Streetwise Professor

April 21, 2017

The Left Loses Its Mind (Again!) Over Citgo and Trump

Filed under: Commodities,Economics,Energy,Politics,Russia — The Professor @ 5:23 pm

Donald Trump is the left’s Theory of Everything. To be more precise, it is the left’s Theory of Everything Bad.

Latest (nut) case in point: Rachel Maddow is blaming Trump for the riots in Venezuela. No-really!

The theory: the Federal Election Commission revealed that Citgo, a US subsidiary of Venezuela’s national oil company/basketcase PDVSA had donated $500,000 to Trump’s inauguration. According to Maddow, this sent Venezuela’s citizenry, which is reeling under an economic catastrophe wrought by Chavez, Maduro, and “Bolivarian Socialism”–a cause that the left from Bernie Sanders to Danny Glover to many others has swooned over for years–into paroxysms of rage at the thought that their national patrimony was paying to honor the evil Trump.

To start with, there have been violent protests in Venezuela for years. The country is facing economic collapse. PDVSA has been looted by the Chavistas for going on 15 years now, and is a complete wreck. $500K is chump change compared to what the leftist darlings have stolen from the company, or destroyed through their grotesque mismanagement–would that the left shown equal concern over THAT. The country is on the verge of hyperinflation. There are food lines. There is no toilet paper–unless you count the currency the Venezuelan central bank is cranking out like nobody’s business. I could go on and on.

So no, Rachel. The Citgo contribution to the inaugural fund–which represents less than .5 percent of the total raised–is not even a piece of dust on the straw on the camels back: the camel’s back was broken long ago, by the vanguard of socialism that Rachel Maddow and her crowd lionized for years. The rage of the Venezuelan people is directed precisely where it should be: at Maduro, the Bolivarian revolution, and the dirt-napping Chavez.

Maddow’s attempt to lay Venezuela’s social explosion at Trump’s feet is very revealing. She and her ilk think that everything is about us–the US that is. Everything. And now in the minds of her and her ilk, everything in the US is all about Trump. So everything everywhere is all about Trump, and supposedly everyone in the world is as obsessed with Trump as they are, and blame him for all that is bad in the world, like they do.

This is clinical solipsism, broadcast live on MSNBC and CNN daily.

And in fact, Rachel should be ecstatic at Citgo’s donation. The company wasn’t spending the money of the Venezuelan people–it was spending Igor Sechin’s money! Rosneft brilliantly–brilliantly I say!–lent PDVSA $5 billion, and negotiated a 50 percent stake in Citgo as partial security. (Rosneft’s brilliance is only surpassed by the Chinese, who lent Venezuela $55 billion. Hahahaha. Good luck collecting on that one Xi! Well played.) Given PDVSA’s parlous condition, it is highly likely that Rosneft will get control of Citgo, meaning that every dollar it spends now is a dollar less in Igor’s pocket.

So the left should be happy! Trump has picked Russia’s pocket!

But no, they are also obsessing about the possibility that Rosneft will get control of Citgo’s US refineries (which represent a whopping ~2.5 percent of US refining capacity) and its gas stations (who cares?). The refineries ain’t going anywhere, so the impact on the US market will be nil. Anything Rosneft would do in operating these refineries that could hurt the US would hurt Rosneft even more. So don’t count on it happening, and if it does, it would be another own goal that weakens Russia.

Again, the left should be experiencing schadenfreude, not panic. Rosneft lent large money to a deadbeat. It’s not going to get paid back so it is seizing assets, and will end up losing money. Playing repo man is hardly the road to riches. It just mitigates the losses from making a bad loan, and it is the bad loan that is the real story here.

But to figure that out would require actual thinking, which is not exactly the strong point of Rachel, et al. Because they have everything figured out. Trump did it! And if Trump is connected, it’s bad!

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7 Comments »

  1. >>The refineries ain’t going anywhere, so the impact on the US market will be nil

    Except operating the refineries may be a front for other activities. Of the you-bring-me-a-suitcase-of-cash-in-Moscow-I-give-you-a-nice-clean-dividend-in-the-US kind.

    >>Rosneft’s brilliance is only surpassed by the Chinese, who lent Venezuela $55 billion

    I’m sure it’s for lack of money, not of brilliance.

    Comment by Ivan — April 21, 2017 @ 10:08 pm

  2. What? Trump has taken money from Maduro?

    Comment by aaa — April 22, 2017 @ 9:32 am

  3. Rachel Maddow is telling Democrats how good, pure, and smart they are and how evil, corrupt, and dumb Republicans are!?

    Comment by FTR — April 22, 2017 @ 11:52 am

  4. It seems increasingly that if one doesn’t hold qualifications in psychiatry one will not be equipped to discuss the vaporings of The Left.

    Comment by dearieme — April 22, 2017 @ 12:35 pm

  5. As befits a complex system, Maddow’s viewpoint is symptomatic of a phase change
    in western civilization that started several decades ago. It is irreversible, but
    where it leads is impossible to predict.

    Comment by eric — April 22, 2017 @ 7:51 pm

  6. At this point, it’s hilarious watching you fail,

    http://www.politico.com/story/2017/04/25/michael-flynn-turkey-russia-237550

    Comment by warisill — April 25, 2017 @ 8:36 pm

  7. I don’t know about in Venezuela, but the Chinese tend to secure their loans against infrastructure, upon which they can levy tolls and fares. So they might stand a better chance of a return on investment than the Russians. Of course, if the economy continues as it has been, nobody will have money for tolls and fares…

    Comment by Hiberno Frog — April 27, 2017 @ 3:42 am

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