May 7, 2006


Bolivia's populism steps on Brazil: More than half the gas used in Brazil comes from Bolivia, which nationalized its reserves last week (Andrew Downie, 5/08/06, The Christian Science Monitor)

Bolivia's decision last week to nationalize its natural gas reserves shocked the West, but the country set to pay the highest price - both politically and economically - is Brazil, experts and analysts say.

More than half the gas used in Brazil is Bolivian, and in Sao Paulo - the state that accounts for roughly half of Brazil's GDP - the figure is 75 percent. Any disruption in supply from Bolivia would hit Brazil hard, and those in the heavily industrialized south of the country are especially concerned about the potential costs of last week's decision.

Hard as it is for Brazilians to accept, they're increasingly part of the Axis of Good and "populist"/socialist knuckleheads like Chavez and Morales are the enemy.

Posted by Orrin Judd at May 7, 2006 6:54 PM

On a related topic (and via Charles Johnson' LGF site), it's going to be fun hearing Chavez's supporters and enablers spin this one:

Chavez wants vote on being granted 25-year presidential term.

I eagerly await Jimmy Carter's trip to Caracas to sanction this referendum.

Posted by: John at May 7, 2006 9:14 PM

"I eagerly await Jimmy Carter's trip to Caracas to sanction this referendum." I bet Carter can't wait, he has yet to meet a dictator that he didn't support. Now poor Castro has to compete with the newest anti-American dictators in the Western hemisphere to be the darling of Hollywood stars.

Posted by: ic at May 7, 2006 10:08 PM

Well, I wonder what Lula thinks of his buddies now?

Posted by: BC Monkey at May 7, 2006 10:42 PM

WSJ or IBD has a good article on this last week, Spain and mebbe Brazil fronted lots o'stuff/cash and then he nationalized things.

Socialists aren't supposed to do that to each other.

Posted by: Sandy P at May 8, 2006 12:48 AM

I cringed when Lula was elected, given his populist/socialist background, but he's been a pleasant surprise.

Posted by: PapayaSF at May 8, 2006 12:59 AM

If Bolivia had done a better job producing real benefits for the people with its free market reforms, Morales would never have been elected.

Posted by: Chris Durnell at May 8, 2006 12:06 PM