Correa the next Hugo ?

uscitizen

uscitizen

Villified User
Ecuador offers to buy out oil companies

Saturday May 17, 7:32 PM EDT

QUITO, Ecuador (AP) — President Rafael Correa says Ecuador wants to buy out private oil companies unwilling to negotiate new deals with his government.

Correa has asked companies now suing over an October decree that slashed their share of windfall oil profits to 1 percent to drop their lawsuits.

Ecuador on Friday offered to boost those companies' share of soaring windfall profits to 30 percent. If companies aren't happy with that offer, Correa says his government will buy their assets at "a fair price."

France's Perenco Gabon SA, U.S.-based Murphy Oil Corporation and ConocoPhillips-subsidiary Burlington Resources are among those to file claims against Ecuador.

Windfall profits are unexpected earnings on oil sold for more than the price fixed in a company's contract.

http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90nmng00&date=20080517
 
uscitizen said:
Ecuador offers to buy out oil companies

Saturday May 17, 7:32 PM EDT

QUITO, Ecuador (AP) — President Rafael Correa says Ecuador wants to buy out private oil companies unwilling to negotiate new deals with his government.

Correa has asked companies now suing over an October decree that slashed their share of windfall oil profits to 1 percent to drop their lawsuits.

Ecuador on Friday offered to boost those companies' share of soaring windfall profits to 30 percent. If companies aren't happy with that offer, Correa says his government will buy their assets at "a fair price."

France's Perenco Gabon SA, U.S.-based Murphy Oil Corporation and ConocoPhillips-subsidiary Burlington Resources are among those to file claims against Ecuador.

Windfall profits are unexpected earnings on oil sold for more than the price fixed in a company's contract.

http://finance.myway.com/jsp/nw/nwdt_rt.jsp?section=news&feed=ap&src=601&news_id=ap-d90nmng00&date=20080517
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He's dead.

He's either gonna get a bullet in the head, or he will be the target of a rightwing coup, like Allende, Hugo Chavez, and numerous others were.
 
Thye use the US dollar as currency. I wonder how long that would last if they bought the oil Cos assets?
 
I'd like to take this moment to thank George W Bush and the absolute brillance of neocon thinking and conservative right-wing ideology for this historic moment in history.

Their buffoonery has set in motion a long overdue battle between the will of the corporation and the will of the people .. even in this country. That battle is being openly played out throughout Latin America and thus far, the will of the people is winning.

Their mindlessly greed agenda and delusional visions of granduer have exposed the gigantic gaping hole in the concept of democracy .. money. He who has the money controls the democracy.

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."
---- Thomas Jefferson

Of course, I'm a socialist.

What do I know about democracy.
 
Damocles said:
Nothing. It isn't like the whole world followed us when oil was bought and sold with the dollar.
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The advantage was that when the rest of the world bought oil they had to convert to the dollar. The impact of trading in euros has already impacted the dollar and this economy. It will take more dollars to buy oil.
 
blackascoal said:
I'd like to take this moment to thank George W Bush and the absolute brillance of neocon thinking and conservative right-wing ideology for this historic moment in history.

Their buffoonery has set in motion a long overdue battle between the will of the corporation and the will of the people .. even in this country. That battle is being openly played out throughout Latin America and thus far, the will of the people is winning.

Their mindlessly greed agenda and delusional visions of granduer have exposed the gigantic gaping hole in the concept of democracy .. money. He who has the money controls the democracy.

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."
---- Thomas Jefferson

Of course, I'm a socialist.

What do I know about democracy.
Click to expand...

LOL. And the private banks thing was seriously overblown.
 
blackascoal said:
The advantage was that when the rest of the world bought oil they had to convert to the dollar. The impact of trading in euros has already impacted the dollar and this economy. It will take more dollars to buy oil.
Click to expand...
The "advantage" is largely overplayed. If the worth of the oil increased, it did not make the dollar increase equally, it simply made it cost more in dollars. The same happens when it is with euros. The oil has a real value, it doesn't matter what monetary system is used to trade for it.

The worry that many have is that nations who have stockpiled dollars would sell the dollars and glut the market increasing inflation because they did not need the dollars to buy oil. The one that most conspiracists worry about is China as they own Trillions, this would be mutual destruction if China did this and it is very unlikely because of that. They are not insane. The same would be with other nations. They don't want the value to drop that much, there is major incentive not to flood the market and devalue their own holdings.
 
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