Intervention in Venezuela: Act with Extreme Care
On Wednesday, OSINT reporting indicated the U.S. deployed three Aegis destroyers[1], one submarine[2], and an amphibious ready group with 4,000 Marines[3] toward Venezuelan waters for counter-narcotics operations. Moves like this ripple beyond the Caribbean. When U.S. naval pressure last spiked near Iran, oil prices rose 10% despite the Strait of Hormuz staying open—driving CPI inflation from -0.1% to 0.3% month-over-month. Independent voter approval fell from 39.8% in May[4] to 37% in July[5], a -1.8% shift (BDP). The lesson is simple: even limited interventions can trigger inflationary shocks and lose political capital.
The CPI correlates with Brent crude in a moderate but significant fashion in the post covid era[6] Allowing Venezuelan crude to be used in feedstocks again will have downward pressures on the price of heating oil and the CPI during the coming winter months. The flip side, Intervention that blocks Venezuelan crude access to the Panama Canal will send global crude prices upwards.
The Refining Reality
Global oil consumption stands at 103.75 million bbl/d[7]. The U.S. imports ~20 million bbl/d[8], but imports approximately double it’s internal consumption because of our sophisticated refinery system—built for heavy crude[9]—is the most advanced in the world. Unlike China (Nelson Index 4.8) which is where Venezuela oil has been going dodging sanctions via ship to ship transfers[10] or India (9.1), U.S. refineries average 11.2[11], giving unmatched flexibility in cracking, coking, and desulfurization.
Economics vs. Politics
This isn’t about liking or trusting Maduro. Corruption in Venezuela is legendary and pervasive — a close family member had to walk away from a $2M project to build a conveyor belt to remove PET coke. Already had the permit to remove the Coke but alas can’t let any good deed go unpunished and it turned into a shakedown once the conveyor belt needed to be installed to the dock. The coke still piles there today. But U.S. national interest is clear: secure cost-effective heavy crude to stabilize fuel prices, not stumble into sanctions or adventurism that pushes Brent upward.
“We do not go abroad searching for monsters to destroy”
Trump’s strongest political card remains keeping the economy in line. Any move that drives Brent higher risks both CPI and voter approval. John Adams has wise words for everyone here: “We do not go abroad in search of monsters to destroy.”
References kept in X article and GitHub for brevity:
For charts, sourcing, and the broader discussion, see:
Full article on X: https://x.com/AndrewPiskadlo/status/1960008704763613347
Thread breakdown: https://x.com/AndrewPiskadlo/status/1960020040230834410
Repo with sources:
https://github.com/apiskadlo/Crude_Oil_repo/tree/main/Venezuela
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I feel like tearing off my clothes and dancing in the rain (snow on Tuesday). Ofc I'm entirely too old to do that. But...
We were SO right.
Here's Snoop, who rapped "F--K Donald Trump" in 2017, now performing at a Trump supporting inauguration party.
Watch Live 3:00 PM EST — Robert Barnes and Rich Baris discuss in detail bombshell results within the Public Polling Project for Early Spring 2021, and more civil unrest amid the trial of Derek Chauvin for the death of George Floyd.
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My book club vote is for the Federalist papers. I just re-read a couple, and they are extremely relevant. Between them and the anti-Federalist papers I think there's great utility in the context of modern questions.
From Dr Malone - Yaffa Shir-Raz: Weaponizing "Misinformation" to Bury Safety Concerns: A Response on RSV Monoclonal Antibodies - Analysis and editorial essay by Yaffa Shir-Raz:
https://www.malone.news/p/weaponizing-misinformation-to-bury
Watching people attempt to "unskew" polls conducted by all walks of this industry—ranging from Nate Cohn at The New York Times to Spencer Kimball at Emerson College to Tim Malloy at Quinnipiac—all to deny Donald Trump's gains against Joe Biden with various voting blocs, is more than a little sad.
The slew of recent polls over two weeks—to include no less than four today alone—have simply confirmed prior findings published from other pollsters who have previously been "unskewed". That includes your's truly and our work at BIG DATA POLL, Mark Penn at Harvard University, Patrick Ruffini at Echelon Insights, and many others.
I'm temped to equate this with an Occam's razor-like situation. But this debate is more about likelihood than simplicity.
Here's the Presidential Vote Preference Trend for Biden v. Trump going back to August 2020. The Public Polling Project did not begin asking the Rematch Question for 2024 until September 2021. However, we can still make some pretty important and interesting observations.