Venezuela's president off to China seeking help with financial crisis

Seeking the international equivalent of a payday loan, Venezuela’s President Nicolas Maduro is embarking on a trip to China and unspecified OPEC countries.  Reuters reports:

"I'm leaving today for an international tour ... a very important tour to take on new projects, given the circumstances of falling income that our country faces," Maduro said during a televised broadcast.

His first stop will be China, which has become Venezuela's principal financier through oil-for-loan agreements in which Venezuela receives cash up front in exchange for future deliveries of crude and fuel.

Getting the money now may stave off default on Venezuela’s international debts, but it will also mean that in the future, when the oil is delivered, there will be no money coming in.  China may be happy to lock in today’s low prices for future oil consumption, but as a major oil importer, China is also benefiting from the collapse of oil prices and has no interest in seeing them rise.

OPEC is a different story:

"Also, I'm going to visit other OPEC countries to continue high-level efforts (to create) a strategy for a recovery of oil prices, a strengthening of OPEC," Maduro said. He provided no other details.

I wonder if he will be visiting Riyadh.  The Saudis have little interest in propping up a commie dictator.  And OPEC has lost [corrected]  its ability to control international prices.

As long as Venezuela remains in thrall to socialism, its oil production will decline, and its ample other resources will languish, their potential unrealized.

Seeking the international equivalent of a payday loan, Venezuela’s President Nicolas Maduro is embarking on a trip to China and unspecified OPEC countries.  Reuters reports:

"I'm leaving today for an international tour ... a very important tour to take on new projects, given the circumstances of falling income that our country faces," Maduro said during a televised broadcast.

His first stop will be China, which has become Venezuela's principal financier through oil-for-loan agreements in which Venezuela receives cash up front in exchange for future deliveries of crude and fuel.

Getting the money now may stave off default on Venezuela’s international debts, but it will also mean that in the future, when the oil is delivered, there will be no money coming in.  China may be happy to lock in today’s low prices for future oil consumption, but as a major oil importer, China is also benefiting from the collapse of oil prices and has no interest in seeing them rise.

OPEC is a different story:

"Also, I'm going to visit other OPEC countries to continue high-level efforts (to create) a strategy for a recovery of oil prices, a strengthening of OPEC," Maduro said. He provided no other details.

I wonder if he will be visiting Riyadh.  The Saudis have little interest in propping up a commie dictator.  And OPEC has lost [corrected]  its ability to control international prices.

As long as Venezuela remains in thrall to socialism, its oil production will decline, and its ample other resources will languish, their potential unrealized.