In early January, President Trump gave the ability of the military to go into Venezuela and remove its President. Afterwards, he said he did it to control the oil reserves which Venezuela has. He has left everyone in office except the President. President Trump said the US will run the country, perhaps he has found that running one country is not the complicated except that it is.

In an article by Alexandra Stevenson of the New York Times News Service, what will the US do with existing Venezuela’s relationships. Venezuela has a great deal of proven oil, although it is the heavier type which needs more processing than oil which comes from shale oil. There are refineries in China and the US which can handle the oil and 20 years ago, most of the oil from Venezuela went to the US. Then the citizens of Venezuela voted for a socialist government, and they have been in power for the past 20 years. In the past 20 years, the economy has gone from bad to worse and millions of people left the country. Venezuela’s economy partly depends on citizens sending money back to families left in the country.

China stepped in and offered assistance for backed by shipments of oil, which is the reason they have refineries to handle the heavier oil. China has a belt and road policy and everywhere the US is not a major presence, the Chinese move in to build infrastructure and other investments in the country. Venezuela is no exception.

In the early 2000’s, the Chinese economy was booming, and they needed more energy to power its growth. The Chinese found a willing partner in Hugo Chavez who was looking to diversify its economy away from the US.

The 2 countries struck a trade partnership that would yield more than $100 billion in financing promises from China in exchange for Venezuelan oil.

The deal continues to this day and still owes China $10 billion, according to AidData, a research institute at the College of William and Mary in Williamsburg, Virginia.

The US placed sanctions on oil leaving Venezuela. Up to 2016, Beijing was the biggest buyer of Venezuelan oil. What will President Trump do?

In other articles, the oil industry in Venezuela needs capex or capital expenditures in the billions to bring it to US standards. The oil industry was nationalized, what will the Trump administration do particularly when the world supply of oil is higher than the demand, ship oil to China?

Linking to dividend paying stocks, when the President or the CEO of profit making company leaves there are people in place to continue to make profits. The CEO is thanked for his service and walks away with millions in stock appreciation, and the shareholders thanks him for his service. That process only works if the next people in line have the same values as the CEO. The President of Venezuela was removed, why does the former VP have the same values to attune the economy to the US’s market economy?

There are more questions than answers, till the next time – to raising questions.