1/22/21 Steve Ellner on the Attempted US Destruction of Venezuela

by | Jan 26, 2021 | Interviews

Steve Ellner discusses the economic and political situation in Venezuela, and the U.S. role in pushing the country to where it is today. Ellner dispels a common misconception, which is that foreign influence has had little to do with Venezuela’s recent problems compared to mismanagement by the socialist governments of Chavez and Maduro. This has certainly played some role, Ellner concedes, as have falling oil prices, but he insists that by far the greater factor has been U.S. meddling during the Obama and Trump administrations. Under the Trump administration in particular, says Ellner, multiple coup attempts and the constant threat of military force have scared international companies out of Venezuela, on top of official sanctions on things like Venezuelan gold and the cryptocurrency they tried to develop when the bolivar collapsed. Ellner argues that the Trump administration was uniquely bad on Venezuela policy, and hopes that Biden’s presidency will bring a change for the better—but with Biden appearing to still endorse the radically unpopular opposition government of Juan Guaidó, he’s off to a less than promising start.

Steve Ellner is Associate Managing Editor of Latin American Perspectives and the editor of Latin America’s Pink Tide: Breakthroughs and Shortcomings.

This episode of the Scott Horton Show is sponsored by: The War State, by Mike Swanson; Tom Woods’ Liberty ClassroomExpandDesigns.com/ScottPhoto IQGreen Mill SupercriticalZippix Toothpicks; and Listen and Think Audio.

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All right, y'all, welcome to the Scott Horton Show.
I am the Director of the Libertarian Institute, Editorial Director of Antiwar.com, author of the book Fool's Errand, Time to End the War in Afghanistan, and I've recorded more than 5,000 interviews going back to 2003, all of which are available at scotthorton.org.
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Okay, guys, introducing Steve Elner.
He is an Associate Managing Editor of Latin American Perspectives, and he's the editor of the recently published book, Latin American Extra Activism, Dependency, Resource Nationalism, and Resistance in Broad Perspectives.
Welcome to the show.
How are you doing?
Thanks.
I'm doing fine, Scott.
Great.
I'm really happy to have you on the show here, and I promise not to keep you too long, just enough to get a taste of what we think Joe Biden's Venezuela policy is going to be here, and it's not looking good.
But I guess if we could start out here, can you remind us where Biden is picking up from in terms of Donald Trump's Venezuela policy, sir?
Well, Scott, there is all indication is that Biden will not modify Trump's regime change strategy towards Venezuela, even though Biden's foreign policy team, including the future Secretary of State, Antony Blinken, highlight the fact that the new government in Washington is embarking on a new approach.
And the Democrats who are in the Biden camp and the specialists in foreign policy have recognized that Trump's policy towards Venezuela has been an unmitigated disaster.
Those are the words of Connecticut Senator Chris Murphy.
For instance, Blinken and his team talk about negotiations with President Nicolás Maduro.
He talks about humanitarian assistance.
He talks about enlisting the support of U.S. allies, and on that basis he says that U.S. policy is going to be different.
But all these plans are not new, and in fact are plans that were considered or were carried out under the Trump administration.
They don't represent a new approach because they're based on the fundamental idea that Maduro has to go.
And not only that, but there is an additional sign of continuity in that Biden recognizes one Guaido as a legitimate president of Venezuela, even though Guaido was basically appointed by Trump in January of 2019, and at that point he had an official position.
Guaido was the president of the National Assembly.
At this point, he doesn't have any position at all.
Elections were held in Venezuela for the National Assembly in December, and Guaido is out of the picture completely, so that he no longer has an official position.
And furthermore, unlike in 2019, Guaido is very much discredited within Venezuela, even the Venezuelan opposition, because of accusations of corruption formulated by leading members of his own parallel government, specifically the ambassador to Colombia, that is the ambassador that Guaido appointed, Humberto Calderón Berti, a prestigious Venezuelan, he goes way back.
In fact, he was a professor by university at the Universidad de Oriente in Venezuela.
He was a candidate for president at one point.
Well, he denounced the corruption with regard to money to assist Venezuelans living in Colombia.
He denounced that, and he resigned from his position as ambassador.
And the same thing happened with Guaido's ambassador to Great Britain.
So that Biden is not breaking with Trump on Venezuela.
And that was demonstrated on Wednesday when Biden invited Guaido to his inauguration.
Right.
I mean, isn't that something else?
And I had missed that.
I just found out, David Swanson mentioned that to me earlier on the show today, about died laughing, that Joe Biden and his people brought Juan Guaido's people to the inauguration itself.
That's just incredible.
As you say, he doesn't even have a position in the assembly at this point anyway.
He's nothing but a private citizen, if that.
And let me ask you about this.
I mean, just on Guaido, the man personally, we can talk all about the opposition, whatever, but on him personally, is he not regarded as the biggest clown in Venezuela after even on the right, regardless of even all the theft and all the corruption that he's been accused of by his own side, as you mentioned.
This is a man who has repeatedly said openly that he requests the United States send its armed forces to invade his country, to install him in power, which is the highest treason.
I mean, Benedict Arnold never quite did that.
Like, OK, he conspired with the British, but he didn't call on them to come like publicly to come and crush the Continental Army and install Arnold himself as king of America.
I mean, this is absolutely crazy.
Yeah.
Yeah, Scott, and not only that, not only does he favor armed intervention, his people do also.
Gustavo Tarre, who's his representative to the Organization of American States, says the same thing, that his first priority, his first wish is that there be a U.S. military intervention in Venezuela.
But not only that, you know, Guaidó was unheard of.
I had never heard of him when he proclaimed himself president in 2019, January 23rd, 2019.
But that created great expectations among the opposition.
And some of the opposition that had misgivings about the fact that he was proclaiming himself as president went along with him, such as Enrique Capriles, who was the opposition's candidate for president on two occasions.
So everybody in the opposition was behind Guaidó.
Guaidó created great expectations.
January 23rd was supposed to be a game changer and it didn't change anything.
And then exactly one month later, Guaidó attempted to reenter Venezuela, supposedly to bring in humanitarian aid to Venezuela, and that flopped.
And then a month or two after that, on April 30th, to be exact, Guaidó led an attempted coup, a military coup against Maduro.
It was engineered from Washington and it was a flop.
And his own people stated that it was an ill-advised, desperate venture on his part.
And so, you know, there's been one abortive attempt after another, one botched attempt after another.
You know, there was a paramilitary invasion on two beachfronts coming from Colombia, which he supported.
He signed a contract to the tune of several hundred million dollars, which he was going to bankroll that venture.
And that failed as well.
There were two U.S. ex-Green Beret people who were involved and were jailed and are still in jail as a result.
So these expectations that he created in 2019, by now, some people consider them, as you say, Scott, somewhat of a joke.
But in any case, the corruption, the charges of corruption against his people and also the ineptness.
For instance, the Washington Post published an article that his government, his so-called government, his parallel government, condoned the debt that Paraguay has to Venezuela, or half of the debt, and that Guaido's lawyer got 50 million dollars for that in commission.
But even worse than that, the case of Citgo.
Citgo, you know, is the crown jewel of the Venezuelan oil industry.
And it was turned over to Guaido, but Guaido was unable to defend Venezuela's interests.
And this is something that really, really hurts Guaido, but it also hurts Venezuela as a whole, which is that Venezuela is losing Citgo.
And it's being turned over in the courts to ConocoPhillips and Crystalex.
Crystalex is a Canadian mining company, had nothing to do with the Venezuelan oil industry.
But Venezuela, it was claiming that Venezuela owed it money.
And now it's getting shares of Citgo.
So let me make sure I understand you.
You're saying that through the Americans' machinations, they essentially had gangsterized, controlled this company away from the state, the national government of Venezuela, handed it over to Juan Guaido.
But then these other these other vulture corporations came to seize it.
And as you say, he was unable to defend the interests of essentially his stewardship over this oil company for Venezuela.
For example, like if he was going to actually be the president one day, he would want to be able to cite that as a major victory, the way that he protected Citgo that one time when he was holding it for safekeeping from the Venezuelan people, something like that.
And you're saying that instead, these companies are going to run off with Citgo and he's losing the whole store, huh?
Right.
That's exactly what happened.
Unbelievable.
Exactly what is happening.
And to aggravate that situation, the lawyer that represented him, that represented his parallel government, turned out to be a lawyer who was hired by the other side in that court case so that Crystal X and ConocoPhillips and now, you know, other companies will be able to get shares of stock and Venezuela will lose that company completely.
Amazing.
Hey, I'll check it out.
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All right.
Now, let me ask you this, because, I mean, obviously oil has a whole hell of a lot to do with it.
But at the bottom line here, what is America's motive for going after first Chavez?
And well, even more to the point, Maduro, because I know Chavez, he set a very bad example for independence from the American empire.
He took his money out of the Federal Reserve and started making low interest loans to his neighbors down there and all these kinds of things.
But Maduro's no tough guy like that.
And, you know, I'm friends with Greg Palast, who's an expert on a lot of this oil industry politics stuff.
And he explains how coke oil has a lot of interest in because not actually Venezuelan oil itself, but they own the heavy crude refinery in Corpus Christi that is so dependent on Venezuelan oil.
So the Venezuelans know that they can kind of screw the cokes and up their percentage every once in a while.
This kind of thing.
But at the same time, it doesn't sound to me like that adds up anything along those lines really add up to the kind of thing that would really motivate the Americans to go this far against that government.
And I know I'm sure you agree with this.
It can't possibly be that in Washington, D.C., they're just so incredibly sad that people are going hungry because of the dysfunctional economics of Maduro's ruling party.
They don't give a damn about that.
That clearly cannot possibly have a thing to do with it.
So what is it?
Yeah, there's no question about what you say, that there really isn't any concern about the situation in Venezuela in terms of democracy, in terms of the economic situation.
Firstly, because democracy in Venezuela, I mean, I can go into that in great detail, but nobody, no objective observer, no matter what their political ideological orientation is, could possibly say that Venezuela is less democratic than Honduras or so many other countries throughout the world.
But just sticking to Latin America, the government of Juan Orlando Hernandez, so that it's not it's not about democracy and it's not about the economic plight.
It's about oil to a certain extent.
I mean, Venezuela has the largest oil reserves in the world.
So that has a lot to do with it.
And it has to do with the fact that, you know, in the early part of the 21st century, you had a number of progressive governments that came to power in Brazil with Lula, who is somewhat of a moderate progressive, Argentina with the Kirchners, Eva Morales in Bolivia, Correa in Ecuador.
But of all those countries, and we're talking about 10 or 11 countries, governments, the most nationalistic, the country that implemented the most far reaching reforms was Venezuela under Hugo Chavez.
And so Venezuela was setting a dangerous example for the rest of Latin America, not to say the rest of the world.
So the United States was out to get him just because of that.
And I think that that the Trump administration just went further than what the Bush administration was doing and what Obama was doing.
You know, Scott, the opposition Venezuela and, you know, the people are critical of Maduro say the economic situation in Venezuela is due to Maduro's mishandling of the economy.
And they say that the proof, that the proof, the argument that they come up with is that the economic situation in Venezuela, Venezuela was facing economic difficulties before Trump came to power.
And so the argument is that it's not Trump's fault, it's not Obama's fault, it's Maduro's fault.
The statement that Venezuela's economic problems precede the sanctions is, in my opinion, highly deceptive.
Sure, there were mistakes that were made.
And I think probably most people in the Maduro camp would recognize that.
But regardless of whether they do or not, the fact of the matter is that economic problems did did precede the Trump administration.
They began to really manifest themselves in late 2012, shortly before Chavez's death.
In late 2012, he went off to Cuba for treatment for his cancerous tumor.
And there was a power vacuum of sorts in Venezuela between then and the time that Maduro became elected president in April of 2013.
But those problems were nothing in comparison to what Venezuela is facing today.
It's a difference between day and night.
I would say that 95 percent of the deterioration in Venezuelan living standards occurred during the last four years under the Trump administration.
And furthermore, the war in Venezuela goes back before the Trump administration.
Firstly, it's not just an economic war.
That's the term that Maduro uses.
But I call it just a war in Venezuela because it takes in threats of military action and military action.
The attempted assassination of Maduro, the invasion on two shorefronts by paramilitary forces coming from Colombia in which U.S.
Green Berets participated.
And in April 30th of 2019, a coup attempt engineered by Pompeo from Washington.
So the war on Venezuela didn't begin with Trump.
Obama, in an executive order issued in early 2015, called Venezuela a threat to U.S. national security.
The term that was used was an extraordinary and unusual threat to U.S. national security.
And right after that, a number of U.S. companies began to pull out of Venezuela, beginning with Ford, Kimberly Clark, and after that, General Motors and a number of other companies pulled out, thus, you know, affecting the Venezuelan economy in a big way.
So the reprisals against Venezuela for, you know, the foreign policy, Venezuela's foreign policy, anti-neoliberal economic policies initiated by Chavez and carried out by Maduro, those reprisals go back in time and really go back to the Bush administration in the early years of the Bush administration.
Scott, I would say that there are three factors that explain Venezuela's economic difficulties.
What I've just called the war in Venezuela, that taking the economic sanctions and the military action and the threats of military action, that, in my mind, is the number one factor.
But the second factor is the price of oil, the price of oil.
Oil prices nosedived in 2015, and that had to affect the Venezuelan economy in a big way because Venezuela has always been very dependent on oil exports going back to the mid-1920s.
That hasn't changed in practically 100 years.
So that is a second factor.
And the third factor is certain errors that the Maduro government has committed, and that can't be denied.
But of those three factors, I don't think that there's any question that the sanctions at this point are the most, is the number one factor.
Now, let me say here, Steve, that, you know, I'm a libertarian and my audience leans free market here.
And obviously, a huge part of the problem has been monetary inflation by the government.
Although I think listeners would concede that a lot of that is in response to America's, I mean, the U.S. Treasury is the second most powerful force on Earth after the Pentagon.
And so they're trying to compensate for that.
And as you say, for collapsing oil prices and all of that.
So, you know, we don't have to approve of their economic policies to, or play them down to also note the role that the American superpower and it's, you know, essentially financial, international financial Gestapo, the Treasury Department, and the pressure that they can bring to bear on a country like this.
And regardless, like, let's say for the sake of argument, that Venezuela went full communism.
It's still an independent nation and none of our business.
It's as simple as that.
I agree.
I agree with you, Scott.
I think that my particular criticisms, you know, there are some people in the solidarity, Venezuelan solidarity movement, who in effect say we shouldn't criticize Maduro.
We don't have any right to do that.
I don't agree with that.
I publish articles in scholarly journals and magazines.
And I criticize Maduro.
But I don't think that that is the root of the problem at this point, at least.
Because everything that Maduro has done has been countered from Washington.
For instance, to get around the dollar, because basically, the US government was penalizing any company that traded with Venezuela that had anything to do with Venezuela in effect.
And so Venezuela, the Venezuelan government had to get around the dollar.
And so they started developing their own cryptocurrency, the petro.
And the Trump administration reacted immediately, prohibiting any US citizen or anybody living in the United States with any kind of transaction in the petro.
And the same thing was true with the exploitation of gold.
I mean, the US in 2017 went after the Venezuelan oil industry.
So Venezuela tried to develop the gold industry.
And the reaction of the Trump administration immediately was to implement measures against the export of Venezuelan gold.
This has been an ongoing effort on the part of the Trump administration.
Let's hope that Biden doesn't continue that policy.
But it was an ongoing effort.
And it even got Venezuela's allies, which were Russia and China, to pull out.
Because those companies are mixed companies.
The Rosneft, which was the most important company that was facilitating the trade of Venezuelan oil exports, pulled out because there were sanctions against them.
And Rosneft is a Russian company, but it's mixed.
It's private and public.
British Petroleum has stock in that company.
And the same thing is true with China.
They're Chinese state companies, and China's policy was to help Venezuela being an ally.
But a lot of those companies are private companies as well.
And so China also pulled out.
This has been a war on Venezuela.
And I agree with you, Scott.
It's really irrelevant whether we're talking about communism, socialism, Keynesian economics, what have you.
There's a principle there.
There's a principle that's at play.
Right.
And of course, anyone could see this, and libertarians are hip to this because we're so nonpartisan when it comes to American governments and their policies.
We can see that probably the number one reason that the average Venezuelan favors the left is because the left are the ones who are protecting their independence, regardless of economic policy.
Same as in Vietnam.
Who's fighting to keep the French and the Americans out?
The communists are.
Well, I guess we're with them because independence comes first, the same as if someone was messing with us.
And so here we have Juan Guaido wants to do a coup and outright invokes American power and says he wants the American army to install him in power.
And then what do we have?
And this was never on TV on cable news, but it was all over Twitter.
If you knew where to look, it was the drone footage when they tried the coup.
I guess this would have been the 2018.
The first attempt was 2018, right?
Where they had drone footage of hundreds of thousands, maybe more than a million people, certainly, absolutely hundreds and hundreds of thousands of people.
And they were waging the revolution, all right.
And what they did, they all converged on the Capitol or the presidential palace, whatever it was, and they're all facing out.
They were all there to protect Maduro and all wearing red.
And they outnumbered the anti-government protesters a zillion to one.
There's no contest whatsoever.
And that was their idea of protecting the revolution, was protecting the party in power against foreign intervention.
And who could possibly blame them?
You might even, if you thought that the CIA was smart, you might think that Maduro worked for them and they were trying to solidify power for the guy by creating a reaction in his favor, but they're not.
Yeah, there's no question about that.
You know, the surveys, surveys that are conducted by, you know, the most important survey pollster in Venezuela is Data Analysis, Luis Vicente Leon, who's a member of the opposition.
But all these surveys, all these public opinion polls indicate, Interlaces had one which indicated that 80% of the Venezuelan population is opposed to the sanctions.
And so Juan Guaido, who Trump recognized as the legitimate president of Venezuela, and apparently, unfortunately, Biden is going to follow suit, he supports and actually promotes the sanctions and supports military intervention as well.
And that has not only been rejected by the Maduro people, needless to say, but within the opposition, there is considerable dissension.
And the opposition is very much fragmented in large part because of that.
Those sanctions are hurting even the opposition, because a big chunk of the opposition now opposes the sanctions, criticizes Guaido for being so close to Washington.
Even Enrique Capriles, who was the opposition's presidential candidate against Chavez in 2012 and against Maduro in 2013, he is criticizing Trump.
He's saying that Trump has been a disaster for Venezuela, and that's splitting his own party and the opposition as a whole.
So those sanctions have been very damaging to Venezuelans.
But from a political viewpoint, to a certain extent, it's been a blessing in disguise for the Venezuelan government.
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So let me ask you about Joe Biden.
You know so much about Venezuela.
Let me assume that you know a lot about American policy towards, U.S. policy towards Latin America.
And of course, Joe Biden is a very known quantity.
He's been around all along.
It isn't like he's Buttigieg the new guy from Indiana or whatever.
And in fact, America's Latin American policy has really been crafted by Joe Biden and his allies in the U.S. Senate for decades, right?
Plan Colombia and all the rest of these things.
So at the very least, he's a guy who thinks that he knows what's best for Central America and South America in probably limitless ways.
What do you think about that?
And what do you think are the prospects for his policy here in the near term?
I think that what the Biden administration has to take into consideration at this point is that politics is very much in flux in Latin America.
And it's not the same as it was a couple of years ago.
You know, Scott, there was a period after Chavez was elected president in 1998 and became president in 1999.
There was an upsurge in progressive kind of left wing governments.
They call it the pink tide with Lula in Brazil, Kirchner, the two Kirchners in Argentina, Correa in Ecuador, Evo Morales in Bolivia, the Sandinistas in Nicaragua.
So it was one after another after another.
And this is really without precedent in Latin America.
You had so many left, left, moderate left, radical left presidents coming to power and staying in power and being reelected practically in each one of these cases.
So things began to change partly as a result of the decline of the prices of Latin American exports.
That occurred following the 2008 stock crash.
And that affected the price of the raw materials, the commodities, the primary commodities that Latin American nations export.
So that oil was affected, gas was affected, and soybeans, which countries like Argentina and Brazil export, Bolivia as well.
So it really affected the economy in a big way.
And as a result, there was sort of a rightist, there was a backlash.
And in Bolivia, you had a coup against Evo Morales.
In the case of Ecuador, the president that followed Correa, Lenín Moreno, ended up becoming a neoliberal.
Piñera, who was a Pinochet person going back to the Pinochet years, was reelected president.
And so then in Brazil, Bolsonaro took over.
So you had Honduras, too, against Zelaya, right?
Well, in the case of Honduras, that was a coup.
That was a coup that was supported by the Obama administration, specifically by Hillary Clinton.
In fact, Obama denounced it, and then Hillary Clinton countermanded that order and supported it anyway.
Yeah, that's more or less what happened.
They didn't call it a coup, and obviously it was.
I mean, Zelaya, Manuel Zelaya, was elected president.
He was the elected president.
And he was removed in a plane that landed in an airstrip of the U.S. Air Force.
So that it was definitely supported by the Obama administration.
Obama might not have been very enthusiastic about that.
I didn't know that part of it about the the U.S. airstrip.
Yeah, yeah, it landed.
It landed the plane that took Zelaya out of the country.
Well, that's a real strong indication that they were prepared for it.
I mean, all we could ever prove was the way Hillary helped cover for it after the fact.
But that's a pretty strong indication they were in on it all along, I think.
And the fact that it wasn't called a coup, if it had been called a coup, the coup leaders, the military people could not go to the United States.
They went to the United States to present their case and to bolster their image.
That couldn't have happened had the Obama administration labeled that a military coup, which in fact it was.
So that things are now changing again, beginning with Mexico, with López Obrador, who's a leftist or central leftist.
He was elected president in July of 2018.
And then in Argentina, Kirchner, Cristina Fernández de Kirchner, who was president twice, was reelected president.
And then her candidate was defeated, and a neoliberal came in.
The neoliberal, by the name of Macri, was defeated in the elections.
And Cristina Fernández de Kirchner was a vice presidential candidate, and the presidential candidate Fernández won.
That ticket won.
So she's back in power now.
And then in the case of Bolivia also, Eva Morales was overthrown.
That was a military coup.
That was a coup.
There's no question about that in my mind.
And his candidate was elected president just a little while ago.
So you have a situation, and now in Ecuador there'll be elections coming up in February, and Correa's, Rafael Correa's candidate is leading in the polls, so that there is now a swing in the other direction.
You know, the pendulum goes back and forth.
And I think Biden has to take that into consideration in a big way.
This represents a reaction to neoliberalism against neoliberalism, neoliberal economic policies.
And the other aspect that I think has to be considered is that it's a reaction against policies, against a foreign policy that is too closely tied to the United States.
Chavez coined the term, or popularized the term, multipolar world, which basically means that the world is complex.
You have different blocs throughout the world, and that's good.
You know, the Asian countries have their bloc, the African nations have their bloc, the European Union is a bloc, OPEC is a bloc.
You have these different blocs that defend the interests of their members.
And that was the sense of Chavez's foreign policy based on this multipolar world.
And this is the foreign policy that these new governments that are coming in now support.
Yeah.
And America has no right to tell them otherwise.
That's the bottom line of this whole thing.
And it's, you know, today's the International Day of Action for Yemen.
That doesn't prove the case about America's entire foreign policy, what we're doing in Yemen right now, and why we need to just cancel all imperialism yesterday.
Then I don't know what could convince anybody, honestly.
Yeah.
I was just in Washington today, and I saw outside of the Saudi Arabia embassy, there was a protest calling on the Biden administration to, you know, insist on negotiations.
This is a humanitarian crisis of grace, of great proportions.
And to insist that Saudi Arabia, you know, pull out of Yemen, and the different parties at war sit down and negotiate.
Yeah.
Well, glad to hear that the protests went off there, not just on the internet, but in real life, and draw a little bit of attention, I hope, maybe a lot.
I want to thank you for your time.
It's been just great talking with you, Steve.
Okay.
Thank you for the invitation, Scott.
All right, you guys, that is Steve Elner.
He is the Associate Managing Editor of Latin American Perspectives, and the editor of The Pink Tide Experiences, Breakthroughs, and Shortcomings in 21st Century Latin America.
The Scott Horton Show, Anti-War Radio, can be heard on KPFK 90.7 FM in LA, APSradio.com, Antiwar.com, ScottHorton.org, and LibertarianInstitute.org.

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