Frenemies?

On April 8, 2015, Stratfor, a geopolitical research institution, reported the April 7th dispatch of the U.S. State Department Counselor, Dr. Thomas A. Shannon, Jr., to Caracas, Venezuela, following Venezuelan President, Nicolas Maduro’s public request for a meeting between ambassadors of the two countries.

This meeting directly preceded the Seventh Summit of the Americas, hosted by Panama on April 10 and April 11, 2015, where 39 Heads of States gather every three years.

On the last day of the Summit, President Maduro briefly met with President Obama and reported a “cordial discussion” occurred.

But, as the country continues its downward spiral, and struggles for viability, we pose this question:  Should the U.S. aid Venezuela to stave off a complete economic collapse? I ponder the motivation behind potential U.S. involvement, especially following President Maduro’s final remark, which was: “I respect you, but I do not trust you, President Obama.”

Regardless of the outcome in Venezuela, this should serve as a not-so-gentle reminder of the many problems associated with socialism.

All questions, or comments, are welcomed.

Bob Bilkie, CFA®