent declaration of the minister of science and technology. In an interview with BBC, minister Roberto Amaral ambiguously stated that Brazil should be capable of making an atomic bomb. The International Agency for Atomic Energy that has its hands full with North Korea and Iraq at the moment was surprised. Foreign minister Celso Amorim is doing his best to clarify Amaral's stupid remarks. But in a matter of such gravity, it is up to the president to come out and deny such intentions and fire the incompetent minister who should have kept his mouth shut. Amaral is in the hospital being treated for pneumonia and could resign for health reasons saving Lula the trouble.

All is not as rosy as financial markets would have us believe. But Brazil is looking to Lula to bring about a better life for its citizens. It is too early to judge how this will all work out. We are in summer and many people are on vacation so things are still not running at capacity. The next two or three weeks will give us a better idea if Lula is up to the task that 62,000,000 Brazilians bestowed upon him.

Richard Edward Hayes, and his wife Jane, first came to Brazil in 1964 as an employee of Chase Manhattan Bank. During the past thirty-eight years, Hayes has worked directly and as an advisor for a number of Brazilian and international banks and companies. Currently he is a free lance consultant and can be contacted at 192louvre@uol.com.br

This article appeared previously at the Globond site - www.globond.com.br

Brazzil Politics February 2003 www.brazzil.com

All is not as rosy as financial markets would have us believe. Congress practically will be in recess until after Carnaval (March 1st to 4) and facing the reality of governing may be postponed for a while.

Richard Hayes

Since Lula's colorful inauguration January 1st, statements by the incoming Finance Minister, Antônio Palocci and the new central bank president, Henrique Meirelles, have helped to strengthen the real and quotations for Brazilian assets. They repeated intentions to continue fiscal and monetary austerity and control inflation. Brazilian banks and blue chip companies are expected to raise nearly US 1 Billion in international credit markets this month, which has contributed to a semi euphoric reaction on the part of market players.

So far the government has not indicated that a bond issue is in the mill. But it would not surprise me if Meirelles, who must be sifting through offers of eager investment bankers seeking arrangement fees, takes advantage of this window of opportunity, which can slam shut again at the first sign of disillusion on the part of observers, most of whom still maintain an attitude of silent skepticism.

With congress in recess until mid February when they will meet to elect the presidents of the two houses before taking another break until after Carnaval, facing the reality of governing may be postponed for a while. Before Christmas, federal legislators voted themselves a 54 percent increase in salaries and other benefits. This has caused state and municipal representatives of the people to think about increases for themselves.

Now measures are proposed to allot more funds to the congressmen and senators to maintain their offices in their home states. Perhaps measures to give a raise to Lula and other members of the executive branch of government will be introduced. Lula now earns about 75 percent of what a congressman takes home. This foolishness will make it difficult for the government to resist the clamor for salary increases on the part of employees at all levels.

Not much notice was taken of the fact that the only two heads of state attending the swearing in ceremonies that actually met in private for meals with Lula were Hugo Chavez and Fidel Castro. Chavez seeks help from Petrobras to break the strike of Venezuela's government owned oil company that is crippling the country. Fidel has promised cooperation in Brazil's "social revolution" in the areas of public health and education where Cuba has done well by Latin American standards. I doubt if Lula, a union man, will allow Petrobras to act as a scab in Venezuela. There is a big difference between sending technical people to help out at PDVSA, something that Chavez would like, and selling them a tanker load of gasoline, which was done in December.

Lula has installed his ministers and heads of important secretariats and big government entities such as Petrobras, Caixa Econômica Federal, Banco do Brasil, BNDES etc. He created three new ministries and a few special commissions in order to accommodate people of his own PT (Partido dos Trabalhadores—Workers Party) and allies seeking employment. He also plans to resurrect SUDENE and SUDAM, two inefficient regional development agencies that were always riddled with corruption and favoritism in the past. FHC managed to scuttle these organs. Lula's perhaps well meaning efforts to help develop the backward northeast and Amazon regions may only result in more money thrown away in salaries of cohorts.

All for Hunger Fight

The festivities in Brasília on New Year's Day displayed a lack of decorum but the PT and Lula had their way. Lula, who likes rubbing shoulders with the people, has developed bursitis in his right shoulder. That plus concern on the part of his security forces may minimize these occurrences in the future. Lula's speech, only one of a series of long-winded orations, concentrated on his battle to eliminate hunger. No details as to how this worthy goal might be attained are yet available.

Lula made it public that the purchase of 12 new jet fighters to replace the aging Mirage fleet, will be postponed in order to use these funds to combat hunger. The foreign press picked this up saying that Lula is wisely trading guns for butter. Local commentaries have pointed out that the US$ 760,000,000 earmarked for the purchase of new planes is not in the budget and in fact does not exist.

The planes were to be financed by the yet to be chosen suppliers who would have to purchase an equal amount of Brazilian products to compensate. The Air Force was taken completely by surprise, but the new commander of the FAB (Força Aérea Brasileira), brigadeiro Luiz Carlos Bueno, stoically accepted the measure saying that it is up to the government to determine priorities. I think we have not heard the end of this first act of demagogy on Lula's part. He probably was not informed on the details of the planned purchase to replace the fleet based in Anápolis, state of Goiás, that must be retired in 2005.

During his campaign for election, Lula and the PT actively courted the military. This seems ironic since Lula and many of his "comrades," as he has instructed people in the government to call one another, were locked up for subversion and other charges during the 21 year period of military rule. His more moderate stance, staged by Duda Mendonça Lula's campaign manager, plus promises to pay more attention to the needs of the three arms, managed to gain tacit support from this important part of Brazilian society.

Army for All

Since the election and Lula's taking office, the minister of defense, José Viegas Filho, who was not a man that the military wanted in the post, along with other ministers has volunteered the use of the army and its bases for non military purposes. The minister of sports wants to use bases for sports activities. The man in charge of the Zero Hunger program has enlisted the help of the armed forces to distribute food. The minister of education wants their help to eradicate illiteracy. The justice minister wants them to assume the role of policing Brazil's borders currently performed as stipulated in the constitution by the federal police that falls under the jurisdiction of the ministry of justice.

Then there is the matter of road construction and maintenance of federal highways that the transport minister is requesting help from the military. It remains to be seen how all this will set with the military. Those on active duty cannot speak out, but through the retired and reserve officials, their discontent can be eventually felt. In my opinion, Lula would be wise to not neglect the armed forces whose budgets were drastically curtailed during the FHC years.

Lula has yet to confirm or negate the recent declaration of the minister of science and technology. In an interview with BBC, minister Roberto Amaral ambiguously stated that Brazil should be capable of making an atomic bomb. The International Agency for Atomic Energy that has its hands full with North Korea and Iraq at the moment was surprised. Foreign minister Celso Amorim is doing his best to clarify Amaral's stupid remarks. But in a matter of such gravity, it is up to the president to come out and deny such intentions and fire the incompetent minister who should have kept his mouth shut. Amaral is in the hospital being treated for pneumonia and could resign for health reasons saving Lula the trouble.

All is not as rosy as financial markets would have us believe. But Brazil is looking to Lula to bring about a better life for its citizens. It is too early to judge how this will all work out. We are in summer and many people are on vacation so things are still not running at capacity. The next two or three weeks will give us a better idea if Lula is up to the task that 62,000,000 Brazilians bestowed upon him.

Richard Edward Hayes, and his wife Jane, first came to Brazil in 1964 as an employee of Chase Manhattan Bank. During the past thirty-eight years, Hayes has worked directly and as an advisor for a number of Brazilian and international banks and companies. Currently he is a free lance consultant and can be contacted at 192louvre@uol.com.br

This article appeared previously at the Globond site - www.globond.com.br

news.bbc.co.uk Monday, 13 January, 2003, 05:59 GMT

Increased supplies are little comfort for the US

Oil prices have remained unmoved as Organisation of the Petroleum Exporting Countries (Opec)'s agreement on Sunday to increase supplies is considered inadequate to meet US needs.

Oil has been trading at about $30 per barrel as a US war with Iraq and strike in Venezuela, the world's fifth largest exporter, has pushed US reserves to near 26-year lows.

Opec "stabilising" supplies

"There are delays in getting oil from the Middle East to the US," said David Thurtell, commodities strategist at the Commonwealth Bank in Sydney.

"The global market is going to remain tight with ongoing war fears," he added.

Deliveries from the Middle East take between four to six weeks to reach the US.

US light crude see-sawed in Asian trade, falling by almost 50 cents to $31.20 a barrel, then rising above its opening price before returning to $31.68 at 0512 GMT.

Trade on the International Petroleum Exchange (IPE) in London, the world's main oil market, begins at 0900 GMT.

Supply threats

The Venezuelan strike and the looming threat of war had pushed US crude prices to a two-year high of $33.65 at the end of December.

The high cost of oil could threaten the global economy which is still struggling to show any significant growth.

Oil shipments by Venezuela, the world's fifith biggest exporter which supplies 13% of US needs, still down to about 20% of normal export levels.

Iraq sells up to two million barrels per day on the international market but that would be stopped if there was a war.

Opec increased official production by 1.5 million barrels per day (bpd) during the emergency meeting in Vienna.

"Opec is trying to send a very strong message that it will do its utmost to stabilise demand and supply," said the cartel's president Abdullah bin Hamad Al Attiyah.

Another Opec meeting is scheduled on 11 March.