Chavez proposes oil barter scheme

Chavez proposes oil barter scheme

news.bbc.co.uk

Venezuelan President Hugo Chavez has said Central American and Caribbean states could pay for oil with services or products like bananas and sugar.

Speaking in Cuba at the regional Petrocaribe summit of oil consumers and exporters, Mr Chavez said they were creating a "new geopolitics of oil".

The group is not at the service of "imperialism and capitalists", he said.

(visit the link for the full news article)

Brilliant. At least someone is thinking some sensible thoughts.

IMO, this is a really good move. Why does everything have to cost money, when you can just as readily pay for things with produce or services.

Using money creates more effort and cost than not using it. If you needed oil real quick, then you gotta sell your bananas real quick, and to do so you just might have to reduce your price to get a fast sale. And there is no guarantee you'll sell all you need.

Having the option to buy oil directly with bananas is so much less stressful and better for all I think.

news.bbc.co.uk
(visit the link for the full news article)

Very interesting.
Hugo manages to come up with a way to bypass capitalism in the oil market.

The elitist pigs are gonna be choked.

Prepare for another round of Chavez bashing in the media!

Yep, you're both right, Bit and Extra...

Can't wait for the Chavez bashers to hit this thread, and we know who they are

A man suggests a common sense way for many countries in his region to trade with each other on relatively fair terms...To allow relatively small economies to trade their agriculture say, for oil...

And people bag it, just for the sake of it...

This is groundbreaking in this part of the world IMHO, if not the world...

Surely an oil wealthy nation like Malaysia could do something similar with its not so well off neighbours in SE Asia ?

Or even Australia ? We produce plenty of oil we could barter to pacific island nations for other goods...

Surely that beats paying them outright aid over a financial year ?

Well done Mr Chavez for thinking outside the box...Edward De Bono will be proud

Peace

Another nice offer by Chavez,
ashame the Chavez haters fail to point out the good things such as free health care and education to the poor. Venezuela nearly has full literacy rate, which it didn't have until Chavez came to power.

(don't call me bias, I can name a dozen bad things Chavez has done.)

But sadly, some do not like leaders who help the poor. Apparently its "communism", even though Chavez government is far from that, heck it's not even socialism.

The cost of transporting any produce can be traded too.

Say your buyer wants 50 oil at a cost of 80 bananas. You've both got to ship your goods between each other.

The cost for you to ship the oil is your problem as you own the oil, but the cost to ship the bananas will cost oil (your oil presumably) say it'll cost 20 oil to ship the bananas to you, so you've actually got to charge 100 bananas for the sale and exchange of 50 oil.

Could work out to be a good deal or all. You might not actually need all those bananas, so you either make them part of any other bananas being shipped by your oil buyer to be sold in other countries and you all share in the cash profit of the sale of the extra bananas, or you donate them to your neighbours, either free or at reduced cost.

Just a small idea I had going through my head about this. I'm sure there are other models that will work on this barter method too.

Read the article carefully.

It's a proposal to extend an already existing barter system established by Chavez years ago and has been one of the main reasons that he's been vilified so much by the US administration.

Venezuela has established barter deals for trading its oil with 12 Latin American countries

This is nothing new.
.

reply to post by Extralien


We basically already employ that scheme but use money to simplify the transactions. Money is not bad. It serves to bridge the gap as such happens when one party wants a good someone else has, but does not have the goods the other party wants. The problem is, the money we are using is not a stable unit of value. We need to get to the point where one unit of currency is equal to one non changing unit of measurement, such as an hour of work.